The annual meeting of Bendigo Gold on November 23 should be an interesting affair after yesterday’s price fall (well, plunge) on the back of what seems to be a confusing update on the company’s reserves picture.  The shares fell after the statement was filed at the ASX just after midday: the shares tumbled 22 per cent, or 28c to close at $1. Turnover was more than 17 million shares. The shares fell 33c at one stage to 95c from a high on the day of $1.29. The $1 close is equal to the 52 week low for the company. It peaked at $2.60 earlier this year, eased and then went back over $2.50 in May before following the world gold price lower down to last Friday’s close of $1.28. That valued Bendigo at $544.3 million: last night it was worth $425.3 million. This fall came on a day when the gold price perked up, adding around $US3 an ounce in afternoon trading after it became known that North Korea had tested a small nuclear device. Brokers said the effect of the statement was to cut reserves estimate by a third. Bendigo Mining’s New Bendigo Project in Central Victoria was thought to have reserves of 191,000 ounces of gold.  While the figure will fall, the inferred resource of 11 million ounces is unchanged. “Although it is premature to provide a definitive outcome, initial indications are that mining depletion and loss through tightening of the Mineral Resource boundaries in the Shywolup, Christine and Greater Garrard reefs could reduce the total Probable Ore Reserve tonnage by about one-third, whilst maintaining similar grade estimates,” the company said. The gold grade estimate is unchanged at seven to nine grams per tonne (g/t).  “Whilst an overestimate of gold within the more diffuse zones of these reefs has occurred, the high-grade core of each reef, associated with massive quartz mineralisation, appears to be accurately interpreted. Revised geological modelling is progressing for these three reefs with the more tightly defined boundaries leading to a mine plan to generate grade within seven g/t to nine g/t gold.” Bendigo Mining’s managing director Doug Buerger said the company was still “climbing the learning curve” in understanding mineralisation and nugget gold distribution at the mine scale.  “It is important to remember that the Ore Reserve is defined in only a small portion of the lower-grade southern end of the Bendigo Goldfield,” he said. “This information will assist in the targeting of our exploration programme and mine development.”