Corporate Profile

BCD Resources NL is an Australian listed gold producer (ASX:BCD), generating strong cash flow from annual gold production in excess of 70,000 ounces from the Tasmania Mine in northern Tasmania.

The company is focused on extending the life of the Tasmania Mine, discovering, developing and acquiring assets such as gold, copper and other base metals.

The Tasmania Mine exploits the Tasmania Reef, which is one of Australia’s richest gold veins, with a total resource of 571,000 ounces of gold, at an average grade of 12.2 grams per tonne of gold.

A resource extension drilling programme of 300 vertical metres below the current resource, which aims to double the mine life, has demonstrated continuity of mineralisation at depth. Recent drilling has also outlined a new zone of high grade mineralisation, not far below current mine workings, which will increase reserves westwards. There is also the potential to increase reserves further at the unexploited Western Stockwork Zone, which is open both above and below its current indicated resource boundaries.

Beyond the deeper drilling, gold exploration in Tasmania is focused on identifying repeats of the Tasmania Reef and building up satellite ore feed sources, such as at Lefroy and Mathinna, to make use of spare mill capacity at Beaconsfield. The Pinafore gold deposit, near Lefroy, has an inferred resource of 810,000 tonnes at 1.5 grams of gold per tonne, and is about 40 kilometres by road from Beaconsfield.

The Stavely project in western Victoria is similar to the highly endowed Mt Read district in Tasmania. Exploration has focused on a number of gold and copper prospects, especially along strike from the Thursdays Gossan supergene copper deposit, which has an inferred resource of 10.6 million tonnes at 0.45% copper. High grade primary copper mineralisation was also intersected beneath the supergene copper mineralisation of Thursdays Gossan. Other drilling has been encouraging with significant intercepts encountered at the Junction 1 copper prospect and the Fairview gold prospect.

The Ararat project, about 40 kilometres north-east of the Stavely project, has similar geology to that at the Stawell gold mine, which is located 20 kilometres to the north. The project area has produced about 600,000 ounces of alluvial gold and significant gold intercepts in the bedrock beneath younger basalt cover rocks have been encountered at the Langi Logan gold prospect. The project also includes the Ararat copper deposit, which has an inferred resource of 0.7 million tonnes at 2.7% copper, 0.8 grams per tonne gold and 9 grams per tonne silver. By spending $1 million on exploration over four years, the company can earn a 75% interest in the project which has the potential to enhance the development of the Stavely and Ararat copper deposits.