Thursday, January 28, 2010
Wednesday, January 27, 2010
Tuesday, January 26, 2010
Today's Trade Summary
Yikes1, you were right about TD being the big seller today. I can't remember though when Anonymous didn't sell any shares. Maybe 30 cents is as low as he is willing to go, but otherwise it would be nice if he was done!
Friday, January 22, 2010
New job postings (can be viewed to the right):
*Health & Safety Superintendent
*Technical Services Manager
*Technical Services Manager
Thursday, January 21, 2010
Today's Trade Summary
The highlight of today's trading was the dumping of 230,000 shares by Scotia at market 6 minutes before market close.
A couple of weeks ago Production did a comparison with Luna Gold to illustrate how undervalued Century was compared to companies like Luna. At the time CMM was at 38 cents and Luna was at 79 cents. While Century has fallen almost 25% since then Luna has remained at 79 cents. Incidentally, Luna just closed a US $15 million debt financing at LIBOR + 7.5% that was not contingent on equity financing.
Lamaque #2 decline may play a big role with initial ore mining in March
The company has not issued anything as yet on the current mine plan. Until then, we cannot be 100% sure what’s included in the mine plan.
However, IMO, management would be unwise not begin mining ore that can be accessed via the Lamaque #2 decline (simultaneously as mining the 15,000 bulk tonnes, then accelerated ramped up mining, from the Bedard Dyke). Lamaque #2 decline already exist, and is in extremely close proximity to the milling/processing facilities. Also, there are a good number of P&P Reserve ounces that can be accessed from that decline.
Actually, it sounds like this was the mining plan at the time of the Jan’09 DD report. If so, there is nothing to suggest it has changed, but we haven’t seen a public mine plan document since then (to confirm).
From the Jan’09 DD Report:
“Initial ramp-up production will be sourced from the existing Lamaque II decline at the south east end of the Sigma Pit, which will provide haulage access to the Lamaque II and cross-over section (Figure i-2).”
The independent experts confirmed (in the Jan’09 report) that ore is immediately available (and obviously accessible) for mining:
“Century benefits by already having access to the flat vein area and the site visit confirmed that ore is immediately available.”
“PRL considers that ore is expected to be mineable from three separate access declines driven from the bottom of the existing pit. The first 3 years of mining have been planned in some detail”
Flat veins located in Lamaque 2 (Jan’09 DD rpt):
“higher grade flat veins in Lamaque 2”
Lamaque 2 area is the only one that has both an existing ramp and flat veins (Jan’09 DD rpt):
“From the existing ramp, production will commence in the flat vein.”
During the site visit, the independent person confirmed that the ore structure in the Lamaque 2 area is in good shape and ready for mining (Jan’09 DD rpt):
“The visit underground confirmed that flat vein stopes were typically 5’ to 8’ in height (1.5 to 2.4m) and provided evidence that the ore and host rocks are strong and competent, ventilation is adequate, workings are dry and the geometry of the veins is typically, but not always, predictable.”
This statement essentially says it all with regards to the start up mine plan (Jan’09 DD rpt). If still intact, production will begin at Lamaque 2 and the Bedard dyke simultaneously in the first month of production (month 4 after start up). Production from the North Wall will then kick in later in the year or early the following year:
“Since the Bedard dyke is close to the pit wall, production is also scheduled to occur in month 4 of 2009 but an accelerated ramp up is planned. The North Wall zone that is located below the pit limit is scheduled to produce in early 2010.”
However, IMO, management would be unwise not begin mining ore that can be accessed via the Lamaque #2 decline (simultaneously as mining the 15,000 bulk tonnes, then accelerated ramped up mining, from the Bedard Dyke). Lamaque #2 decline already exist, and is in extremely close proximity to the milling/processing facilities. Also, there are a good number of P&P Reserve ounces that can be accessed from that decline.
Actually, it sounds like this was the mining plan at the time of the Jan’09 DD report. If so, there is nothing to suggest it has changed, but we haven’t seen a public mine plan document since then (to confirm).
From the Jan’09 DD Report:
“Initial ramp-up production will be sourced from the existing Lamaque II decline at the south east end of the Sigma Pit, which will provide haulage access to the Lamaque II and cross-over section (Figure i-2).”
The independent experts confirmed (in the Jan’09 report) that ore is immediately available (and obviously accessible) for mining:
“Century benefits by already having access to the flat vein area and the site visit confirmed that ore is immediately available.”
“PRL considers that ore is expected to be mineable from three separate access declines driven from the bottom of the existing pit. The first 3 years of mining have been planned in some detail”
Flat veins located in Lamaque 2 (Jan’09 DD rpt):
“higher grade flat veins in Lamaque 2”
Lamaque 2 area is the only one that has both an existing ramp and flat veins (Jan’09 DD rpt):
“From the existing ramp, production will commence in the flat vein.”
During the site visit, the independent person confirmed that the ore structure in the Lamaque 2 area is in good shape and ready for mining (Jan’09 DD rpt):
“The visit underground confirmed that flat vein stopes were typically 5’ to 8’ in height (1.5 to 2.4m) and provided evidence that the ore and host rocks are strong and competent, ventilation is adequate, workings are dry and the geometry of the veins is typically, but not always, predictable.”
This statement essentially says it all with regards to the start up mine plan (Jan’09 DD rpt). If still intact, production will begin at Lamaque 2 and the Bedard dyke simultaneously in the first month of production (month 4 after start up). Production from the North Wall will then kick in later in the year or early the following year:
“Since the Bedard dyke is close to the pit wall, production is also scheduled to occur in month 4 of 2009 but an accelerated ramp up is planned. The North Wall zone that is located below the pit limit is scheduled to produce in early 2010.”
Wednesday, January 20, 2010
More observations - Bedard Dyke (potential for very strong economics)
The thickness is very good for Val d'Or mineralization. Also, very strong underground grade and at shallow depths.
I don't know exactly how deep the open pit is, but it looks to be maybe about 500 ft. If somewhat in the ballpark, it means that a lot of the Bedard Dyke ore is located at open pit depth. It would mean that we get:
1) to perform underground methods (more accurate mining method for this property);
2) at open pit depths (for a significant portion of the area);
3) and get to work with underground grades (and nice widths) at the same time.
That's a very nice mining combination.
Let's take a glance at the traveling requirements.
Of course, they will need to exact the ore and move it through the decline and out the Bedard Dyke portal. Now it's not clear to me as to which path they will take to get the ore to mill level. I'm guessing they will drive the material through the pit while ramping it upwards to mill level (as oppose to taking it immediately to the surface before trucking it to the mill). There are some efficiencies gained by moving the material vertically and horizontally at the same time, I would assume.
As we know, Sigma West and the Bedard Dyke is located on the west/southwest side of the open pit. The milling operation appears to be located on the east side of the pit (almost to the very end, but not quite). The distance from the Bedard Dyke portal to the milling area appears to be about 2500 ft (eyeballing). The pit curves so extra trucking length needs to be factored in. Let's add 1500 ft to account for the curves. Of course, if they truck it within the pit (as I'm thinking they will) the lane curves should be substantially less. However, let's be extra conservative and use the 1500 ft figure. We then need to account for the 500 ft pit depth. This might be reduced, depending on which level of the pit the portal is located on.
Anyway, let's use 2500 ft plus 1500 ft for road curves plus 500 ft for pit depth. That equals 4500 ft of surface traveling to move the material (from the portal) to the mill area, once the material is moved from the underground to the portal. I believe a mile has 5280 ft. As such, the surface distance to move the material to the milling area appears to be 85% of 1 mile (4500 ft / 5280).
At a high level, there appears to be some very strong economics here:
1) shallow mineralization
2) use of underground mining methods
3) good widths (especially for local mining camp)
4) good underground grades (especially strong for such shallow depths)
5) existing portal and decline
6) less than one mile surface traveling (includes travel upwards and curves in travel path)
7) both underground and surface traveling can be done entirely on Century's property, even under the highway and under the city - no slowdowns from surface highway traffic, etc.
I don't know exactly how deep the open pit is, but it looks to be maybe about 500 ft. If somewhat in the ballpark, it means that a lot of the Bedard Dyke ore is located at open pit depth. It would mean that we get:
1) to perform underground methods (more accurate mining method for this property);
2) at open pit depths (for a significant portion of the area);
3) and get to work with underground grades (and nice widths) at the same time.
That's a very nice mining combination.
Let's take a glance at the traveling requirements.
Of course, they will need to exact the ore and move it through the decline and out the Bedard Dyke portal. Now it's not clear to me as to which path they will take to get the ore to mill level. I'm guessing they will drive the material through the pit while ramping it upwards to mill level (as oppose to taking it immediately to the surface before trucking it to the mill). There are some efficiencies gained by moving the material vertically and horizontally at the same time, I would assume.
As we know, Sigma West and the Bedard Dyke is located on the west/southwest side of the open pit. The milling operation appears to be located on the east side of the pit (almost to the very end, but not quite). The distance from the Bedard Dyke portal to the milling area appears to be about 2500 ft (eyeballing). The pit curves so extra trucking length needs to be factored in. Let's add 1500 ft to account for the curves. Of course, if they truck it within the pit (as I'm thinking they will) the lane curves should be substantially less. However, let's be extra conservative and use the 1500 ft figure. We then need to account for the 500 ft pit depth. This might be reduced, depending on which level of the pit the portal is located on.
Anyway, let's use 2500 ft plus 1500 ft for road curves plus 500 ft for pit depth. That equals 4500 ft of surface traveling to move the material (from the portal) to the mill area, once the material is moved from the underground to the portal. I believe a mile has 5280 ft. As such, the surface distance to move the material to the milling area appears to be 85% of 1 mile (4500 ft / 5280).
At a high level, there appears to be some very strong economics here:
1) shallow mineralization
2) use of underground mining methods
3) good widths (especially for local mining camp)
4) good underground grades (especially strong for such shallow depths)
5) existing portal and decline
6) less than one mile surface traveling (includes travel upwards and curves in travel path)
7) both underground and surface traveling can be done entirely on Century's property, even under the highway and under the city - no slowdowns from surface highway traffic, etc.
Tuesday, January 19, 2010
Today's Trade Summary
The noteworthy aspect of today's trading was the dumping of 350,000 shares by HSBC in 35 minutes at an average of $0.335 dropping the price to $0.325. HSBC immediately purchased 225,000 shares of TAM at an average of $0.442. Over the previous 30 days HSBC had purchased 671,000 shares of CMM at an average of 39 cents.
The reason I mention this is because it is one reason for the current price weakness. New investors bought in on a combination of technical indicators and compelling valuation comparison to CMM's peers as Production has shown on a couple of occassions. When the stock price hasn't reacted the way they expected, they bail to seek better instant returns elsewhere.
Another reason is the constant steady selling by Anonymous that I believe is from the 13-cent PP.
I believe the biggest reason that the stock price continues to lag in spite of fundamentals that are far superior to other companies is the credibility factor. PK has lost a lot of credibility with previous forecasts and mismanagement. Other companies, like the Luna Gold example that Production cited, can forecast production and the market will expect them to make those forecasts just as investors once expected Century to make their forecasts. Now with Century, it's a case of "Fool me once - shame on you; fool me twice - shame on me". We will be rewarded with tangible production results and until that happens, I believe we'll continue to be grossly undervalued.
A change in CEO would be a game-changer, but Scola and company appear to have sipped the PK Kool-aid. Perhaps a new highly respected Chairman may help, but as long as PK is the company spokesman, she'll be like an anchor. The Chairman and Scola might have some success selling the company if they leave PK at home. Otherwise it is going to take patience and production results for us to see a share price that is anywhere near fair value.
Sigma West
Century should notify the market as soon as the power is turned on. They should also issue a note (either as part of another NR or its own NR) once all 39 miners have arrived (and let us know when the next group is expected). Also, Century should let the market know immediately once the first ore is extracted in March and as soon as the new crusher is operational in April. It would be nice if Century issues bi-weekly updates on Lamaque (even when there is no news - they can still remind the market on what they are busy working on). They should do this up until the first gold pour.
Century should hurry up and put a preliminary 3D model of the Bedard Dyke structure on the home page of their website. Maybe have it small (so it doesn't crowd the page) then people can click on it to make it larger. The 3D model can be a work in progress and it can get updated constantly as the Vulcan team progresses. My thinking is that anything is better than nothing. The market should not have to attempt to glue the pieces together in order to visualize what the Bedard Dyke might look like, and especially since most people in the market do not have the geological expertise to interpret a lot of this technical info.
Also, Century should a provide more detailed view of the mining plan for over the next 6 to 12 months. I think it will go a long way in people understanding what steps the company is taking to achieve the near-term production targets.
Actually, all of these minor communication improvements will (not only allow investors to be better educated and allowing for more informed decisions on their investment, but also) able investors to instill confidence in management to execute the plan.
Anyway, one should note that Sigma West (near to the Bedard Dyke) already has 22,000 ounces in P&P Reserves (perhaps not far from the Bedard Dyke access portal). It would make perfect sense to mine these ounces early. These 22,000 ounces could provide 4 - 5 months of ore feed during the early stage ramp up months, without even considering other sources of ore that could be mined simultaneously.
There are also 72,000 other Sigma West ounces booked as inferred. It's not clear if some of these inferred ounces relate partly to past Bedard Dyke drill results. Either way, there have been 13 additional drill holes from the Bedard Dyke since the resource calculation was done. As such, the new drilled data will likely increase the Sigma West resource total by quite a bit.
The North Wall Zone has 257,000 P&P reserves booked, plus 408,000 further ounces of inferred. Century will begin mining these 257,000 North Wall ounces later in 2010 or beginning in 2011 (the North Wall already has an access portal and a haulage decline).
The mineralization of the North Wall is made up of dykes, shears, dippers and flats. There seems to be some similarities with the Bedard Dyke, especially with the dykes, dippers and flats. We don't know what the size of the Bedard Dyke will ultimately be. As you can see, the North Wall has 664,000 ounces. Can the Bedard Dyke deliver that many ounces? That remains to be seen. Even if the Bedard Dyke delivers 30% of the North Wall, it would still equate to 200,000 ounces (which is nice). A 50% delivery gets us 334,000 ounces for Bedard Dyke. A 100% delivery obviously gets us 664,000 ounces.
Century should hurry up and put a preliminary 3D model of the Bedard Dyke structure on the home page of their website. Maybe have it small (so it doesn't crowd the page) then people can click on it to make it larger. The 3D model can be a work in progress and it can get updated constantly as the Vulcan team progresses. My thinking is that anything is better than nothing. The market should not have to attempt to glue the pieces together in order to visualize what the Bedard Dyke might look like, and especially since most people in the market do not have the geological expertise to interpret a lot of this technical info.
Also, Century should a provide more detailed view of the mining plan for over the next 6 to 12 months. I think it will go a long way in people understanding what steps the company is taking to achieve the near-term production targets.
Actually, all of these minor communication improvements will (not only allow investors to be better educated and allowing for more informed decisions on their investment, but also) able investors to instill confidence in management to execute the plan.
Anyway, one should note that Sigma West (near to the Bedard Dyke) already has 22,000 ounces in P&P Reserves (perhaps not far from the Bedard Dyke access portal). It would make perfect sense to mine these ounces early. These 22,000 ounces could provide 4 - 5 months of ore feed during the early stage ramp up months, without even considering other sources of ore that could be mined simultaneously.
There are also 72,000 other Sigma West ounces booked as inferred. It's not clear if some of these inferred ounces relate partly to past Bedard Dyke drill results. Either way, there have been 13 additional drill holes from the Bedard Dyke since the resource calculation was done. As such, the new drilled data will likely increase the Sigma West resource total by quite a bit.
The North Wall Zone has 257,000 P&P reserves booked, plus 408,000 further ounces of inferred. Century will begin mining these 257,000 North Wall ounces later in 2010 or beginning in 2011 (the North Wall already has an access portal and a haulage decline).
The mineralization of the North Wall is made up of dykes, shears, dippers and flats. There seems to be some similarities with the Bedard Dyke, especially with the dykes, dippers and flats. We don't know what the size of the Bedard Dyke will ultimately be. As you can see, the North Wall has 664,000 ounces. Can the Bedard Dyke deliver that many ounces? That remains to be seen. Even if the Bedard Dyke delivers 30% of the North Wall, it would still equate to 200,000 ounces (which is nice). A 50% delivery gets us 334,000 ounces for Bedard Dyke. A 100% delivery obviously gets us 664,000 ounces.
Monday, January 18, 2010
Stock Options Granted to new Directors
BLAINE, WASHINGTON--(Marketwire - Jan. 18, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) announces that it has granted a total of 300,000 stock options to the newly appointed directors and advisor of the Company. The stock options are exercisable into common shares of Century at an exercise price of C$0.36 per share for a period of five years. Century's common shares closed at C$0.36 on the TSX Venture Exchange on January 14, 2010.
Century Mining has 337,487,463 common shares issued and outstanding. Under the terms of the Company's "rolling" Incentive Stock Option Plan, a maximum of 33,748,746 shares are available to be issued pursuant to the exercise of options at this time. Including this grant of 300,000 options, a total of 9,240,000 shares have been reserved for issuance pursuant to outstanding option grants. A further 24,508,746 shares are available for issuance pursuant to future option grants at this time.
Century Mining has 337,487,463 common shares issued and outstanding. Under the terms of the Company's "rolling" Incentive Stock Option Plan, a maximum of 33,748,746 shares are available to be issued pursuant to the exercise of options at this time. Including this grant of 300,000 options, a total of 9,240,000 shares have been reserved for issuance pursuant to outstanding option grants. A further 24,508,746 shares are available for issuance pursuant to future option grants at this time.
Sunday, January 17, 2010
Bedard Dyke - strike length of potentially 705 ft vertical by 250 - 300 ft horizontal (and counting)
We know that the 705 ft strike length is minimum and could be extended to 1000 ft or more (with the next phase of drilling).
I've been trying to figure out how much space we have from the wall of the open pit to the hwy. I've come to the conclusion (based largely on a diagram in the Lamaque tech rpt, put together after the pit operation stopped) that it's about 250 - 300 ft. However, keep in mind that scales from diagrams, maps, etc. may not always be precise. It may not be the same as measuring in person.
Anyway, (assuming the scale a fairly reasonable) I've come to the conclusion what we have already identified a strike length of at least 705 ft by 250 - 300 ft. It likely means we can mine whatever gold is located within that space before we even hit the hwy and the city of Val d'Or (and whatever gold is under the hwy and the city).
Also, there are no limitations if the Bedard Dyke extents well past the hwy. We own a decent chunk of the underground mining rights well past the hwy (under the city).
Take a look at the map I linked below. The yellow line represents our property border. Take a look at where Sigma is located relative to the left side of the yellow border line. The big red Sigma dot is where the Sigma o/p is located. After 250 - 300 ft, and after the hwy, everything left of that is under the city of Val d'Or.
As a result, it means we have quite a bit of mining flexibility (if we choose to exercise) for as long as the Bedard Dyke continues and also for any other mineralization that may continue beyond that point.
http://www.centurymining.com/operations/pdf/exploration-quebec-sigma.pdf
I've been trying to figure out how much space we have from the wall of the open pit to the hwy. I've come to the conclusion (based largely on a diagram in the Lamaque tech rpt, put together after the pit operation stopped) that it's about 250 - 300 ft. However, keep in mind that scales from diagrams, maps, etc. may not always be precise. It may not be the same as measuring in person.
Anyway, (assuming the scale a fairly reasonable) I've come to the conclusion what we have already identified a strike length of at least 705 ft by 250 - 300 ft. It likely means we can mine whatever gold is located within that space before we even hit the hwy and the city of Val d'Or (and whatever gold is under the hwy and the city).
Also, there are no limitations if the Bedard Dyke extents well past the hwy. We own a decent chunk of the underground mining rights well past the hwy (under the city).
Take a look at the map I linked below. The yellow line represents our property border. Take a look at where Sigma is located relative to the left side of the yellow border line. The big red Sigma dot is where the Sigma o/p is located. After 250 - 300 ft, and after the hwy, everything left of that is under the city of Val d'Or.
As a result, it means we have quite a bit of mining flexibility (if we choose to exercise) for as long as the Bedard Dyke continues and also for any other mineralization that may continue beyond that point.
http://www.centurymining.com/operations/pdf/exploration-quebec-sigma.pdf
Thanks very much yikes1! (here is a link to the original for format purposes)
http://www.marketwire.com/press-release/Century-Intersects-35-g-t-Au-Over-74-Feet-Bedard-Dyke-Lamaque-Gold-Project-Val-DOr-Quebec-TSX-VENTURE-CMM-1102826.htm
IMO, these results are great. More importantly, they confirm everything we thought based on the earlier drill results and with similar past dykes found on the property: "The Bedard dyke is typical of the mineralized dykes found at the Lamaque mine."
We should not forget the 2 original drill holes:
*drill hole 18755: 80 ft (24 m) @ 12.8 g/t Au
*drill hole 18803: 216 ft (64 m) @ 14.9 g/t Au
Century should have mentioned this past info in the NR, for people who are not familiar with the Bedard Dyke.
Century then drilled a 3rd hole (unpublished, but discussed in DD reports and presentations). That hole confirmed the existence of numerous high grade zones going down the Bedard Dyke. It also gave the company reasons to believe that the dyke potentially goes down as much as 1000 ft from the surface.
You add the info from the first 3 (excellent) drill holes to great drilled data from these 13 new drill holes and it paints a very nice picture.
I like that they have already confirmed a minimum of 705 ft of the 1000 ft (maybe it goes deeper than 1000, we'll see):
"The current drilling intersected the Bedard Dyke at depths varying between 61 and 748 feet below topographic surface. Interpretation of the dyke, utilizing current and historic drill holes is currently being completed and indicates that the Bedard Dyke has a minimum strike length of 705 feet and dips approximately 80 degrees to the south. The dyke pinches, swells and bifurcates both along strike and down dip. Dyke widths vary from approximately 6 feet thick on the western end to 30 feet thick on the eastern end near the Sigma Pit."
They will likely first begin mining the Bedard Dyke on the wall of the open pit, where they have test mined a bit during the open pit days (and they likely have very easy access). Given that they were able to reach the ore in that area before, it likely means no major development work is required. It will likely give them time to develop the appropriate infrastructure to mine the deeper and more complex parts of the dyke.
IMO, these results are great. More importantly, they confirm everything we thought based on the earlier drill results and with similar past dykes found on the property: "The Bedard dyke is typical of the mineralized dykes found at the Lamaque mine."
We should not forget the 2 original drill holes:
*drill hole 18755: 80 ft (24 m) @ 12.8 g/t Au
*drill hole 18803: 216 ft (64 m) @ 14.9 g/t Au
Century should have mentioned this past info in the NR, for people who are not familiar with the Bedard Dyke.
Century then drilled a 3rd hole (unpublished, but discussed in DD reports and presentations). That hole confirmed the existence of numerous high grade zones going down the Bedard Dyke. It also gave the company reasons to believe that the dyke potentially goes down as much as 1000 ft from the surface.
You add the info from the first 3 (excellent) drill holes to great drilled data from these 13 new drill holes and it paints a very nice picture.
I like that they have already confirmed a minimum of 705 ft of the 1000 ft (maybe it goes deeper than 1000, we'll see):
"The current drilling intersected the Bedard Dyke at depths varying between 61 and 748 feet below topographic surface. Interpretation of the dyke, utilizing current and historic drill holes is currently being completed and indicates that the Bedard Dyke has a minimum strike length of 705 feet and dips approximately 80 degrees to the south. The dyke pinches, swells and bifurcates both along strike and down dip. Dyke widths vary from approximately 6 feet thick on the western end to 30 feet thick on the eastern end near the Sigma Pit."
They will likely first begin mining the Bedard Dyke on the wall of the open pit, where they have test mined a bit during the open pit days (and they likely have very easy access). Given that they were able to reach the ore in that area before, it likely means no major development work is required. It will likely give them time to develop the appropriate infrastructure to mine the deeper and more complex parts of the dyke.
Bedard Dye Results.
Century Intersects 35 g/t Au Over 7.4 Feet at Bedard Dyke at Lamaque Gold Project, Val-D'Or, Quebec
ccnm
BLAINE, WASHINGTON--(Marketwire - Jan. 17, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce results of surface diamond drilling at the Bedard Dyke within the Lamaque gold project. The current drill program is designed to test the extent of the dyke, as well as the grade. A total of 21 holes (10,765 ft) were planned but only 13 (6,748 ft) have been completed to-date due to an interruption in the drill program. The Company is currently reviewing tenders for the completion of the drill program and plans to commence drilling of the remaining 8 holes (approximately 4,000 ft) in the first quarter of 2010.
"The Bedard Dyke continues to show significant exploration promise and the results are very exciting. Century looks forward to continue building the reserves and resources at the Lamaque gold project, where currently existing reserves and measured and indicated resources exceed 2.4 million ounces of gold. The Lamaque mine also contains approximately 3.1 million ounces of inferred resources that the Company will look to upgrade in 2010 and beyond. The Lamaque gold project is moving forward, and with the recent closing of our $60.75 million financing, we look to be pouring gold for many years at Val-d'Or, Quebec," commented Margaret Kent, President & CEO.
About the Bedard Dyke
The Bedard Dyke, which strikes SW and dips steeply to the south, is located at the west end of the historical Sigma open-pit, and runs beneath the adjacent Highway 117. The Bedard Dyke outcrops in the open pit and will be an important ore source during the startup of the Lamaque Mine. The Bedard dyke is typical of the mineralized dykes found at the Lamaque mine. Mineralization is contained both in flats within the steeply south dipping dyke and within flats hosted by volcanic rocks adjacent to the dyke. The current drilling program has delineated the spatial location of the dyke, however the best method for determining the grade of the dyke will be to drill it down dip and along strike. This method of drilling will ensure that all flats within the dyke are intersected by the drill holes.
The current drilling intersected the Bedard Dyke at depths varying between 61 and 748 feet below topographic surface. Interpretation of the dyke, utilizing current and historic drill holes is currently being completed and indicates that the Bedard Dyke has a minimum strike length of 705 feet and dips approximately 80 degrees to the south. The dyke pinches, swells and bifurcates both along strike and down dip. Dyke widths vary from approximately 6 feet thick on the western end to 30 feet thick on the eastern end near the Sigma Pit.
Please see table below for drillhole detail and assays:
Hole From Downhole Grade
Number Azimuth Dip Length (ft) (ft) To (ft) Intersect (ft) g/t Au
---------------------------------------------------------------------------
2610-1 0 -75 305.1 110.7 112.0 1.3 8.59
2610-1 117.3 121.2 4.0 14.35
2610-1 243.5 249.3 5.8 13.74
---------------------------------------------------------------------------
2610-2 180 -89 462.6 207.4 217.4 10.1 11.19
2610-2 229.0 238.0 9.1 3.19
2610-2 321.9 347.5 25.6 2.73
---------------------------------------------------------------------------
2610-3 285 -45 310 "Negligible"
---------------------------------------------------------------------------
2610-4 249 -73 600.5 382.3 393.7 7.8 3.73
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2610-5 267 -45 354.33 "Negligible"
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2610-6 249.5 -62 748.03 "Negligible"
---------------------------------------------------------------------------
2655-2 0 -90 600.39 202.0 205.0 3.0 2.27
2655-2 223.4 225.5 2.1 12.15
---------------------------------------------------------------------------
2745-1 0 -57 403.54 188.7 196.1 7.4 35.00
2745-1 267.6 269.5 1.9 8.92
---------------------------------------------------------------------------
2745-2 0 -80 748.83 553.0 555.6 2.6 6.84
2745-2 657.0 660.9 3.9 2.44
2745-2 663.2 671.0 7.8 6.98
---------------------------------------------------------------------------
2745-3 0 -72 531.5 224.7 226.3 1.6 5.11
2790-1 0 -50 374.02 178.3 188.1 9.8 10.72
2790-1 248.6 249.9 1.3 24.00
---------------------------------------------------------------------------
2790-2 0 -66 511.8 266.3 267.8 1.6 8.87
---------------------------------------------------------------------------
2790-3 0 -78 797.24 625.4 627.4 2.0 5.55
2790-3 639.8 651.7 11.9 5.59
2790-3 662.6 667.4 4.8 3.45
---------------------------------------------------------------------------
The follow up program in the first quarter of 2010 will be oriented to drill the dyke down its dip and along strike. Five of the holes will be drilled with lengths varying from 500 to 1000 feet and dips from -45 to -80 degrees. This will allow the dyke to be tested along a vertical extent ranging from 350 to 915 feet below topographic surface. Once the drilling has been completed and all assays returned, the Bedard Dyke will be remodeled utilizing Vulcan software to determine additional measured and indicated resources and proven and probable reserves that are hosted within the dyke.
The current drill program is designed to test the extent of the dyke, as well as the grade. In addition, specific holes have been geotechnically logged to determine the integrity of the crown pillar for the proposed underground mining of the Bedard Dyke. The geotechnical studies on the crown pillar are being completed by Golder Associates. Golder has completed the field engineering studies on the core and will provide a report and recommendations for the design of the crown pillar of the Bedard dyke.
Ross Burns P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release., The drill program was completed under the supervision of Wolf Schleiss, P.Geo. Samples were assayed at ALS Chemex in Val d'Or using standard fire assay techniques with a gravimetric finish.
About Century Mining Corporation
Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Margaret M. Kent, President & CEO
Caution Concerning Forward-Looking Information
This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.
While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Century Mining Corporation
Peter A. Ball
Director of Investor Relations
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
pball@centurymining.com
www.centurymining.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ccnm
BLAINE, WASHINGTON--(Marketwire - Jan. 17, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce results of surface diamond drilling at the Bedard Dyke within the Lamaque gold project. The current drill program is designed to test the extent of the dyke, as well as the grade. A total of 21 holes (10,765 ft) were planned but only 13 (6,748 ft) have been completed to-date due to an interruption in the drill program. The Company is currently reviewing tenders for the completion of the drill program and plans to commence drilling of the remaining 8 holes (approximately 4,000 ft) in the first quarter of 2010.
"The Bedard Dyke continues to show significant exploration promise and the results are very exciting. Century looks forward to continue building the reserves and resources at the Lamaque gold project, where currently existing reserves and measured and indicated resources exceed 2.4 million ounces of gold. The Lamaque mine also contains approximately 3.1 million ounces of inferred resources that the Company will look to upgrade in 2010 and beyond. The Lamaque gold project is moving forward, and with the recent closing of our $60.75 million financing, we look to be pouring gold for many years at Val-d'Or, Quebec," commented Margaret Kent, President & CEO.
About the Bedard Dyke
The Bedard Dyke, which strikes SW and dips steeply to the south, is located at the west end of the historical Sigma open-pit, and runs beneath the adjacent Highway 117. The Bedard Dyke outcrops in the open pit and will be an important ore source during the startup of the Lamaque Mine. The Bedard dyke is typical of the mineralized dykes found at the Lamaque mine. Mineralization is contained both in flats within the steeply south dipping dyke and within flats hosted by volcanic rocks adjacent to the dyke. The current drilling program has delineated the spatial location of the dyke, however the best method for determining the grade of the dyke will be to drill it down dip and along strike. This method of drilling will ensure that all flats within the dyke are intersected by the drill holes.
The current drilling intersected the Bedard Dyke at depths varying between 61 and 748 feet below topographic surface. Interpretation of the dyke, utilizing current and historic drill holes is currently being completed and indicates that the Bedard Dyke has a minimum strike length of 705 feet and dips approximately 80 degrees to the south. The dyke pinches, swells and bifurcates both along strike and down dip. Dyke widths vary from approximately 6 feet thick on the western end to 30 feet thick on the eastern end near the Sigma Pit.
Please see table below for drillhole detail and assays:
Hole From Downhole Grade
Number Azimuth Dip Length (ft) (ft) To (ft) Intersect (ft) g/t Au
------------------------------
2610-1 0 -75 305.1 110.7 112.0 1.3 8.59
2610-1 117.3 121.2 4.0 14.35
2610-1 243.5 249.3 5.8 13.74
------------------------------
2610-2 180 -89 462.6 207.4 217.4 10.1 11.19
2610-2 229.0 238.0 9.1 3.19
2610-2 321.9 347.5 25.6 2.73
------------------------------
2610-3 285 -45 310 "Negligible"
------------------------------
2610-4 249 -73 600.5 382.3 393.7 7.8 3.73
------------------------------
------------------------------
2610-5 267 -45 354.33 "Negligible"
------------------------------
------------------------------
2610-6 249.5 -62 748.03 "Negligible"
------------------------------
2655-2 0 -90 600.39 202.0 205.0 3.0 2.27
2655-2 223.4 225.5 2.1 12.15
------------------------------
2745-1 0 -57 403.54 188.7 196.1 7.4 35.00
2745-1 267.6 269.5 1.9 8.92
------------------------------
2745-2 0 -80 748.83 553.0 555.6 2.6 6.84
2745-2 657.0 660.9 3.9 2.44
2745-2 663.2 671.0 7.8 6.98
------------------------------
2745-3 0 -72 531.5 224.7 226.3 1.6 5.11
2790-1 0 -50 374.02 178.3 188.1 9.8 10.72
2790-1 248.6 249.9 1.3 24.00
------------------------------
2790-2 0 -66 511.8 266.3 267.8 1.6 8.87
------------------------------
2790-3 0 -78 797.24 625.4 627.4 2.0 5.55
2790-3 639.8 651.7 11.9 5.59
2790-3 662.6 667.4 4.8 3.45
------------------------------
The follow up program in the first quarter of 2010 will be oriented to drill the dyke down its dip and along strike. Five of the holes will be drilled with lengths varying from 500 to 1000 feet and dips from -45 to -80 degrees. This will allow the dyke to be tested along a vertical extent ranging from 350 to 915 feet below topographic surface. Once the drilling has been completed and all assays returned, the Bedard Dyke will be remodeled utilizing Vulcan software to determine additional measured and indicated resources and proven and probable reserves that are hosted within the dyke.
The current drill program is designed to test the extent of the dyke, as well as the grade. In addition, specific holes have been geotechnically logged to determine the integrity of the crown pillar for the proposed underground mining of the Bedard Dyke. The geotechnical studies on the crown pillar are being completed by Golder Associates. Golder has completed the field engineering studies on the core and will provide a report and recommendations for the design of the crown pillar of the Bedard dyke.
Ross Burns P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release., The drill program was completed under the supervision of Wolf Schleiss, P.Geo. Samples were assayed at ALS Chemex in Val d'Or using standard fire assay techniques with a gravimetric finish.
About Century Mining Corporation
Century Mining Corporation is a Canadian junior gold producer and holds strategic land positions in Canada, United States and Peru. The Company's strategy is to grow to an intermediate gold producer through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Margaret M. Kent, President & CEO
Caution Concerning Forward-Looking Information
This press release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis included in this Annual Report, in our Annual Information Form and in other filings made by us with the Securities and Exchange Commission and with Canadian securities regulatory authorities and available at www.sedar.com.
While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Century Mining Corporation
Peter A. Ball
Director of Investor Relations
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)
pball@centurymining.com
www.centurymining.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Lamaque Operating Committee
These are the four named members of the Lamaque Operating Committee that is responsible for operations of the Lamaque Mine:
Keith Hulley (Chairman)
Margaret Kent
Ross Burns
Daniel Major
Mr. Hulley is currently the interim CEO of Gabriel Resources and has been a member of the Gabriel Board since 2006. Previously, Mr. Hulley served seven years successively as President, Chief Executive Officer and Executive Chairman of Apex Silver Mines before retiring in 2004. Mr. Hulley has more than 40 years experience in the mining business which includes, prior to joining Apex Silver, Board and senior executive experience at Western Mining Holdings Ltd. And USMX Inc.
Daniel Major, Chief Operating Officer of Ecometals, is a mining engineer with over 20 years of experience in the mining industry. During the first half of his career he worked in several roles, including production, planning and project engineering in various countries in Africa, with a focus on base and precious metals. Highlights included being the Chief Planning Engineer for the development of the first open pit platinum in the region, Potgietersrust Platinums. From Africa he moved to Investment Banking in London as the research analyst for both JPMorgan and HSBC, where he was part of the No.1 rated Global Mining Team. In 2004 he moved back to the production environment, becoming CEO of the Resource Sector of Basic Element in Russia, which included mining and exploration businesses as well as a substantial pulp and paper business.
Mr. Major has retained his role as Non-exec Chairman of Strikeforce Mining and Resources, the molybdenum mining company within Basic Element. Mr. Major holds a B.Eng (Hons) Mining from the Camborne School of Mines.
Fran Scola is CEO of Ecometals.
Keith Hulley (Chairman)
Margaret Kent
Ross Burns
Daniel Major
Mr. Hulley is currently the interim CEO of Gabriel Resources and has been a member of the Gabriel Board since 2006. Previously, Mr. Hulley served seven years successively as President, Chief Executive Officer and Executive Chairman of Apex Silver Mines before retiring in 2004. Mr. Hulley has more than 40 years experience in the mining business which includes, prior to joining Apex Silver, Board and senior executive experience at Western Mining Holdings Ltd. And USMX Inc.
Daniel Major, Chief Operating Officer of Ecometals, is a mining engineer with over 20 years of experience in the mining industry. During the first half of his career he worked in several roles, including production, planning and project engineering in various countries in Africa, with a focus on base and precious metals. Highlights included being the Chief Planning Engineer for the development of the first open pit platinum in the region, Potgietersrust Platinums. From Africa he moved to Investment Banking in London as the research analyst for both JPMorgan and HSBC, where he was part of the No.1 rated Global Mining Team. In 2004 he moved back to the production environment, becoming CEO of the Resource Sector of Basic Element in Russia, which included mining and exploration businesses as well as a substantial pulp and paper business.
Mr. Major has retained his role as Non-exec Chairman of Strikeforce Mining and Resources, the molybdenum mining company within Basic Element. Mr. Major holds a B.Eng (Hons) Mining from the Camborne School of Mines.
Fran Scola is CEO of Ecometals.
Saturday, January 16, 2010
Carolin – 2 more intriguing possibilities
Please note that I do not own any shares of Module Resources. I do not have an opinion or recommendation or advice as to whether anyone should purchase (or not purchase) Module shares. I am providing info on this property strictly due to Century’s ownership interest.
1) There is a decent possibility that the size of the open pittable area could turn out to be 1500m by 500m (which is a very nice size I think). One should be fully award that it is only an unproven theory at this particular moment in time (although having good potential).
2) There is a decent possibility that the Carolin u/g mine could be extended far to the north and also further at depth (currently open in both directions).
I have looked at an old map of the property and looked more closely at the recent published info. Here are some details with regards to the 2 possibilities:
1) Open pit
The results I have identified so far have been for the McMaster open pittable zone. Historically, only the west of that zone was drilled. The recent drill results confirmed the historical mineralization to the west, but also confirmed excellent extensions / new zones to the east, south and north. The historic pit resource was small, but these expansions should make the resource total much higher.
Now, here is where it gets interesting. “In addition to the McMaster Zone, the Lorainne Zone occurs approximately 800 metres to the northeast of the McMaster Zone. Limited drilling in 1995 on the Lorainne Zone has identified mineralized zones grading from 0.56 to 1.91 gm/ton gold over 4 metres. Hole L3-95 assayed 36.8 gm/ton over 1.2 metres. The Lorainne Zone is open to the southeast. The recent drilling (2009) together with previous exploration including soil geochemistry, geological mapping and diamond drilling, indicates that the McMaster and Lorainne Zones may be contiguous. This interpretation would indicate the area for potential open pittable resources has an extent of approximately 1500 metres by 500 metres.”
Of course, there needs to be a major drill program in order to fully prove this theory. This could be significant, as it could confirm 800 metres of new mineralization between the 2 known pittable zones (McMaster and Lorainne). I think they are planning a program for this year.
2) Underground mining
The Carolin u/g mine already has a resource total of 190,000 ounces @ 4.41 g/t grade (non-43101). It is directly located 1200 metres south of the McMaster (pittable) Zone. The McMaster mineralization appears to be similar to mineralization u/g at Carolin. There is a belief that deeper drilling at McMaster, coupled with northward drilling at u/g Carolin, could demonstrate that the 2 areas are contiguous. If the drilling proves this theory to be true then basic logic would suggest that most of the 1200 metres (if not all) between the 2 mineralized areas could also prove to be mineralize. Again, they need to launch a major drilling program. The Carolin/Ladner Mine has been rehabilitated and has the necessary permit in place to carry out an underground exploration program.
“Alteration and style of mineralization in the McMaster Zone is similar to that at the Ladner Mine (formerly called Carolin Mine)… It is anticipated that with deeper drilling on the McMaster Zone and further underground exploration in the Ladner Mine, gold mineralization may be contiguous and thereby extending the underground resource potential.”
1) There is a decent possibility that the size of the open pittable area could turn out to be 1500m by 500m (which is a very nice size I think). One should be fully award that it is only an unproven theory at this particular moment in time (although having good potential).
2) There is a decent possibility that the Carolin u/g mine could be extended far to the north and also further at depth (currently open in both directions).
I have looked at an old map of the property and looked more closely at the recent published info. Here are some details with regards to the 2 possibilities:
1) Open pit
The results I have identified so far have been for the McMaster open pittable zone. Historically, only the west of that zone was drilled. The recent drill results confirmed the historical mineralization to the west, but also confirmed excellent extensions / new zones to the east, south and north. The historic pit resource was small, but these expansions should make the resource total much higher.
Now, here is where it gets interesting. “In addition to the McMaster Zone, the Lorainne Zone occurs approximately 800 metres to the northeast of the McMaster Zone. Limited drilling in 1995 on the Lorainne Zone has identified mineralized zones grading from 0.56 to 1.91 gm/ton gold over 4 metres. Hole L3-95 assayed 36.8 gm/ton over 1.2 metres. The Lorainne Zone is open to the southeast. The recent drilling (2009) together with previous exploration including soil geochemistry, geological mapping and diamond drilling, indicates that the McMaster and Lorainne Zones may be contiguous. This interpretation would indicate the area for potential open pittable resources has an extent of approximately 1500 metres by 500 metres.”
Of course, there needs to be a major drill program in order to fully prove this theory. This could be significant, as it could confirm 800 metres of new mineralization between the 2 known pittable zones (McMaster and Lorainne). I think they are planning a program for this year.
2) Underground mining
The Carolin u/g mine already has a resource total of 190,000 ounces @ 4.41 g/t grade (non-43101). It is directly located 1200 metres south of the McMaster (pittable) Zone. The McMaster mineralization appears to be similar to mineralization u/g at Carolin. There is a belief that deeper drilling at McMaster, coupled with northward drilling at u/g Carolin, could demonstrate that the 2 areas are contiguous. If the drilling proves this theory to be true then basic logic would suggest that most of the 1200 metres (if not all) between the 2 mineralized areas could also prove to be mineralize. Again, they need to launch a major drilling program. The Carolin/Ladner Mine has been rehabilitated and has the necessary permit in place to carry out an underground exploration program.
“Alteration and style of mineralization in the McMaster Zone is similar to that at the Ladner Mine (formerly called Carolin Mine)… It is anticipated that with deeper drilling on the McMaster Zone and further underground exploration in the Ladner Mine, gold mineralization may be contiguous and thereby extending the underground resource potential.”
Friday, January 15, 2010
JV possibilities for our secondary properties
Our success is entirely dependent on Lamaque being successful, thus our focus has to be 100% on Lamaque over the next little while. However, that shouldn't stop us from letting JV partners contribute cash to move our secondary properties forward, if they approach us.
1) Carolin Mine - I provided an update yesterday. Some good exploration work happening there. I like the 43.6 m @ 2.46 g/t and 21.9 m @ 1.73 g/t results from earlier in the week, from the open pit area. Those excellent results are consistent with the 43.2 m @ 1.25 g/t drill hole result from 1989.
Although probably unlikely, it would be very positive for Century shareholders if our JV partner could one day locate a California style mother lode on Carolin. Here is a note from a past Century annual report:
"The Carolin Mine is a California mother lode style of deposit and, similar to those deposits, occurs adjacent to a serpentinite filled fault. In California, gold is often found in rich pods within the serpentinite. No prior exploration at the Carolin Mine has targeted this possible gold source."
2) Northbelt, NWT property - Peggy said on the conference call that Century has received inquiries about joint venture possibilities. Maybe others are also noticing the huge potential of our large Northbelt property:
*already 2 established gold deposits of 175,000 total non-43101 ounces (I know 1 deposit is open both along strike and at depth and I believe the other one is also)
*15km strike length along a volcanic belt that has produced at least 10M ounces
*numerous gold showings
*has the potential to host a porphyry gold system
*the claims have a large base metal showing that contains several "concordent zinc rich zones within the host volcanic strategraphy"
3) Our Alaskan properties - the chances have increased for our Alaskan properties to add value for shareholders now that the precedent setting Kensington mining case (in Juneau, Alaska) went in favour of Coeur d’Alene Mines.
We have either gold showings or historical mining production at all of our Juneau area properties, but our Treadwell property still remains the most fascinating to me. As most people know, it was the largest mine in the world at the turn on the 20th Century. I think it stopped about 100 years ago due to a devastating flood.
I don't know if it was flooded from being too close to water or if it was poorly designed, or a combination of both. It's been 100 years since it was in operation so I wonder if better technology today, safer infrastructure designs, better mining methods, better safety standards, 100 years of historical mining eduction, etc., would would resolve whatever challenges existed back then.
The mine produced 3.2M ounces when it was in production back then. Here is a note of a bit of exploration work that was done in the 90s: "In the early 1990s Echo Bay Mines drilled a long hole across Gastineau Channel to test the continuity of the mineralization to depth. At an elevation of 3,000 feet, which is 1,300 feet below the Treadwell workings, the hole intersected 187 feet of 0.101 opt Au, containing a section of 44 feet of 0.22 opt Au. This extremely wide intersection was typical of the width and grade originally mined from the Treadwell during the mine life."
It was only mined down to 1700 ft previously. For comparison purposes, the Sigma side of Sigma-Lamaque was mined down to 6000 ft, and we know that the Sigma-Lamaque complex still has 6M ounces remaining (potentially 9M+). Given that the drill hole hit such strong mineralization at 3000 ft a Treadwell, 1300 ft below the last workings, it's possible to visualize the potential of millions of ounces more still existing at Treadwell.
It would be good if there was a company out there interested in taking on this type of challenge, as a JV partner. A major gold producing company would be ideal due to having the capital, expertise, established mining name and access to the latest technology. However, a major company would not likely be interested in a project like this, as they normally prefer projects that are more set.
1) Carolin Mine - I provided an update yesterday. Some good exploration work happening there. I like the 43.6 m @ 2.46 g/t and 21.9 m @ 1.73 g/t results from earlier in the week, from the open pit area. Those excellent results are consistent with the 43.2 m @ 1.25 g/t drill hole result from 1989.
Although probably unlikely, it would be very positive for Century shareholders if our JV partner could one day locate a California style mother lode on Carolin. Here is a note from a past Century annual report:
"The Carolin Mine is a California mother lode style of deposit and, similar to those deposits, occurs adjacent to a serpentinite filled fault. In California, gold is often found in rich pods within the serpentinite. No prior exploration at the Carolin Mine has targeted this possible gold source."
2) Northbelt, NWT property - Peggy said on the conference call that Century has received inquiries about joint venture possibilities. Maybe others are also noticing the huge potential of our large Northbelt property:
*already 2 established gold deposits of 175,000 total non-43101 ounces (I know 1 deposit is open both along strike and at depth and I believe the other one is also)
*15km strike length along a volcanic belt that has produced at least 10M ounces
*numerous gold showings
*has the potential to host a porphyry gold system
*the claims have a large base metal showing that contains several "concordent zinc rich zones within the host volcanic strategraphy"
3) Our Alaskan properties - the chances have increased for our Alaskan properties to add value for shareholders now that the precedent setting Kensington mining case (in Juneau, Alaska) went in favour of Coeur d’Alene Mines.
We have either gold showings or historical mining production at all of our Juneau area properties, but our Treadwell property still remains the most fascinating to me. As most people know, it was the largest mine in the world at the turn on the 20th Century. I think it stopped about 100 years ago due to a devastating flood.
I don't know if it was flooded from being too close to water or if it was poorly designed, or a combination of both. It's been 100 years since it was in operation so I wonder if better technology today, safer infrastructure designs, better mining methods, better safety standards, 100 years of historical mining eduction, etc., would would resolve whatever challenges existed back then.
The mine produced 3.2M ounces when it was in production back then. Here is a note of a bit of exploration work that was done in the 90s: "In the early 1990s Echo Bay Mines drilled a long hole across Gastineau Channel to test the continuity of the mineralization to depth. At an elevation of 3,000 feet, which is 1,300 feet below the Treadwell workings, the hole intersected 187 feet of 0.101 opt Au, containing a section of 44 feet of 0.22 opt Au. This extremely wide intersection was typical of the width and grade originally mined from the Treadwell during the mine life."
It was only mined down to 1700 ft previously. For comparison purposes, the Sigma side of Sigma-Lamaque was mined down to 6000 ft, and we know that the Sigma-Lamaque complex still has 6M ounces remaining (potentially 9M+). Given that the drill hole hit such strong mineralization at 3000 ft a Treadwell, 1300 ft below the last workings, it's possible to visualize the potential of millions of ounces more still existing at Treadwell.
It would be good if there was a company out there interested in taking on this type of challenge, as a JV partner. A major gold producing company would be ideal due to having the capital, expertise, established mining name and access to the latest technology. However, a major company would not likely be interested in a project like this, as they normally prefer projects that are more set.
IR is pumping out the promotional info!
New facts sheet available on CMM website. Nice summary of the major events in CMM history, and a peek into the future of the company.
Thursday, January 14, 2010
Carolin pictures
They give an appreciation of what kind of head start Carolin has - portals to the u/g, building facilities (including mill buildings), tailing impoundment area, ore conveyors and support structures .....
http://www.moduleresources.com/index.php?option=com_joomgallery&func=viewcategory&catid=1&Itemid=114
http://www.moduleresources.com/index.php?option=com_joomgallery&func=viewcategory&catid=1&Itemid=114
Carolin Mine (things are starting look up there)
Module/Carolin just posted some really good drill results a couple of days ago.
As a refresher, Carolin is a past producer which can be brought back into production somewhat fast (at least faster than a brand new mine) - Carolin retained its mining permit and it has some infrastructure (shafts? ramps? declines?) within the underground mine (and open pit development is generally not overwhelming) and some facilities that may be refurbished. Century joint ventured Carolin out to Module. Century currently owns 1M Module shares (possibly 2M). Century also still owns 33.4% of Carolin itself. In addition, Century still retains back in rights to move its ownership of Carolin back to 50%.
The ideal gold is to have Module bring the property back into production, at say somewhere between 40,000 to 50,000 oz per year production, then merge Module into Century at that time.
If all goes well then Module/Carolin may be able to contribute 40,000 to 50,000 production ounces to the 300,000 to 500,000 Century is targeting in a few years.
Here are the drill results:
http://www.moduleresources.com/index.php?option=com_content&task=view&id=152&Itemid=54
As a refresher, Carolin is a past producer which can be brought back into production somewhat fast (at least faster than a brand new mine) - Carolin retained its mining permit and it has some infrastructure (shafts? ramps? declines?) within the underground mine (and open pit development is generally not overwhelming) and some facilities that may be refurbished. Century joint ventured Carolin out to Module. Century currently owns 1M Module shares (possibly 2M). Century also still owns 33.4% of Carolin itself. In addition, Century still retains back in rights to move its ownership of Carolin back to 50%.
The ideal gold is to have Module bring the property back into production, at say somewhere between 40,000 to 50,000 oz per year production, then merge Module into Century at that time.
If all goes well then Module/Carolin may be able to contribute 40,000 to 50,000 production ounces to the 300,000 to 500,000 Century is targeting in a few years.
Here are the drill results:
http://www.moduleresources.com/index.php?option=com_content&task=view&id=152&Itemid=54
Wednesday, January 13, 2010
Current mine plan looks interesting
They are saying that the current Lamaque mine plan calls for them to ramp up to 104,000 ounces in annual production even before rehabbing any of the shafts:
2010 - 45,000 ounces
2011 - 85,000
2012 - 85,000
2013 - 104,000
The current Lamaque mine plan calls for ramp up to the 104,000 ounce production level without having to go below the 2000 ft level within the mine and without having to rehab any of the shafts. They say they can push production from 85,000 ounces to 104,000 ounces from planned development above 2000 ft. That's all within the current mine plan. They are not looking to rehab Sigma #2 shaft until 3 or 4 years down the road. However, they are saying once the shafts have been rehabilitated then it's possible (realistically, foreseeable) to ramp up production ounces beyond the 104,000 level (possibly to as high as 150,000 per year from Lamaque alone).
I take it they will need to dewater down to the 2000 level at some point down the road though. I believe that the water is as high as 1200 ft. Thus, they will need to dewater from between 1200 ft and 2000 ft at some point before then ramp up to 104,000 ounces.
Also, I am not sure how they will access ore between 1000 ft and the 2000 ft level. I get the impressive that the haulage ramp does not go below maybe 800 to 1000 down. It's possible that the Lamaque #7 shaft is in good shape. I vaguely remember reading in one of the reports that some rehab work was done on Lamaque #7 in the past). Also, I guess it's possible that both Lamaque #7 and Sigma #2 shafts do not need rehab down to 2000 ft.
It's also possible that peggy meant to say 1000 ft instead of 2000 ft with regards to the current mine plan (and the 104,000 ounce ramp up level). That would make more sense to me given no immediate rehab is planned for any of the shafts.
Peggy makes 2 comments about this on the conference call (at 11:35 and at 22:35).
2010 - 45,000 ounces
2011 - 85,000
2012 - 85,000
2013 - 104,000
The current Lamaque mine plan calls for ramp up to the 104,000 ounce production level without having to go below the 2000 ft level within the mine and without having to rehab any of the shafts. They say they can push production from 85,000 ounces to 104,000 ounces from planned development above 2000 ft. That's all within the current mine plan. They are not looking to rehab Sigma #2 shaft until 3 or 4 years down the road. However, they are saying once the shafts have been rehabilitated then it's possible (realistically, foreseeable) to ramp up production ounces beyond the 104,000 level (possibly to as high as 150,000 per year from Lamaque alone).
I take it they will need to dewater down to the 2000 level at some point down the road though. I believe that the water is as high as 1200 ft. Thus, they will need to dewater from between 1200 ft and 2000 ft at some point before then ramp up to 104,000 ounces.
Also, I am not sure how they will access ore between 1000 ft and the 2000 ft level. I get the impressive that the haulage ramp does not go below maybe 800 to 1000 down. It's possible that the Lamaque #7 shaft is in good shape. I vaguely remember reading in one of the reports that some rehab work was done on Lamaque #7 in the past). Also, I guess it's possible that both Lamaque #7 and Sigma #2 shafts do not need rehab down to 2000 ft.
It's also possible that peggy meant to say 1000 ft instead of 2000 ft with regards to the current mine plan (and the 104,000 ounce ramp up level). That would make more sense to me given no immediate rehab is planned for any of the shafts.
Peggy makes 2 comments about this on the conference call (at 11:35 and at 22:35).
Tiny baby steps in finally delivering on promises?
These basic deliveries were completely foreign to Century in the past. As a result, accomplishments below represent good baby steps in establishing the new Century, but a long ways to go yet to regain all of that lost credibility.
1) From yesterday’s NR: “The Company will have a presentation on the Company's website (www.centurymining.com) prior to the conference call.” - perfectly delivered
2) From yesterday’s NR: “The conference call will be.…, or via www.centurymining.com via a downloadable audio file.” - perfectly delivered
3) From the Dec. 4’09 NR: “the Company now expects that closing of these financings will be prior to the Christmas Holidays.” – pretty much delivery (within Century's control)
4) From the Dec. 24’09 NR: “….is pleased to announce that it has signed all documentation and agreements…. Due to the signing of documentation for the above financings immediately prior to the Christmas / Boxing Day holiday weekend, the final closing and disbursement of funds to the Company cannot be completed until the week of December 28, 2009. A subsequent detailed press release will be issued at that time highlighting all terms of the completed financings.” - pretty much delivery (within Century's control)
1) From yesterday’s NR: “The Company will have a presentation on the Company's website (www.centurymining.com) prior to the conference call.” - perfectly delivered
2) From yesterday’s NR: “The conference call will be.…, or via www.centurymining.com via a downloadable audio file.” - perfectly delivered
3) From the Dec. 4’09 NR: “the Company now expects that closing of these financings will be prior to the Christmas Holidays.” – pretty much delivery (within Century's control)
4) From the Dec. 24’09 NR: “….is pleased to announce that it has signed all documentation and agreements…. Due to the signing of documentation for the above financings immediately prior to the Christmas / Boxing Day holiday weekend, the final closing and disbursement of funds to the Company cannot be completed until the week of December 28, 2009. A subsequent detailed press release will be issued at that time highlighting all terms of the completed financings.” - pretty much delivery (within Century's control)
Audio file of Century's conference call now posted on Century's homepage
I guess he posted it just as I was typing my last post.
The new IR guy is moving at a nice pace so far
Info on the new directors is already updated on Century site. Also, I like how he highlights key info directly on Century's homepage. As well, I like how he has set up numerous radio/online media do writeups about the post-financed Century and to give Peggy a chance to tell the Century story (assuming he has been responsible for all that). It would be good if he can put an audio file on Century's web page so people can click and listen to yesterday's conference call, as part of their DD of Century.
Ultimately though, the IR guy (as well as Peggy and all other management) will be evaluated based on what they do about share price. If the share price does not increase materially from $.38 then they would have all failed, including the new IR guy. That's the bottom line! Right now, Century is severely under performing its peers with regards to share price (even the ones at similar stages of production ramp up).
Everyone that is in charge of managing the performance of Century has only one ultimate goal. That goal is to create value for shareholders in the form of share price. Century has failed miserably in the past.
We'll see how the new team performs.
Ultimately though, the IR guy (as well as Peggy and all other management) will be evaluated based on what they do about share price. If the share price does not increase materially from $.38 then they would have all failed, including the new IR guy. That's the bottom line! Right now, Century is severely under performing its peers with regards to share price (even the ones at similar stages of production ramp up).
Everyone that is in charge of managing the performance of Century has only one ultimate goal. That goal is to create value for shareholders in the form of share price. Century has failed miserably in the past.
We'll see how the new team performs.
Tuesday, January 12, 2010
Today's Trade Summary
Anyone listen to the Conference Call today? I tried the replay, but only got elevator music.
The Mining Weekly article on Century
Century Mining targets 300 000 to 500 000 oz/y
By: Liezel Hill
13th January 2010
Updated 2 hours 24 minutes ago
TORONTO (miningweekly.com) – After resolving its financial woes and bringing on a new large shareholder, TSX Venture Exchange-listed Century Mining is now fully funded and ready to get down to the business of growing gold production, CEO Margaret Kent said on Tuesday.
The company is forecasting output of about 65 000 oz of gold this year from its mines in Canada and Peru, but targeting eventual production levels of around 300 000 oz/y to 500 000 oz/y, she said on a conference call.
Century's current plans at its two mines would increase gold production to about 120 000 oz/y by 2012.
“So we have a nice growth profile. And of course, if we layer on top another acquisition, possibly by early 2011, that might add another 100 000 or 150 000 oz/y, and you can see we can reach that 300 000 oz target fairly quickly.”
Kent presented shareholders with a nice little gift on December 24: the news that Century had finalised the paperwork to raise C$60,75-million in a series of transactions, providing the firm with working capital and the cash it needed to reopen its Lamaque complex, in Quebec.
The company operated an openpit mine at the site until 2007, when high oil prices and surging operating costs prompted a decision to focus on the large underground resources.
Underground work started in 2007 and continued into the following year.
However, the just as the firm was making the transition from an underground test project into full-on production “the credit crisis hit us straight between the eyes”, Kent recounted.
After negotiating a $33-million prepaid gold forward facility with Deutsche Bank, a C$17-million private placement (including C$15,75-million to one buyer, Kirkland Intertrade) and C$9,1-million in flow-through placements, the company is now back on its feet.
The power to the Lamaque complex will be turned on in the next week or so, laid off workers are being recalled and underground development should get under way in February.
If all goes to plan, the company could pour its first gold in April and expects to produce about 45 000 oz from Lamaque this year, Kent said.
Looking ahead, Century plans to increase production to between 100 000 oz and 110 000 oz/y by 2013 at Lamaque through progressive expansions, and has estimated life-of-mine average cash costs at $450/oz to $500/oz.
However, Kent believes it would be “very realistic” to push production up to 150 000 oz/y.
At the firm's other operation, San Juan, in Peru, production is forecast at 20 000 oz this year, but should rise to 30 000 oz by 2012.
EXPLORATION
As mining gets under way again in Canada, Century is also planning an aggressive exploration and data compilation programme at Lamaque, to add to the measured and indicated resources and reserve categories.
In total, across its assets, the company has about six-million ounces of gold in reserves and measured, indicated and inferred resources.
Once operations at Lamaque are up and running, Kent said she also plans to start assessing the potential acquisitions or joint ventures on properties surrounding the Lamaque project.
Shares in Century Mining slid 1,3% on Tuesday, to C$0,38 apiece by 15:59 in Toronto.
However, the stock has more than doubled in the last two months.
Century also announced earlier in the day that it had appointed Fran Scola and William Lamarque to its board of directors.
Ross Burns, Ricardo Campoy, Allen Ambrose resigned their directorships, although Campoy will continue to act as an advisor to the board.
Keith Hulley will also advise the board.
Edited by: Liezel Hill
By: Liezel Hill
13th January 2010
Updated 2 hours 24 minutes ago
TORONTO (miningweekly.com) – After resolving its financial woes and bringing on a new large shareholder, TSX Venture Exchange-listed Century Mining is now fully funded and ready to get down to the business of growing gold production, CEO Margaret Kent said on Tuesday.
The company is forecasting output of about 65 000 oz of gold this year from its mines in Canada and Peru, but targeting eventual production levels of around 300 000 oz/y to 500 000 oz/y, she said on a conference call.
Century's current plans at its two mines would increase gold production to about 120 000 oz/y by 2012.
“So we have a nice growth profile. And of course, if we layer on top another acquisition, possibly by early 2011, that might add another 100 000 or 150 000 oz/y, and you can see we can reach that 300 000 oz target fairly quickly.”
Kent presented shareholders with a nice little gift on December 24: the news that Century had finalised the paperwork to raise C$60,75-million in a series of transactions, providing the firm with working capital and the cash it needed to reopen its Lamaque complex, in Quebec.
The company operated an openpit mine at the site until 2007, when high oil prices and surging operating costs prompted a decision to focus on the large underground resources.
Underground work started in 2007 and continued into the following year.
However, the just as the firm was making the transition from an underground test project into full-on production “the credit crisis hit us straight between the eyes”, Kent recounted.
After negotiating a $33-million prepaid gold forward facility with Deutsche Bank, a C$17-million private placement (including C$15,75-million to one buyer, Kirkland Intertrade) and C$9,1-million in flow-through placements, the company is now back on its feet.
The power to the Lamaque complex will be turned on in the next week or so, laid off workers are being recalled and underground development should get under way in February.
If all goes to plan, the company could pour its first gold in April and expects to produce about 45 000 oz from Lamaque this year, Kent said.
Looking ahead, Century plans to increase production to between 100 000 oz and 110 000 oz/y by 2013 at Lamaque through progressive expansions, and has estimated life-of-mine average cash costs at $450/oz to $500/oz.
However, Kent believes it would be “very realistic” to push production up to 150 000 oz/y.
At the firm's other operation, San Juan, in Peru, production is forecast at 20 000 oz this year, but should rise to 30 000 oz by 2012.
EXPLORATION
As mining gets under way again in Canada, Century is also planning an aggressive exploration and data compilation programme at Lamaque, to add to the measured and indicated resources and reserve categories.
In total, across its assets, the company has about six-million ounces of gold in reserves and measured, indicated and inferred resources.
Once operations at Lamaque are up and running, Kent said she also plans to start assessing the potential acquisitions or joint ventures on properties surrounding the Lamaque project.
Shares in Century Mining slid 1,3% on Tuesday, to C$0,38 apiece by 15:59 in Toronto.
However, the stock has more than doubled in the last two months.
Century also announced earlier in the day that it had appointed Fran Scola and William Lamarque to its board of directors.
Ross Burns, Ricardo Campoy, Allen Ambrose resigned their directorships, although Campoy will continue to act as an advisor to the board.
Keith Hulley will also advise the board.
Edited by: Liezel Hill
3 notes from the Corp. Pres.
1) 2011e production
Lamaque = 85,000 ounces
Lamaque + San Juan = 113,000 ounces
2) Lamaque Gold Mine Path to Production
"May 2010" = "TPD: 500 to 800"
"May 2010" = "Oz Au/Mth: 2-3K"
3) "Margaret M. Kent, President, CEO & Director"
The first time she has been listed without the title of "Chairman". It likely means they are sticking to the plan of bringing in a new Chairman of the Board for Century Mining.
Lamaque = 85,000 ounces
Lamaque + San Juan = 113,000 ounces
2) Lamaque Gold Mine Path to Production
"May 2010" = "TPD: 500 to 800"
"May 2010" = "Oz Au/Mth: 2-3K"
3) "Margaret M. Kent, President, CEO & Director"
The first time she has been listed without the title of "Chairman". It likely means they are sticking to the plan of bringing in a new Chairman of the Board for Century Mining.
New Corporate Presentation
Now posted on Century's website. You can access the website from this page (to the right).
Gold pour timeframe
CMJ article: "stockpiling of ore as early as March"
Jan 4th NR: "the new crushing circuit is to be operational by the end of April"
Jan 4th NR: "we expect to be pouring gold this summer"
Summer begins on June 21st.
It looks like they are aiming to start stockpiling ore at some point in March and then begin crushing at end of April or early May. That will give them 7.5 weeks before they hit summer. It means they will have 7.5 weeks to move the first bit of stockpiled ore from crushing stage to first gold pour stage.
This should be plenty of time if everything works to plan. I'm sure there are many steps at the processing stage, but at least it's not a heap leach operation (I think a heap leach process would require a lot more time than the conventional Lamaque milling process). Here are 3 keys stages that come to mine in Lamaque's process:
1) crushing
2) gravity circuit gold recovery - this might recover 50 to 60 percent of the gold
3) application of cyanide solution - go bring the gold recovery up to 96%
I don't think any of the 3 steps are too time consuming (that would result in 7.5 weeks), but I am sure there are a number of other key steps required prior to pouring gold.
Jan 4th NR: "the new crushing circuit is to be operational by the end of April"
Jan 4th NR: "we expect to be pouring gold this summer"
Summer begins on June 21st.
It looks like they are aiming to start stockpiling ore at some point in March and then begin crushing at end of April or early May. That will give them 7.5 weeks before they hit summer. It means they will have 7.5 weeks to move the first bit of stockpiled ore from crushing stage to first gold pour stage.
This should be plenty of time if everything works to plan. I'm sure there are many steps at the processing stage, but at least it's not a heap leach operation (I think a heap leach process would require a lot more time than the conventional Lamaque milling process). Here are 3 keys stages that come to mine in Lamaque's process:
1) crushing
2) gravity circuit gold recovery - this might recover 50 to 60 percent of the gold
3) application of cyanide solution - go bring the gold recovery up to 96%
I don't think any of the 3 steps are too time consuming (that would result in 7.5 weeks), but I am sure there are a number of other key steps required prior to pouring gold.
The updated Canadian Mining Journal article (posted in Kitko)
GOLD MINING: Lamaque mine to reopen, reach commercial output 2011
QUEBEC — Century Mining, a Canadian junior gold producer with its corporate office in Blaine, WA, is making plans to reopen its Lamaque gold project in Val d'Or. Century plans on spending in excess of $100 million on the project over the life of the operation and will also bring significant investment into the historic mining town and is expected to create over 250 new jobs.
Century has raised $60.75 million to fund the reopening. The initial milling rate will be approximately 1,200 t/d by the end of 2010 and will rise to 2,000 t/d as production increases. Initially the mining will be room and pillar flats mining, with a transition to the longhole stoping later in 2010.
Century plans to get into action quickly in early 2010 by having the power turned on at site in late January, the underground re-opened in February, and the stockpiling of ore as early as March. The company is concurrently upgrading the crusher facilities and expects to pour gold in the second quarter of 2010. Century has defined close to 5.5 million oz of gold at the Lamaque mine complex and expects to produce approximately 45,000 oz in 2010. The Lamaque mine will reach commercial production in 2011, where output will be approximately 60,000 oz/y, and climb to just over 100,000 oz/y by 2013.
The Lamaque mine produced 9.3 million oz of gold from 1935 to 2007, and Century believes the property could host another 9.0 million oz. Lamaque was placed on care-and-maintenance in July 2008 because the company lacked development money to expand the mining operation.
Details of the financing to reopen the mine are available at www.CenturyMining.com in the news release dated Jan. 4, 2010.
QUEBEC — Century Mining, a Canadian junior gold producer with its corporate office in Blaine, WA, is making plans to reopen its Lamaque gold project in Val d'Or. Century plans on spending in excess of $100 million on the project over the life of the operation and will also bring significant investment into the historic mining town and is expected to create over 250 new jobs.
Century has raised $60.75 million to fund the reopening. The initial milling rate will be approximately 1,200 t/d by the end of 2010 and will rise to 2,000 t/d as production increases. Initially the mining will be room and pillar flats mining, with a transition to the longhole stoping later in 2010.
Century plans to get into action quickly in early 2010 by having the power turned on at site in late January, the underground re-opened in February, and the stockpiling of ore as early as March. The company is concurrently upgrading the crusher facilities and expects to pour gold in the second quarter of 2010. Century has defined close to 5.5 million oz of gold at the Lamaque mine complex and expects to produce approximately 45,000 oz in 2010. The Lamaque mine will reach commercial production in 2011, where output will be approximately 60,000 oz/y, and climb to just over 100,000 oz/y by 2013.
The Lamaque mine produced 9.3 million oz of gold from 1935 to 2007, and Century believes the property could host another 9.0 million oz. Lamaque was placed on care-and-maintenance in July 2008 because the company lacked development money to expand the mining operation.
Details of the financing to reopen the mine are available at www.CenturyMining.com in the news release dated Jan. 4, 2010.
Monday, January 11, 2010
Today's Trade Summary
The usual suspects are again the biggest sellers.
A new poll has been added as per bigjohn's suggestion. In a way price predictions are for gypsies, especially when Anonymous and Canaccord can fill the retail demand. I wouldn't count on any brokerage recommendations. That's not the way the game works. Those are usually given in return for financing participation.
Sunday, January 10, 2010
Re - Another One - $0.79
Another excellent example Production, and the key to the change in fortunes may have been the addition of a respected former CEO as the Chairman of the Board. I believe the same is possible for CMM, depending on who is named as Chairman.
Glorieux, as long as the market believes that this is Peggy Kent's company and that she has complete control, there are a lot of investors that won't touch this company. I believe that Finiskiy and Scola also know this and that is why they imposed as conditions of their investment a significant curtailment of PK's authority beginning with the reconstitution of the Board and a new Chairman of the Board
On the Lamaque operations side, neither PK nor Andrew McNutt will be in charge - that will be handled by the new Operating Committee. From the Circular:
the Operating Committee will have the sole and exclusive power and authority to supervise the management of the Project until the Project has achieved the Operating Criteria. The Operating Committee will be comprised of four members: two members shall be appointed by the Investor and two members shall be appointed by the incumbent members of the Board.
The Operating Committee will, among other duties, (i) review and recommend changes to the annual budget for the Project and the annual mine plan for the Project, prior to their submission to the Board for its approval, and (ii) supervise the hiring and termination of all senior management personnel for the Project. Until such time as the Project has reached the Operating Criteria, the Investor will have the right to veto the appointment of the senior operating person for the Project.
While I agree that Century presents the best risk-reward situation over any other company in our space, it is because of the current management discount. We should be trading much higher right now as illustrated by Production's examples. If a new CEO were announced tomorrow, the share price would rise dramatically.
Finskiy and Scola are no fools. They have removed much of the operations responsibilities from PK and are planning for her exit by reducing her golden parachute from 2 years severence to 6 months. But she does have some considerable value and they recognize that as well. She is a dealmaker and a shrewd negotiator. The deal with IQ to reduce CMM's debt is a case in point, especially after all of the negative press, but the negative press itself is just another example of how much PK is a liability to the company.
BTW Glorieux, why not become a member and post yourself instead of just commenting on others' posts. For one thing it is much easier to post links that readers can click on rather than cut and paste from your comment. These are the links you posted:
One-more-nail-in-the-coffin-of-the-gold-bears
china-golds-no1-producer-and-consumer-is-taking-control-of-the-market
Glorieux, as long as the market believes that this is Peggy Kent's company and that she has complete control, there are a lot of investors that won't touch this company. I believe that Finiskiy and Scola also know this and that is why they imposed as conditions of their investment a significant curtailment of PK's authority beginning with the reconstitution of the Board and a new Chairman of the Board
On the Lamaque operations side, neither PK nor Andrew McNutt will be in charge - that will be handled by the new Operating Committee. From the Circular:
the Operating Committee will have the sole and exclusive power and authority to supervise the management of the Project until the Project has achieved the Operating Criteria. The Operating Committee will be comprised of four members: two members shall be appointed by the Investor and two members shall be appointed by the incumbent members of the Board.
The Operating Committee will, among other duties, (i) review and recommend changes to the annual budget for the Project and the annual mine plan for the Project, prior to their submission to the Board for its approval, and (ii) supervise the hiring and termination of all senior management personnel for the Project. Until such time as the Project has reached the Operating Criteria, the Investor will have the right to veto the appointment of the senior operating person for the Project.
While I agree that Century presents the best risk-reward situation over any other company in our space, it is because of the current management discount. We should be trading much higher right now as illustrated by Production's examples. If a new CEO were announced tomorrow, the share price would rise dramatically.
Finskiy and Scola are no fools. They have removed much of the operations responsibilities from PK and are planning for her exit by reducing her golden parachute from 2 years severence to 6 months. But she does have some considerable value and they recognize that as well. She is a dealmaker and a shrewd negotiator. The deal with IQ to reduce CMM's debt is a case in point, especially after all of the negative press, but the negative press itself is just another example of how much PK is a liability to the company.
BTW Glorieux, why not become a member and post yourself instead of just commenting on others' posts. For one thing it is much easier to post links that readers can click on rather than cut and paste from your comment. These are the links you posted:
One-more-nail-in-the-coffin-of-the-gold-bears
china-golds-no1-producer-and-consumer-is-taking-control-of-the-market
Another one - $.79
IMO, St Andrew Goldfields (SAS) was a joke of a company for many many years - simply brutal management (boneheaded decisions, non-stop undelivered promises, share rollbacks, you name it).
They now have new management in place, including the former CEO of Cambior (now St Andrew's Chairman). SAS's new management has completely changed the fortunes for the company's shareholders.
Again, I do not see SAS having any fundamental business advantages over Century Mining. SAS has $35M in secured Balance Sheet debt. Century Mining has $18M in gold payment debt (will eventually be $33M once the extra $15M cash is released from escrow).
St Andrew Goldfields:
Current share price = $.79
Current market cap = $257.3M
Current issued and outstanding shares = 325.7M
Current FD shares = 350M
Operating location (s) = Ontario
Expected first gold pour = 2009 - 2011
2009 production = 15,000 ounces
2010 production = 85,000 ounces
Production in future years = 110,000 ounces per year
P&P Reserves = 770,500 ounces
Expected cash cost per oz = $550 US
Century Mining:
Current share price = $.38
Current market cap = $128.2M
Current issued and outstanding shares = 337.5M
Current FD shares = 400M (approx.)
Operating location (s) = Peru and Quebec
Expected first gold pour = Q2’10
2009 production = 18,000 (SJ) ounces
2010 production = 65,000 ounces (SJ and Lamaque)
Production in future years = from 95,000 ounces (25K SJ + 70K Lamaque) to 185,000 ounces (35K SJ + 150K Lamaque)
P&P Reserves = 1,300,000 ounces
Expected cash cost per oz = $450 US - $500 US
They now have new management in place, including the former CEO of Cambior (now St Andrew's Chairman). SAS's new management has completely changed the fortunes for the company's shareholders.
Again, I do not see SAS having any fundamental business advantages over Century Mining. SAS has $35M in secured Balance Sheet debt. Century Mining has $18M in gold payment debt (will eventually be $33M once the extra $15M cash is released from escrow).
St Andrew Goldfields:
Current share price = $.79
Current market cap = $257.3M
Current issued and outstanding shares = 325.7M
Current FD shares = 350M
Operating location (s) = Ontario
Expected first gold pour = 2009 - 2011
2009 production = 15,000 ounces
2010 production = 85,000 ounces
Production in future years = 110,000 ounces per year
P&P Reserves = 770,500 ounces
Expected cash cost per oz = $550 US
Century Mining:
Current share price = $.38
Current market cap = $128.2M
Current issued and outstanding shares = 337.5M
Current FD shares = 400M (approx.)
Operating location (s) = Peru and Quebec
Expected first gold pour = Q2’10
2009 production = 18,000 (SJ) ounces
2010 production = 65,000 ounces (SJ and Lamaque)
Production in future years = from 95,000 ounces (25K SJ + 70K Lamaque) to 185,000 ounces (35K SJ + 150K Lamaque)
P&P Reserves = 1,300,000 ounces
Expected cash cost per oz = $450 US - $500 US
Friday, January 8, 2010
IMO, no excuses for Century’s management not to deliver a share price of at least $.79 in the near future
Luna Gold is currently trading for $.79 per share. They went through a similar financing process as Century, with prepaid gold sales and heavy share dilution. In my view, their prepaid gold sales deal is much worst than Century’s deal, with a commitment of 17% of current planned LOM production plus 17% of future discoveries (on certain exploration locations).
In addition to the 17% LOM gold payment (debt) commitment, they also have a $15M repayment commitment on normal debt. Century’s gold payment debt is less than 5% of its current P&P Reserves. Also, there is no gold payment commitment on Century’s future Reserves. As well, Century does not have any other secured debts on its Balance Sheet to be repaid.
Luna Gold has no production ounces right now - Century currently produces 18,000 ounces. First gold pour for Luna Gold is expected in Q2’10 (same time period as expectations for Lamaque’s first gold pour).
Luna’s management has managed to deliver $.79 for their shareholders so far. There is nothing in Luna Gold’s fundamentals that I would consider superior to what Century Mining has to offer the market. IMO, if Century’s management does not deliver a share price substantially higher than $.38 in the near-term then I would consider it to be severe under performance by management.
Luna Gold:
Current share price = $.79
Current market cap = $280.5M
Current issued and outstanding shares = 358.8M
Current FD shares = 374.1M
Operating location (s) = Brazil
Expected first gold pour = Q2’10
Current run rate production = 0
2010 production = 47,760 ounces
Production in future years = 57,100 ounces per year
P&P Reserves = 729,000 ounces
Expected cash cost per oz = $422 US (+ 1% royalty)
Century Mining:
Current share price = $.38
Current market cap = $128.2M
Current issued and outstanding shares = 337.5M
Current FD shares = 400M (approx.)
Operating location (s) = Peru and Quebec
Expected first gold pour = Q2’10
Current run rate production = 18,000 (SJ)
2010 production = 65,000 ounces (SJ and Lamaque)
Production in future years = from 95,000 ounces (25K SJ + 70K Lamaque) to 185,000 ounces (35K SJ + 150K Lamaque)
P&P Reserves = 1,300,000 ounces
Expected cash cost per oz = $450 US - $500 US
In addition to the 17% LOM gold payment (debt) commitment, they also have a $15M repayment commitment on normal debt. Century’s gold payment debt is less than 5% of its current P&P Reserves. Also, there is no gold payment commitment on Century’s future Reserves. As well, Century does not have any other secured debts on its Balance Sheet to be repaid.
Luna Gold has no production ounces right now - Century currently produces 18,000 ounces. First gold pour for Luna Gold is expected in Q2’10 (same time period as expectations for Lamaque’s first gold pour).
Luna’s management has managed to deliver $.79 for their shareholders so far. There is nothing in Luna Gold’s fundamentals that I would consider superior to what Century Mining has to offer the market. IMO, if Century’s management does not deliver a share price substantially higher than $.38 in the near-term then I would consider it to be severe under performance by management.
Luna Gold:
Current share price = $.79
Current market cap = $280.5M
Current issued and outstanding shares = 358.8M
Current FD shares = 374.1M
Operating location (s) = Brazil
Expected first gold pour = Q2’10
Current run rate production = 0
2010 production = 47,760 ounces
Production in future years = 57,100 ounces per year
P&P Reserves = 729,000 ounces
Expected cash cost per oz = $422 US (+ 1% royalty)
Century Mining:
Current share price = $.38
Current market cap = $128.2M
Current issued and outstanding shares = 337.5M
Current FD shares = 400M (approx.)
Operating location (s) = Peru and Quebec
Expected first gold pour = Q2’10
Current run rate production = 18,000 (SJ)
2010 production = 65,000 ounces (SJ and Lamaque)
Production in future years = from 95,000 ounces (25K SJ + 70K Lamaque) to 185,000 ounces (35K SJ + 150K Lamaque)
P&P Reserves = 1,300,000 ounces
Expected cash cost per oz = $450 US - $500 US
Thursday, January 7, 2010
Finskiy's and Scola's CMM insider holdings are now officially disclosed on SEDI
Same as what we expect:
* Finskiy (an insider due to being a 10% Security Holder of Issuer), 113,979,902 shares (plus 49,375,000 warrants @$.30)
* Scola (an insider due to being a Director of Issuer), 7,142,857 shares
* Finskiy (an insider due to being a 10% Security Holder of Issuer), 113,979,902 shares (plus 49,375,000 warrants @$.30)
* Scola (an insider due to being a Director of Issuer), 7,142,857 shares
Tuesday, January 5, 2010
Today's Trade Summary
Anonymous led the selling parade again today prompting others to lock in long-awaited gains on fear of further declines. It's hard to rationalize trading lower now than before the financing news and with gold making a new push higher.
Monday, January 4, 2010
Lamaque production levels
This is a quote from the Metronews article yikes1 posted on Stockhouse: "Century expects to pour gold this summer, with 45,000 ounces produced this year and 105,000 ounces of commercial production reached in the first quarter of 2011. Expansions could boost production to 150,000 ounces per year."
I have no idea what this part means: "105,000 ounces of commercial production reached in the first quarter of 2011"
The article writer must have made a typo. Perhaps the "2011" was intended to read 2012.
Now, this is from Century's news release today: "The schedule of gold payments is as follows: year 1 - 5,669 ounces; year 2 - 8,004 ounces; year 3 - 13,310 ounces; year 4 - 17,100 ounces; and year 5 - 17,100 ounces."
2010 = 5,669 gold payment / 45,000 Lamaque production = 12.6%
Let's see where it takes us if we apply that 12.6% to future years.
2011 = 8,004 / .126 = 63,535 (Lamaque production)
2012 = 13,310 / .126 = 105,654
2013 = 17,100 / .126 = 135,738
2014 = 17,100 / .126 = 135,738
I have absolutely no idea if the 12.6% repayment rate was applied to future years or if different rates were used. However, when applying the 12.6% to years 2013 and 2014, the 135,000 Lamaque production figure appears to be consistent with the 150,000 long-term expansion gold quoted in the article.
Personally, I think the aggressiveness of the production ramp up will depend on how successful we are at moving some of the 2.6M near surface resource into P&P Reserves. The sky is really the limit. We already have the processing facilities in place to produce 150,000 ounces out of Lamaque.
I have no idea what this part means: "105,000 ounces of commercial production reached in the first quarter of 2011"
The article writer must have made a typo. Perhaps the "2011" was intended to read 2012.
Now, this is from Century's news release today: "The schedule of gold payments is as follows: year 1 - 5,669 ounces; year 2 - 8,004 ounces; year 3 - 13,310 ounces; year 4 - 17,100 ounces; and year 5 - 17,100 ounces."
2010 = 5,669 gold payment / 45,000 Lamaque production = 12.6%
Let's see where it takes us if we apply that 12.6% to future years.
2011 = 8,004 / .126 = 63,535 (Lamaque production)
2012 = 13,310 / .126 = 105,654
2013 = 17,100 / .126 = 135,738
2014 = 17,100 / .126 = 135,738
I have absolutely no idea if the 12.6% repayment rate was applied to future years or if different rates were used. However, when applying the 12.6% to years 2013 and 2014, the 135,000 Lamaque production figure appears to be consistent with the 150,000 long-term expansion gold quoted in the article.
Personally, I think the aggressiveness of the production ramp up will depend on how successful we are at moving some of the 2.6M near surface resource into P&P Reserves. The sky is really the limit. We already have the processing facilities in place to produce 150,000 ounces out of Lamaque.
A very important note about commercial production
"We will be bringing the Lamaque gold mine back into production, and we expect to be pouring gold this summer and achieve commercial production during the first quarter of 2011."
The commercial production target varies from mine to mine, or so it seems. However, 30 consecutive days of operating at 60% (or greater) of designed capacity level appears to be commonly used. Though, I have seen requirements of 90 consecutive days at 60% (we can't rule out 90 days being the requirement for Lamaque). Also, it has to be consecutive days. If one day happens to fall before the 60% designed level then the counter starts all over again. As a result, to begin pouring gold in mid 2010 and then to achieve commercial production in Q1 2011 is reasonable.
This does not automatically mean that we can't achieve cash flow positive levels prior to achieving commercial.
I believe that achieving cash flow positive results and achieving commercial production requirements are 2 separate events (even though the revenues and costs will both be capitalized into the Balance Sheet prior to commercial production so will likely never get to view Cash Flow separately prior to commercial production).
For example:
let's use a designed capacity of 100,000 ounces for Lamaque
100,000 * 60% = 60,000 annual ounces (at commercial production level)
Century is planning to begin pouring gold in the summer (let's assume 6 months for 2010). Century is planning to produce 45,000 from Lamaque in 2010 (those 6 months combined).
As you can see, 45,000 ounces for 6 months is not bad. Extrapolated annually, that's probably in the 70,000 to 90,000 range (depending on available ore feed on the various areas being mined from month to month).
45,000 ounces (for 6 mths) = 7,500 ounces per month
I would like to think that Lamaque can be cash flow positive at 7,500 production ounces per month, especially with a $1,120 US gold price.
The commercial production target varies from mine to mine, or so it seems. However, 30 consecutive days of operating at 60% (or greater) of designed capacity level appears to be commonly used. Though, I have seen requirements of 90 consecutive days at 60% (we can't rule out 90 days being the requirement for Lamaque). Also, it has to be consecutive days. If one day happens to fall before the 60% designed level then the counter starts all over again. As a result, to begin pouring gold in mid 2010 and then to achieve commercial production in Q1 2011 is reasonable.
This does not automatically mean that we can't achieve cash flow positive levels prior to achieving commercial.
I believe that achieving cash flow positive results and achieving commercial production requirements are 2 separate events (even though the revenues and costs will both be capitalized into the Balance Sheet prior to commercial production so will likely never get to view Cash Flow separately prior to commercial production).
For example:
let's use a designed capacity of 100,000 ounces for Lamaque
100,000 * 60% = 60,000 annual ounces (at commercial production level)
Century is planning to begin pouring gold in the summer (let's assume 6 months for 2010). Century is planning to produce 45,000 from Lamaque in 2010 (those 6 months combined).
As you can see, 45,000 ounces for 6 months is not bad. Extrapolated annually, that's probably in the 70,000 to 90,000 range (depending on available ore feed on the various areas being mined from month to month).
45,000 ounces (for 6 mths) = 7,500 ounces per month
I would like to think that Lamaque can be cash flow positive at 7,500 production ounces per month, especially with a $1,120 US gold price.
I'm trying to figure out what this means
"The Company has also been provided a margin-free gold trading line for up to 180,000 ounces of gold and a currency trading line."
I wonder if any of this can be used as a line of credit to provide advanced cash is required (at spot gold prices) in exchange for commitments on future gold delivery to the bank.
I wonder if any of this can be used as a line of credit to provide advanced cash is required (at spot gold prices) in exchange for commitments on future gold delivery to the bank.
Century Mining Fully Funded and Reopens Lamaque Gold Project
Century Mining Fully Funded and Reopens Lamaque Gold Project
BLAINE, WASHINGTON--(Marketwire - Jan. 4, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to report that the previously announced debt and equity financings totaling CDN$60.75 million have all been completed. These funds will provide the necessary capital for the continued exploration, development and reopening of the Company's Lamaque project in Val d'Or, Quebec, enable repayment of the Company's previous debt, and provide the Company with substantial working capital. Included in the funding is a US$33 million prepaid gold forward facility with Deutsche Bank AG. Simultaneously, Century has completed a CDN$17 million private placement. Kirkland Intertrade Corp. ("Kirkland") subscribed for CDN$15.75 million of the private placement along with two other subscribers. The previously completed flow-through placements which have totaled CDN$9.1 million round out the Company's financing program. The initial ownership positions in the Company of Kirkland and its associate, Gravity Ltd., ("Gravity") came as a result of these earlier placements. All of the financings are summarized below.Margaret Kent, President & CEO, stated, "The closing and funding of these financings and the reopening of the Lamaque project mark a significant turning point for the Company. We will be bringing the Lamaque gold mine back into production, and we expect to be pouring gold this summer and achieve commercial production during the first quarter of 2011.Century expects that the reopening of the Lamaque mine complex will have a significant impact on the economy of Val d'Or, Quebec. Up to 250 employees will be employed at the mining operation at full capacity, bringing millions of dollars to the community, the region and the province of Quebec, and once again Century will pour gold from Val d'Or. In addition, the Company has posted the full amount of the financial guarantee required by the Quebec Ministry of Natural Resources to provide for final site reclamation after completion of mining."Maxim Finskiy of Kirkland commented, "As a mining executive I am focused on the ability of a company's management to ramp up production while controlling costs. After our due diligence process we concluded that Century has the management skills to execute, and this is why we have made the investment in the company. Further, in our quest to build a new mid-tier gold company, we were looking for management that has the skills to significantly grow the company through acquisitions. It is our view that the Century management team has the requisite collective experience in acquiring, building and running major operations to facilitate achievement of this goal."Fran Scola of Gravity added, "Working closely with Peggy Kent and her team over the last six months we have become impressed with the energy, commitment and vision of management. These are qualities that translate into significant shareholder value."SUMMARY OF FINANCIAL TRANSACTIONSPrepaid Gold Forward FacilityDeutsche Bank has funded a US$33 million prepaid gold forward facility whereby Deutsche Bank has paid Century today US$33 million under certain restrictions on the availability of funds in exchange for Century delivering 61,183 ounces of gold over a five-year term. The debt facility has other price participation terms whereby the Company will receive an additional cash payment for gold pricing above US$900 per ounce, up to a maximum of US$988 per ounce. There were no up-front fees, nor is any future interest payable under this senior secured facility. The schedule of gold payments is as follows: year 1 - 5,669 ounces; year 2 - 8,004 ounces; year 3 - 13,310 ounces; year 4 - 17,100 ounces; and year 5 - 17,100 ounces. The 61,183 ounces of gold that have been committed under this facility represent less than 3% of the existing reserve and measured and indicated resource base at Lamaque. The Company has also been provided a margin-free gold trading line for up to 180,000 ounces of gold and a currency trading line. The Company has an obligation under certain circumstances to put in place price protection hedging to preserve cash flows if the gold price starts to decline. At closing, a performance reserve account has been set up whereby US$15 million of the facility was placed in this account and will be released to the Company upon certain hurdles and specified production levels being met. The projected hurdle achievement dates and related releases of funds are consistent with the Lamaque cash requirements for project development.Private Placement of New Equity and New InvestorsSimultaneously with the closing of the prepaid gold forward facility, Century has issued an aggregate of 85 million units at CDN.20 per unit for gross proceeds of CDN$17,000,000. Each unit consists of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of CDN.30 for a period of 18 months. If, however, the volume weighted average closing price of the Company's common shares on the TSX Venture Exchange is equal to or greater than CDN.60 for a period of 30 consecutive trading days following the first anniversary of the closing of the private placement, Century will have the right, upon 60 days notice to the holders of the warrants, to accelerate their expiry date.An amount of CDN$15.75 million of the private placement was taken down by Kirkland with the balance taken down by two other subscribers. As a result of the closing of the Private Placement, Kirkland and its associates and affiliates, together with Gravity Ltd., a company controlled by Fran Scola ("Gravity"), hold 121,122,759 Common Shares (170,497,759 Common Shares assuming exercise of its warrants) representing approximately 35.9% of the issued and outstanding Common Shares (44.1% assuming exercise of its warrants). All of the securities issued in connection with the private placement are subject to a four month hold period.A shareholders agreement has been entered into with Kirkland and Gravity covering board representation, operating committee representation, first rights of refusal on future equity issuances and other associated matters. Under the agreement Kirkland and Gravity have the right to nominate two of the five directors of the Company and as soon as possible the Company's Board will endeavor to retain an independent chairman.TOTAL PROCEEDS AND USE OF PROCEEDSOver the last 120 days Century has raised CDN$60.75 million including the US$33 million Deutsche Bank facility and the five equity placements totaling CDN$26.1 million. The proceeds from the combined financings will be used to provide the funding required to start up the Company's Lamaque project and complete the necessary underground development to bring the mine into full production, pay outstanding obligations and for general working capital purposes. Proceeds will also be used for exploration and further resource delineation, as it is expected that the Lamaque deposit and the Company's surrounding property may host significant additional resources.OTHER ASSOCIATED TRANSACTIONSInvestissement Quebec Note PayoutA portion of the proceeds of the Deutsche Bank facility has been used by the Company to pay out its existing senior secured facility with Investissement Quebec. The Company has paid CDN$8,750,000 and has issued 5 million common shares to Investissement Quebec. These transfers were in complete satisfaction of all obligations the Company had under this facility, which had been recorded at CDN$16.4 million on the Company's balance sheet at September 30, 2009.Royalty BuyoutAn existing royalty over a portion of the Lamaque underground reserves was bought out as part of the transactions announced today. The Company paid CDN$750,000 and issued 1.5 million common shares. As a result of this transaction there are no further royalties covering any part of the Company's properties in Quebec.Various Creditor SettlementsAs a result of the financings a number of creditor settlements with respect to existing obligations were made, including some which spread the payments to certain creditors over the next two years. These deferred payments will allow the Company to preserve cash for the reopening of the Lamaque project. The existing working capital gold facility and gold contract debt owed to Gerald Metals have also been paid in full. All liens other than those associated with the new Deutsche Bank facility have been removed from the Sigma-Lamaque property.TIMING AND PRODUCTIONThe Company plans to reopen the Lamaque site in January. Power will be restored to the facility as soon as possible, and the underground workings will be immediately reopened. The Company expects to rehire 40 employees by the end of January, and to commence underground development in February. An upgrade of the crushing facilities will commence immediately, and the new crushing circuit is to be operational by the end of April. It is expected that gold production will commence shortly thereafter. The Company is expected to produce 45,000 ounces from Lamaque in 2010 and 20,000 ounces from the Peru operation in 2010 for a combined production of 65,000 ounces. Until the Lamaque operation reaches commercial production, which is expected to occur in 2011, all costs associated with the development and operation will be capitalized after crediting the value of the gold production. Cash costs in Peru are expected to be US$550 for 2010.ABOUT KIRKLAND AND GRAVITYKirkland is beneficially owned by Maxim Finskiy. Mr. Finskiy is Chief Executive Officer of MMC Intergeo Managing Company, the mining and exploration arm of the private Russian conglomerate Onexim Group, which is Russia's largest investment fund with US$25 billion in assets. Gravity is the personal investment vehicle of Fran Scola. Mr. Scola is a partner at LFM Partners, a partnership with extensive investments in the natural resources sector.Upcoming Conference Call to Discuss Financing DetailsCentury will host a telephone conference call for investors and analysts on January 12th, 2010 at 10:30 AM, Pacific Time (1:30 PM, Eastern Time) to discuss the recently completed financing and its impact on the future of the Company. The Company will also discuss the pre-production development plan for the Lamaque Gold Mine and the corporate growth strategy for 2010.The conference call may be accessed by dialing toll-free 1-800-988-9507 in Canada and the United States, or 1-210-234-0085 from international locations (normal toll rates do apply) and state the verbal passcode "CenturyMining".
BLAINE, WASHINGTON--(Marketwire - Jan. 4, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to report that the previously announced debt and equity financings totaling CDN$60.75 million have all been completed. These funds will provide the necessary capital for the continued exploration, development and reopening of the Company's Lamaque project in Val d'Or, Quebec, enable repayment of the Company's previous debt, and provide the Company with substantial working capital. Included in the funding is a US$33 million prepaid gold forward facility with Deutsche Bank AG. Simultaneously, Century has completed a CDN$17 million private placement. Kirkland Intertrade Corp. ("Kirkland") subscribed for CDN$15.75 million of the private placement along with two other subscribers. The previously completed flow-through placements which have totaled CDN$9.1 million round out the Company's financing program. The initial ownership positions in the Company of Kirkland and its associate, Gravity Ltd., ("Gravity") came as a result of these earlier placements. All of the financings are summarized below.Margaret Kent, President & CEO, stated, "The closing and funding of these financings and the reopening of the Lamaque project mark a significant turning point for the Company. We will be bringing the Lamaque gold mine back into production, and we expect to be pouring gold this summer and achieve commercial production during the first quarter of 2011.Century expects that the reopening of the Lamaque mine complex will have a significant impact on the economy of Val d'Or, Quebec. Up to 250 employees will be employed at the mining operation at full capacity, bringing millions of dollars to the community, the region and the province of Quebec, and once again Century will pour gold from Val d'Or. In addition, the Company has posted the full amount of the financial guarantee required by the Quebec Ministry of Natural Resources to provide for final site reclamation after completion of mining."Maxim Finskiy of Kirkland commented, "As a mining executive I am focused on the ability of a company's management to ramp up production while controlling costs. After our due diligence process we concluded that Century has the management skills to execute, and this is why we have made the investment in the company. Further, in our quest to build a new mid-tier gold company, we were looking for management that has the skills to significantly grow the company through acquisitions. It is our view that the Century management team has the requisite collective experience in acquiring, building and running major operations to facilitate achievement of this goal."Fran Scola of Gravity added, "Working closely with Peggy Kent and her team over the last six months we have become impressed with the energy, commitment and vision of management. These are qualities that translate into significant shareholder value."SUMMARY OF FINANCIAL TRANSACTIONSPrepaid Gold Forward FacilityDeutsche Bank has funded a US$33 million prepaid gold forward facility whereby Deutsche Bank has paid Century today US$33 million under certain restrictions on the availability of funds in exchange for Century delivering 61,183 ounces of gold over a five-year term. The debt facility has other price participation terms whereby the Company will receive an additional cash payment for gold pricing above US$900 per ounce, up to a maximum of US$988 per ounce. There were no up-front fees, nor is any future interest payable under this senior secured facility. The schedule of gold payments is as follows: year 1 - 5,669 ounces; year 2 - 8,004 ounces; year 3 - 13,310 ounces; year 4 - 17,100 ounces; and year 5 - 17,100 ounces. The 61,183 ounces of gold that have been committed under this facility represent less than 3% of the existing reserve and measured and indicated resource base at Lamaque. The Company has also been provided a margin-free gold trading line for up to 180,000 ounces of gold and a currency trading line. The Company has an obligation under certain circumstances to put in place price protection hedging to preserve cash flows if the gold price starts to decline. At closing, a performance reserve account has been set up whereby US$15 million of the facility was placed in this account and will be released to the Company upon certain hurdles and specified production levels being met. The projected hurdle achievement dates and related releases of funds are consistent with the Lamaque cash requirements for project development.Private Placement of New Equity and New InvestorsSimultaneously with the closing of the prepaid gold forward facility, Century has issued an aggregate of 85 million units at CDN.20 per unit for gross proceeds of CDN$17,000,000. Each unit consists of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of CDN.30 for a period of 18 months. If, however, the volume weighted average closing price of the Company's common shares on the TSX Venture Exchange is equal to or greater than CDN.60 for a period of 30 consecutive trading days following the first anniversary of the closing of the private placement, Century will have the right, upon 60 days notice to the holders of the warrants, to accelerate their expiry date.An amount of CDN$15.75 million of the private placement was taken down by Kirkland with the balance taken down by two other subscribers. As a result of the closing of the Private Placement, Kirkland and its associates and affiliates, together with Gravity Ltd., a company controlled by Fran Scola ("Gravity"), hold 121,122,759 Common Shares (170,497,759 Common Shares assuming exercise of its warrants) representing approximately 35.9% of the issued and outstanding Common Shares (44.1% assuming exercise of its warrants). All of the securities issued in connection with the private placement are subject to a four month hold period.A shareholders agreement has been entered into with Kirkland and Gravity covering board representation, operating committee representation, first rights of refusal on future equity issuances and other associated matters. Under the agreement Kirkland and Gravity have the right to nominate two of the five directors of the Company and as soon as possible the Company's Board will endeavor to retain an independent chairman.TOTAL PROCEEDS AND USE OF PROCEEDSOver the last 120 days Century has raised CDN$60.75 million including the US$33 million Deutsche Bank facility and the five equity placements totaling CDN$26.1 million. The proceeds from the combined financings will be used to provide the funding required to start up the Company's Lamaque project and complete the necessary underground development to bring the mine into full production, pay outstanding obligations and for general working capital purposes. Proceeds will also be used for exploration and further resource delineation, as it is expected that the Lamaque deposit and the Company's surrounding property may host significant additional resources.OTHER ASSOCIATED TRANSACTIONSInvestissement Quebec Note PayoutA portion of the proceeds of the Deutsche Bank facility has been used by the Company to pay out its existing senior secured facility with Investissement Quebec. The Company has paid CDN$8,750,000 and has issued 5 million common shares to Investissement Quebec. These transfers were in complete satisfaction of all obligations the Company had under this facility, which had been recorded at CDN$16.4 million on the Company's balance sheet at September 30, 2009.Royalty BuyoutAn existing royalty over a portion of the Lamaque underground reserves was bought out as part of the transactions announced today. The Company paid CDN$750,000 and issued 1.5 million common shares. As a result of this transaction there are no further royalties covering any part of the Company's properties in Quebec.Various Creditor SettlementsAs a result of the financings a number of creditor settlements with respect to existing obligations were made, including some which spread the payments to certain creditors over the next two years. These deferred payments will allow the Company to preserve cash for the reopening of the Lamaque project. The existing working capital gold facility and gold contract debt owed to Gerald Metals have also been paid in full. All liens other than those associated with the new Deutsche Bank facility have been removed from the Sigma-Lamaque property.TIMING AND PRODUCTIONThe Company plans to reopen the Lamaque site in January. Power will be restored to the facility as soon as possible, and the underground workings will be immediately reopened. The Company expects to rehire 40 employees by the end of January, and to commence underground development in February. An upgrade of the crushing facilities will commence immediately, and the new crushing circuit is to be operational by the end of April. It is expected that gold production will commence shortly thereafter. The Company is expected to produce 45,000 ounces from Lamaque in 2010 and 20,000 ounces from the Peru operation in 2010 for a combined production of 65,000 ounces. Until the Lamaque operation reaches commercial production, which is expected to occur in 2011, all costs associated with the development and operation will be capitalized after crediting the value of the gold production. Cash costs in Peru are expected to be US$550 for 2010.ABOUT KIRKLAND AND GRAVITYKirkland is beneficially owned by Maxim Finskiy. Mr. Finskiy is Chief Executive Officer of MMC Intergeo Managing Company, the mining and exploration arm of the private Russian conglomerate Onexim Group, which is Russia's largest investment fund with US$25 billion in assets. Gravity is the personal investment vehicle of Fran Scola. Mr. Scola is a partner at LFM Partners, a partnership with extensive investments in the natural resources sector.Upcoming Conference Call to Discuss Financing DetailsCentury will host a telephone conference call for investors and analysts on January 12th, 2010 at 10:30 AM, Pacific Time (1:30 PM, Eastern Time) to discuss the recently completed financing and its impact on the future of the Company. The Company will also discuss the pre-production development plan for the Lamaque Gold Mine and the corporate growth strategy for 2010.The conference call may be accessed by dialing toll-free 1-800-988-9507 in Canada and the United States, or 1-210-234-0085 from international locations (normal toll rates do apply) and state the verbal passcode "CenturyMining".
Subscribe to:
Posts (Atom)