GBM 0.00% 0.8¢ gbm gold ltd

from todays local paper

  1. 7,266 Posts.
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    Bendigo, (the poster ) and Bendigo (the gold mining region) do not exactly have a good record with local gold mining.
    So I post this with no comment or recommendations.

    Purely for those interested, and possibly another stock for Sabre to ramp up and down, depending on if he is long or short ...... LOL.

    ME... Im OUT......... never was in

    FWIW the article follows


    09 July 2007 View all news | Send to a friend | Print

    Greater Bendigo set for gold production

    READY: Greater Bendigo Gold Mines managing director Doug Cahill at the company's mine site near Inglewood.

    GOLD minnow Greater Bendigo Gold Mines has announced it will be in production by the end of the year.
    The announcement came as its share price suffered from a stream of bad news from other local firms.

    Managing director Doug Cahill said its shares had not been helped by the latest troubles besetting Victoria's gold industry, in the form of Perseverance Corporation's cash and production difficulties.

    Before Perseverance, Bendigo Mining halted production and returned to exploration after over-estimating gold reserves at its Kangaroo Flat operation.

    The move resulted in the retrenchment of two thirds of its workforce.

    Mr Cahill said Greater Bendigo's share price had not lowered since the Perseverance announcement.

    But he said: "We could have done without it.

    "They are a good team at Perseverance; their hearts are in it; they are a lean team, but when you get two big companies like that (issuing bad news) in quick succession, it doesn't help."

    Mr Cahill said investors in Western Australia would not invest in the Victorian industry.

    "West Australian investors won't touch us," he said.

    "I wouldn't take a prospectus to WA.

    "It is also the whole attitude about West is Best."

    Fortunately, Greater Bendigo Gold Mines will not have to raise money to go into production.

    The company has contracted engineering group Pfahlert Mining

    Industries Ltd to construct a treatment plant at Greater Bendigo's gold project near Inglewood out of parts it has already bought.

    "The contract to build the plant involves utilisation of a large range of plant and equipment already owned by (Greater Bendigo), as well as purchase of further plant and equipment budgeted to cost in the range of $660,000 to $750,000,"

    Mr Cahill said in a statement to the Australian Stock Exchange.

    He told The Advertiser: "I don't want to speak ill of other companies, but how is it that Bendigo Mining spent between $70 million and $80 million to build a 75-tonne-an-hour plant and we are spending $660,000 to $750,000 to build a

    50-tonne-an-hour plant?

    "We are trying to be sensible about money, we are only a small company, but one has to wonder."

    Mr Cahill said the company had to get into production in order to survive.

    Greater Bendigo plans to treat more than 100,000 tonnes of tailing containing low grades of gold near the proposed site of the plant after construction is completed in October this year.

    The company's plan is it will cost relatively little money to produce the gold because the feed is readily accessible, and the cash flow will provide money allowing it to mine for underground sources of ore which will be of higher grade.

    Greater Bendigo raised $4 million in March by selling shares for 20 each, but its shares fell sharply on listing and were selling for 7 on


    "I am extremely pleased to have a contract in place which will shortly allow us to realise our plans of becoming a gold producer in the region," Mr Cahill said in the ASX statement.

    "Whilst it is accelerating our cash spend in the short term, it is also setting us firmly on the path to revenue – which is budgeted to be sufficient to more than repay the investment made in the current financial year."

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