accumulation, page-8

re: disaster

avp, which used to be adm, was a neat company(prior to avp) - with a nice spread of assets - gold (at woodlark island), diamonds (blina diamonds), and everything was paid for, via their engineering business. however some mob got control, and put a bandage business into the company - and the company has gone backwards. anyway, watso bought, when they had they still had the woodlark island gold deposit - which they sold - anyway from the net



Sections > Gold & Silver









High-grade gold in Papua New Guinea; diamonds in Indonesia
By: Rhona O'Connell
Posted: '07-APR-06 14:00' GMT © Mineweb 1997-2004



LONDON (Mineweb.com) -- BDI Mining Corp is headquartered in London, listed on AIM and has recently reported high-grade gold intersections on its 100%-owned Woodlark property in Papua New Guinea. The company is already in production at the Cempaka alluvial diamond property in South East Kalimantan in Indonesia and is exploring for the primary source of the Cempaka diamonds nearby.

BDI Mining trades under the ticker BMG and is currently capitalised at £21 million (US$37 million). The company delisted from the TSX-Ventures exchange in Canada at the end of March 2005, and so the AIM market is now its primary listing.

Recent news concerns the Woodlark gold property. This lies 300 km off the east coast of the main land of Papua New Guinea, to the west of the Solomon Islands, a highly-prospective area for epithermal gold mineralisation; Woodlark is very close to Misima (now of course a Barrick Gold property), lying 150 km to the north thereof. The deposit contains a number of epithermal targets. It lies in a tertiary age island arc volcanic complex that BDI considers to have large-scale economic potential. The targets lie within 12km-wide block and in structures related to collapsed calderas (post-eruption volcanic craters).

Prior to BDI taking the property, a previous operator had delineated a minimum of 370,000 ounces of JORC compliant gold resource in measured and indicated categories at the Busai and Kulumadau targets. BDI Mining has already increased this to 655,000 ounces of gold, measure d and indicated, to JORC standards and in early 2006 announced the acceleration of its drilling programme. The company is targeting a JORC-compliant resource of over one million ounces.

Initial drilling (on a 2,500 metre programme) by BDI in 2004 intersected a number of mineralised sections: among these were 83 metres (from 37 – 120m) at four grammes per tonne including a four metre width at 21.1 g/t; 70m (from 170m – 240m) at 4.59 g/t including seven metres at 31.8g/t and 33m (from 206m – 239m) at 3.33 g/t including 0.8 m at 69.0 g/t.

The 2005 drilling programme had two main thrusts; to upgrade the Kulumadau Resource and to target anomalies that were identified in 2004 under an induced polarisation survey.

The company has now drilled to the south of the Kulumadau deposit with a view to testing further strike extensions and has produced positive results. There are two drill rigs working on the deposit, one on a northerly step-out and the other to the south.

Several recent holes have reported free visible gold in the drill core. The first diamond drill hole of the 2006 programme encountered five zones of mineralisation, including seven metres (from 97m to 104m) at 2.09 g/t and 10 metres (from 278 – 288m) at 5.75 g/t (including two metres at 24.18 g/t).

Meanwhile the next drill hole, 150m to the south of Kulumadau has encountered intersection including seven metres (from 214m - 222m) at 23.18 g/t, including three metres at 52.69 g/t) and one metres at 140 g/t (from 215 – 216 metrres) along with eight metres (from 165m – 1723 mters_0 at 1.47 g/t. The company is now confident, therefore, that the mineralisation extends at least 150 metres to the south of the current known resource and infill drilling is planned.

The accelerated drill programme was funded by a private placement and the issuance of 8% 2009 redeemable convertible loan notes, which convert to common shares at 42 pence (the current stock price is 29 pence). Each note also carries warrants to purchase common shares at 35 pence at anytime up t 3 January 2009.

The company is also drilling on the Wonai and Watou prospects where high-grade vein systems may be present.

Further assay results are expected soon.


Meanwhile at Cempaka BDI is producing gem diamonds. The gross proceeds from its tender in Antwerp in January amounted to US$1,483,802 from the sale of 6,913.5 carats of gem diamonds. This equates to $215 per carat. The tender included 4,276.7 carats of run-of-mine gem diamonds larger than 2mm, which generated US$274 per carat, with the balance coming from 2,636.8 carats of fine diamonds (smaller than 2mm) at US$118 per carat. This was the fourth successful sale by tender for BDI.

Cempaka lies in south-east Kalimantan and the project is owned as to 80% by BDI Mining. The diamonds are believed to be derived from the adjacent Meratus Mountains, where BDI has its Bobaris project, and where it is hoping to find the source of the stones. Alluvial diamonds in the small south channel produced grades of 0.16 carats per bulk cubic metre. The company is currently mining the Main Channel, and it is from here that it is producing parcels of stones that are being sent for sale. The first parcel included stones of gem quality at 16.4, 11.45 and 10.7 carats.

The Bobaris block, in which BDI is earning a 70% interest through expenditure of US$500,000, is 45 km to the north east of Cempaka. It contains two significant primary diamond indicator anomalies that are coincident with a geological structure that has the potential to host a possible primary source. The company has undertaken an initial programme of stream sediment sampling and the derived concentrates are currently under mineralogical examination.




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