re: is it about to boom? to wwhl 1. BFS (Bankable Feasability...

re: is it about to boom? to wwhl 1. BFS (Bankable Feasability Study) and (Cap ex) Capital Expenditure is explained in their announcement 15 August 2003. It states approx $18 million (Including $3.5 million for reserve definition drilling and feasability, pre-production mining and care & maintenance during construction period). I imagine this would be funded through debt as $18 million on a (RV) realisable value of either $51 million or $110 million does represent a high lend ratio.

2. Government approvals, I think (not sure - my opinion only) still have to be put in place. They already have agreements in place with landowners (for many years) and the Fiji government is apparently very positive on mining development.
Emperor mines (EMP) is a good local example.

3. Personally, my opinion is that I think the risk of the refusal or delay of the government requirements is low. The Fijian Government stands to generate revenue and it creates employment for locals. What negatives are there to suggest that the government would refuse or delay?
BKS has held this asset for many years. It has been on care and maintenance for the last 4 - 5 years. They have held it through the Fiji coup and through the diversionary tech boom and 9/11.
The temptation to sell it must have been enormous. I think the board of bks should be admired for showing such good vision to hold it for future development. Now that they are developing it, the gold grams per tonne that have been found so far, have been very encouraging and mostly near surface so mining will be cheaper than if it was deep down.

4. In my opinion, production, assuming all goes well and to plan, would probably commence sometime in 2005.


Constructive comments & discussion please.
I hold bks
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