By Peter Koven
Financial Post
Frank Callaghan admits it: telling investors his company held 10.6 million ounces of contained gold last year was a big mistake.
“I’ve learned that lesson. Not a nice way to learn it by the way, but I did,” the chief executive of Barkerville Gold Mines Ltd. said.
Almost a year ago, Barkerville, a small junior mining company, stunned the mining community by stating its Cow Mountain project in British Columbia had an indicated resource of 10.6 million ounces of gold, and could hold up to 90 million ounces. Barkerville shares soared even though numerous experts thought the numbers were too good to be true.
One of the biggest skeptics was the British Columbia Securities Commission (BCSC). The regulator promptly cease traded the stock and voiced many concerns about how the data was compiled.