Bdi Mining Share Discussion Threads

[rambutan2] 03/11/2005 10:09

"BDI Mining is considering the Kulumadau deposit as a bulk mining target."

[blindfaith2] 03/11/2005 09:56

Translation please - anyone !
Sounds good but unsure how good

[ged5] 03/11/2005 08:24

Woodlark Island Drilling Results

LONDON - 3 November 2005 - BDI Mining Corp. (AIM-BMG) announces additional
significant drill results from the on-going exploration programme at the
100%-owned Woodlark Island Gold Project in Papua New Guinea.

The holes were drilled into the Kulumadau deposit where the Company is targeting
bulk mineable gold mineralisation. The holes were designed to allow the
Company's independent resource consultants Continental Resource Management Pty
Ltd of Perth, Australia, to complete a revised resource statement incorporating
all previous drilling, including results from BDI Mining's 2004 drilling
campaign. The revised resource statement is expected before the end of the year.

The majority of drilling at Kulumadau has been orientated perpendicular to the
northeast strike of mineralisation. Of particular note is Hole BKD 24 which was
drilled as a longitudinal hole at an angle approaching right angles to the main
drill lines, and was designed to assess the full geometry and bulk mining
characteristics of the Kulumadau deposit. The hole transversed the pre-vailing
northeast trend and intersected mineralisation in four zones.

The intersections comprise 8m @ 4.01g/t Au from 10m to 18m downhole, 14m @ 2.81g
/t Au from 45m to 59m, 16m @ 8.33 g/t Au from 119m to 135m (including 1m @ 83.5g
/t Au and 1m @ 11.57g/t Au), 13m @ 6.19g/t Au from 139m to 153m (including 1m @
28.9g/t Au and 1m @ 15.27g/t Au), and 63.6m @ 2.44 g/t Au from 169m to 223.6m to
the end of the hole (including 2m @ 34.1 g/t Au). This 63.6m interval also
included two 3m intervals of zero core recovery in clays which were assigned a
zero assay value.

BDI Mining Corp's Managing Director and CEO, Mr Lee K. Spencer, said: 'The broad
zones of high-grade gold encountered are potentially significant as the late
stage northwest fault zones originally thought to cut off mineralisation in the
north of the deposit, in fact may be present throughout the deposit and be gold
mineralised. This could result in an increase in gold grades throughout the
deposit and we are now planning another longitudinal hole to further test this
possibility.'

Other significant drilling results included two in-fill holes orientated
perpendicular to the northeast strike of mineralisation.

Hole BKD 22 intersected 4m @ 2.59g/t Au from 14m to 18m downhole, 3m @ 5.69g/t
Au from 70m to 73m and 3m @ 11.55g/t Au from 155m to 158m (including 1m @ 31.65g
/t Au).

Hole BKD 23 which intersected 3m @ 17.26g/t Au from 66m to 69m downhole
(including 1m @ 42.6g/t Au), 6m @ 2.53 g/t Au from 75m to 81m, 9m @ 1.58 g/t Au
from 110m to 119m, 5m @ 10.1 g/t Au from 156m to 161m (including 1m @ 46g/t Au)
and 6m @ 1.36 g/t Au from 166m to 172m.

The Kulumadau deposit is contained within two, northeast trending, parallel
fault zones in a sequence of intensely fractured andesitic volcanics. The
volcanics have been subsequently intruded by feldspar porphyries and associated
variably gold-mineralised hydrothermal breccias. The breccias, andesitic
volcanics and porphyries have been refractured and were subsequently cut by
high-grade gold bearing, clay filled shears which also generally trend to the
northeast. Late stage north-west fault zones originally thought to terminate
mineralisation in the north of the prospect, may now be present throughout the
bulk of the mineralisation and may be gold mineralised. BDI Mining is
considering the Kulumadau deposit as a bulk mining target.

All core is logged and sawn under the supervision of BDI Mining's project
geologists. All sample preparation was undertaken at Alotau by Intertek Caleb
Brett (ICB) in their own sample preparation laboratory. ICB sealed and packed
the samples which were then flown by charter flight to Port Moresby and then by
DHL courier to ICB's assay laboratory in Jakarta. All assays were by fire assay
with no top cuts applied, within a mineralized envelope defined at 0.5g/t Au.

For further information, please contact:

BDI Mining Corp.
Chuck Forrest, Finance Director Tel: [phone]
Website
www.bdiminingcorp.com


So that's why we had increased volume yesterday.

[doobydave] 01/11/2005 07:34

Thanks Simon,

Yes, I've already had a look at those useful URLs - actually it was those that raised BDI above radar height recently - but it takes me a while to assimilate all the info. I think I'll pay another visit to the Minesite forum presentation to refresh.

Not in yet, still doing due diligence on the financials. So far I like what I see and there's a good chance I will buy a few shortly.
DD

[simonbroughton] 31/10/2005 17:38

DoobyDave, BMG are aiming for 100,000 carats per annum by 2007. Even at an average of $250 that's $25m per annum so these will rocket if they fulfil their forecasts.

If you haven't already I suggest you read the links on posts 266 and 270. My thanks to unionhall and ramutan2.

[doobydave] 31/10/2005 13:16

Ged and Davidblack,
Thanks for the replies.

Every resources stock I look at, shareholder communications are getting blamed. The entire sector took a hammering this last month. Truth is, there are simply too many small resources companies chasing too few resources investors. Well over 100 on AIM. Which does mean the share price of quality companies like BDI and Avocet can stagnate almost indefinitely - but the corollary is that people like me get to buy in at very respectable prices.
DD

[davidblack] 31/10/2005 11:58

I think its around 170 which gets you the 5000k a month and at the 50% margin thats $625,000 a month to fund additional exploration.

This stocks presentation looks seriously deficient. Today we had a very good announcement but there has been no buying interest.

Whoever is responsible for shareholder communications needs to have a serious re think.

[ged5] 31/10/2005 10:10

I thought it was 130 carats/day (approx 4000 per month) at the moment and we've just had an RNS saying this will rise to over 8000 carats per month in 2007. Lee Spencer gave out the figures on the Minesite presentation mentioned twice above. Alternatively its on the home page of the website.

The cash is also mentioned on the presentation.

[doobydave] 31/10/2005 09:32

Can someone confirm for me that Cempaka is churning out 5,000cpm? Even at highly conservative prices of $250/carat, that implies a cash flow of over £7.5m annually. Current market cap £28m.
How much debt are BDI carrying?
Ta,
DD

[ged5] 31/10/2005 09:14

I've got to admit that I'm a little disappointed with the proceeds of the sale. Perhaps I'd built up my own expectation too high. After all this is good proceeds from only their second sale and with another sale before the end of the year there is something to look forward to.

I think we need some further good news from Woodlark if we are to reach SQC's end of year target of 70p.

[davidblack] 31/10/2005 08:23

Sale of Diamonds

RNS Number:3416T
BDI Mining Corp
31 October 2005



London Office:
3rd Floor,
20 Eastcheap,
London, EC3M 1EB
England
T: [phone]
F: [phone]
www.bdiminingcorp.com



SALE OF DIAMONDS



LONDON - 31 October 2005 - BDI Mining Corp. (AIM-BMG) is pleased to announce the
sale by tender of diamonds from the Cempaka Mine in Indonesia. This tender
represents the second sale of diamonds by BDI Mining in the latter half of 2005
(see announcement of 5th September 2005), with proceeds of the sale totalling
US$1,672,468.

The tender parcel consisted of 5,727 carats of run-of-mine diamonds larger than
2mm that sold for an average price per carat of US$280, as well as 768 carats of
fine diamonds (smaller than 2mm) recovered from the secondary plant circuit,
that sold for an average of US$81 per carat.

The tender was conducted in Antwerp under the supervision of BDI Mining's
independent consultants, WWW International Diamond Consultants Limited. The next
tender will be held in December, 2005.

[adam] 31/10/2005 08:22

The $/Crt of $257 on average much lower than 1st parcel. I suspect this is why share price dropped inexplicably. Too early to tell what the long run average will be, but I suspect closer to $250 than $380 previously. Hence with 60k plant that is some $15m p.a, with alleged 50% gross operating margin. Not expensive perhaps, but will diamond prices remain this strong?
Current FD market cap $55m, Campaka 1.3m Cts -> $40/Crt
+ Woodlark?
+ Upside if found diamond source?
- Indonesia/political risk
- diamond price

[davidblack] 30/10/2005 10:47

The second parcel should now have been sold as I remember Lee Spencer saying the sale was in the third or fourth week of October and payment early the following week.

A $2m cheque would do quite nicely.

[rambutan2] 28/10/2005 11:04

BDI Mining Going Great Guns In Diamonds And Gold


sounds good...
"The total weight (of the second parcel) is therefore 6,498.86 carats and there are rumours going round the market that this parcel also contains some big ones which will push up the average price when the tender takes place."

[ged5] 27/10/2005 20:15

Too true Pippin. There's far too much going on with this company.

I also noticed that little + sign which has now appeared in front of the 100000 carats per annum. In the presentation 100000 was the suggested potential. This company is delivering on its promises and then adding a bit more.

Yet again disappointing volume. No wonder the bid was lowered.

[pippin] 27/10/2005 17:41

Me neither, Ged.

Companies tend to quantify what they're pretty sure they've got. As they get some production history and extend the exploration in the immediate vicinity, the resources tend to get bigger over time - some possibles become probables, some probables become definite. No more reason than that for thinking that this might not be the end of the story.

[ged5] 26/10/2005 12:54

Need my other computer to listen to it again but I don't remember the resources being confirmed by an independent consultant.

[unionhall] 26/10/2005 12:38

All this is on the minesite presentation.....

Pick BDI from the drop-down menu.

[ged5] 26/10/2005 12:13

BDI Mining Corp
26 October 2005



London Office:
3rd Floor,
20 Eastcheap,
London, EC3M 1EB
England

Telephone [phone]
Facsimile [phone]

Cempaka Diamond Mine Resources Increase

LONDON - 26 October 2005 - BDI Mining Corp. (AIM:BMG) announces that an
independent reserve and resource assessment of the Danau Seran and Cempaka
Palaeochannels within the original Contract of Work area has resulted in a 91%
increase in global resources to 1,412,950 carats.

The reserve and resource assessment was undertaken by Dr Richard Garnett, an
internationally renowned placer consultant, in accordance with Canadian National
Instrument 43-101.

The resource assessment incorporates 16,661 metres of drilling completed by BDI
Mining since 2002 within Danau Seran, where current mining operations are
located, and the nearby Cempaka Palaeochannel.

According to Dr Garnett:

• Danau Seran Main Channel contains a Probable Mineral Reserve of 163,000
cubic metres grading 0.15 carats per cubic metre, containing 24,500 carats,
and an Indicated Mineral Resource of 280,000 cubic metres @ 0.15 carats per
cubic metre, containing 42,000 carats.


• Cempaka Channel contains an Inferred Mineral Resource of 13,465,000
cubic metres grading 0.1 carats per cubic metre, containing 1,346,500
carats.

The area in Danau Seran covered by both the Probable Mineral Reserve and
Indicated Mineral Resource categories are currently being mined.

The Cempaka Resource was calculated to the western boundary of the original
Contract of Work area, covering approximately 6 linear kilometres of
Palaeochannel. The Company recently expanded the Contract of Work boundary a
further 7.8 kilometres to the west.

This Cempaka Resource statement represents a near-doubling of the Company's
internal resource assessment prepared in 2002, and has the potential to support
mining operations for more than 14 years at a planned Phase 2 production rate of
+100,000 carats per annum.

Currently, four Bangka drill rigs are operating in the Cempaka Palaeochannel to
further define the resource ahead of Phase 2 mining of Cempaka. A further two
drill rigs will be mobilised in the next month.


BDI's Managing Director and CEO, Mr Lee K. Spencer, said: 'Dr Garnett's report
confirms management's belief that the Cempaka project contains sufficient
resources to sustain a long-life mining operation. Our focus now is on
optimising this resource while diamond prices are high.'


For further information, please contact:

BDI Mining Corp.
Chuck Forrest, Finance Director Tel: [phone]
Website
www.bdiminingcorp.com


A doubling of diamond mining resources and yet a paltry 137000 shares traded so far today and a share price increase of 2.25p. Is this share so unloved? What does it have to do to gain favour?

[pippin] 26/10/2005 10:04

Wow!

14 years at 100,000 carats/year means a lot of cash. Bet it's more likely to be upgraded than downgraded from here too.

[ged5] 21/10/2005 13:47

Also low volume the last 2 weeks.

[the big fella] 20/10/2005 17:10

Mkt sentiment - nothing stock specific.

[wapit] 20/10/2005 17:08

I see its back to a price I can get into. Why the sudden drop last few days ?