value gold play on pe 4, page-2

Good Afternoon Shareholders.

I have bought BCD @ 13.5c today. Charts suggest there is a possiblity for a test of the $1000 levels in the next couple of days. The rising gold price reflects the lack of confidence in the US Dollar. Lets see if $970 can hold, if so, i would expect $1000 to be cracked soon enough.

From the reports i see BCD as a high cost producer. However they are still meeting the profit margins that will further be helped if POG strengthens over the next couple of months. The Gold Bull is awaking.

Positives about BCD:

1) Cash Flow Positive - Net profit after tax of $9.1 million, up $42.1 million, with EPS of 2.3 cents per share, up 13.1 cents per share

2) Increase mine life/reserves catalyst - "Drilling in the September quarter is planned to focus on some untested areas of the deposit from 1200 to 1350 metres below surface which could add significantly to the current reserves."

3) Exploration prospects - RC and diamond drilling programmes to test several near-mine targets have been proposed and have received MRT approval. These targets include the Tasmania Reef surface target, the North
Tasmania Reef surface target and Pease Creek. Drilling is planned to commence in September.

4) Stavely and Ararat Project - Long term price catalyst, Follow up drilling of the single diamond hole at Langi Logan prospect at Ararat which intersected 2 metres at 9.2 g/t gold in a Stawell-style setting. And tonnes of copper. Possible, however of course feasibility studies are needed. For resource in the ground is one thing, and profit margins another.

5) Unhedged

6) Potential to encounter higher grades, given last quarter production cost were much higher as a result of low grades - common with all Gold Miners.

7) Low Market Cap. Room to move.

I always love the positive cash flow companies, no debt with plenty of potential to grow and improve in the future. Come on management you can do it for the future looks bright!

Interesting times ahead of course boys and girls. All the best to all holders,

LM