# GBM - GBM Gold



## Bluesky (17 October 2007)

Gold mining in the Bendigo region of Victoria, Australia.

Greater Bendigo Gold Mines Limited was admitted to the Official List of ASX Limited on
Friday, 23 February 2007.
Official Quotation of the following securities will commence at 11.00 am AEDT on
Monday, 5 March 2007.
33,109,583 ordinary shares fully paid, issued at 20 cents per share
12,424,433 options exercisable at 20 cents each on or before 31 December 2009

*SPECTACULAR ASSAY RESULTS ANNOUNCED*

Greater Bendigo Gold Mines (ASX:GBM) reports the level 1 drive at the Maxwells Mine has achieved its next objective by intersecting the 1994 exploration rise above one of the rich areas of underground workings within the mine.   
Initial grab samples have returned grades of 1,118 g/t, 12.5 g/t and 164.7g/t.  
Sampling by Central Victorian Gold N.L. reported in the GBM June 2007 quarterly report described significant grades from the rise, hence the decision to push the underground mine at the new level 1 to this area.   
Location pins for samples taken in 1998 have been identified, and the preliminary results received today are from initial grab samples taken close to the CVUG 62 PIN


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## powerkoala (17 October 2007)

*Re: GBM - Greater Bendigo Gold Mines Limited*



Bluesky said:


> Gold mining in the Bendigo region of Victoria, Australia.
> 
> Greater Bendigo Gold Mines Limited was admitted to the Official List of ASX Limited on
> Friday, 23 February 2007.
> ...




hehehe... you beat me bluesky.:
i almost make a thread about this after searching there is none in forums.
quite a fantastic find.
considering gold price $761 now. 
will see how it goes from here.
good luck to all holders.


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## Pommiegranite (17 October 2007)

*Re: GBM - Greater Bendigo Gold Mines Limited*



Bluesky said:


> Gold mining in the Bendigo region of Victoria, Australia.
> 
> Greater Bendigo Gold Mines Limited was admitted to the Official List of ASX Limited on
> Friday, 23 February 2007.
> ...




Over 1 KG per tonne ina one sample !!!!!!!???????!!!!!!!

That's just plain ridiculous. On that basis, and the 9 projects, I have to say that it underperformed today.

I will be burning the midnoght oil looking at this. If all is as well as it looks, I will be hoping to get a decent entry tomorrow.


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## So_Cynical (17 October 2007)

*Re: GBM - Greater Bendigo Gold Mines*

Amazing run up for Greater Bendigo Gold Mines.
I saw the ann about 2pm and though jess wish I had some cash 
It should just keep going tomorrow I would think, 1,118 g/t is just stunning.

Congrats to those holding.


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## powerkoala (23 October 2007)

*Re: GBM - Greater Bendigo Gold Mines*

news out..
not 1.1kg per ton
but upgrade into 1.5kg per ton now....
this is getting better and better 
good luck to all holders.


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## AncientAntlers (27 October 2007)

*Re: GBM - Greater Bendigo Gold Mines*

Are these types of grades common?

Does anyone with specific knowledge of gold mining have any explainations for these grades?


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## Sean K (28 October 2007)

*Re: GBM - Greater Bendigo Gold Mines*



AncientAntlers said:


> Are these types of grades common?
> 
> Does anyone with specific knowledge of gold mining have any explainations for these grades?



No, not common, but will only occur over relatively short intersections. So the trade off is tonnage.


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## Annwn (28 October 2007)

*Re: GBM - Greater Bendigo Gold Mines*

The big red candle on Fridays chart - perhaps some profit taking, will be interesting to see how the market reacts  

View attachment GBM.doc


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## AncientAntlers (28 October 2007)

*Re: GBM - Greater Bendigo Gold Mines*

Graph didnt work for me...i know what they look like but what does a big red candle on the graph mean?


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## Annwn (29 October 2007)

*Re: GBM - Greater Bendigo Gold Mines*

Sorry the chart didn't work, I will retry   

I was looking at the candle chart, the solid red candle - opened at the high and closed at the low on good volume, my query was on profit taking, if holding the stock, this would have been an attractive area to take a profit


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## AncientAntlers (31 October 2007)

*Re: GBM - Greater Bendigo Gold Mines*

cheers for the graph, I have a lot to learn about the technical analysis side of things,  time will tell if it was an attractive area to take profit.

Not holding


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## PAD (30 November 2007)

*Re: GBM - Greater Bendigo Gold Mines*

Interestinting presentation by the Chairman at todays AGM
"GBGM is on target to become a producer of Gold & instigatea profitable monthly Cashflow from early in the 2nd half of the current financial year Jan to 30 June 2008"

Tragetted Output to:
5,000+ oz by June 2008
rising to 
20,000+ oz by June 2009

Whats that worth in value to a 10mio Capped Stock ???


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## zt3000 (11 January 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Ann Out

SUMMARY OF ANALYSIS TABLE
Sample
Average Head Grade
Grade from sizing analysis
LMAX‐A
37.9 g/t
73.3 g/t
LMAX‐B
88.3 g/t
58.9 g/t
LMAX‐C
39.35 g/t
36.8 g/t

These are pretty good grades imo .. just cant figure out how much of it there is


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## PAD (19 January 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Hard to work out the likely resource of the 3 drives that they are doing !

Director Hoare has been buying alot of stock so that may send a reasonable message of confidence & potential of the maxwell mine.

We await further info for clarification !


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## powerkoala (25 January 2008)

*Re: GBM - Greater Bendigo Gold Mines*

ann out.
first gold production in first quarter 2008.
junior gold producer, yet sp still at 15c ??????
with gold price at 910,90 this is weird ?


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## PAD (27 January 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Exactly !

GBM come a long way since listing a year ago.

More than one area of profit generation to take into account on this stock.

1. Gold Production....
2. Gravel Sands......
3. 50% int in drilling rig...
4. MRT ... part of gold recovery processing....

Once we have resource no. & possible financial projections, these should start to make the sp move in the right direction !


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## PAD (3 February 2008)

*Re: GBM - Greater Bendigo Gold Mines*

After digesting the cash flow activities & prvious announcements it certainly looks like the market is still to get a good handle on the potential of GBM going forward !

I have summarised some of what i think are the more important components of their Cash Flow Activity report on Friday.

- Gold production to start in Mar 2008 with Revenue for the period ending JUn 2008 at $5.0 mio (only 1 quarter) with this to grow significantly higher in the following 
2 years.

Lets assume that Maxwell is producing 20,000 oz per annum for say a lifespan of 10 years that would in turn tell us that the resource is likely to be around 200,000 oz ! without including any other assay results!

- GBM's aim is to reduce the current portfolio from 9 projects to 5 These sales should in turn create 1 off revenue for the Company whilst enabling great focus on the current portfolio.

- The ISG project is an intesting one aswell as this could enable profit generation from 2 avenues 
- Gold producing (albeit small) & Gravel sales contracts 
If we make an assumption of say 1 oz per tonne of gold production from the GS & in turn have say 50,000
tonnes of gravel - do the no. on both gold(A1000 oz) & gravel(say $100pt)

We all await the JORC to really get a handle on the Maxwell resource as having 3 diffenerent drives makes it all guesswork at this stage !


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## Firdy (11 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

I got burnt in Bendigo Mining, but I have read that that this area is one of the best areas for Gold mining anywhere in the world.   I put some dough into GBM when it was 11 cents.

I am worried that 
- December cash on hand was only $ 141,000 (plus receivables)
- their plant is running behind time (was originally for commissioning in December).
- they are building a plant and have promised a resource statement, but have not issued it.

But guess that
- Any Central Victorian miner has difficulty with a resource statement, because they can't meet the JORC standard, because this goldfield is rich but "nuggety" - your drill holes don't give an accurate measurement.  The gold is not  evenly spread like in WA, making measurement difficult.
- they wouldn't be building a plant unless they were sure the gold was there (and their main project in "Inglewood" has been a very rich producer historically).

If they can solve the low cash issue without much dilution of existing shareholders, and get their plant going as predicted, I'll be in for a lot more of this baby.


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## Jordanlee (11 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

agree, they short some money at this stage. BUT I heard they have some funds coming shortly (not sure this is true). once start to produce in later this month, they will have enough funds to keep mining. Central VIC have high grade gold which is compare with other areas. i.e. one of GBM drilling sample has 1kg/t gold. That is amazing drilling result. I believe this company will get market passion shortly.


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## urgalzmine (13 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

look out for this one guys.. they now got funding from the recent announcement. All they need to do is start performing


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## Jordanlee (14 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

yep, 2.1m+1.07m+10m=13.17m in total. 
I found their projective PE is 3.15 which is far way under average 18. 
ANZ says GBM projective NPBT is 6m in GBM annoucement. By using their current Market Cap 18.9m(21c*90). 
This share is getting more interesting...


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## oldblue (14 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Good luck to holders!

After nasty experiences with Bendigo Mining and Perseverance I find it very difficult to get enthusiastic about Victorian goldminers.


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## Jordanlee (17 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

News link: http://www.theaustralian.news.com.au/story/0,25197,23375886-643,00.html

Why gold had to hit $US1000
Robin Bromby | March 15, 2008 
IT was no big surprise when it happened. It's doubtful that anyone, anywhere, popped a cork when, briefly in New York on Thursday night, gold went through the $US1000 an ounce mark.

We were expecting it. The only issue was when it would happen -- this week or next. 

Now that the $US1000/oz level is done and dusted, gold bulls will already be recalibrating their expectations. Any day now there will be talk of $US1200 gold. Then $US1500. And, again, when (not if, they'll argue) those levels are reached, it will have been anticipated and talked about so much that, like this week, it will all seem faintly anticlimactic. 

There'll be more joy among the miners, especially if they are not hedged. 

Greater Bendigo Gold Mines is as tinny as they come. 

First, it is coming to production this month. Second, it decided not to hedge that production so it -- and its shareholders -- will be getting full exposure to the spot price for the planned 20,000oz output a year. 

And while the credit well is fast freezing over for sectors such as property, the stellar run by gold made it possible for Greater Bendigo to pull off a trifecta this week. ANZ loaned it $2.1 million, investors opened their wallets for a $1.07 million placement and British managed fund Pacific Capital Investment Management put up $10 million for convertible notes. 

Not bad for a company whose shares have been struggling to stay above 20c and which has a market capitalisation of $19.5 million. 

"I love gold," chairman Ian Smith said yesterday. And he believes he will keep on doing so. "We are not about to see an outbreak of world peace and financial stability". 

Barrick Gold chief executive Greg Wilkins said in a New York television interview that he expected gold to climb a good deal further. And he ventured that the metal might find a lucrative industrial use -- replacing platinum (now more than $US2000 an ounce) in the manufacture of catalytic converters that reduce car exhaust emissions. 

Why would you expect gold to stay at these levels or go much higher? Let us count the ways.


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## urgalzmine (17 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

The only problem i see with this stock is that it needs to perform. We still have no idea how much the reserves are, this is as speculative as it gets. 

The projects are said to be alluvial gold deposits.. but there is no JORC.. correct me if I am wrong though. I do hold this stock ...


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## oldblue (17 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Sorry to harp on about this but good to see that GBM apparently havn't hedged any of their ( prospective) production.
From memory, Perseverance was required to hedge as a condition of a loan, didn't produce enough and had to buy at market to satisfy the forward sale. Result : couldn't persevere!

Disc: Unhappy exPSV shareholder.


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## Firdy (17 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Following losses in Bendigo, I studied this area extensively, especially over the last couple of months as GBM caught the eye.  I am sure that there are enough critical differences between GBM and Bendigo to continue/increase support of GBM.  (I haven’t studied Perserverance).

My thinking is a follows.  I would be grateful for any feedback.

While success in Central Victoria appears to be trickier than other places, the returns should be greater.  Particularly so with a company Cap’d at $ 20 mill.

According to www.Goldnerds.com.au, (and confirmed by other research), the reason is that the gold in Central Vic is “nuggety” (in rich patches) and in narrow veins.  Therefore it is not easy to get a JORC standard resource assessment.  Rather a successful company will do bulk sampling and mine it commercially in conservative quantities.  This seems to be what GBM have done.

In most other areas, including WA, the gold is evenly spread.  To get an accurate JORC statement of resource the WA miners drill down at regular intervals until they stop getting a consistent and economically viable assay result, and having done so in all directions, do the assays to determine grams per tonne, and it’s maths to calculate volume of earth times the grade.  Apparently that's the resource to a JORC standard.  I've seen web-photos of 15 drill rigs extended in a straight line across a "being-proven" WA goldfield.

Bendigo Mining, apparently with South African experienced management who had no experience in Central Vic, did not understand this.   They used the computer modelling methods that worked in WA but that don't apply in Central Victoria.  Basically, the multiplication of gold-rich patches by the total area of the field, (rather than the rich patches multiplied by the extent of the narrow veins), resulting in a hugely inflated resource.  The second reason they got it wrong (and the reason they probably won't fully recover) is that, based on the inflated resource, they installed mining and processing plant for wide vein.  As the gold is in narrow vein, their end grades were diluted below the economic production level.  The third reason is that they over rode the views of their local staff, most of whom shot through to work for other miners in the area.

Apparently a cost prohibitive number of infill drill holes is needed to get a proper JORC resource in Central Victoria.  So the way is to get in cheaply and mine conservatively at a profit, and then, for the future, do the conservative maths based on actual mining.

It seems that GBM know what they are doing.  They have:

1. Enough cash (recently).
2. Know the gold is there (Assays, bulk sampling results and rich history - see the web site).
3. Able to process it profitably (the tenements, mine, access and plant exist and we'll know their cost when they turn their plant on).
4. Good people (assumed - not checked by me at this stage) and management with local knowledge.

At a Market Cap (commencing production) of $20 million, with production ready to start, the risk of GBM appears to not be comparable with Bendigo, who had a (pre-production) Cap over $ 1 billion (if I recall correctly).


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## spectrumchaser (17 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Hi Firdy,
  Interesting article thanks.
I like to have a look at the back grounds of the directors and managers
before taking a punt with a venture such as this.

John Cahill is a managing director/Geologist with 14 years experiance on Gold projects in the Bendigo area   -key man to the venture.
Holding 600,000 shares in the company

Ian Smith Chairman/Investment Banker major share holder with
34,500,000 shares by my calculations.

Gavin Hoare Director-Investor Business manager
11,576,747 shares purchased at 20 cents


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## oldblue (18 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Hi spectrumchaser.

You would have noted also that Ian Wilson is, or was, a director of NZ listed companies Pure NZ ( Now Lombard Group), Life Pharmacy and SmartPay Ltd, none of which have been a conspicuous success, to date.


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## sophieyan (18 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

GBM's chairman forecasted annual pdn of 20,000 ounces.  At current market cap of $18.9 mil, the ratio of Mkt cap to projected pdn is $945 per ounce.  If earnings are rising, this going to reward it.  I'm going to buy it


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## Jordanlee (19 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*



oldblue said:


> Hi spectrumchaser.
> 
> You would have noted also that Ian Wilson is, or was, a director of NZ listed companies Pure NZ ( Now Lombard Group), Life Pharmacy and SmartPay Ltd, none of which have been a conspicuous success, to date.




One Director doesn't make a Summer, or probably much difference.  Wouldn't you think gold mines are valued on the resource, and production and profit?
Mr Smith was quoted on the recent announcements in regard to finance - which is his area.  
But previous announcements have quoted Mr John CahillI, the Geologist Managing Director.  He is a local and obviously one of the key men.


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## oldblue (19 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

I don't know about "a Summer".
I was merely pointing out, in response to a post which stressed the importance of the people involved with a company, that the Chairman, a fairly important position and, I think, the largest individual shareholder, has had a less than stellar career as  a company director.


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## PAD (19 March 2008)

*Re: GBM - Greater Bendigo Gold Mines*

If you have a read of the website you will see that GBM has built up a good team to run & operate the mine which indicates to me this small company has come a long way over the last year from an Explorer/developer to actual PRODUCER which alot of small companies would love to achieve!

Granted they have announced a JORC and possible future reservies of the Maxwell mine but they are probably being as prudent in their approach as possible to avoid the same mistake as BDG.

If they came out with this info alot more people would be jumping on board and the SP would be 30c +

Im in for the long haul as Maxwell isnt the only good asset they have on the books.

Using the methodoly of Goldnerds GBM is rapidly climbing up the rankings !


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## Jordanlee (4 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Here is what I have found out.    
Lombard used to be Pure New Zealand.    It became Lombard as a back door listing.
Pure NZ had been a general investment company, that owned GBM.  It sold GBM to the current operators. 
Since that sale, some two years ago, there is no relationship between GBM and Lombard.


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## oldblue (4 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Yes, I read that recently ( word for word!) on another forum.
Ian Wilson Smith was the common factor but he ceased being a director of Lombard a year or so ago.


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## smoush1954 (4 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

The big question now of course is, when do they start production?  first at the end of Feb then at the end of March, now nothing.  An email to the company, as usual, went unanswered.  Anybody got something better?


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## oldblue (6 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

See www.far.co.nz
Link to Greater Bendigo Gold Mines.

"Inglewood will be in production Q1 2008."


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## Curious (12 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

It appears Smith, Hoare, Marriot and D Cahill are all intertwined.

Who is this Roger Phaflert of PMI and MRT "fame" who has been entrusted to build their processing plant? How did he get involved?

Only information I can find is that he has a couple of patents out on "breakthru" directional drilling technology and has built up a couple of small family business scale beach sand plants  - nothing about processing plant construction. 

Nothing I can find gives any indication as to his ability to meet targets...hence the delay in production and low on-hand cash position.


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## Jordanlee (14 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Just read their new annoucement: resource statement and potential target
153,962 ounces from 1,547,950tones resources from Inglewood and ISG. 
500,000 ounces resource potential target on. 
$A460/oz Production Cost gives 6.8mil profit at end of 30/06/09.


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## urgalzmine (14 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

to be honest Jordanlee, there is nothing new there from the announcement 01/02/08

- I wanna know what their doing with all that borrowed money? are they producing? if so how much now? they were meant to start in march but we havent heard boooo

not happy jan


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## Firdy (15 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Hey Urgalzmine,  

Would you agree that a Resource statement is a leap in certainty on from the drill results that were in their quarterly report of 1/2/08?  I'll be trying to get in early, and snap a few shares at 19 cents.

Thanks to the ANZ and Opus Prime for giving us the chance to get more Gold shares at discount prices eh?

Having read your comment I looked again at the quarterly report.  Plenty of photos of stuff going on, and this pretty much confirmed by a mate of mine who lives local.

I'll buy now at 19 cents per share, ($31 per ounce of in-ground resource (by market)), and sell when it hits $ 60 per ounce (0.40 cents per share).


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## Jordanlee (15 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

These discussions are interesting. One people want to fight with Ian Smith for his life time, and trying to stop investors to put money in his enemy's pocket. Good luck ya!


I just found GBM annouced their inglewood project.
-"Refurbished Maxwells Processing Plant. 100% owned by GBM."
-"Precommission trials commenced on 9 April, and to be delivered to site in the week ending 18 April. with commissioning to commence immediately thereafter-leading to initial gold production in April." 
-120,000t of tailings at approx. 1g/t. 
.......
Good annoucement! I have been waiting this for a well. 
Good luck for all holders!


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## oldblue (15 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Hi Firdy
Sorry to butt into this discussion but I just want to point out that your equivalent of a real estate agent also owns over 50% of the house he's selling.
Good luck with GBM. I also got slightly burnt in Bendigo Mining and Perseverance so I'm a bit wary of Vic goldminers!


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## spectrumchaser (16 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

There is an error in my posting of March 17th it should read
 Doug Cahill Solicitor 600,000 shares  and not
 John Cahill Geologist 600,000 shares.

  There are two Cahills   on the board perhaps a local
may be able to clarify if they are related or even brothers ?


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## Firdy (16 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*



spectrumchaser said:


> There is an error in my posting of March 17th it should read
> Doug Cahill Solicitor 600,000 shares  and not
> John Cahill Geologist 600,000 shares.
> 
> ...




My mate there told me that Douglass is a fourth generation Bendigo Lawyer, and formerly Chairman of the Bendigo Stock Exchange.  He looks to be around 65 from the photo.   I guess he'd have to have a few relatives around after 4 generations.  I see Douglass sells small parcels of shares from time to time - around $ 5,000 worth and so forth - only a bad sign if it's large parcels.  Normally just means the Director is short of dough.  

John is the key man - is respected for being very conservative.  And also a long term local.   Apparently he was just below the most senior level with Bendigo Mining and had a falling our and resigned BEFORE they came out with the Resource Statement that was b/s.   He woldn't let them do what they did, and when they went ahead anyway he left.   That is good.    

Apparently they are some kind of distant relative - uncle/nephew once removed or something.


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## spectrumchaser (17 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

HI Firdy,

  Thanks for finding  more helpful info about John and Doug Cahill for us.
You are fortunate having a friend in the Bendigo area.


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## Firdy (17 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*



oldblue said:


> Hi Firdy
> Sorry to butt into this discussion but I just want to point out that your equivalent of a real estate agent also owns over 50% of the house he's selling.
> Good luck with GBM. I also got slightly burnt in Bendigo Mining and Perseverance so I'm a bit wary of Vic goldminers!




Good to have some other input oldblue.  

Maybe an even more acurate analogy might be the "real estate agent" retained a fraction of a percent shareholding of the house - Cahill is .2/10th of a percent.  But what the real estate agent really got was one of the other buildings on the property for removal = Greater Bendigo and its 9 projects.  If you accept this analogy, then we could agree that Lombard is irrelevant to GBM's Gold production. 

I'd have to agree with you though that Vic miners are generally higher risk.  I think the market de-values them accordingly, and then over-rates them when they start production??????

I like the maths.  Looking at 1.EV/Resource 2.EV/Discounted-In-Sit-Gold  3. Mkt Cap/next yrs pdtn 4. cash cost per oz

PSV sp 0.20  1. $86/oz   2. $119/oz  3. $ 961/oz  $ 4. $587/oz 
BDG sp 0.28  1. no resource 2. $20/oz  3. no pdtn 4. $ 570/oz 
GBM sp 0.20  1. $135/oz  2. $ 88/oz  3. $ 1007/oz 4. $ 460/oz

(EV = Enterprise value = Market cap adjusted for balance sheet items).
The average price for gold in the ground in Australia is $ 135/oz for a producer.

The difficulty in Vic is it's hugely expensive to measure the resource to JORC standard.    BDG will used this as an excuse to estimate and overstate, which meant when they did have ratios, they were wrong.  

GBM appears to be conservative, so I am expecting their ratios to be conservative as they find more Gold. 

Looking at the BGM's Inglewood history, the field produced 6 million oz, is about the same size as Bendigo, but only a small percentage explored and untouched below 150 meters (compared with 1 km. for Bendigo).  The 650,000 oz resource and potential estimate for Inglewood must be conservative.

So comparing these three Vic miners:  
- write BDG off for the time being as their infrastructure is wrong, making their cost of production high.  
- PSV's costs is also too high - but still worth a look.
- GBM's ratios are high, on what they have announced?  but are they being conservative enough having learnt the lesson from Bendigo down the road?  

The strategy of setting up a small plant (50Mt per hour) (when they finish it that is .... ) and then increasing resource/exploration on the surplus cash flow seems logical.  

It is a totally different strategy than that which failed at BGD.  

Another thing I checked .... On GBM's resource statement, and the "Inglewood project update" from yesterday, they have a PE of 3 (still) but seven years production of existing resource, and 25 years production of potential.   

All this tells me that the future has to be good for GBM, for  those who can wait...


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## oldblue (17 April 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Hi Firdy
Your numbers may well be feasible but I'm still not attracted to Vic goldminers. Better prospects elsewhere IMO.
By the way, I thought it was Mr Smith that you likened to the real estate agent. He's the one with over 50% of the house/company.


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## oldblue (3 May 2008)

*Re: GBM - Greater Bendigo Gold Mines*

It doesn't look as though GBM managed to get Inglewood producing in April.
May, perhaps?


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## Firdy (13 May 2008)

*Re: GBM - Greater Bendigo Gold Mines*

I phoned them about the plant.  I got a bit of info, basically  commissioning is proceeding well, but a bit behind time, and to what for the next announcement.


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## Curious (18 May 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Done some research on the various directors...

It looks like Doug Cahill has a dubious past...he was one of 3 directors who tried to scam Primus with an airship deal a few years back.

Just google ccp primus doug cahill

This bloke is a con-artist.


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## Firdy (20 May 2008)

*Re: GBM - Greater Bendigo Gold Mines*

I am happy the GBM is well funded with $13 million in lines of credit, including ANZ bank, and there are several other Directors who are conservative.  This is news to me, but actually, it doesn’t affect my view of the company, and here is why.

Interesting.  I see Mr D Cahill was demoted from Founder/Managing Director to "Special Projects" a few months after the float, and John Cahill, geologist (and I read a distant relative) was took over as M.D.  I wonder if this is related? 

The Google search came up with two newspaper articles from around 2003.   This does not read as a scam – rather a deal gone wrong, and the parties fighting hard afterward, disputing each other’s position. 

For those who want a summary, the articles say that Mssrs Cahill and others (apparently unrelated to GBM) contracted in early 2,000 to pay a $ 1.6 million deposit for an airship, and that they pre-sold a 12 month lease to a telco (Primus) for $3 million with a $400,000 up front deposit.  According to one article the $ 400,000 deposit was spent in the business = no personal profit.

This would have seemed at the time like a good deal for all.  Very entrepreneurial.   Other than apparently they didn't tell Primus that they didn't have the money to pay the rest of the $1.2 million for the Airship.   Reading between the lines, in the heady days of the tech boom and the pre-Olympic euphoria, and with a $ 3 million contract "in the bag" Cahill and co. would have expected to be able to contribute or raise the further $1.2 million in order to get the airship built.    

Again reading between the lines, the environment changed in April 2000 with the tech crash, where average telecos lost 70% of their value, and smaller ones 90%.   (I understand the tech crash very well, having had my own Internet based business come very close to collapse at that time when all our teleco customers, small and large simply cancelled millions of dollars of orders).   

That would have been the catalyst to the Airship deal collapsing - who'd expect a junior teleco to continue to come up with a further $ 2.6 million in advertising in that environment?  So (I'm guessing) the potential funders would have disappeared in droves, leaving Mssrs Cahill and others with their pants around their ankles.  

If these guesses are correct, its way too strong, and probably defamatory to call him a con man or scammer.  It would be fair to say “failed deals” and "high risk".  That's not fatal, especially in Gold Mining, which nearly all carries risk.   The board appears balanced with some  conservative heads.  

I wonder how this finished out.  Was there an appeal???   Did the Cahill and others pay the $ 400,000 back?   It would be interesting, although not really relevant to write to the company and find out for sure.


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## Firdy (25 May 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Hi Curious,

I have asked a Barrister to find and provide a copy of the judgement.  That's the way to really find out if this Director was a con-man or a entrepreneur gone wrong.


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## Biggle (25 May 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Court finds airships directors misled Primus
April 25 2003 The age.com.au
By Leonie Wood

A Supreme Court judge yesterday found three directors who talked Primus Telecommunications into signing a $3 million marketing contract for an airship to fly over the Sydney 2000 Olympics had engaged in misleading and deceptive conduct.

In an 80-page decision, Justice David Habersberger said the evidence of the three - Robert Palmer, Bendigo solicitor Douglas Cahill and Gary Walsh, all directors of CCP Australian Airships Pty Ltd - variously was unsatisfactory, unconvincing, and at times evasive.

"I regret to say that I was left with the clear impression that each of Cahill, Palmer and Walsh, when giving evidence, was acutely conscious of the fact that he might be found liable for the damages claimed by Primus and his answers were at times influenced by this fear of what, no doubt, would be a financially disastrous result for each of them," Justice Habersberger said.

Primus has demanded CCP Airships and the three directors repay a $400,000 deposit the telecommunications group paid in early 2000 as part payment for a 12-month lease over the inflatable airship.

Although the deposit was described in contracts between the parties as "non-refundable", Justice Habersberger said it would be an extraordinary interpretation to assume that CCP Airships could retain the deposit if it had flagrantly breached the licence agreement.

Mr Cahill last night told The Age that CCP Airships and the directors planned to file an appeal next week. "We will appeal vigorously," he said.

With Telstra as one of the dominant sponsors of the Olympics, Primus hoped to win a marketing advantage by flying the airship over Sydney during September 2000. Video screens on the sides of the airship were to be devoted to Primus ads.

But CCP Airships could not raise the $US1.6 million deposit the US-based airship manufacturer demanded ahead of construction, and the project failed. 

Justice Habersberger said that because the directors had failed to tell Primus officials that CCP Airships did not have the funds to meet the manufacturer's deposit, they had misled and deceived Primus.


Couldn't find anything further if the appeal was lodge or not.

I anticipate further news this week on whether or not production has commenced at Inglewood as it will be 2 months from there last deadline and I think the ASX would take a dim view on the lack of followup information to the market, heres hoping it will be good news about production commenced, particulary with Gold edging back towards $1000.


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## Firdy (26 May 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Thanks Biggles,

I've reflected, and despite all the positives with GBM I'm now uncomfortable with this news about Mr D. Cahill.  Those are unusually harsh comments for a Judge to make, especially in a commercial case.    

I think readers of this who are shareholders should urgently write to the Board and require an explanation.

They have six directors - which is one or three too many ....
I've rarely seen a better case for shareholders removing a Director.....

On positive matters, I saw statements that the plant was running on another site.  I have not seen this verified as yet.  Perhaps it is running in Commissioning, or perhaps it is running in full Production???

My personal enthusiasm about this company remains strong to the extent that I have sold done other gold shares and bought this.   It is based on:
- local information on the highly likelihood of a repetitive nature of the geology in the area ... that they are only scratching the surface of a 2 - 3 million plus plus oz exploration potential, and 
- that (same as anything in life) Victorian mining is hard when done by people without experience in the area, but not so hard if done right  ... therefore generally undervalued.
- operating plant  (now or soon??)
- projected 6 million profit, so they don't have to go to shareholders for cash. 
- ratio analysis on existing announcements.

- equals === BINGO  ====


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## oldblue (5 June 2008)

*Re: GBM - Greater Bendigo Gold Mines*



oldblue said:


> It doesn't look as though GBM managed to get Inglewood producing in April.
> May, perhaps?




Any news on how Inglewood is going?
Do we assume that production didn't get under way in May?


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## Biggle (5 June 2008)

*Re: GBM - Greater Bendigo Gold Mines*

News out, production under way and should have something to show for it by end of the month. We will see.


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## Firdy (25 June 2008)

*Re: GBM - Greater Bendigo Gold Mines*

End of the month is close?  Are they going to do it?  Production has been going on since the announcement on the 6th of this month - some results from the first two weeks should be nigh ..... but where are they?


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## sophieyan (27 June 2008)

*Re: GBM - Greater Bendigo Gold Mines*

New announcement out

THis is from the announcement
"All major systems are funtioning correctly n their overal effectiveness has also exceeded expectations. 

In addition to capturing the normal size range of free gold as expected, gold down to and finer than 40 microns being trapped.  The Enhanced  Gravity Concentrators are also capturing greater than expected quantities of gold bearing sulphides. 

The Maxwell plant's operation will now move from component effectiveness testing, to overall performance measurement and performance reporting. It will also focus on processing free gold n concentrate produced to date into gold bars for sale. "

This is exciting news, ah?


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## Firdy (2 July 2008)

*Re: GBM - Greater Bendigo Gold Mines*

If they are capturing gold below 40 microns, then the new technology is doing something the gold industry has been trying to do for 150 years.

Their yields will be way up.  Am buying more at 15, and looking for the results of their "analysis".


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## sam76 (9 July 2008)

*Re: GBM - Greater Bendigo Gold Mines*

GBM SULPHIDE CONCENTRATES SHOW SIGNIFICANT GRADES
Independent assay of the sulphide concentrates produced by GBM’s Maxwells
Processing Plant show gold grades up to 13 Kilograms per tonne present in the
concentrate (See results below).


13 kilograms a tonne!!!!


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## Firdy (22 July 2008)

*Re: GBM - Greater Bendigo Gold Mines*

This equates to 13g/tonne for the initial 500MT of tailings processed - which infers same for the 30,000Mt of tailings stockpiled for processing.  (Of course) they are not sure of whether this grade continues throughout - time will tell.

At lease this bodes very well for the Pfahlert system that they are using - they say it recovers microscopic gold down to 10 microns.

Reading between the lines this will lead to an increase in their overall resource once they have have a chance to review their JORC.

At current Cap - GBM is the best value 0f 41 gold producers listed on Goldnerds.


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## Firdy (23 July 2008)

*Re: GBM - Greater Bendigo Gold Mines*

This should reduce the negative sentiment about Victorian mining:

Transcript from ABc's lateline business

ANDREW ROBERTSON, PRESENTER: Victorian scientists have identified a patch of land between Bendigo and the Murray River which they believe contains $32 billion worth of gold.

They say modern technology should be able to penetrate layers of thick sediment which have made the find almost impossible until now.

Vicky Jardim reports.

VICKY JARDIM: Scientists believe this yellow area north of Bendigo could spark another Victorian gold rush.

DR RICHARD ALDOUS, VIC. DEPT. OF PRIMARY INDUSTRIES: We're estimating that there could be 1,000 tonnes of gold, which is a very large amount of gold, total world production of gold since King Solomon is about 150,000 tonnes, and so that puts it in perspective.

VICKY JARDIM: The scientists at the Victorian Department of Primary Industries made the startling find when they compared the 10,000 square kilometres stretch of land with a nearby area that was geologically similar. They found it was highly probable significant gold deposits were still undiscovered, worth more than $32 billion.

RICHARD ALDOUS: The area is covered by sand and clay and so the old time prospectors couldn't get to that.

VICKY JARDIM: Since the 1850s, more than 2,500 tonnes of gold have been dug up around Ballarat and Bendigo. Scientists and the Victorian Government believe almost half that amount again may still be in the ground in this unmined area.

RICHARD ALDOUS: So these big blue circles are the major old gold mines that were developed in the past. So this is the area where we've defined the 1,000 tonnes.

PETER BATCHELOR, VIC. DEPT. OF PRIMARY INDUSTRIES: Old miners were limited by the geology, their lack of knowledge and modern techniques to extracting gold. But with modern mining techniques we should be able to access it.

VICKY JARDIM: The group hopes the study will encourage gold exploration companies to move into the area.


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## oldblue (31 August 2008)

*Re: GBM - Greater Bendigo Gold Mines*

Does anyone have any ideas as to why the SP spiked to 13c on 25 August before falling back to 10c?
Doesn't seem to be explained by any movement in the PoG or company announcement.


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## oldblue (12 January 2009)

*Re: GBM - Greater Bendigo Gold Mines*

Has there been any news from GBM since the operating subsidiary was placed in voluntary administration a couple of months ago?


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