BSG bolnisi gold nl

Bolnisi Gold - looking forward

  1. 2,218 Posts.
    For those interested, I am expecting a solid roll out of news in the upcoming quarterly. Production figures should be very good - the annual report released end September says: 'Since the close of the 2002 fiscal year, gold production at our [Georgian] Quartzite Project has increased further, and the September quarterly production will almost certainly be a record for the project. Costs have been held down and these factors, combined with the higher prevailing gold price, have resulted in a very robust cash flow'.

    The Georgian project has at least five years mine left, even if no exploration is undertaken. Again from the annual report: 'At a recovery of greater than 75%, a minimum of 500,000 ounces of gold is expected to be produced from the stockpiles during the life of the project'. At current production costs, gold prices and exchange rates, BSG's 50% share equates to about $60 million cash flow over 5 years. Mine closure costs should be minimal. There is nearby resource measured back in the 1980s at 10.5 million tonnes at 1.94 g/t Au and 1.8 g/t Ag, with some more drilling by BSG 2-3 years back hitting higher grade intersections: eg 12 metres at 25.1 g/t Au and 2.3% Cu at about 40m depth. Personally, I think BSG are unlikely to spend significant dollars exploring in Georgia as they other development projects would seem to have less capital risk.

    We should also get updated drilling and metallurgical results from Ocampo and Roseby. I am also expecting confirmation that drilling has started at Mexex, although I have no expectation of anything coming from that project as yet - BSG seem just to be taking a cheap punt.

    Looking forward to my first divvie next week - BSG currently on approx 10% yield (unfranked). Might use it to buy more BSG.

    Angus

    I hold BSG
 
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