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BDG 23.5¢

****slow motion woooosh****

  1. bendigo

    5,871 Posts.
    14
    My thoughts on Bendigo Minings announcement yesterday..... both positive & negative

    Positive

    Finally official that mine will go ahead.

    Although this has been assumed/known for some time locally, the announcment will put some confidence into the broader (global ) investment community.

    The size of the mine will become more widely known as well.
    It will be a significant producer on a world scale, with a long mine life.This sort of infomation will be no doubt be in the documents being distributed globally to potential investors.

    Negative

    Need to raise substantial amount of money which along the way will dilute existing capital.

    Not yet known the price of the new shares to be issued.

    Harmony's reluctance to participate is a bit of a worry.

    The lack of JORC reserves.

    This was raised yet again on the chat here yesterday where the statement was along the lines ... "the mine is based more on concept than on actual reserves."
    Let me state it again & I will say it loudly because obviously some have not been listening!

    21 MILLION OZ OF GOLD WAS MINED FROM THE FIELD OVER 100 YEARS, UP UNTIL THE 1950s.
    THIS WAS ALL DONE WITHOUT THE ABILITY TO HAVE FORWARD RESERVES.
    WHY?
    THE GOLD APPEARS IN LINES OF REEF WHICH RUN PARALLEL & ARE SEVERAL KILOMETRES LONG.
    THE REEFS ALSO REPEAT IN THE FOLDS, ONE BENEATH THE OTHER.
    THE REEFS ARE ONLY METRES WIDE & OBVIOUSLY DONT RUN IN PERFECTLY STRAIGHT LINES, SO AN EXPLORATORY DRILL BIT COMING FROM SOME DISTANCE AWAY, NEED ONLY BE A FEW METRES OFF LINE TO COMPLETELY MISS THE REEF. THERE IS THEREFORE NO ECONOMICAL/PRACTICAL WAY TO DRILL EACH REEF TO ESTABLISH RESERVES.

    THE IMPORTANT THING HERE IS THAT THE REEFS ARE PRESENT AS PREDICTED BENEATH THE OLD WORKINGS & THEIR GEOLOGY/ GRADES ETC IS CONSISTANT WITH WHAT OCCURED IN THE PAST.
    THE REEFS ARE HIGH GRADE, IN SOME AREAS GOING 100S OF GRAM TO THE TON, BUT ON AVERAGE ARE AROUND 12G TO THE TON.

    JUST LIKE IN THE PAST.

    THIS IS NOT SOME FANCIFUL CONCEPT OR WISHFUL THINKING.

    IT HAS BEEN PUT TOGETHER SCIENTIFICALLY OVER SEVERAL YEARS OF FULL TIME EXPLORATION & THE EXPENDITURE OF IN EXCESS OF $70 MILLION.
    (EVEN NOW, IN GETTING TO THIS STAGE, WHERE A LARGE MINE IS GOING AHEAD, ONLY A SMALL % OF THE TOTAL KNOW FIELD HAS BEEN INVESTIGATED. SO THE POTENTIAL FOR EXTENDING THE MINE & THE PROBABILTY OF THIS HAPPENING, IS ENORMOUS)

    ONCE THE REEFS ARE FOUND, MINING OCCURS BY SIMPLY FOLLOWING IT ALONG VISUALLY & DIGGING IT OUT.

    THE "OLD TIMERS" DID IT THIS WAS TO GET THE 21 MILLION OZ.

    (THIS IS COMPLETELY DIFFERENT TO THE FIELDS IN THE WEST, WHERE VAST AREAS CONTAIN UNIFORMLY DISTRIBUTED GOLD & THUS RESERVES ARE EASILY CALCULATED....THE JORC STANDARD FOR RESERVES AS IT APPLIES TO THIS TYPE OF DEPOSIT IS SIMPLY NOT APPROPRIATE FOR THE BENDIGO FIELD.)

    Enough shouting !!!!

    In summary,
    I would not expect too much movement in the share price until the details of the capital raising & the enthusiasm of the global invesment community are known.
    To this extent I am a little disappointed, but I am confident that patience will be rewarded.

    Caveat Emptor

    Bendigo



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