Bendigo Mining (BDG)

Shares / Stock Code

BDG

Stock Exchange / Sharemarket

ax

Bendigo Mining (BDG) is a gold mining and exploration company and it owns the entire historic Bendigo goldfield in Victoria. The company aims to re-commence the production from the Bendigo goldfields. The total production from the Bendigo goldfield in its time was around 22 Moz of gold and it is deemed as having high-grade gold mineralisation underneath the historic workings. Bendigo Mining listed on the Australian Stock Exchange on 19th December, 1985. In early 2007, the company decided to shift its exploration focus on more productive areas of the goldfield when it was revealed that the production at Sheepshead and Deborah Lines of mineralisation was overestimated. The Company has been actively involved in the exploration during the financial year and it has identified a number of new reefs on the Garden Gully line of mineralisation, with the Gill reef being the most significant discovery. During fiscal 2008, the Company began trial gold production and processed the first trial mining block from Gill reef. During the fiscal year ended 30th June 2008, Bendigo carried out the underground mine development of around 2260 meters, with 46,311 meters of exploration diamond drilling. The Company commenced trial mining and production operations at its Kangaroo Flat Mine in fiscal 2008.

The Company is focused to develop a sustainable production base through continuous exploration and development activities at the Bendigo Goldfield. The competitive advantage the company is centred around the expertise in the management and wide experience in its field. Bendigo Mining is aimed at seeking new business opportunities.

Bendigo Mining History

The Company listed on the ASX in November 1985, raising $2 million. The major asset of the Company was an exploration lease over the Central Deborah line of workings. In 1992, the Company acquired the entire Bendigo Goldfield from Western Mining, with tenements purchased for $1.6 million, in addition to a gold royalty capped at $8 million. In October 1993, it raised $11 million to support further exploration. Gold mineralisation was identified along the lines of reef in 1997. In October 1998, the Swan decline began construction in the area and by the mid 2000, it advanced to a depth of approximately 500 m where drilling operations of the targeted ribbons was able to start. In 2001, Harmony Gold Mining Company of South Africa invested in the Company and acquired 31% interest in BDG.

In 2004 a feasibility study was carried out to evaluate the economic feasibility of resuming gold production from the southern end of the goldfield. The Company started the construction of the 600,000 t/y gold plant in late May 2005, with completion effective in October 2006 at a capital cost of $65M. The plant was commissioned in September 2006 and commercial production was declared in December 2006. In 2007, the BDG shifted its focus to build reserves in more productive regions in the south of the goldfield, targeting production of 150-200,000 ounces per year from the Kangaroo Flat Mine. In June 2008, the Company started Trial Mining in order to test the visual grade estimation methodology, with lately discovered Gill reef as the major source of mill feed.