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.”
2 comments:
Furthermore, the independent DD experts that performed the Jan'09 bankable DD study on Lamaque also incorporated a detailed analysis of the P&P Reserves. They came up with Lamaque #2 having 78,049 P&P ounces (@ 5.72 g/t) that are ready to be mined. They also show 100,000 P&P for the Lamaque Main Plug. I don't think the mining focus is on the plug right now though, and I don't think there is a urgent need to either (given the other or sources).
In addition, the Lamaque 2 decline also gives access to the 1.7M Cross-Over Zone ounces once they get moved to P&P (and are ready to be mined).
I think the combination of accessing the 78,049 ounces from Lamaque 2, coupled with the near pit ounces from the Bedard Dyke, puts us in a very strong position to be successful with our production ramp up program this year (assuming execution goes well).
It's looking like a very reasonable plan and getting better all the time due to ongoing success of Bedard Dyke drilling. I just wish that Century (especially Peggy and the IR guy - the public point people for the company) would do a much better job of packaging all of this and selling it to the market (or even just educating the market).
The company has something really good developing here, but (IMO) they have done an absolutely terrible job presenting this information to the market, hence the $.29 share price (when comparable companies, with far less to offer and similar start up production dates in the future, are trading for $.79).
Basic communication issues like this resulted in major problems for shareholders and the market in the past. IMO, shareholders felt majorly blindsided many times in the past. Given the track record, investors/"the market" seem to be even more skittish now. This is why key details of the mining plan needs to be presented to the market. People need to see the details to assess whether the plans are achievable. Giving just high level targets work for many other companies. With a $.29 share price, the market is loudly and bluntly stating that this approach doesn't work for Century Mining.
i call at the office in valdor last day and the electricity still not there and and all pipes are freeze down there maybe we can wait at the end of febuary before they start whit the first gang
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