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Last Updated: 01/05/2012
Future of the Tasmania Mine
BCD Resources NL (BCD or the Company) today announced that underground mining at the Tasmania Mine, Beaconsfield is expected to close at the end of June next year. The Company says that at today’s gold price it is not viable to mine below the current depth of 1,210 metres.
BCD Resources NL Chief Executive Officer Peter Thompson said that the Company was currently evaluating other processing and mining options, including treatment of a gold tailings deposit and development of the Pinafore open pit gold resource located at Lefroy, 40km from Beaconsfield, which had the potential to extend gold production.
Mr Thompson confirmed that remaining convertible note debts are expected to be paid on time in February, with production beyond February generating significant revenue. Revenue to February was also partly protected with a gold hedging agreement at A$1,747 per ounce for 50 per cent of planned production.
He said the Company was evaluating the development of other assets, including their Victorian copper and gold assets, and re-utilisation of the Beaconsfield treatment plant on other refractory gold deposits. The Beaconsfield treatment plant is one of only three bacterial oxidation plants in Australia capable of treating refractory gold ores and has a significant replacement cost of $60m.
Mr Thompson said BCD directors were of the view that the full value of the assets of the Company was not reflected in the current market capitalisation of BCD and they are actively pursuing strategies to increase shareholder value.