points of order - bgs

Firstly I just wanted to repost Proactive investors' summary on the MOU with Randgold:

"This is a clever arrangement that could allow Birimian to rapidly and cost effectively advance its new gold discovery at Ntiola, within the Massigui Project, gaining earlier cash flows at minimal cost.

The existing Morila Mine infrastructure is located only 25 kilometres away from the Ntiola Prospect.

The MOU is between Société des Mines de Morila SA, which operates the Morila Treatment Plant. The Morila joint venture partners are Randgold Resources, Anglogold Ashanti, and the Republic of Mali.

Randgold is the operator of the Morila SA Joint Venture."

Secondly I wanted to affirm that a huge number of gold producers are in the process of closing down or mothballing operations due to relatively high costs of production per oz.

At today's date that number of mines which have effectively costed themselves out of production may be as high as 50% of ALL gold mining operations GLOBALLY, see:

http://business.financialpost.com/2013/04/18/meltdown-15-of-worlds-gold-miners-face-collapse-after-plunge-in-price-strips-169-billion-off-market-value/

http://au.news.yahoo.com/queensland/a/-/local/16847157/gold-miners-forced-to-tighten-belts/

http://www.miningaustralia.com.au/news/focus-closes-gold-mine-paints-dim-outlook-for-indu

http://au.ibtimes.com/articles/478555/20130614/more-australian-firms-close-gold-mines-price.htm

http://goldnews.bullionvault.com/gold-prices-mining-061920136

http://blogs.wsj.com/moneybeat/2013/06/21/gold/

http://goldbasics.blogspot.com.au/2013/06/gold-mines-closing-down-gold-miners.html

http://www.bloomberg.com/news/2013-06-23/gold-miner-writedowns-at-17-billion-as-newcrest-signals-fallout.html

http://www.theage.com.au/business/mining-and-resources/gold-slump-prompts-kingsgate-writedown-20130628-2p118.html

http://www.mining.com/barrick-gold-anticipates-5-5bn-write-down-23435/

http://www.mining.com/storm-of-writedowns-coming-up-for-gold-miners-56855/

http://www.forbes.com/sites/nathanvardi/2013/07/01/how-gold-miners-became-a-terrible-investment-2/

Thirdly if you've done your diligence properly you'll know that there are in fact only FIVE producers in the World which have the LOWEST CoP and which are perfectly able to not only maintain production & profit but mop-up on sales which would otherwise have been spread across all sources of production.

The lowest CoP producer in the World is YAMANA at $300-500/oz of gold (average, approx).

The second lowest CoP producer in the World is RANDGOLD at $500-600/oz of gold (average, approx).

SO, if you can understand that all the markets can hear is that 'GOLD HAS BEEN HAMMERED AND ALL PRODUCERS ARE IN THE SAME BOAT' you'd have a fairly accurate measure of current sentiment - but that does NOT reflect on BGS' current position accurately in the context of its prospects in Mali or Liberia and its trajectory towards jv's with Randgold on Massagui/Ntiola.

Think about it. What we have here today is a contrarian effect on a small stock which has big aspirations - and which in fact YOU know much more about than precious metals markets pundits and doomsayers anywhere.

Have a look at the charts below - they speak for themselves. When you consider these in the context of the links above showing how huge numbers of gold miners will be closing their gates, you'll get a much truer picture of where BGS is right now.

We're absolutely sitting pretty.

When the MM's & funds work this out - they'll all be buying in - so relax. Let the next few announcements happen and we'll see who, by way of creative deals and great prospects/tenements, will come out on top.

With thx to Scott Reeve for the graphics: