5 best gold juniors to invest in?, page-48

kempeman

Nice summary on BDR, which I looked at when it was 30 cents. I sure missed out on what has been an excellent run.

I suppose BDR was/is cheap because they have a heck of a lot of shares on issue, 622 million shares plus 22 million options.

The resource of 2.9 million consists of 1.224 million ounces (@ 1.45 gms/tonne) open pit and 1.485 million ounces (@ 2.21 gms/tonne) which is underground and is complexed with sulphide. These are not high grades (especially the gold located underground), IGR and SLR have much better grades. Many west African goldies also have better grades, and are located where labour costs (but perhaps not other costs) are low. BDR need to convert the resource into reserves before building a mine/plant.

Production is only expected sometime in early 2012, and BDR is yet to produce a DFS to support the economics of their main project. While they do have a fair amount of cash, I wonder if there will be a need for further capital raising or will they get MacBank to lend them funds, which may involve a hedge. Some of their existing cash will be used up in the exploration phase of proving up their resource into reserves and exploring their other tenements.

I note the recent selldowns by two major shareholders.

I like most of the points you made about BDR, and their tenements could prove up lots more gold that could be mined economically. That to me is what makes BDR attractive.

BDR is one to watch, and trade but I would not fall in love with it just yet.

loki