New posts

Reply to thread

Message

Re: SBM - St. Barbara Mines

St Barbara says Bendigo should be holier

Andrew Trounson
January 16, 2007
ST Barbara chief executive Ed Eshuys says struggling gold miner and possible takeover target Bendigo Mining needs aggressive, closer hole drilling if it is to prove up reserves for resurrecting its Bendigo project.

Last week St Barbara snared a 10 per cent stake in Bendigo Mining, taking advantage of a share price collapse because of the shock decision to suspend mining at Bendigo and go back to the exploration drawing board. The move positions Mr Eshuys to press for a merger while acting also as a blocking stake to any other would-be acquirer.

Mr Eshuys said yesterday he had been casting his eyes over the Bendigo project for two years but had never agreed with the company's previous development strategy, which was now in tatters after initially targeted ore yielded disappointing grades and tonnages.

Mr Eshuys said new boss Rod Hanson remained on the wrong track with planned drilling of the highly variable ore too widely spaced at 200m a hole.

"That won't give you the detail that is required," Mr Eshuys said, suggesting a more aggressive spacing of 50m would be needed.

But Mr Hanson rejected criticism of the new exploration drive. He said it was a well-tested strategy to start with wide space drilling and then zero in on positive results with closer drill holes drilled 120m and then 40m apart.

"We need to start wider spaced and then home in on where the best results are," he said.

Mr Eshuys conceded he was not in a position to direct the strategy at Bendigo, but he would seek discussions with the company "at the appropriate time".

Mr Eshuys would not comment on whether St Barbara was planning a takeover bid but said its stake had given it options.

"Basically we have the option of sitting where we are, or making a bid, or selling," he said.

But while Mr Eshuys does not agree with Bendigo's exploration plan, he is in line with Bendigo in being upbeat. "There is potential for a long-life, low-cost, operation to be developed there." He said the fields had produced 22 million ounces historically, 17 million of which was from hard rock, and that mining was stopped by rising water levels, not by the ore running out.

Bendigo shares fell back 2.5c to 48c. St Barbara shares rose 3c to 54c.

<blockquote data-quote="Kauri" data-source="post: 112122" data-attributes="member: 1821">Re: SBM - St. Barbara MinesSt Barbara says Bendigo should be holier<ul>
<li data-xf-list-type="ul">Andrew Trounson </li>
<li data-xf-list-type="ul">January 16, 2007</li>
</ul>ST Barbara chief executive Ed Eshuys says struggling gold miner and possible takeover target Bendigo Mining needs aggressive, closer hole drilling if it is to prove up reserves for resurrecting its Bendigo project.Last week St Barbara snared a 10 per cent stake in Bendigo Mining, taking advantage of a share price collapse because of the shock decision to suspend mining at Bendigo and go back to the exploration drawing board. The move positions Mr Eshuys to press for a merger while acting also as a blocking stake to any other would-be acquirer. Mr Eshuys said yesterday he had been casting his eyes over the Bendigo project for two years but had never agreed with the company&#039;s previous development strategy, which was now in tatters after initially targeted ore yielded disappointing grades and tonnages. Mr Eshuys said new boss Rod Hanson remained on the wrong track with planned drilling of the highly variable ore too widely spaced at 200m a hole. &quot;That won&#039;t give you the detail that is required,&quot; Mr Eshuys said, suggesting a more aggressive spacing of 50m would be needed. But Mr Hanson rejected criticism of the new exploration drive. He said it was a well-tested strategy to start with wide space drilling and then zero in on positive results with closer drill holes drilled 120m and then 40m apart. &quot;We need to start wider spaced and then home in on where the best results are,&quot; he said. Mr Eshuys conceded he was not in a position to direct the strategy at Bendigo, but he would seek discussions with the company &quot;at the appropriate time&quot;. Mr Eshuys would not comment on whether St Barbara was planning a takeover bid but said its stake had given it options. &quot;Basically we have the option of sitting where we are, or making a bid, or selling,&quot; he said. But while Mr Eshuys does not agree with Bendigo&#039;s exploration plan, he is in line with Bendigo in being upbeat. &quot;There is potential for a long-life, low-cost, operation to be developed there.&quot; He said the fields had produced 22 million ounces historically, 17 million of which was from hard rock, and that mining was stopped by rising water levels, not by the ore running out. Bendigo shares fell back 2.5c to 48c. St Barbara shares rose 3c to 54c.</blockquote>

[QUOTE="Kauri, post: 112122, member: 1821"] [b]Re: SBM - St. Barbara Mines[/b] [b][size=2]St Barbara says Bendigo should be holier[/size][/b] [list]Andrew Trounson [*]January 16, 2007 [/list] [b][size=2]ST Barbara chief executive Ed Eshuys says struggling gold miner and possible takeover target Bendigo Mining needs aggressive, closer hole drilling if it is to prove up reserves for resurrecting its Bendigo project.[/size][/b] Last week St Barbara snared a 10 per cent stake in Bendigo Mining, taking advantage of a share price collapse because of the shock decision to suspend mining at Bendigo and go back to the exploration drawing board. [color=red][b][i]The move positions Mr Eshuys to press for a merger while acting also as a blocking stake to any other would-be acquirer. [/i][/b][/color] [color=red][b][i]Mr Eshuys said yesterday he had been casting his eyes over the Bendigo project for two years[/i][/b][/color] but had never agreed with the company's previous development strategy, which was now in tatters after initially targeted ore yielded disappointing grades and tonnages. Mr Eshuys said new boss Rod Hanson remained on the wrong track with planned drilling of the highly variable ore too widely spaced at 200m a hole. "That won't give you the detail that is required," Mr Eshuys said, suggesting a more aggressive spacing of 50m would be needed. But Mr Hanson rejected criticism of the new exploration drive. He said it was a well-tested strategy to start with wide space drilling and then zero in on positive results with closer drill holes drilled 120m and then 40m apart. "We need to start wider spaced and then home in on where the best results are," he said. Mr Eshuys conceded he was not in a position to direct the strategy at Bendigo, but he would seek discussions with the company "at the appropriate time". Mr Eshuys would not comment on whether St Barbara was planning a takeover bid but said its stake had given it options. "Basically we have the option of sitting where we are, or making a bid, or selling," he said. But while Mr Eshuys does not agree with Bendigo's exploration plan, he is in line with Bendigo in being upbeat. "There is potential for a long-life, low-cost, operation to be developed there." He said the fields had produced 22 million ounces historically, 17 million of which was from hard rock, and that mining was stopped by rising water levels, not by the ore running out. Bendigo shares fell back 2.5c to 48c. St Barbara shares rose 3c to 54c. [/QUOTE]

Verification