state one report target 45c

BMA Gold Limited (BMO)
Gold Speculative Out Perform Price Target $0.45
Share Price $0.27 EV / Resources A$133/oz Au
Ordinary Shares 243.3 (million) EV / Reserves A$243/oz Au
Options 7.4 (million) 2007 Production 60,000oz Au
Market Cap (diluted) $67.7 (million) 2007 Cash Cost A$350/oz

BMO has fallen 40% from its high of 46¢ in May as the ramp-up in production has been
slower than expected, resulting in 2006CY forecast production of 20
25,000oz compared
to the original estimates of 40
60,000oz. The slower than expected ramp-up has been
attributed to underestimating the development required to access the Area 1 orebody, and
intermittent zones of oxidised clay shears which hampered the development rate of the
decline, resulting in each cut requiring extensive ground support and shotcreting.
The development issues have now been overcome through the securing of a second jumbo,
loader and haul truck, together with developing the decline on the northern side of the Area
2 orebody (instead of the southern side) where the geological unit is a silicified breccia and
therefore very competent.
Production for the second half of 2006 should increase to 15,000oz, substantially above the
first half result of 4,600oz as stoping from both Area 1 and 2 contribute to production. We
see very little risk purchasing BMO below 30¢
35¢ per share as the company is debt free,
unhedged, and trading at a discount to its mid-cap peers.