Member Info for NomZ

An oz of gold in the ground is typically valued at $40, sometimes less for inferred. Which gives a realistic current valuation of $24.4M, still 4 x current market cap. Good article here on gold project valuations: http://www.kitco.com/commentaries/2015-06-03/The-Real-Value-of-Gold-in-the-Ground.html

12 months ago gold was below $1,100 and there was still ebola in Guinea . Things have changes a lot since then.

Wow!

I see the project as an excellent entry point into Guinea for one of the mid tiers. I'd be ecstatic if it's B2Gold or Endeavour, two companies I really like. And that I've done very well with over the last year.

To be fair the resource as it stands is still pretty small at 600koz, but there is a large oxide portion and the grades are good. Its the near surface stuff that has the value, not deep extensions. More importantly there is upside potential which is what the bigger companies will be looking at if they want to get a foothold in Guinea Activity in Guniea definitely picking up: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/AVM/12994546.html

Why would they be interested in another acquisition if they are selling up? RTO has been mentioned, but again where would the new acquisition fit in? Is some kind of JV more likely?

2M here. Took a punt at 0.35 in July. Can't grumble :-)

2M here. Took a punt at 0.35 in July. Can't grumble :-)

There is huge upside at Mandiana-Delagna and that's one of the biggest selling points. The current resource only covers a tiny area of the licence and there are artisanal workings everywhere else. Marela, not sure, too far away from the other projects but some additional decent results for both areas wouldn't do any harm.

I'm hoping the acquistion is contiguous to their current licences, there were a couple of beleagured companies holding ground nearby which could be got on the cheap. I'm a big believer in the upside potential of the area and that is an important selling point, which I'm sure Capt Sparrow is well aware of.

Me neither! The board have done well to weather the storm over the last couple of years and are now very well positioned. Onwards and upwards with Captain Sparrow!

All going to plan, just a little patience required but things definitely taking shape nicely

A lot has happened in that year. Ebola over and gold price rising, bigger companies will be looking at Guinea again. This is only going one way.

Isn’t it rather worrying that the biggest project that BNC has been working on over the last two years does not even get a mention? Indeed, especially considering their revised plan with a shortened mine life for Trojan. Four years of high grading is not enough to justify the smelter. As for mining only low grade after that, well, I'm not sure they can even make that profitable. In addition to the low grade there is a huge issue with MgO content. This material cannot be treated by a smelter and even the concentrate itself may be unsellable due to the high MgO content. So from where I'm sitting I can't see any point of proceeding with the smelter, (which of course is what I've been saying from day 1). This will obviously raise some interesting issues with the $20 million bond... As for Hunter's Road it is even lower grade, about 0.5% if I remember. I am extremely sceptical they can mine that profitably, especially with trucking it to Bindura. Have they done a BFS? If so shouldn't shareholders be able to see it? As seems to be the norm with their press releases you have to read between the lines. Personally I don't think things are quite as rosy at BNC as some people seem to think... Oh and I’d also like an update on the shaft deepening project, in particular what it’s costing.

The fact that the smelter (or the bond to pay for it) was not even mentioned tells me that they've realised its a complete white elephant.

All the mid-large sized gold companies are desperate for projects at the minute. I'm sure one of them will come to the party. There is definite upside potential in the permit as well which is a big selling point

How much of that resource is inferred? What are the recoveries? The fact is that Freda has always struggled with maintaining grades. I wonder how much grade control drilling is being done? This is usually one of the first thing accountants cut to save costs, but can create huge issues going forward. The poor grades to date this year suggest to me that they are not on top of this. And when you are having grade issues the absolute last thing you should be thinking about is increasing tonnages as the problems will just be magnified

What 3rd party mines indeed. The nearest mines are in Botswana, where there is already a smelter, though its shut down at the minute.

100koz won't happen. They are struggling with grades already, increased tonnages will make it even more difficult and with grades sub 2g/t an underground mine is going to struggle. Are they going to tell us what these mills are costing?

The issue at Freda is the grade. So for this year they haven't got it above 2g/t which for an underground mine is marginal at best. Increasing tonnages will make keeping the grade up even more difficult. So I don't see production increasing and 100koz will never happen. Its an old mine and the best bits are long gone..,,