re: Ann: December Quarter Gold Production and... Re OceanViews...

re: Ann: December Quarter Gold Production and... Re OceanViews Comment

Yes Companies do update their Resources and Reserves as they mine it. However, relatively speaking Duckhead is really only a small deposit - in the begining it had only had 96k ounces in reserves. And 30 ozs were mined in the Sept 13 qtr and I would expect similar in the Dec 13 qtr meaning that they would have only one more quarter left (March 2014). Now there has been some success in term of BDR being able to extend mineralisation. Let's assume that they will add another say 30k ounces with then gives them another 3 months of production taking it to mid 2014.

An update in reserves and resources normally takes several months. For this smallish deposit it would not be worth the effect to spend the time and effort to update when it is being in the process of being mined out. However, one could assume that at the end of this mining process there will probably be an update done, as there will be residual resources that extend outside of the current reserves (pit etc) and a study would then need to be made whether they could extract or convert these resources to reserves outside of the current mining schedule. Any later mining would then require additional capital, such as money to either pre-strip the deposit or perhaps go underground?

As per previous release there are NOT any Fe credits on Duckhead as it is a different system and thus does not have Fe concentrations.

Duckhead itself has made a considerable contribution to the BDR financials and without it BDR would not be in the good position that they are in.