Production Results, page-22

A bit of info taken from the Half Yearly:-

In September 2015 Bulletin Resources and its JV partner Pantoro Limited (PNR) became Australia’s newest gold producer with first gold poured from the Nicolsons and half year production totalling 5,143 Oz gold.

The Nicolsons mine continues to ramp up production towards nameplate capacity. The mine is now beginning to settle into steady development with the first three development levels nearing completion, and the access to the fourth level (2185 mRL) well advanced. It is expected that steady state production should occur in the March quarter.

The joint venture operator, Halls Creek Mining Pty Ltd (HCM) has advised that it continues to see a substantial overcall to the JORC Reserve model which will provide significant potential to extend the mine life and production capacity at Nicolsons.

Approximately 180% of the modeled Reserve ounces were recovered during the October- December period with Reserve overcall resulting from a number of factors listed below, all of which were positive throughout this period:

Increased tonnage and grade within the area currently classified as Reserve;

Extension of the Reserve along the strike of the main ore zone.

The strike length of the Reserve was increased at both the North and South ends of the Reserve;

Mining of high grade splay veins extending off of the main lode. The splay veins were not previously modeled in the Reserve calculation. Total ounces mined compared with the Reserve have overcalled on every level and during every month since ore development commenced in August 2015.

No Reserve updates have been undertaken to date, however the substantial overcall experienced in the areas mined to date suggests excellent potential to upgrade the mine inventory when adequate data is available. Work to re-estimate the levels developed to date has commenced, and diamond drilling from underground drill platforms is due to commence in the ensuing quarter. Once adequate drill and development data is available, the Reserve estimate will be updated.

Basically they have, and are expecting to continue to increase the resource size substantially. Current production is expected to cover all expenses at this early stage so no capital raising required from this point.

Only 174 million shares on issue. Top 2 shareholders own almost 50% and have continued to buy on market.

Hartleys have done a promo on PNR who own 80% of the JV and values them at around 17 cents per share (currently at 8.8 cents and under some solid accumulation)

With BNR owning 20% of the JV, and with no foreseeable dilution required given the current production numbers, they look like an obvious takeover target from PNR at some point.

On top of that, PNR could also attract some takeover attention of their own, particularly if the upcoming and future production numbers continue to increase as they have been.

Both PNR and BNR look like very healthy Spec plays in the current market imo ..... Heaps more info on the respective web sites re the resource expansion etc

PNR .... http://www.pantoro.com.au/

BNR .... http://www.bulletinresources.com/


Please DYOR as always