Friday, November 27, 2009

Upgraded from 3 star to a 4 star by TD

I received this in my inbox from a TD Alert:

The 5-Star Rating of Century Mining Corp. (CMM-X) has changed
5-Star rating (new): **** 5-Star rating (previous): ***

2 comments:

production05 said...

Hi Glorieux,

I just saw your question. I thought I would try to answer it in the comment area of this more recent post.

"P5, those drill results and zones, are they already part of the 5M ounces in reserves, P&P, indicated etc or are these drill holes establishing new areas that will potentially significantly increase our ounces?"

My guess is that some may be included in inferred (to a limited intent) but a number of zones are likely not included as yet or at least not fully included.

For example, I'm pretty sure that none of the 3 zones identified on the April 6th NR would be included. These are likely step out drill holes from the main mining areas. Some of the holes step out as much as 300 ft from the main mine areas. There is high probability that there is ore continuation for those 300 ft, extending to the high grade zones and potentially beyond, for all of these new zones. However, there is insufficient data at this time to firmly make those conclusions for 43-101 purposes. This is why I am suggesting that all of that potential ore from the main mine areas and going out 300 ft and beyond (at least for the zones identified on the Apr. 6th NR) would not be counted as 43-101 resource as yet - not without further verification data.

By the way, with regards to the Bedard Dyke (and its numerous high grade zones, from surface and potentially extending down to 1000 ft) I wouldn't be surprised if a decent number of ounces are added to 43-101, and a number of ounces going directly into P&P Reserves. The Bedard Dyke is currently being drilled, and it will be the first location to be mined.

Finskiy recently said (via an additional document I located from last week) that the 2010 (combined Lamaque and San Juan) production target is 70,000 ounces (he specifically mentioned 2010 this time) AND US$550 cash cost per oz. The US$550 cash cost (even combined Lamaque and SJ) would be solid for a start up year. It potentially signals that they are expecting good ore feed from the Bedard Dyke along with good grades. They started drilling the Bedard Dyke in early October. If they have continued then that likely means they have drilled for 1 - 1.5 months (after I back out the 2 week stoppage). They might have gotten back early assay results by now to give them an indication of what the Bedard Dyke can truly give them. If they are still talking 70,000 ounces and US$550 cash cost as recent as late last week (and have gone public with it) then that might be a good sign of what they are finding in the Bedard Dyke (hopefully).

production05 said...

I just wanted to also emphasize the efficiency aspect of mining these zones. I think the potential of adding a lot of new ounces is great, but it's really the bulk mining capabilities of these zones that is the most exciting part about these discoveries.

You know, when you discover zones housing gold with 5 to 15 meter thickness and 5 to 20 g/t grade, you're looking at realizing major mining efficiencies when mining those zones.

The ore in these types of zones can be extracted in big blocks at a time. It's kinda like going grocery shopping for bulk food items - the more you buy the cheaper the cost per item.

We are probably not going to be able to mine a number of these new high grade bulk zones for a few more years, but identifying all of these zones is a major step at Lamaque, IMO. It demonstrates the world class bulk mining potential of Lamaque, over and above the well known bulk mining capabilities of our plugs. By the way, the potential 2 million bulk mineable ounces estimated to still be in the Lamaque Main Plug and the West Plug (combined) have not been added to 43-101 as yet. We have to refurbish the shafts and dewater from 1,200 ft downwards first, before we can drill those ounces into 43-101.

There is absolutely no reason we cannot continue to discover more of these types of (high grade/bulk mineable) mining zones. I get the impression that the opportunities are endless. Relative to our total land package in this fertile gold bearing area (where a discovery can go 6000 ft into the ground, from the surface), we have hardly touched the property as yet.