BDG - Bendigo Mining

[Feng]

Here is another one:

http://www.theaustralian.news.com.au/story/0,20867,21486494-643,00.html


Bendigo not out of the woods

* Andrew Trounson
* April 02, 2007

AFTER being banished to the wilderness, Bendigo Mining - along with its decade-old dream of resurrecting gold mining beneath the Victorian city of Bendigo - appears to be back on investors' radar screens.
The stock posted a strong rally last week.

Investors will have their fingers crossed on new drill results due to be released when Bendigo reports quarterly figures on April 26.

The market remains wary after January's shock news that lower-than-expected ore grades would force the company to shut down production barely three months after starting.

Much of the recent rally is attributed to disappointed US fund manager BlackRock finally completing the sale of most, if not all, of its near 12 per cent shareholding.

The BlackRock selling had taken Bendigo shares down to just 26c by mid-March, its lowest level since 1992, valuing the miner at $129 million.

That is less than the value of plant, equipment and cash for a stock that a year ago was valued at more than $1 billion.

Since then the share price has risen by 50 per cent, hitting a high of 47.5c last week before closing on Friday at 40c.

Watching with interest is St Barbara Mines chief executive Ed Eshuys. Following Bendigo's share collapse in January, St Barbara opportunistically forked out $17.2 million to snare a 10 per cent stake, paying an average 34.8c a share.

Mr Eshuys, who has criticised the exploration approach at Bendigo, has since had a first-hand look over the operation.

There has been no recent substantial shareholder notice from St Barbara, and Mr Eshuys appears to be sitting tight for the time being.

 

[Feng]

If we can see SBM is toping up their stake, will see another sp jump?

Not sure when we can have some stake update after last two weeks move.

 

[juiceman]

Good notice this morning.
Have a look

 

[Sean K]

Good notice this morning.
Have a look

Juiceman, it's nice if people share information directly on the forum instead of just requesting people to 'check this out'. Can you please provide us a little info here, so we know whether it's worth checking out or not. Thanks! kennas

 

[The Mint Man]

here ya go kennas,
I dont have the time to read the whole thing ATM but there are the main points, please see your Brokers website or ASX for more info:

Key Points
•Encouraging drill results from the Garden Gully line.
•Testing of an exploration ‘hot spot’ to commence.
•Production of 12,822 oz at an improved grade of 6.8 g/t.
•Business restructure completed.

cheers

 

[Feng]

Looks like the market is not so encouraged by this report. sp is dropping atm.
any thoughts?

 

[juiceman]

Juiceman, it's nice if people share information directly on the forum instead of just requesting people to 'check this out'. Can you please provide us a little info here, so we know whether it's worth checking out or not. Thanks! kennas

AT time of posting; i was very busy, market had just opened,just thought i would bring it to members attention , apologies Juiceman.
While the ann was hardly exciting, i feel it was acurate and honest (silly me ) which does make a change for that company.
One point worth concideration,is that while not being in production, and moving to-ward target zones,they pulled 11000 oz of gold out of the ground, what might happen to sp if they hit what they say is there?

 

[Agentm]

wake up

16:27:290.33006,240,8092,059,466.97SPXT

somethings happening in the Bendigo camp..

anyone care to guess? if its not obvious enough..

 

[The Mint Man]

sorry mate... your going to have to elaborate (hehe that rhymes)
Im not making any sense of the numbers you posted... where are these from?

Cheers

 

[Broadside]

sorry mate... your going to have to elaborate (hehe that rhymes)
Im not making any sense of the numbers you posted... where are these from?

Cheers

a cross trade, look out for substantial shareholder notice soon

might be a chance to recoup old losses on this dog if there is a hostile takeover

 

[The Mint Man]

a cross trade, look out for substantial shareholder notice soon

might be a chance to recoup old losses on this dog if there is a hostile takeover

about bloody time!
I was only talking about selling out today to invest in something else... but one of my work mates told me to hang on as it would go up as soon as I sold it and I would kick myself....so I thought,'ok Ill give it till the end of june'. Hopefully this is what I've been waiting for.

 

[Agentm]

absolutely dont sell this dog!!!

just wait and let the whole thing happen first.. you dont invest in BGD for its future, it will make some other company its fortune..

lets see if they allow it open!! interesting days ahead i see..

sorry about the figures

time 16:27:29 0.3300 6,240,809 shares $2,059,466.97 SPXT

 

[The Mint Man]

This would have to be a first for ASF.

absolutely dont sell this dog!!!

haha
hold on to your dog people, its about to run

EDIT: just noticed that BDG's Vol today of 10 million is way over its average of late. Anything in that you recon?

 

[sam76]

what do you think are the chances that it's SBM that's launching a takeover over BDG? (man this 100 character thing is hard core)

 

[Uncle Festivus]

what do you think are the chances that it's SBM that's launching a takeover over BDG? (man this 100 character thing is hard core)

Mmmmm..... and SBM just raised $100mil.
SBM cash on hand = $51m
BDG market cap = $169m

Shortfall?

SBM previous entry ave 35c
BDG close today 34c
Xtrade @ 33c

Ed has an eye for distressed assets going for a song & then revitalises them.

 

[Agentm]

what do you think are the chances that it's SBM that's launching a takeover over BDG? (man this 100 character thing is hard core)

i dont think sbm have anything else on their mind other than taking over entirely BDG..

lets see what happens

 

[Crash]

22-05-2007 04:27 PM $0.330 6240809 $2,059,466.970 Special Crossing Trade,Crossed
22-05-2007 04:10 PM $0.340 623 $211.820
22-05-2007 04:10 PM $0.340 1308 $444.720
22-05-2007 04:10 PM $0.340 1860 $632.400
22-05-2007 04:10 PM $0.340 9235 $3,139.900
22-05-2007 04:10 PM $0.340 19000 $6,460.000
22-05-2007 04:10 PM $0.340 3864 $1,313.760
22-05-2007 04:10 PM $0.340 17901 $6,086.340
22-05-2007 04:10 PM $0.340 12100 $4,114.000
22-05-2007 04:10 PM $0.340 37900 $12,886.000

Last 10 Trades. So how can this happen?
Who do the shares cross from/to?
How many shares would SBM need in takeover mode?

 

[$20shoes]

Please look at the price spread as well!!! Very important.
4M shares traded during open hours (which is huge compared to recent activity), PLUS a breach of a critical support line at 35c, and the candle spread was unbelievably narrow and even finished off its lows. This was a staged trade to benefit a big player. We've seen bigger red candles than this with 1M shares or less traded.

Someone bought a parcel on market and then off market to get a stake in BDG.

 

[Feng]

http://www.mineweb.net/mineweb/view/mineweb/en/page34?oid=21246&sn=Detail


Bendigo looks to old richer gold workings in its recovery process

After its problems of last year, Bendigo Mining is taking a new approach to exploration by concentrating on extensions to the older higher grade parts of the mining complex.
Author: Ross Louthean
Posted: Tuesday , 22 May 2007

PERTH -

A new exploration approach and a first-time opportunity to test some of the richest parts of the gold mine running beneath the historic Bendigo field in Victoria should turn around its fortunes.

This was the view of Bendigo Mining Ltd's managing director Rod Hanson in an address today to Paydirt's Gold Conference in Perth.

Hanson said the company had learned its lessons from late last year of not managing well, its geological risk for the field. That proved a headline issue that ripped millions of dollars of the company's share market capitalisation, brought about sweeping management changes (including promoting Hanson to head the company) and even raised questions about other companies operating in Victoria.

Today Hanson said a dramatically different approach has been taken to meet challenges of charting a new mining and exploration course along the 10 kilometre long, three kilometre wide Bendigo field which has so far produced 22 million ounces of gold.

This includes a focus on defined stratigraphic or rock units rather than theoretical geological and mineralised ribbons. This, he said was "improving our understanding of where to drill."

"We have moved away from the Deborah and Sheepshead lines and have elected to explore beneath the historically richer hot spots on Garden Gully and New Chum, which are the source of some 70% of the field's historic gold production (Sheepshead and Deborah were readily accessed from the company's Swan decline mine on the outskirts of the city, whereas New Chum for instance is in the heart of modern Bendigo city).

"These higher grade, more productive lines have greater potential to host economic zones of mineralisation than some of the lesser zones subject to the geological risk issues of last year.

"Results to date from the southern Garden Gully zone are consistent with historic workings above the current drill targets and the mineralisation is much stronger than anything encountered at Sheepshead and Deborah.

"The major change in exploration focus on the field has been supported by a significant amount of completed mine development and this provides locations for Garden Gully and New Chum to be tested from underground."

Hanson said the new approach would increase discovery rates for new gold reefs as laminated quartz veins and anticline axes could be intersected in the stratigraphic units.

"The recent Grenfell Reef for example was identified by just three drill holes, meaning less drill metres to define targets and lower discovery costs," he said.

"The approach also allows our extensive knowledge of the field to be better applied to determining reef shapes, range, types and variability."

Bendigo Mining has a $A10 million ($US8.3 M) exploration budget for the field and has assigned four underground drill rigs to generate more than 50,000 metres of new drill core as it looks to lift discovery and development and production options.

 

[The Mint Man]

well not much seems to be happening on the BDG front today. whats going on?
Yet another talk of takeover with no delivery.