BDG - Bendigo Mining

[AncientAntlers]

what do you mean by "lead up to christmas"? Are you referring to the market being good during this season?

 

[Sean K]

what do you mean by "lead up to christmas"? Are you referring to the market being good during this season?

Commonly called a Santa Rally. November is seasonally good as well. Doesn't mean it happens every year, but the probabilities are that we'll run up into Christmas.

 

[The Mint Man]

what do you mean by "lead up to christmas"? Are you referring to the market being good during this season?

To answer your question I have to write 100 words. So thank you Kennas for explaining what I was referring to and, Yes that is exactly what I meant.

Cheers

 

[So_Cynical]

I just spent an hour or so reading through this thread...its an eye opener
as to what can go horribly, horribly wrong.

This thread should be compulsory reading for all nOObs.

below is what i don't quite understand

Production from the Kangaroo Flat processing plant
commenced on 1 October 2006 and ceased due to
limited reserves after eight months in May 2007. During
this time 175,966 tonnes of ore were treated grading
5.4 g/t gold, and at an average recovery of 88%,
produced 26,735 ounces of gold.

Theres lots of other miners with lower g/t gold, making money

how come BDG cant make money at 5.4 g/t gold????

 

[resourceboom]

Theres lots of other miners with lower g/t gold, making money

how come BDG cant make money at 5.4 g/t gold????

Cause they are doing more costly underground mining, not open pit. Also they had a large workforce as they expected a much greater production rate and grade. Think now they would still be marginally profitable at current prices but they want to focus on the better grades.

 

[So_Cynical]

Ok so ive done some reading and the minimum required grading
seems to be anything above 6.0 g/t gold for underground
mining in Australia....depending on POG too.

 

[Crash]

Good finish this afternoon for BDG. Some news or just reflecting the Gold price? When are we due for some more announcements?

 

[trtkjd1]

News results that seems to be something BDG seems very reluctant to release apart from the spectacular 4000 grams per ton result released a couple of months ago, we here basicly nothing from them.??????????????

 

[Real1ty]

If you read their reports it's all contained in there.

They are currently working on a cross cut tunnel so they can drill the Gill Reef and if results are as expected, progress to some trial mining.

They have found 5 new reefs, with Gill being the most attractive prospects atm.

 

[Crash]

Well it may have all been in the report - but that was some time ago. Up to 0.39 this morning which is a good way clear of what it has traded at for most of that time in between. With no news - is it just the POG or some inside knowledge on what that trial mining is producing?

 

[Uncle Festivus]

Well it may have all been in the report - but that was some time ago. Up to 0.39 this morning which is a good way clear of what it has traded at for most of that time in between. With no news - is it just the POG or some inside knowledge on what that trial mining is producing?

Crash, a bit of everything maybe - gold price, insider knowledge of the trial, & has spent it's time in detention for being a naughty company, and the somewhat clouded fundamentals are improving & coming into play.

I can't emphasise enough what they have there eg infrastructure in place and gold there somewhere, they just have to mine it profitably, and sustainably, which I think they will do.

Having said that, we have been here before with the false break outs - which one will be the real deal who knows? There will be selling pressure all the way back to the 80's as some investors have been left with a bad experience with them.

 

[cuttlefish]

good comments uncle festivus. The potential of this is enormous, if they have the gold. Succesful trial mining confirming grades and confirming their current estimation techniques would go a very long way to restoring confidence. Also succesful in-fill drilling and trial mining will mean they would be a significant producer again by late next year/early 09.

I've posted a comment in the outstanding breakouts thread as well.

They should be about to start in-fill drilling on gill and if succesful continue crosscut and start trial mining gill reef.

 

[Crash]

Yeah i definitely got into this for a long term recovery so not getting too excited about a bit of a push up as they get things sorted out - just hope to cash in long term. Just sometimes it is nice to be able to see what drives the price.

 

[Crash]

It may also be approaching a time that the rumored takeover could come about - while BDG is still cheap but the hard work to turn it around has mostly been completed.

 

[The Mint Man]

There will be selling pressure all the way back to the 80's as some investors have been left with a bad experience with them.

yep, thats me!!!
They have ALOT of ground to make up to make this little duck happy I got in just before the placement @ 80c, just before things went pear shaped.

 

[Uncle Festivus]

Well it's starting to look good, better if it was past 80c, best if it broke new highs past $2.60 .

Support trend line established, time & momentum coming into play, just needs pog to continue to the script

 

[Real1ty]

Thanks for that chart Uncle.

I bought back in yesterday, and have now averaged down my unit costs dramatically.

I would be happy if it just continued a slow steady climb and established a resistance above 40c.
Great sp jumps would be great of course but i feel that if BDG can gain some trust in the price and future upward direction of the sp, it will come back onto the radar of many that had either written it off or refused to buy back in until there was some good news.

Of course the drill results, trial mining results are going to be vital as if there is any bad news in these, the stock will get sold off heavily imo and many will have lost any of the trust they might have slowly regained in the stock.

I think managements decision to take things slowly and cautiously is a good decision and if the POG stays high, which looks a big probability, and they release good results from Gill, BDG could be back on it's way again.

Fingers crossed.

 

[AncientAntlers]

Just been reading from the BDG website and realised that if the continue their operations from where they stopped in Mar 07 they could easily go from Explorer back to Producer

After they announced the mining halt in Jan 07 due to their poor Dec 06 Q results, they continued mining until Mar 07. This period gave them results which if they began producing again, with the current POG ($900 US/oz) could be making them around $5M US Profit a quarter

http://www.bmnl.com.au/our_operations/production.htm


Would like to know your views on BDG and if theres anything wrong with my calculations

 

[Uncle Festivus]

Shall we have another go at some good news - Gill reef accessed and grades maybe confirmed, trial mining on track for 3rd qtr

Underground mine development has accessed the high grade Gill reef at the
Company’s Kangaroo Flat Mine in Bendigo. The mineralisation observed in the
development is as predicted from drilling.

Geological mapping of the reef exposure has confirmed a high percentage of
laminated quartz, sulphides and some visible gold, providing confidence that the
reef grade is in line with expectations at around 10 – 15 g/t gold. Gold assays
from face sampling are pending. Once mining dilution is applied, the grade
delivered to the processing plant is likely to average around 8 – 12 g/t gold.

The first phase of mining within Gill reef will consist of extracting around 20
metres of the central ‘core’ of the reef at the initial access point, as shown in the
attached diagram. This will provide improved understanding of the reef at this
location and enable an assessment of mining conditions. The ore extracted will
be stockpiled for later processing.

On completion of the initial reef mining at the access point, development will
focus on the installation of a 400 metre parallel strike drive. This drive will
enable detailed infill drilling to be completed ahead of mining and provide a
southern access point to the reef. Once the strike drive is complete, trial mining
is planned to commence within the reef in June, with processing and trial gold
production to commence shortly thereafter.

Rod Hanson, Managing Director & CEO comment: “We are on schedule to
recommence gold production in the September quarter of this year. The plan is
to undertake careful trial mining of Gill reef to confirm grade estimation
techniques and to generate positive operating cashflow.

Exploration will continue to test other prospective targets, primarily on the
Garden Gully and New Chum lines, with the aim of discovering additional reefs
to support increased production rates. The techniques used to locate and
evaluate Gill reef have increased our confidence in our ability to locate other
high grade reefs.”

The Gill reef was discovered during 2007 on the Garden Gully line and it is the
largest reef discovered since the reopening of the goldfield. The reef is
estimated to be at least 720 metres long, 20 - 30 metres high and 3 - 9 metres
wide and is located at a depth of 1000 metres.

 

[Uncle Festivus]

MD & CEO Rod Hanson
The high gold price is excellent news for the industry and for Bendigo Mining.
Trial production will be coming on in the second half of the year and we are
confident that prices will remain high. The issues we see currently in world
economic and banking markets, rising interest rates, the weak US dollar and
uncertainty on the stock market, should continue to drive the price of gold
upwards.

Therefore, because we don’t have any forward sales, all our gold will be
delivered at spot. We also anticipate further exploration success which will
enable us to build on the trial production program and produce additional gold
to generate further revenue at very good prices.

The Company has undertaken a comprehensive review of its strategy, so as
well as exploring in the immediate mine area, we also want to carry out
additional work on the exploration license which surrounds our mining lease at
Bendigo, but has seen only limited exploration work for many, many years.

As part of our strategic review, we have also decided to look further afield
beyond Bendigo for opportunities to expand and grow the business, but we
will remain focussed on gold.