One of the #1 rules in investing in mining exploration stocks, as well as for looking for new deposits is that you look around where they have already found gold. Now area plays sometimes don't workout, but if you do your DD you can find some very promising can't miss stocks, to where the geology suggests that the neighboring properties will yield the same or close to the same results. One of these stocks is BYV. Bayfield Ventures is currently drilling a property right next to Rainy River's 5M ounce deposit that at this point almost seems certain to extend for in economical amounts over a good distance onto Bayfield's Burns Block.
I have watched Bayfield for years and they were originally in uranium way back when U3O8 was going parabolic and were grabbing prospective land where ever they could find it, but the stock price went bust as the uranium spot price tanked. I took another look at BYV at the beginning of this summer as I noticed they were now focusing on properties they acquired surrounding Rainy River's discovery way back in 2005. Now what made BYV very prospective is even before this seasons current off the hook drilling results, BYV's Burns Block was already within RR's mining model, and with the ODM Zone still being open to the east onto BYV's property, made this little company a no brainer.
What made Bayfield such an exciting and can't miss area play is that Rainy River's ODM Zone extends onto Bayfield's Burns Block property and drilling this season was focused on seeing how much it extended onto Bayfield's property and right now looks very promising as Bayfield has released 2 exceptional high grade results. The first hole hit 31.74 g/t over 3.0 meters and the second hole 35.93 g/t over 10 meters suggests very good continuity of this high grade zone with the linear plunge distance between the holes being so far in excess of over 400 meters.
What this all means is Bayfield is now a can't miss property and if Rainy River wants to make a mine there, and there is now reason why they won't with the current results, Bayfield is now apart of those plans and would suggest that Bayfield will trade at a premium to insitu value because RR will be in pursuit of Bayfield and not vice versa.
With the latest results from Bayfield and Rainy River, the ODM zone continuity along strike onto the Burns Block and probability of further super high grade pockets, puts Bayfield in an excellent position to possibly discover in excess of 1M oz's on their part of the property.
BYV.V is still a great buy under a $1 and will continue to rise as it becomes obvious that the whole area is rich in gold and BYV.V becomes almost a certain part of the plans for Rainy River.
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