Gold price, page-10919

MB

Every year each producer issues a revised statement of ore reserves and resources and the assumptions underlying that. BDR last issued such a statement in April 2016 (for r & r as at 31 December 2015) - see

http://www.asx.com.au/asxpdf/20160414/pdf/436hvg2hwrdzrx.pdf

They claimed to have enough ore reserves in their pits for 7 years of mining, average grade of 1.59 g/t.

In their recent presentation they stated they had enough ore reserves in their pits for at least 5 years of mining activities, average grade was 1.5 g/t, - see

http://www.asx.com.au/asxpdf/20170209/pdf/43fwn1rwg0t3hs.pdf

We should be getting an update of reserves/resources/LOM by end April, I suppose.

Now that they have a heap of funds on hand in excess of their debt they should go all out to drill out Tucano and establish a longer mine life, that also improves their cashflow after taking into account continuing increases in their lower grade stockpiles (I think that may have cost $3.5-5m last quarter, but we will get a better picture of that cost when the half yearly report is released), funds future exploration and plant improvements.

Given that BDR management claim to be aspiring to have BDR listed on the TSX (how else is management going to manufacture a Red Back Mining-like takeover offer from the big players), I think they should start following the reporting standards of TSX listed companies. That would vastly improve the transparency of their operations, and make it easier for investors to form investment decisions about the company. Perhaps Atomic could approach them on this. I would like to see the same sort of details that are provided by TSX listed PRU, TGZ etc, and even locally listed SBM, SLR. The only aspect of the TSX reporting standards that BDR may not yet be ready to follow is in respect of the reserve and resource statement as the Oz standards are not the same as TSX standards.

loki