What some criticized as a pipe dream, when my report came out back in December, is now getting official confirmation.
A key argument in my 92-page report was, that by reprocessing the old mine tailings, Bougainville Copper (BCL) has an opportunity to turn a problem into an opportunity. What was once considered waste material, can now be used to produce copper and gold.
I also predicted that new technology will have a role in reviving this dormant mine.
In its latest annual report, the company's management states:
"It has been possible to apply new software and techniques to BCL's old data and reproduce it in a form that places BCL years ahead of any other potential developer without access to this very important data set. It is also possible that grades once designated as waste can be economically processed and thus prolong the life of the mine and substantially increase its output."
Please click on this link to read the more extensive version of the outlook that is given in the annual report.
This report came out today after the Australian market closed, which is why the share price has not yet had a chance to react to it.
Personally, I can't wait attending the annual shareholders meeting of Bougainville Copper. My flight to Port Moresby in Papua New Guinea is already booked. The meeting will happen on May 8th at 2pm.
Not being a mining expert, I can't possibly make a call on every single detail concerning the restarting of the dormant mine. However, there can now be little doubt that new technology will play a crucial role in getting the Panguna mine back to life. Also, there is growing consensus in Bougainville that without the mine reopening, this island may never be able to get back onto its feet.
With even the management giving off an optimistic message, it now seems certain that 2008 will produce plenty of good news for Bougainville Copper.
March 31st, 2008