Private message from DB, thought others might have an interest, <"Could you refresh my memory on the Birim situation? What is the deal they have with Ashanti?">
The ASL deal relates to "certain" land (Mampon, Aboronye, Adukrom, part of the 230 sk Dunkwa concession) located about 30-40 km from the Obuasi mine and 20km from Ayanfuri. This will serve as oxide feeder, and as you know ASL is really attacking the area:http://www.siliconinvestor.com/readmsg.aspx?msgid=16146674
The first advanced royalty payment (expected soon, we hope)calls for ASL to pay ($20 for first 40k oz, $25 for next 20k, and $30 above), for recoverable oxide ounces defined by the feasibility study (now well under way). The general sense before the last drilling was that 150-175k would be defined at Mampon(US4-4.75 million). This now looks higher (over 200K/ US 5.5 million?). Plus ASL is working the other excellent prospective ground (especially Aboronye) with an aggressive program, so the news can only get better. biz.yahoo.com
IMO Dunkwa holds plenty of economic truckable oxide (and refractory ore if POG goes higher) to contribute not just to ASL's mines, but Bogoso (GSR tried to buy them out), and Prestea.
When BGI gets new legs from this ASL payment, they will attack a big concession called Bui that they feel represents an elephant deposit. I am impressed that BGI has been able to keep the float (23.8 million @ 25= less than US 4 million) under control and thus leave shareholders plenty of firepower. When the first (of many) royalty checks arrives from ASL, I anticipate BGI will be a net net (selling for less than it's treasury). That's why it's now my largest position (MFL a close second). |
