BGS 2.17% 22.5¢ birimian limited

Massive gold targets updated

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    Warning: these are very speculative assessments but IMHO are indicative of a “ballpark” target. Drilling results may upgrade or downgrade these ballpark guesstimates
    Original assessment from earlier posting on Ntiola:
    “BGS has identified and drilled at Ntiola where a mineralised gold trend has been clearly defined within a 500m strike, width 25m width and depth to 150m (and open at depth) for a conceptual tonnage of 4.7M tonnes. This is classified by BGS as "high grade" so I assume 2 g/t au for 300,000 ounces of gold, but may possibly be higher.”
    Have looked more closely at the last BGS PP and did some measurements on the width of mineralisation at Ntiola so measure 500m strike x width of 40m (up from 25m) and depth of 150m (remains open at depth) for an updated conceptual tonnage of 7.5M tonnes (up from 4.7M tonnes). At 2 g/t that is 483,900 ounces of gold.
    The Morila Process Plant is rated at 4.5Mt per year. In 2012 it processed 4.5Mt at a recovered grade of 1.4 g/t au for 203,000 ounces at total ASIC of US$798 per ounce. Assume that they switch half of capacity of Morila over to Ntiola to produce 2.25Mt at 1.4 g/t au for annual production of 91,450 ounces of gold per year. At ASIC of US$798 per ounce (note that fuel costs are now halved) that produces annualised free cash flow of US$452 per ounce (US$1,250 per ounce) for US$41,336,000.
    Assume BGS is fully funded thru production for 50% equity, free cash flow is US$20,668,000 for 3.3 years (to deplete Ntiola down to 150m).
    Viper
    “Drilling at Viper has outlined a gold trend that is 1,200m long, at least 25-50m wide???, and has a depth of 50m (and remains open) for a conceptual tonnage of 3.75 - 7.5M tonnes. IF the system extends to 150M we triple the conceptual tonnage to 11.25M - 22.5M. At a conceptual gold grade of 1 - 2 g/t au we get 362,000 - 725,000 ounces of gold.”
    At 50m metres depth Viper has similar gold production potential to Ntiola at 150m in depth. So this adds an additional 3 years to gold production profile. IF economic gold confirmed at 150m (as it was at Ntiola) then we get a 9-10 mine life at a rate of 90,000 ounces per year.
    Current Diamond drill hole (which should be completed) to depth of 250m will confirm this “triple” guesstimate to a vertical depth of at least 150m.
    Assume that both Ntiola and Viper gold systems have a similar near vertical plunge based on orientation of drill holes at both projects.
    Koting
    “Koting is located under 10m of barren surface cover and reports even greater hits that are up to 51m wide of gold mineralisation”.
    Current shallow drilling at Koting is a massive and bullish wild card as it opens up massive potential within the Massigui project area for gold deposits buried under very shallow and barren overburden.

    IMHO we are already looking at a conceptual production rate of around 100,000 ounces per year for 6 years from the completed drilling data, which has the potential to double /triple from current round of drilling at Viper and Koting And this is before we evaluate the remaining 20 prospects ??? within the project area.
    Please note that these guesstimates are very speculative BUT they do confirm why Rick Rule / Sprott (largest US retail broker for gold stocks) is the largest holder on the BGS register. This also explains why BGS is now "powering" on its Liberian gold Project (where Sprott has also invested in nearby Hummingbird) and will open up the funding spigot for BGS from U.S. funds. Local brokers have completely missed the potential on this one.
    That is why I am making comparisons with PIR as BGS/Sprott are in the process of putting together a very significant gold production company. Current SP has not caught up with my conceptual estimate which should put us north of $0.05 / $44M.
 
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