As foreshadowed here, BDI Mining Corporation has received high-grade gold assays from Woodlark Island in Papua New Guinea.

Toronto-based, Aussie-run and AIM-quoted BDI says drilling results from the Wonai prospect in the south of Woodlark Island show in one case 2.1 metres of 10.6 grammes of gold per tonne of ore from 39.4 to 41.5 metres downhole, including half a metre at 33.75 grammes a tonne. Other assays show nine tenths of a metre at 14.3 grammes a tonne, including three tenths at 41.45 grammes a tonne, and three tenths of a metre at 50 grammes a tonne.

Lee Spencer, managing director of BDI, says 'the results confirm the high-grade gold values obtained at Wonai from surface sampling. Structural analysis indicates the potential at Wonai for greater widths of similar mineralisation.'

BDI, which recently raised £1.4 million from the first commercial sales of diamonds from its Cempaka gem project in Indonesia, is awaiting a new independent resource update for Woodlark Island, which chairman Paul Loudon suggests might increase the project's 'measured and indicated' potential from 380,000 oz to between 600,000 and 700,000 oz. He hopes further drilling could take it above the magic one million oz figure with a decision on production next year.

BDI's plan is, if possible, to use cashflow from Cempaka, which is also expecting a resource update soon, to develop Woodlark Island, rather than distribute to shareholders. Floated last year at 14p, BDI's shares recently reached 33.5p and now trade at 31p, up 0.5p this morning.

Hold on.