Braveheart Resources (TSXV: BHT) has the potential to become NIA's next Fiore Gold (TSXV: F) because just like Fiore Gold, BHT has acquired an advanced mining project with a large indicated resource and extensive infrastructure for pennies on the dollar of the original cost.
On January 18, 2019, BHT successfully acquired Purcell Basin Minerals Inc. to become the 100% owner of the Bull River Mine, an advanced stage copper, gold, and silver development project with past production in British Columbia, Canada.
BHT's Bull River Mine has very valuable preexisting underground and surface infrastructure. Its underground infrastructure includes a mine ramp, ventilation raises, sumps, surface shop, and mobile equipment fleet. There are approximately 22,000m of underground tunnels that provide access to a significant portion of BHT's current NI 43-101 indicated resource of 1,511,000 tonnes grading 1.911% copper, 0.407 g/t gold, and 15.6 g/t silver. BHT's Bull River Mine also has an additional inferred resource of 343,000 tonnes grading 1.575% copper, 0.356 g/t gold, and 10.7 g/t silver.
The current indicated resource will support a mine life of 6.5 years. The underground has been maintained in a dewatered condition, which will allow for an expedited return to mining. In addition, BHT already has a surface stockpile of 165,000 tonnes of run of mine ore that will provide an initial feed for the first 7-8 months of operations!
BHT's surface stockpile is estimated to contain 1.7% copper equivalent and is being valued on BHT's balance sheet at CAD$5.039 million. However, with copper hitting a new six-month high today of $2.72 per lb, if BHT processes this ore and produces 1.7% copper equivalent with 90% recoveries at a processing cost of CAD$10 per tonne, BHT's surface stockpile alone could generate positive cash flow of CAD$18.95 million or USD$13.93 million. (This is not a financial projection. We are not making any financial projections for BHT).
BHT's surface infrastructure includes a 750 tpd conventional mill with an adjoining crushing facilities, fine ore bin, and concentrate storage area. The mill is in good condition and only requires the replacement of the flotation circuit and installation of a filtration system. Also on the property is an administrative building, drying facility, assay laboratory, metallurgical laboratory, core logging area, secure manned gatehouse, and workers camp site.
BHT's total capital expenditures (CAPEX) required to refurbish the mill and complete surface upgrades is an insanely low CAD$5 million. Based on BHT's indicated resource grades, 750 tpd mill, and using estimated recoveries of 90% copper, 90% silver, and 70% gold... BHT's Bull River Mine will have the ability to produce 10.38 million lbs of copper, 2,500 oz of gold, and 123,000 oz of silver per year. Using current metals prices, this would equal USD$35 million or CAD$47.62 million in annual revenue. (This is not a financial projection. We are not making any financial projections for BHT).
An estimated $200 million has been invested into the exploration/development of the Bull River Mine by its previous operators.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from BHT of USD$30,000 cash for a six-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.
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