CENTURY MINING CLOSES FLOW-THROUGH SHARE FINANCING
Blaine, WA: Century Mining Corporation (CMM: TSX-V) announced today that it has closed a non-brokered private placement of 13,482,141 flow-through shares at a subscription price of C$0.13 per flow-through share for gross proceeds of C$1.75 million. The remaining balance of approximately $250,000 is expected to close on or before April 3, for total gross proceeds of $2.0 million. This financing was originally announced on March 24, 2009. Century paid a finder’s fee of 6% cash, and broker warrants equal to 6% of the number of flow-through shares purchased by investors introduced to the Company. All of the securities issued under this private placement are subject to a four-month hold period. The proceeds of this flow-through share financing will be used for exploration at the Company’s Lamaque property in Québec and a computer modeling project to further increase gold reserve and resource ounces.
The funds from this financing in addition to positive cash flow from the Company’s operations in Peru will allow Century to advance the development of the Lamaque project while a larger debt financing is finalized.
Century also said today that since announcing a US$65 million debt financing on March 24, the Company has received two additional proposals for a large project financing to restart mining operations at Lamaque from North American and European investors. Regarding the subsequent proposals, Century stated that it intends to proceed with the debt financing as described in the March 24 press release, although the Company will give due consideration to any alternatives that will expedite the Company’s growth strategy and enhance shareholder value.
Margaret Kent, President and CEO of Century commented, “We are very happy to see renewed confidence in Century Mining as we move forward with the Lamaque project. There was significant interest from investors in our most recent offering, resulting in oversubscription of the flow-through financing. While we recognize the importance of accommodating as many investors as possible, the decision to limit the offering to $2 million was made to minimize dilution of the Company’s shares beyond what is necessary to advance the project.”
About Century Mining Corporation Century Mining Corporation is a junior gold producer. The Company owns and is working towards the restart of the Lamaque mine in Québec that historically has produced over 9.2 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Total gold production for 2006 and 2007 was 70,401 ounces and 63,124 ounces of gold, respectively.
“Margaret M. Kent” Chairman, President & CEO For further investor information, please contact: Brent Jones, Manager of Investor Relations
E-mail: bjones@centurymining.com Phone: (877) 284-6535 or (360) 332-4653 Fax: (360) 332-4652
Website: www.centurymining.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.
Tuesday, March 31, 2009
Monday, March 30, 2009
Note - 2 weeks remaining
for the US$65 million debt financing to be closed off. Time is moving fast. It's hard to believe that 1 week has already elapsed. I hope to post another countdown note at this time next week. I bet these next 7 days feel quick also. With the close off period being only 21 days in total, it would suggest that perhaps all parties know what they want, and are looking to get this done ASAP.
Today's share price pressure - thoughts
Might (partly) be due to some flow-through participants raising some last minute cash on the open market. The $2 million flow-through financing is targeted for close off tomorrow.
A future of 13 million organic ounces from current Century properties alone (longer term)
It is only my personal view of the potential of our existing properties on a long-term basis - based on limited available data.
I see the potential of Century reaching 13 million (gold) resource ounces as some point over the next 5 - 10 years, just strictly from our existing properties - this might even be conservative:
1) Lamaque Complex - 9,000,000 ounces
2) Properties beyond Lamaque Complex boundaries - 1,350,000 (conservative estimate)
3) Aumaque Mine - 200,000
4) Sigma II Mine - 200,000 (blind estimate)
5) Carolin - 500,000 (blind estimate)
Century still owns a percentage of Carolin, plus Century maintains the right of first refusal. In addition, Century will be well positioned to take over Module once Carolin gets closer to the production stage.
"Century maintains a right of first refusal on all dispositions of the properties by Module to any but related third parties."
6) Northbelt - 750,000 (conservative estimate)
7) San Juan - 1,000,000
8) Juneau properties - assumed zero for now (until Alaska becomes more mining friendly - favourable agreements in the Kensington tailings case in a couple of months could go a long way with this)
9) Goodchild - assumed zero for now (too early stage)
I see the potential of Century reaching 13 million (gold) resource ounces as some point over the next 5 - 10 years, just strictly from our existing properties - this might even be conservative:
1) Lamaque Complex - 9,000,000 ounces
2) Properties beyond Lamaque Complex boundaries - 1,350,000 (conservative estimate)
3) Aumaque Mine - 200,000
4) Sigma II Mine - 200,000 (blind estimate)
5) Carolin - 500,000 (blind estimate)
Century still owns a percentage of Carolin, plus Century maintains the right of first refusal. In addition, Century will be well positioned to take over Module once Carolin gets closer to the production stage.
"Century maintains a right of first refusal on all dispositions of the properties by Module to any but related third parties."
6) Northbelt - 750,000 (conservative estimate)
7) San Juan - 1,000,000
8) Juneau properties - assumed zero for now (until Alaska becomes more mining friendly - favourable agreements in the Kensington tailings case in a couple of months could go a long way with this)
9) Goodchild - assumed zero for now (too early stage)
Saturday, March 28, 2009
Updated Corp Presentation
(posted on Century's website)
They are probably getting ready for the Calgary Resource Conference (early April).
The presentation is becoming more informative all they time - good job!
Century believes that the Lamaque complex has future production potential of at least matching 9 million historical production ounces.
Here is what really stands out for me. Century believes that the West Plug has potential to go down deep, almost as far as the Lamaque Plug. As we know, the Lamaque Main Plug produced significant bulk mineable (cheap cash cost) ounces for Teck Cominco ("Teck") in the past. Century believes that the remaining bulk mineable deposit for both plugs could have potential for 2 million ounces. This new (significant) underground potential for the West Plug doesn't surprise me. I remember reading about how past geologists (that worked on the property) were suggesting that West Plug likely has million ounce potential.
I think they got their accounting/finance specialist in place now (Reda Akladios?).
As a side note, I think I located data from a second Northbelt deposit - 45,000 ounces @ 10.30 g/t grade. This is in addition to the first deposit - 130,000 ounces (before applying a standard 95% recovery rate) @ 4.00 g/t grade. That would mean that I have been able to independently account for 175,000 of the 250,000 Northbelt ounces so far. I hope to post some details about the new data at some point later.
They are probably getting ready for the Calgary Resource Conference (early April).
The presentation is becoming more informative all they time - good job!
Century believes that the Lamaque complex has future production potential of at least matching 9 million historical production ounces.
Here is what really stands out for me. Century believes that the West Plug has potential to go down deep, almost as far as the Lamaque Plug. As we know, the Lamaque Main Plug produced significant bulk mineable (cheap cash cost) ounces for Teck Cominco ("Teck") in the past. Century believes that the remaining bulk mineable deposit for both plugs could have potential for 2 million ounces. This new (significant) underground potential for the West Plug doesn't surprise me. I remember reading about how past geologists (that worked on the property) were suggesting that West Plug likely has million ounce potential.
I think they got their accounting/finance specialist in place now (Reda Akladios?).
As a side note, I think I located data from a second Northbelt deposit - 45,000 ounces @ 10.30 g/t grade. This is in addition to the first deposit - 130,000 ounces (before applying a standard 95% recovery rate) @ 4.00 g/t grade. That would mean that I have been able to independently account for 175,000 of the 250,000 Northbelt ounces so far. I hope to post some details about the new data at some point later.
Thursday, March 26, 2009
Flow through increased to 2 million
Century Mining increases flow-through offering
4:00 PM ET, March 26, 2009
BLAINE, WA, Mar 26, 2009 (Canada NewsWire via COMTEX) -- Century Mining Corporation (CMM: TSX-V) today that the private placement of flow through shares announced on March 24, 2009 will be raised from C$1.75 million to a maximum of C$2.0 million, due to increased investor interest in the offering. All other terms and conditions remain the same as announced on March 24. Century expects the financing to close on March 31, 2009.
4:00 PM ET, March 26, 2009
BLAINE, WA, Mar 26, 2009 (Canada NewsWire via COMTEX) -- Century Mining Corporation (CMM: TSX-V) today that the private placement of flow through shares announced on March 24, 2009 will be raised from C$1.75 million to a maximum of C$2.0 million, due to increased investor interest in the offering. All other terms and conditions remain the same as announced on March 24. Century expects the financing to close on March 31, 2009.
Tuesday, March 24, 2009
Trading Summary for March 24
It could have been a really good day without "Anonymous" pounding the bid with huge blocks for most of the day. All of the trades are posted in the "Today's Trades" link on the right.
CMM Receives Underwriting Proposal For US$65 Million Debt Financing
Century Mining Receives Underwriting Proposal For US$65 Million Debt Financing
Century also announces C$1.75 million flow-through financing for Lamaque drill program and additional reserve and resource upgrades
BLAINE, WA, March 24 /CNW/ - Century Mining Corporation (CMM: TSX-V)today announced that the Company's Board of Directors has agreed to proceed with a proposal it has received for a fully-underwritten debt financing for its Lamaque project in the amount of US$65 million.
US$65 million debt financing details
On February 2, 2009 Century announced plans for a gold-based debt facility, whereby the Company would raise necessary funding from institutional investors and repay the loan with physical gold from production at Lamaque. After evaluating several financing alternatives, the Company has chosen to pursue the debt financing announced today because it requires no commitment of future gold production and minimizes potential dilution of the Company's shares.
Under terms agreed to in the underwriting agreement, Century will borrow $65 million for a term of 7 years, at an interest rate of 8% in the first year, and 6% per year in years 2 - 7. The interest for the first year of the loan will be paid in full at the time of closing of this transaction. Payments in years 2-7 will be interest only, with a balloon payment at the end of the loan term for the entire principal amount.
The primary use of proceeds will be for capital expenditures to restart mining operations at Century's Lamaque Underground Mine, located in Quebec, Canada.
This financing is being arranged by Union Securities Ltd. of Calgary. Union Securities has been instrumental in identifying sources of private debt financing for the Lamaque project.
In a confirmation letter sent to Century and Union Securities regarding the debt financing, the lenders stated, "We are pleased to confirm that we can underwrite investment for Century's project in the amount of $65 million." The source of funds will be from a consortium of international investors.
Closing on the debt facility will be subject to terms, conditions and guidelines as set forth by the lender, and security documentation. A 3% underwriting fee and a 6% finder's fee with 10 million warrants exercisable at C$0.15 for a period of two years will be paid at closing.
Regarding due diligence processes customary in financings of this scope, the lender has indicated that the extensive due diligence carried out by Fortis Bank and the resulting January 2009 Due Diligence Report are sufficient for the purposes of this transaction. This is significant because it will expedite the closing of the debt financing. The Company and the consortium anticipate finalizing the underwriting on this debt financing in approximately 21 days, with funding of the full amount to take place 30-45 days after that.
Century has terminated its agreement with Octagon Capital Corporation, which was acting as lead agent for the gold-based financing.
C$1.75 million flow-through financing details
Century also announced today that, subject to regulatory approval, it will complete a non-brokered private placement of up to C$1.75 million, comprised of flow through shares.
The Company will issue common shares on a flow-through basis at an issue price of $0.13 per share.
The Company will pay certain persons for introducing subscribers to the Company a finder's fee of cash equal to 6% of the aggregate gross proceeds, and broker warrants equal to 6% of the aggregate number of flow-through shares. Each broker warrant shall be exercisable for 18 months from the date of issue and shall entitle the holder to purchase a common share of the Company for a price of $0.13. The flow-through share issuance is subject to approval by the TSX Venture Exchange.
The proceeds from this offering will be used for diamond drilling of the Bedard Dyke at the Lamaque Mine and completion of an ongoing Vulcan computer modeling project of the Lamaque Mine from the 2,000 to 3,000 foot levels. All of the securities issued under these private placements will be subject to a four-month hold period.
Margaret Kent, President and CEO of Century commented, "Century has been working on this debt financing package for several weeks now. We are very pleased with the terms of this debt financing. Since early February, management and the Board have conducted extensive negotiations with potential lenders regarding both gold-based and straight debt financing alternatives. The terms of the deal announced today will allow us to restart operations at Lamaque without committing a single ounce of future gold production."
About Century Mining Corporation
Century Mining Corporation is a junior gold producer. The Company owns and is working towards the restart of the Lamaque mine in Québec that historically has produced over 9.2 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Total gold production for 2006 and 2007 was 70,401 ounces and 63,124ounces of gold, respectively.
"Margaret M. Kent"
Chairman, President & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.
Century also announces C$1.75 million flow-through financing for Lamaque drill program and additional reserve and resource upgrades
BLAINE, WA, March 24 /CNW/ - Century Mining Corporation (CMM: TSX-V)today announced that the Company's Board of Directors has agreed to proceed with a proposal it has received for a fully-underwritten debt financing for its Lamaque project in the amount of US$65 million.
US$65 million debt financing details
On February 2, 2009 Century announced plans for a gold-based debt facility, whereby the Company would raise necessary funding from institutional investors and repay the loan with physical gold from production at Lamaque. After evaluating several financing alternatives, the Company has chosen to pursue the debt financing announced today because it requires no commitment of future gold production and minimizes potential dilution of the Company's shares.
Under terms agreed to in the underwriting agreement, Century will borrow $65 million for a term of 7 years, at an interest rate of 8% in the first year, and 6% per year in years 2 - 7. The interest for the first year of the loan will be paid in full at the time of closing of this transaction. Payments in years 2-7 will be interest only, with a balloon payment at the end of the loan term for the entire principal amount.
The primary use of proceeds will be for capital expenditures to restart mining operations at Century's Lamaque Underground Mine, located in Quebec, Canada.
This financing is being arranged by Union Securities Ltd. of Calgary. Union Securities has been instrumental in identifying sources of private debt financing for the Lamaque project.
In a confirmation letter sent to Century and Union Securities regarding the debt financing, the lenders stated, "We are pleased to confirm that we can underwrite investment for Century's project in the amount of $65 million." The source of funds will be from a consortium of international investors.
Closing on the debt facility will be subject to terms, conditions and guidelines as set forth by the lender, and security documentation. A 3% underwriting fee and a 6% finder's fee with 10 million warrants exercisable at C$0.15 for a period of two years will be paid at closing.
Regarding due diligence processes customary in financings of this scope, the lender has indicated that the extensive due diligence carried out by Fortis Bank and the resulting January 2009 Due Diligence Report are sufficient for the purposes of this transaction. This is significant because it will expedite the closing of the debt financing. The Company and the consortium anticipate finalizing the underwriting on this debt financing in approximately 21 days, with funding of the full amount to take place 30-45 days after that.
Century has terminated its agreement with Octagon Capital Corporation, which was acting as lead agent for the gold-based financing.
C$1.75 million flow-through financing details
Century also announced today that, subject to regulatory approval, it will complete a non-brokered private placement of up to C$1.75 million, comprised of flow through shares.
The Company will issue common shares on a flow-through basis at an issue price of $0.13 per share.
The Company will pay certain persons for introducing subscribers to the Company a finder's fee of cash equal to 6% of the aggregate gross proceeds, and broker warrants equal to 6% of the aggregate number of flow-through shares. Each broker warrant shall be exercisable for 18 months from the date of issue and shall entitle the holder to purchase a common share of the Company for a price of $0.13. The flow-through share issuance is subject to approval by the TSX Venture Exchange.
The proceeds from this offering will be used for diamond drilling of the Bedard Dyke at the Lamaque Mine and completion of an ongoing Vulcan computer modeling project of the Lamaque Mine from the 2,000 to 3,000 foot levels. All of the securities issued under these private placements will be subject to a four-month hold period.
Margaret Kent, President and CEO of Century commented, "Century has been working on this debt financing package for several weeks now. We are very pleased with the terms of this debt financing. Since early February, management and the Board have conducted extensive negotiations with potential lenders regarding both gold-based and straight debt financing alternatives. The terms of the deal announced today will allow us to restart operations at Lamaque without committing a single ounce of future gold production."
About Century Mining Corporation
Century Mining Corporation is a junior gold producer. The Company owns and is working towards the restart of the Lamaque mine in Québec that historically has produced over 9.2 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Total gold production for 2006 and 2007 was 70,401 ounces and 63,124ounces of gold, respectively.
"Margaret M. Kent"
Chairman, President & CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.
Friday, March 20, 2009
The Fed move was a BIG TIME game changer (we are now playing in the big leagues)
Yesterday's message was about much more than just the $1.2 trillion of new spending by the US over the next 6 months (or so). Rather, the more important message is that the US (Fed) is essentially saying (by their actions yesterday) that they are willing to do anything (and print a limitless supply of new money) in order to prevent the Great Depression, Part 2 (especially since nothing else has worked thus far - they threw in the towel). Bernanke might also be seeing data showing severe trouble around the corner, hence the immediate drastic actions. It virtually guarantees that some form of severe inflation will materialize at some point down the road (once prices have been reflated).
Bernanke is a schooler on both the great depression and the 20 year Japanese deflation. He knows that he needs to reflate the economy asap otherwise there will be serious consequences. He has selected to embrace the lesser of 2 evils - inflation. He will now print as much money as required. "Helicopter Ben" might even do the dollar drops from a helicopter, as he mentioned (to expressed the firmness of strategy) in his speeches in the years prior to becoming the US Fed.
Bernanke is a schooler on both the great depression and the 20 year Japanese deflation. He knows that he needs to reflate the economy asap otherwise there will be serious consequences. He has selected to embrace the lesser of 2 evils - inflation. He will now print as much money as required. "Helicopter Ben" might even do the dollar drops from a helicopter, as he mentioned (to expressed the firmness of strategy) in his speeches in the years prior to becoming the US Fed.
Wednesday, March 18, 2009
Fed launches bold $1.2T effort to revive economy
Today's announcement is huge, at least with regards to pushing the US/world further down the inflation path.
The article below states that the US Fed's balance sheet was under $900 billion just this past September. They mentioned in the article that it is now $2 trillion, but that might be before today's annoucement. I heard an interview today, where the expert stated that today's annoucement pushes the Fed's balance sheet to $3 trillion. In the article below, they state that it could be over $5 trillion in a couple of years.
Going from $900 billion just last September to $5 trillion in a couple of years is earth shattering. The world has never seen this kind of money being tossed around before. I haven't even mentioned the $10+ trillion of additional debt that the US owe. And, how about the $60 tillion or so that the US will have to come up with over the next couple of decades to not only service the debt, but to pay for social security (and other programs) as the baby boomers begin to retire.
Unlike China, and even Russia, the US doesn't have any reserves. They are broke. As mentioned, they are in a big time debt hole, and their economy can't even seem to produce enough to cover annual expenditures, never mind addessing the debt situation and social programs.
Where will all the money come from? Printing presses of course. They call it quantitative easing, but it's really good ole fashion running trees through the printing presses. The US dollar will be slaughtered - it's just a matter of time. It may not be complete Zimbabwe style, but they sure seem to like that path. What does a burger cost in Zimbabwe these days, maybe $1,000 Zimbabwe? How about in the US, maybe $5? I guess people better enjoy the taste of a burger while they can. It might not go to $1,000, but even $7-14 would be quite expensive, especially since everything else would be eating up people's income at the same time.
That's what inflation does.
That's why gold is a good place to reside during these times.
Here are parts of the article:
By JEANNINE AVERSA, AP Economics Writer Jeannine Aversa, Ap Economics Writer
"With the country sinking deeper into recession, the Federal Reserve launched a bold $1.2 trillion effort Wednesday to lower rates on mortgages and other consumer debt, spur spending and revive the economy."
"To do so, the Fed will spend up to $300 billion to buy long-term government bonds and an additional $750 billion in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac."
"The dollar, meanwhile, fell against other major currencies. In part, that signaled concern that the Fed's intervention might spur inflation over the long run."
"The goal behind all the Fed's moves is to spur lending. More lending would boost spending by consumers and businesses, which would revive the economy."
"Where does the Fed get all the money? It prints it."
"The Fed's series of radical programs to lend or buy debt has swollen its balance sheet to nearly $2 trillion — from just under $900 billion in September. Sohn believes the Fed's balance sheet could grow to $5 trillion over the next two years."
"Across the Atlantic, the Bank of England last week began buying government bonds from financial institutions as it turned to new ways to help revive Britain's moribund economy. The Bank of England, like the Fed, already had lowered its key interest rate to a record low of 0.5 percent."
The article below states that the US Fed's balance sheet was under $900 billion just this past September. They mentioned in the article that it is now $2 trillion, but that might be before today's annoucement. I heard an interview today, where the expert stated that today's annoucement pushes the Fed's balance sheet to $3 trillion. In the article below, they state that it could be over $5 trillion in a couple of years.
Going from $900 billion just last September to $5 trillion in a couple of years is earth shattering. The world has never seen this kind of money being tossed around before. I haven't even mentioned the $10+ trillion of additional debt that the US owe. And, how about the $60 tillion or so that the US will have to come up with over the next couple of decades to not only service the debt, but to pay for social security (and other programs) as the baby boomers begin to retire.
Unlike China, and even Russia, the US doesn't have any reserves. They are broke. As mentioned, they are in a big time debt hole, and their economy can't even seem to produce enough to cover annual expenditures, never mind addessing the debt situation and social programs.
Where will all the money come from? Printing presses of course. They call it quantitative easing, but it's really good ole fashion running trees through the printing presses. The US dollar will be slaughtered - it's just a matter of time. It may not be complete Zimbabwe style, but they sure seem to like that path. What does a burger cost in Zimbabwe these days, maybe $1,000 Zimbabwe? How about in the US, maybe $5? I guess people better enjoy the taste of a burger while they can. It might not go to $1,000, but even $7-14 would be quite expensive, especially since everything else would be eating up people's income at the same time.
That's what inflation does.
That's why gold is a good place to reside during these times.
Here are parts of the article:
By JEANNINE AVERSA, AP Economics Writer Jeannine Aversa, Ap Economics Writer
"With the country sinking deeper into recession, the Federal Reserve launched a bold $1.2 trillion effort Wednesday to lower rates on mortgages and other consumer debt, spur spending and revive the economy."
"To do so, the Fed will spend up to $300 billion to buy long-term government bonds and an additional $750 billion in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac."
"The dollar, meanwhile, fell against other major currencies. In part, that signaled concern that the Fed's intervention might spur inflation over the long run."
"The goal behind all the Fed's moves is to spur lending. More lending would boost spending by consumers and businesses, which would revive the economy."
"Where does the Fed get all the money? It prints it."
"The Fed's series of radical programs to lend or buy debt has swollen its balance sheet to nearly $2 trillion — from just under $900 billion in September. Sohn believes the Fed's balance sheet could grow to $5 trillion over the next two years."
"Across the Atlantic, the Bank of England last week began buying government bonds from financial institutions as it turned to new ways to help revive Britain's moribund economy. The Bank of England, like the Fed, already had lowered its key interest rate to a record low of 0.5 percent."
Sunday, March 15, 2009
About Century's Goodchild properties
(While we wait)
Century noted our Northbelt (Yellowknife) and Goldchild (Ontario) properties in the recent Coporate Presentation. They haven’t provided much info in the past, with regards to these 2 properties. As such, I thought I would share what little I know.
With regards to Northbelt, I’ve already shared some info about this property on a previous post, but here is a summary note nonetheless:
‘Nebex, as operator on the Northbelt property has drill-delineated a geological reserve containing approximately one million tonnes grading four grams Au per tonne. The zone remains open along strike and at depth and further drilling is warranted.’
Peggy mentioned on one of the conference calls that the Northbelt resource total is currently at about 250,000 ounces of gold. Obviously, Nebex accounted for at least 123,000 of those ounces (1M tonnes @ 4 g/t), via drilling performed in the 90s.
With regards to Century’s Goodchild properties:
Our Goodchild Lake property is about 20 km's north of the Hemlo gold camp, in the “Hemlo region”. It is definitely a very early stage, grassroots, property (make no mistake about it), but there are showings of gold and other metals on the property (from both drilling and sampling efforts). Century inherited the property from Saxony Explorations (when Century was formed). Saxony had previously done an option with JonPol Exploration on Aug. 26/02. JonPol performed limited (test) drilling in 2 phases, Jan. 28/03 and Oct. 16/03. Phase 1 drilling was very positive. Phase 2 drilling was mixed, but was too limited to make any firm conclusions about the property - only 5 drill holes. There is definitely gold on the property. Actually, there appears to be some silver, copper and zinc also. There needs to be a lot more work done to determine the extent of the gold/metals content on the property, and to access if it can become a viable mining project. It is definitely located in the right region.
Here are the phase 1 and 2 NRs for the Goodchild Lake property, from back in 2003.
JONPOL EXPLORATIONS LTD. DRILLS THE LUCKY AND UGM SHOWINGS AT THE GOODCHILD LAKE PROPERTY, ONTARIO.
Jonpol Explorations Ltd. (JON-TSX) wishes to announce the results of their Phase I diamond drill program at the Lucky and UGM Zones on its jointly held (Jonpol/Saxony) Goodchild Lake claims, located 15 km northeast of the town of Marathon in north central Ontario.
Three diamond drill holes -- GC-02-1, 2, & 3 -- for 513 meters were completed to test the Lucky Zone, to a depth of 50 meters and over a strike length of 100 meters. Assays of 1.29 g/t, 2.88 g/t and 0.26 g/t gold over core lengths of 1.00, 1.14 and 3.16 meters respectively are in the same range as surface channel samples from pyritized syenite within the zone. The Lucky shear-fracture zone dips west at 70 o and is characterized by red-buff quartz-carbonate-hematite alteration that fills fractures within a grey monzonite host at the margins of the pyritized syenite dyke.
The shear-fracture zone strikes north-south for at least 1.1 kilometers within the Beggs Lake stock and further detailed IP surveys over the structure are required to define sections of pyritized syenite and auriferous shear below the overburden.
Diamond drill hole GC-02-04, drilled – 52 o at 110 o from station (1245E and 985N) to test the UGM zone, cut fractured monzonite with pyrite, quartz veins and buff-carbonate alteration between 32.8 and 69.55 meters from collar and was stopped in unaltered monzonite at 167 meters. A 0.42 meters section of altered monzonite between 33.49 and 33.91 meters assayed 3.6 g/t gold, while 2 silicified sections below this interval assayed 1.80 g/t and 2.54 g/t over 0.20 and 1.0 meters respectively.
The drilling has shown that the pyritized UGM fracture zone is vertical, while trench mapping and stripping has established a strike of N25 OE across the Beggs Lake stock.
Diamond drill hole GC-02-05 drilled – 52 o at 225 o from station (242W and 683S Teck Grid) was collared in basalt and cut 89.6 meters of altered basalt with four sections of pyritized tuff-sediment and cherty tuff between 25.36 and 115.0 meters above the volcanic/monzonite contact. The hole was stopped in unaltered monzonite at 153.0 meters.
Two sections of tuff and cherty tuff with 1 – 3% pyrite-pyrrhotite-sphalerite assayed (1) 0.06 g/t gold, 1.08 g/t silver, 680 ppm copper and 445 ppm zinc over 5.0 meters, and (2) 0.02 g/t gold, 0.51 g/t silver, 253 ppm copper and 4043 ppm zinc over 3.8 meters.
Individual assays of 3470 ppm zinc and 1.0 g/t silver over 1.0 meter within cherty tuff lie above these zones.
The altered sulphide bearing tuff chert section explains a prominent IP chargeability anomaly that extends for at least 300 meters to the north and west along the intrusive/volcanic contact.
A Phase II diamond drill program, currently in the planning stage, will test the massive copper-zinc and precious metal sulphide potential of this conductive zone and similar zones up section to the northeast within the volcanic pile.
TORONTO, Oct. 16 /CNW/ - Jonpol Explorations Limited (JON-TSX) (the "Company") wishes to announce the results of their Phase II diamond drill program on its jointly held (Jonpol/Saxony) Goodchild Lake claims, located 15 km northeast of the town of Marathon in north central Ontario.
The Company has completed a five hole (992 metre) drilling program on the Goodchild Property. Four holes (GC-03-06 to GC-03-09) targeted induced polarization geophysical anomalies while the fifth hole (GC-03-10) tested a stripped and trenched gold showing. The best result was from hole GC-03-06 that tested a coincident induced polarization anomaly and a gold occurrence. In this hole, a 0.20 metre interval from 25.95 metres to 26.15 metres, assayed 1.13 g/t Au. Samples from the other holes returned only very low grade values. All samples from the drilling program were sent to Swastika Laboratories and gold assays were carried out using the fire assay method.
Phase I results of the drilling program on the Goodchild Property were previously announced by the Company in a release dated January 28, 2003. The Company reports that no further work on the Goodchild Property is contemplated at this time.
Century noted our Northbelt (Yellowknife) and Goldchild (Ontario) properties in the recent Coporate Presentation. They haven’t provided much info in the past, with regards to these 2 properties. As such, I thought I would share what little I know.
With regards to Northbelt, I’ve already shared some info about this property on a previous post, but here is a summary note nonetheless:
‘Nebex, as operator on the Northbelt property has drill-delineated a geological reserve containing approximately one million tonnes grading four grams Au per tonne. The zone remains open along strike and at depth and further drilling is warranted.’
Peggy mentioned on one of the conference calls that the Northbelt resource total is currently at about 250,000 ounces of gold. Obviously, Nebex accounted for at least 123,000 of those ounces (1M tonnes @ 4 g/t), via drilling performed in the 90s.
With regards to Century’s Goodchild properties:
Our Goodchild Lake property is about 20 km's north of the Hemlo gold camp, in the “Hemlo region”. It is definitely a very early stage, grassroots, property (make no mistake about it), but there are showings of gold and other metals on the property (from both drilling and sampling efforts). Century inherited the property from Saxony Explorations (when Century was formed). Saxony had previously done an option with JonPol Exploration on Aug. 26/02. JonPol performed limited (test) drilling in 2 phases, Jan. 28/03 and Oct. 16/03. Phase 1 drilling was very positive. Phase 2 drilling was mixed, but was too limited to make any firm conclusions about the property - only 5 drill holes. There is definitely gold on the property. Actually, there appears to be some silver, copper and zinc also. There needs to be a lot more work done to determine the extent of the gold/metals content on the property, and to access if it can become a viable mining project. It is definitely located in the right region.
Here are the phase 1 and 2 NRs for the Goodchild Lake property, from back in 2003.
JONPOL EXPLORATIONS LTD. DRILLS THE LUCKY AND UGM SHOWINGS AT THE GOODCHILD LAKE PROPERTY, ONTARIO.
Jonpol Explorations Ltd. (JON-TSX) wishes to announce the results of their Phase I diamond drill program at the Lucky and UGM Zones on its jointly held (Jonpol/Saxony) Goodchild Lake claims, located 15 km northeast of the town of Marathon in north central Ontario.
Three diamond drill holes -- GC-02-1, 2, & 3 -- for 513 meters were completed to test the Lucky Zone, to a depth of 50 meters and over a strike length of 100 meters. Assays of 1.29 g/t, 2.88 g/t and 0.26 g/t gold over core lengths of 1.00, 1.14 and 3.16 meters respectively are in the same range as surface channel samples from pyritized syenite within the zone. The Lucky shear-fracture zone dips west at 70 o and is characterized by red-buff quartz-carbonate-hematite alteration that fills fractures within a grey monzonite host at the margins of the pyritized syenite dyke.
The shear-fracture zone strikes north-south for at least 1.1 kilometers within the Beggs Lake stock and further detailed IP surveys over the structure are required to define sections of pyritized syenite and auriferous shear below the overburden.
Diamond drill hole GC-02-04, drilled – 52 o at 110 o from station (1245E and 985N) to test the UGM zone, cut fractured monzonite with pyrite, quartz veins and buff-carbonate alteration between 32.8 and 69.55 meters from collar and was stopped in unaltered monzonite at 167 meters. A 0.42 meters section of altered monzonite between 33.49 and 33.91 meters assayed 3.6 g/t gold, while 2 silicified sections below this interval assayed 1.80 g/t and 2.54 g/t over 0.20 and 1.0 meters respectively.
The drilling has shown that the pyritized UGM fracture zone is vertical, while trench mapping and stripping has established a strike of N25 OE across the Beggs Lake stock.
Diamond drill hole GC-02-05 drilled – 52 o at 225 o from station (242W and 683S Teck Grid) was collared in basalt and cut 89.6 meters of altered basalt with four sections of pyritized tuff-sediment and cherty tuff between 25.36 and 115.0 meters above the volcanic/monzonite contact. The hole was stopped in unaltered monzonite at 153.0 meters.
Two sections of tuff and cherty tuff with 1 – 3% pyrite-pyrrhotite-sphalerite assayed (1) 0.06 g/t gold, 1.08 g/t silver, 680 ppm copper and 445 ppm zinc over 5.0 meters, and (2) 0.02 g/t gold, 0.51 g/t silver, 253 ppm copper and 4043 ppm zinc over 3.8 meters.
Individual assays of 3470 ppm zinc and 1.0 g/t silver over 1.0 meter within cherty tuff lie above these zones.
The altered sulphide bearing tuff chert section explains a prominent IP chargeability anomaly that extends for at least 300 meters to the north and west along the intrusive/volcanic contact.
A Phase II diamond drill program, currently in the planning stage, will test the massive copper-zinc and precious metal sulphide potential of this conductive zone and similar zones up section to the northeast within the volcanic pile.
TORONTO, Oct. 16 /CNW/ - Jonpol Explorations Limited (JON-TSX) (the "Company") wishes to announce the results of their Phase II diamond drill program on its jointly held (Jonpol/Saxony) Goodchild Lake claims, located 15 km northeast of the town of Marathon in north central Ontario.
The Company has completed a five hole (992 metre) drilling program on the Goodchild Property. Four holes (GC-03-06 to GC-03-09) targeted induced polarization geophysical anomalies while the fifth hole (GC-03-10) tested a stripped and trenched gold showing. The best result was from hole GC-03-06 that tested a coincident induced polarization anomaly and a gold occurrence. In this hole, a 0.20 metre interval from 25.95 metres to 26.15 metres, assayed 1.13 g/t Au. Samples from the other holes returned only very low grade values. All samples from the drilling program were sent to Swastika Laboratories and gold assays were carried out using the fire assay method.
Phase I results of the drilling program on the Goodchild Property were previously announced by the Company in a release dated January 28, 2003. The Company reports that no further work on the Goodchild Property is contemplated at this time.
Friday, March 13, 2009
Gammon Buys Capital Gold
Today Gammon gold agreed to buy Capital Gold in an all-share transaction valued at approximately US$146.5 million.
Lest there be any misunderstanding that Century's 13-cent share price and its US$17 million market cap undervalues the company, consider what Gammon is getting for its US$146.5 million:
Capital produces approximately 50,000 oz/yr from a heap leach operation in Mexico. Capital has 832,000 oz in low grade reserves (0.66 g/tonne) with a recovery rate of 66.8%, giving recoverable reserves of 555,800 oz at single property in Mexico. Cash costs are $290/oz.
They have another 855,000 oz in M&I resources and 181,000 oz of indicated resources.
By comparison, the Lamaque project alone has 1,135,000 oz of 4.56 g/tonne reserves with a 95% recovery rate, giving recoverable reserves of 1,078,000 oz. This is almost double Capital's recoverable reserves.
Lamaque has more M&I Resources and over 3 million ounces in the inferred category.
If Capital's 50,000 oz/yr operation in Mexico is worth $US146.5 million, how much is Century's San Juan operation worth - especially when it reaches production of 30,000 oz/yr? You'd have to think that San Juan alone is worth a lot more than CMM's current market cap of $17 million.
Lest there be any misunderstanding that Century's 13-cent share price and its US$17 million market cap undervalues the company, consider what Gammon is getting for its US$146.5 million:
Capital produces approximately 50,000 oz/yr from a heap leach operation in Mexico. Capital has 832,000 oz in low grade reserves (0.66 g/tonne) with a recovery rate of 66.8%, giving recoverable reserves of 555,800 oz at single property in Mexico. Cash costs are $290/oz.
They have another 855,000 oz in M&I resources and 181,000 oz of indicated resources.
By comparison, the Lamaque project alone has 1,135,000 oz of 4.56 g/tonne reserves with a 95% recovery rate, giving recoverable reserves of 1,078,000 oz. This is almost double Capital's recoverable reserves.
Lamaque has more M&I Resources and over 3 million ounces in the inferred category.
If Capital's 50,000 oz/yr operation in Mexico is worth $US146.5 million, how much is Century's San Juan operation worth - especially when it reaches production of 30,000 oz/yr? You'd have to think that San Juan alone is worth a lot more than CMM's current market cap of $17 million.
Thursday, March 12, 2009
Volume
It is pretty amazing to see the factors of volume at work here. When we have volume, you see buying interest, but the last couple of days (today especially), you see more sellers, and opportunist buyers waiting on the bid side. Question, has the company actually given a time frame for when they think (wink wink) when the financing might happen. I don't seem to be able to find any reference that way.
TIA, Mike
TIA, Mike
Sunday, March 8, 2009
Some info from the independent DD report
For anyone interested in this type of detailed info.
1) Additional (longer term) bulk mining potential
From the independent Gorman (DD) report:
“Dr van Hees considers that Century has a good opportunity in the future to drill to establish the bulk potential of the deep Lamaque Plug located at a depth of 3600 ft (1100m). This is not currently in the reserve and cannot be accessed for 3 years until the mine is pumped out and the Sigma shafts are refurbished and are operational.”
I think this is the 525,000 bulk mineable ounces (located at 3,600 ft) that the company has talked about in the past. This is in addition to the potential bulk mining ounces located between the surface and 2,000 ft, just recently announced by Century. It’s good to see that the independent expert considers our chances to establish the 3,600 ft bulk mining ounces to be good. You know, the potential of 525,000 new ounces (not counted as yet) could mean potential for 5 additional years to mine life (at the current plan of 100,000 production run rate) – if it all comes together of course. Lamaque will not need these ounces for many years into the future so it doesn’t matter that we can’t access them for another 3 years.
2) Bedard Dyke
From the independent Gorman (DD) report:
“The three main areas that are scheduled to be mined in the initial 3 years of operation and produce 1.6 Mt of ore at a grade of 4.78 g Au/t are the bulk ores contained in the Bedard Dyke (Sigma West) and ….”
It looks like the Bedard Dyke is 1 of the 3 places they will initiate mining within in the initial 3 years.
From the independent Gorman (DD) report:
“The section of the Bedard Dyke that is to be mined has been delineated by only 3 drill holes but has been previously successfully mined by Century in the open pit. The programme of a further 12 to 15 holes are scheduled to be drilled before commencing development in order to prove up the geometry ahead of mining commencing in month 4 of 2009. After completing an examination of the drill plans, sections and spreadsheets provided in November 2008 by Century, Dr van Hees has concluded that the first phase of drilling on the Bedard Dyke is acceptable since it is aimed at establishing the extent of the mineralization exposed in the pit wall. The planned 30 ft (9m) wide stopes are to be located beneath the limit of the City of Val D’Or. Although the design includes a 120 ft (35m) crown pillar, the Bedard Dyke open stope has the potential to be up to a 1000 ft (300m) in height.”
It looks like they have already successfully mined a bit of the Bedard Dyke while mining the open pit. Hopefully they were able to gather a lot of good info, at least with regards to the mineralization located within the pit wall.
The independent expert is optimistic that the Bedard Dyke has the potential to go down 1,000 ft.
As suggested in a previous post, I am of the belief that we have an opportunity to add a sizeable chunk to our 43-101 resource count once we drill the Bedard Dyke - I don't the 43-101 count includes very many (if any) ounces from this area as yet (due to lack of drilling).
3) West Plug (higher grades – switched over to underground mining)
From the independent Gorman (DD) report:
“PRL notes that Century has also scheduled mining of both the West Plug (0.45 Mt at 4.27 g/t) and Lamaque Plug (0.62 Mt at 5.37 g/t) during production years 7 to 11. The mining of the West Plug was originally planned to be carried out using Open Pit methods but will now be done using underground access which has not been defined to sufficient detail.”
P2 West Plug reserve ounces reviewed by the independent expert – 635,733 tonnes @ 4.68 g/t = 95,593 ounces
West Plug ounces scheduled for production by Century – 449,680 tonnes @ 4.27 g/t = 58,646 ounces
The difference (35,000 West Plug u/g ounces) likely represents ounces not included in the current 11 plan as yet.
Also, it appears as if all of these West Plug u/g ounces have been added to the resource profile for the first time.
It also potentially means that the previously reported 69,163 West Plug open pit ounces (1.87 g/t reserves and 2.38 g/t inferred) are still sitting out there somewhere. They are not planning to mine the West Plug for another 7 years. That’s a long time away. One cannot be absolutely certain that the open pit ounces will never be mined, especially since the grades are half decent (even for a short distance trucking requirement).
So, does this all mean there are 165,000 ounces sitting at West Plug (u/g and o/p combined)? It appears to be that way, but I'm not sure exactly.
1) Additional (longer term) bulk mining potential
From the independent Gorman (DD) report:
“Dr van Hees considers that Century has a good opportunity in the future to drill to establish the bulk potential of the deep Lamaque Plug located at a depth of 3600 ft (1100m). This is not currently in the reserve and cannot be accessed for 3 years until the mine is pumped out and the Sigma shafts are refurbished and are operational.”
I think this is the 525,000 bulk mineable ounces (located at 3,600 ft) that the company has talked about in the past. This is in addition to the potential bulk mining ounces located between the surface and 2,000 ft, just recently announced by Century. It’s good to see that the independent expert considers our chances to establish the 3,600 ft bulk mining ounces to be good. You know, the potential of 525,000 new ounces (not counted as yet) could mean potential for 5 additional years to mine life (at the current plan of 100,000 production run rate) – if it all comes together of course. Lamaque will not need these ounces for many years into the future so it doesn’t matter that we can’t access them for another 3 years.
2) Bedard Dyke
From the independent Gorman (DD) report:
“The three main areas that are scheduled to be mined in the initial 3 years of operation and produce 1.6 Mt of ore at a grade of 4.78 g Au/t are the bulk ores contained in the Bedard Dyke (Sigma West) and ….”
It looks like the Bedard Dyke is 1 of the 3 places they will initiate mining within in the initial 3 years.
From the independent Gorman (DD) report:
“The section of the Bedard Dyke that is to be mined has been delineated by only 3 drill holes but has been previously successfully mined by Century in the open pit. The programme of a further 12 to 15 holes are scheduled to be drilled before commencing development in order to prove up the geometry ahead of mining commencing in month 4 of 2009. After completing an examination of the drill plans, sections and spreadsheets provided in November 2008 by Century, Dr van Hees has concluded that the first phase of drilling on the Bedard Dyke is acceptable since it is aimed at establishing the extent of the mineralization exposed in the pit wall. The planned 30 ft (9m) wide stopes are to be located beneath the limit of the City of Val D’Or. Although the design includes a 120 ft (35m) crown pillar, the Bedard Dyke open stope has the potential to be up to a 1000 ft (300m) in height.”
It looks like they have already successfully mined a bit of the Bedard Dyke while mining the open pit. Hopefully they were able to gather a lot of good info, at least with regards to the mineralization located within the pit wall.
The independent expert is optimistic that the Bedard Dyke has the potential to go down 1,000 ft.
As suggested in a previous post, I am of the belief that we have an opportunity to add a sizeable chunk to our 43-101 resource count once we drill the Bedard Dyke - I don't the 43-101 count includes very many (if any) ounces from this area as yet (due to lack of drilling).
3) West Plug (higher grades – switched over to underground mining)
From the independent Gorman (DD) report:
“PRL notes that Century has also scheduled mining of both the West Plug (0.45 Mt at 4.27 g/t) and Lamaque Plug (0.62 Mt at 5.37 g/t) during production years 7 to 11. The mining of the West Plug was originally planned to be carried out using Open Pit methods but will now be done using underground access which has not been defined to sufficient detail.”
P2 West Plug reserve ounces reviewed by the independent expert – 635,733 tonnes @ 4.68 g/t = 95,593 ounces
West Plug ounces scheduled for production by Century – 449,680 tonnes @ 4.27 g/t = 58,646 ounces
The difference (35,000 West Plug u/g ounces) likely represents ounces not included in the current 11 plan as yet.
Also, it appears as if all of these West Plug u/g ounces have been added to the resource profile for the first time.
It also potentially means that the previously reported 69,163 West Plug open pit ounces (1.87 g/t reserves and 2.38 g/t inferred) are still sitting out there somewhere. They are not planning to mine the West Plug for another 7 years. That’s a long time away. One cannot be absolutely certain that the open pit ounces will never be mined, especially since the grades are half decent (even for a short distance trucking requirement).
So, does this all mean there are 165,000 ounces sitting at West Plug (u/g and o/p combined)? It appears to be that way, but I'm not sure exactly.
Friday, March 6, 2009
Trading Summary for March 6
Nice to see that the lead buyer today was Penson. They buy primarily on behalf of institutional clients.
Thursday, March 5, 2009
Interesting Day
Today's trading suggests what might happen when we really do get financing news. The quick spike up to 15 cents (which was over a 50% gain) came because the buyers feared being left on the sidelines before the stock was halted for financing news. It's an indicator of what will actually happen when/if financing news is announced.
The prospect of financing news I think improved immensely today. First we had gold attempting to go lower starting at the predictable time of 9AM, but the decline from about $916 could only get to $907 when it started moving sharply higher to as much as $937. That may indicate that $900 was the bottom of the previous downleg and the gold price could very well go higher from here. At least it has to give the prospective lenders some confidence that the support level is $900 and that the upside is much higher.
Secondly, the proposed financing had CMM issue 24 million shares and warrants to the financiers. The day before the financing news release, the share price closed at 6 cents, making 24 million shares worth $1.4 million. At 12.5 cents, they are worth $3 million.
Here's today's summary. The details are posted in the "Today's Trades" link on the right.
The prospect of financing news I think improved immensely today. First we had gold attempting to go lower starting at the predictable time of 9AM, but the decline from about $916 could only get to $907 when it started moving sharply higher to as much as $937. That may indicate that $900 was the bottom of the previous downleg and the gold price could very well go higher from here. At least it has to give the prospective lenders some confidence that the support level is $900 and that the upside is much higher.
Secondly, the proposed financing had CMM issue 24 million shares and warrants to the financiers. The day before the financing news release, the share price closed at 6 cents, making 24 million shares worth $1.4 million. At 12.5 cents, they are worth $3 million.
Here's today's summary. The details are posted in the "Today's Trades" link on the right.
There has to be some news in pipe!
With the action today, I would bet money there is something in the pipe!
Mike
Mike
Wednesday, March 4, 2009
Trading Summary for March 4
We hit 10 cents today on relatively low volume. The market seems to be in a wait-and-see mode now - waiting to see if the financing comes through. The last time we were at double digits was July 16, 2008.
Gold tested $900 twice today and bounced off that level. The true test will be at 9AM ET tomorrow because as Production pointed out, it seems that 9 days out of every 10, that's when gold gets hit in NY.
Tuesday, March 3, 2009
New Corporate Presentation
Century has revised its March Corporate Presentation providing detailed forecasts for San Juan in addition to Lamaque. You can view it from the link on the right.
Monday, March 2, 2009
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