What most posters don't realise is that the BGS strategy has been all along to prove up a shallow resource. Kevin doesn't intend to do any deep digging at all.
At Ntiola they have already got around 200 000 ounces of shallow open pit mineable gold at an average grade of 3g/ton
Viper is an even more most exciting prospect (both in the Massuigi District) and if they can prove up another deposit of say 2-300 000 ounces at similar grades that will give them 1/2 million ounces to go to Randgold and start using the Morilla plant to begin making cash in 2015.
Morilla began with its plant in 2002 with gold at 12g/ton but since 2009 they have been treating stockpiles of 0.8g/ton. Yes 0.8g/ton! As long as there are grades over a large area it is well and truly economical to mine gold grades of 3g/ton or less.
Randgold's total cash costs since inception stands at $242/ ounce so do the math on today's gold prices and half a million ounces from BGS and Massuigi.
Even if you take into account transport costs (Morilla is 25kms away) and and a cut to Rangold what are we talking - $500 per ounce profit?
That's $250 million. Yes its an insane figure I know. And here is BGS with a market cap of $10 mill @ 1c/share.
IMO BGS is the bargain gold stock of the decade.
BGS Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
