all quiet on the western front, page-4

What to make of it, is that all those involved should do their utmost to successfully bring the Western Zone into production and in the safest manner possible. Let's not forget the increased seismicity in this part of the Tasmania Mine.

In his Chairman's Address on the 30th of November, 2010, Denis Clarke stated that: "...reef development on the 1180 metre level of the Tasmania Mine is now only weeks away from accessing the new Western Zone. Development of the first stopes in the new, wide, strongly mineralised zone will then proceed as fast as possible in coming months to return the mine to profitability."

Slide no.5 in the presentation at the AGM, also indicates:
"First development access to W Zone ore by end Dec Quarter"

So, what we need now, preferably before the meeting on 14 February 2011, is an announcement on commencement of production from the new zone.

After all that, it will be time to consider BDO Securities' conclusion that the proposed issue of convertible notes is not fair, but reasonable. I'm certain that the need is clear enough for shareholders to approve the proposed issue.

The Market seems to have already factored in the conversion of all proposed convertible notes, which will lead to the enormous dilution to existing shareholders of BCD.

Existing shareholders could (potentially) end up with just 19% of the company and the other stakeholders with 81%. The liquidity of the stock could then be in jeopardy.

At present, it appears that The Market considers that the BCD price lies somewhere between $0.020 and $0.026.

Only good news from production in the Western Zone will lift the price up towards the 3-4 cents mark. Potentially, the price could end up higher, but as always, only time will tell.