Richfield Ventures (RVC, TSX-V) has an emerging world class bulk tonnage gold deposit in central British Columbia that some “majors” are keeping a close eye on. A 25,000 metre drill program started last month at Richfield’s Blackwater Project and about a dozen other companies have picked up ground around the area which is going to make for a very interesting summer of exploration.
With intersections like 361 metres grading 1.25 g/t Au (from 7 metres to 368 metres), Richfield indeed has something potentially very big on its hands – possibly one of the largest gold discoveries B.C. has seen in many years. The stock hit a 52-week high of $2.25 last month (it traded as low as two-and-a-half cents last year) and has pulled back to a strong zone of support, closing this week at $1.62. With just 27 million shares outstanding, Richfield’s market cap stands at only $44 million – FAR, FAR below what this company’s takeover price might be if they prove up the 5+ million ounces Blackwater very conceivably holds. The recent market pullback has made Richfield more attractive than ever. The stock made an important technical reversal today, suggesting a new upleg is now underway. With Gold climbing to new record highs and the possibility of a summer of more sizzling assay results from Blackwater, now is an ideal time to be positioned in Richfield. This is a company with strong management and all the right ingredients to bring maximum value to shareholders.
As an investor we suggest you do your due diligence on Richfield, if you have not done so already (Richfield was added to the BMR Portfolio last December at $1.20), and get familiar with this company in a hurry. We have just interviewed Richfield President and CEO Peter Bernier and we’ll be posting Part 1 of that fascinating conversation Sunday morning.
