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BDG - BLACK DRAGON GOLD CORP.


jbeatty

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BDG has broken out of its 21c resistance level. Increase in buyers.They are due to give us the results of their Feasibility Study. also should be telling us how they are to fund the next stage.IMO they will get funding ok. This is their year do you think??
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Today's sudden sell off looks ominous.

 

Could be leaked upcoming negative funding ann or reaction to Friday's ordinary half yearly accounts or even ex Director selling his bundle. whatever, bad news.

 

Any other theories?

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IN REPLY TO A POST BY jbeatty, Mon 08/03/04 07:31pm

Or is it some investor getting out of emerging gold stock companies whatever the cost

and triggering a wave of stop-loss sales? I don't know. The same thing happened to CTO (Citigold) last week.

 

bearto

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It's official: Bendigo is all systems go http://www.asxboard.com/html/emoticons/icon13.gif

 

Bendigo Mining NL today announced details of its development strategy for the New Bendigo Gold Project following completion of its feasibility study.

 

A total investment of $215 million is required over five years and will be funded in two tranches of $135 million now and $80 million in three years time.

 

Key points of the strategy include:

 

* commitment by the board of Bendigo to proceed with a mine development based on the New Bendigo Gold Project Feasibility Study;

 

* mining 34 million tonnes over 25 years at an average target

head grade of 12g/t gold;

 

* gold production to start after one-year construction period;

 

* CIBC World Markets and Austock Brokers appointed as financial advisors and lead arrangers for a $120 million share placement.

 

* a share purchase plan to raise at least $15 million to be

implemented after the fund raising.

 

Bendigo's two major shareholders, Harmony Gold Mining Company (31.6pc) and General Oriental Investments (22.1pc), have indicated that they are fully in support of the company's plans to develop the project but they will not participate in the placement.

 

Managing director Mr Doug Buerger said: "This is a watershed for Bendigo, with the development strategy clearly outlining the path to transforming the company into a leading world-class gold producer.

 

"Bendigo plans to mine the depth extension of one of the great gold-mineralised systems of the world."

 

The feasibility study is based on mining a total of 33.6 million tonnes over 25 years from an underground mine at a design rate of 1.6 million tonnes per year. A period of seven years is allowed to reach the design rate.

 

The target mine head grade is 12g/t and total recovered gold is just over 12.7 Moz.

 

As the underground mine for the initial phase of production is largely pre-developed, gold production is expected to start, after a one-year plant construction period, at 300,000 tonnes per year, increasing to 600,000 tonnes per year and finally to 1.6 million tonnes

per year from two production facilities, situated at the north and south ends of the Bendigo goldfield.

 

The initial gold output of 77,000 ounces a year is planned to increase to 90,000 ounces in the third year and then to 185,000 ounces in the fourth year when throughput increases to 600,000 tonnes per year.

 

At the expected design rate of 1.6 million tonnes per year, gold output should be 570,000 ounces a year, which would make the New Bendigo project one of Australia's largest gold producers.

 

Unit mining costs are initially planned to be in the $A50-60 per tonne range, falling to $40 per tonne at full production with processing costs falling from $18 to $10 per tonne.

 

At full production from the seventh year, cash operating costs should average less than $A180 ($US135) per ounce recovered or about $70/t treated.

 

Capital costs overall are planned to equate to $A82 ($US62) per ounce recovered.

 

The feasibility study was managed by Melbourne-based AMC Consultants Pty Ltd with substantial contributions from Bendigo's technical team and other consultants.

 

Mr Buerger said: "The feasibility study indicates that Bendigo is on the verge of becoming a major gold producer underpinned by a low-cost operating structure and long-life orebody.

 

"This is great news for Bendigo and all its shareholders."

 

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IN REPLY TO A POST BY trinity, Thu 01/04/04 02:47pm

Hello Trinity. I share your dissapointment.

 

The problem with the share price is because the upcoming new institutional placement of shares to finance the project will have to be made at a discount to the prevailing share price at the time.

 

This in effect creates a "negative feedback" effect with the current share price. http://www.asxboard.com/html/emoticons/puke.gif

 

It's hard to see where it will end. Consequently, I have sold out till the "dust settles"

 

I'll be back.

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