BCN JORC (current in ground) announced for Lost Dog, Black Cat South stands at 2.5Mt @ 1.73 g/t au for 141,000 ounces of gold.
ROM 590,000t @ 1.37 g/t for 26,000 ounces of gold.
My guesstimate on extensions that are currently being drilled (1) Black Cat South extension (my re-worked guesstimate) 200m (length) x 80m (width) x 7m (depth) for approximately 300,000 metric tonnes of economic ore. At 1.5 g/t equates to 15,000 ounces / at 1.75 g/t equates to 17,500 ounces of gold (2) Lost Dog east extension (my re-worked guesstimate) 2 anomalous parallel zones 525m x 40m x 10m & 600m x 30m x 10m PLUS one small anomalous zone 40m x 20m x 10m for 1,075,000 metric tonnes @ 1.25 g/t au for 44,750 ounces.
Conceptual addition to resources is 59,750 ounces of gold PLUS JORC of 141,000 ounces PLUS ROM = 226,750 ounces. Assuming 90% recovery LOM increases to 8.25 years (at 27,500 ounces per year).
A gravity circuit and Acacia Leach Plant (paid for) will be installed in March at Panther, which will process 88,000 tonnes @ 1.74 g/t au for 4,900 ounces INCREASES total annualized gold output and EBITDA. BCN have not stated throughput of this plant in their IR.
IMHO BCN needs to UP their exploration spend as gold resource additions are "middling" AND missing their build toward 10 year LOM at 50,000 ounces per year.
CASH growth is very impressive, currently running at a guesstimate of $825,000 per week (not deducting current / future exploration and CAPEX spend) TOTAL cash & gold $15,417,000 (announced by BCN for end of November) PLUS 3 weeks at $825K (Monday 21st) = $17,892,000. My annualized guesstimate on EBITDA is $30M which is 3.6 current share price, and identifies BCN as a very undervalued cash generator in the WA gold patch.
IMHO BCN should not do a dividend pay out at this time because they need to significantly grow their gold resource base to assure development of their stated 10 year LOM at 50,000 ounces per year. They could start a small share buy back program that would have a very positive effect on the share price that would outweigh the size of any contemplated dividend payment.
I bought 1M shares last week at 3.9 cents, as a first dip into BCN. I believe that they have multiple opportunities to deploy their cash flow into an ASX gold sector, where minnow explorer developers are off by 50% and seeking cash for development programs on proven gold resources.
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