Module is in the process of performing a number of tests to determine if the historical tailings can provide a bit of near-term cash flow, to provide some financial support with exploration and development at Carolin. The assay tailings testing/drilling was the first step. The tailings look rich, with an average of 1.68 g/t.
Next steps:
``If metallurgical test work is successful, a study will be initiated to determine the economics of recovering gold from the tailings. Depending upon a positive study, Module could realize some potential early cash flow from recovering contained gold by treatment of the tailings.``
You can reference my previous posts on this subject matter if one if looking for more clarity on Century`s role/ownership with respect to this project (as well as analysis and commentary on previous Carolin u/g and o/p drill results).
Here is Module`s NR with regards to the the assay (tailings) results:
http://www.moduleresources.com/index.php?option=com_content&task=view&id=160&Itemid=54
Thursday, February 11, 2010
Tuesday, February 9, 2010
Today's Trade Summary
No follow-up buying from yesterday's "Anonymous" buyer. Instead today was a more normal day with Cannaccord and Anonymous the biggest net sellers although neither were big sellers. It's still pretty sad to be trading at 32 cents when only about a year away from producing at a rate of 100,000 oz/yr. If the company can walk the talk, we should be multiples of the current share price a year from now.
Achieving commercial production vs Achieving cash flow positive status
From the Jan 11th Canadian Mining Journal article:
``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.
Feb. Corp Presentation:
``....Lamaque...ramping up to full production of 100,000 to 110,000 ounces...(LOM average cash cost $450 - $500/oz)``
``Lamaque 2011 production - 85,000
``Lamaque 2013 production - 104,000``
``....Lamaque....»May 2010 - TPD: 500 - 800``
Jan. 4th NR:
``Until the Lamaque operation reaches commercial production, which is expected to occur in 2011``
Grades in near-term mining areas:
1) Lamaque number 2 area = 5.72 g/t avg grade in the narrow flats (from Jan`09 independent DD rpt), some bonus low grade ore could be also mined along the way, which will could increase tonnage but decrease avg grade
2) Bedard Dyke grade looks to be over 5.0 g/t (perhaps well over)
3) North Wall reserves avg 4.99 g/t (per the Jan`09 independent report)
The near-term ramp up looks to be as follows:
1) Lamaque number 2 area - mining starts at end of February`10/beginning of March`10
2) Bedard Dyke - mining perhaps starting in the May to July timeframe
3) North Wall - development occuring in Q4`10 and mining to start beginning of 2011
If all goes well, the numbers seem to suggest that cash cost per oz will likely be alright at 600 t/d, decent at 700 t/d, good at 800 t/d, very good at 1000 t/d and excellent at 1200 t/d. If all goes well, at current levels of gold price, the numbers are suggesting that cash cost per oz will be well below the gold price at all of these ramp up levels.
Here is a link to my post from a couple of weeks ago (DD details and calcuations with regards to t/d and cash cost per oz - highly recommended (if haven`t viewed as yet) in understanding the base premise):
http://www.stockigloo.com/2010/02/dd-data-on-operating-costs.html
Commercial production:
As mentioned before, I view achieving commercial production and reaching cash flow positive status as 2 separate events (even though Lamaque financials will be capitalized until GAAP commercial production standards are achieved).
For mining companies, achieving GAAP commercial production typically means achieving 60% (or greater) of designed capacity or planned steady state production, for 30 or 60 or 90 consecutive days, depending on the mine I suppose. My guess is they are treating Lamaque as 90 consecutive days, given the 2011 timeframe.
It is seeming to me that they are using 104,000 ounces of production as 100% production. We know that 104,000 ounces is the max for the current plan. The next plan will likely be built with a max of 150,000 ounces (once Sigma shaft 2 is refurbished in 3 or 4 years time - of note on Sigma 3 shaft, the 3000 - 6000 ft shaft, should not require a lot of work as it is in good shape). None of the shafts are required to ramp up to 104,000 ounces. The ore feeds will flow through the 3 declines (Lamaque number 2, Bedard Dyke and North Wall).
A tonne per day of 2000 and a year 2013 avg grade of 4.7 g/t = 104,000 ounces (which is the planned production for 2013)
2000 t/d * 60% = 1200 t/d
It`s impossible to know 100%, obviously, but everything is suggesting that hitting 1200 t/d on consecutive days for 1 to 3 months will get Lamaque to commercial production status. Also, as noted above, if all goes well, the cash cost per oz should be excellent at 1200 t/d, and if the gold price holds up, Lamaque should be driving out signficant cash.
We should also note that the company is targeting 500 - 800 t/d in May - June timeframe. That will include stockpiled ore of course, but it should not be too much higher than a reasonable near-term go forward rate. I say this because they have 34 miners already and are adding 50 more miners in February. That`s a total of 84 miners planned for the end of February (before any attrition). The company has target 250 employees at Lamaque for the current plan. If we back out 40 non-miners then we are targeting 210 to get us to 104,000 ounces. Thus, having 84 miners of 210 miners in place by February would be a solid start. We should have a better idea once we find out how February`s recruiting is going.
``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.
Feb. Corp Presentation:
``....Lamaque...ramping up to full production of 100,000 to 110,000 ounces...(LOM average cash cost $450 - $500/oz)``
``Lamaque 2011 production - 85,000
``Lamaque 2013 production - 104,000``
``....Lamaque....»May 2010 - TPD: 500 - 800``
Jan. 4th NR:
``Until the Lamaque operation reaches commercial production, which is expected to occur in 2011``
Grades in near-term mining areas:
1) Lamaque number 2 area = 5.72 g/t avg grade in the narrow flats (from Jan`09 independent DD rpt), some bonus low grade ore could be also mined along the way, which will could increase tonnage but decrease avg grade
2) Bedard Dyke grade looks to be over 5.0 g/t (perhaps well over)
3) North Wall reserves avg 4.99 g/t (per the Jan`09 independent report)
The near-term ramp up looks to be as follows:
1) Lamaque number 2 area - mining starts at end of February`10/beginning of March`10
2) Bedard Dyke - mining perhaps starting in the May to July timeframe
3) North Wall - development occuring in Q4`10 and mining to start beginning of 2011
If all goes well, the numbers seem to suggest that cash cost per oz will likely be alright at 600 t/d, decent at 700 t/d, good at 800 t/d, very good at 1000 t/d and excellent at 1200 t/d. If all goes well, at current levels of gold price, the numbers are suggesting that cash cost per oz will be well below the gold price at all of these ramp up levels.
Here is a link to my post from a couple of weeks ago (DD details and calcuations with regards to t/d and cash cost per oz - highly recommended (if haven`t viewed as yet) in understanding the base premise):
http://www.stockigloo.com/2010/02/dd-data-on-operating-costs.html
Commercial production:
As mentioned before, I view achieving commercial production and reaching cash flow positive status as 2 separate events (even though Lamaque financials will be capitalized until GAAP commercial production standards are achieved).
For mining companies, achieving GAAP commercial production typically means achieving 60% (or greater) of designed capacity or planned steady state production, for 30 or 60 or 90 consecutive days, depending on the mine I suppose. My guess is they are treating Lamaque as 90 consecutive days, given the 2011 timeframe.
It is seeming to me that they are using 104,000 ounces of production as 100% production. We know that 104,000 ounces is the max for the current plan. The next plan will likely be built with a max of 150,000 ounces (once Sigma shaft 2 is refurbished in 3 or 4 years time - of note on Sigma 3 shaft, the 3000 - 6000 ft shaft, should not require a lot of work as it is in good shape). None of the shafts are required to ramp up to 104,000 ounces. The ore feeds will flow through the 3 declines (Lamaque number 2, Bedard Dyke and North Wall).
A tonne per day of 2000 and a year 2013 avg grade of 4.7 g/t = 104,000 ounces (which is the planned production for 2013)
2000 t/d * 60% = 1200 t/d
It`s impossible to know 100%, obviously, but everything is suggesting that hitting 1200 t/d on consecutive days for 1 to 3 months will get Lamaque to commercial production status. Also, as noted above, if all goes well, the cash cost per oz should be excellent at 1200 t/d, and if the gold price holds up, Lamaque should be driving out signficant cash.
We should also note that the company is targeting 500 - 800 t/d in May - June timeframe. That will include stockpiled ore of course, but it should not be too much higher than a reasonable near-term go forward rate. I say this because they have 34 miners already and are adding 50 more miners in February. That`s a total of 84 miners planned for the end of February (before any attrition). The company has target 250 employees at Lamaque for the current plan. If we back out 40 non-miners then we are targeting 210 to get us to 104,000 ounces. Thus, having 84 miners of 210 miners in place by February would be a solid start. We should have a better idea once we find out how February`s recruiting is going.
Monday, February 8, 2010
Today's Trade Summary
The buying today all came from Anonymous with sustained buying from the opening bell to the close. Of the 199 trades today, 145 were buys by Anonymous. It will be interesting to see if there is any followthrough in the next few days.
Analysis: (even without counting anything from Lamaque) San Juan, by itself, outshines all other small scale producing companies
It`s unfortunate that Century shareholders have yet to benefit (via share price) from San Juan`s solid operating performance.
The results below reflect Q3`09 results (or most recent published quarter).
San Juan Gold Mine (Century Mining):
*Operating country - Peru
*Operating earnings - $2,334,568
*Net income (Net loss), company overall - $2,689,470
*Gold production or sale (ounces) - 4,561
*Total cash cost per oz - US$486
1) Dynacor Gold Mines:
*Operating country - Peru
*Operating earnings (Loss) - $(329,215)
*Net income (Net loss), company overall - $(1,529,000)
*Gold production or sale (ounces) - 3,321
*Total cash cost per oz - US$877
2) Sierra Minerals:
*Operating country - Mexico
*Operating earnings - $806,445
*Net income (Net loss), company overall - $30,751
*Gold production or sale (ounces) - 5,162
*Total cash cost per oz - US$753
3) Olympus Pacific:
*Operating country - Vietnam
*Operating earnings (Loss) - $330,247
*Net income (Net loss), company overall - $(2,175,166)
*Gold production or sale (ounces) - 4,053
*Total cash cost per oz - n/a
4) Alexis Minerals:
*Operating country - Canada (Quebec)
*Operating earnings - $352,619
*Net income (Net loss), company overall - $(1,714,536)
*Gold production or sale (ounces) - 7,883
*Total cash cost per oz - US$888
5) Avnel Gold:
*Operating country - Mali
*Operating earnings - $415,000
*Net income (Net loss), company overall - $(1,420,000)
*Gold production or sale (ounces) - 4,314
*Total cash cost per oz - US$802
6) Caledonia Mining:
*Operating country - Zimbabwe
*Operating earnings - $1,802,000
*Net income (Net loss), company overall - $846,000
*Gold production or sale (ounces) - 4,117
*Total cash cost per oz - n/a
7) Starcore International:
*Operating country - Mexico
*Operating earnings - $1,687,000
*Net income (Net loss), company overall - $562,000
*Gold production or sale (ounces) - 5,400 (gold equivalent)
*Total cash cost per oz - US$449
The results below reflect Q3`09 results (or most recent published quarter).
San Juan Gold Mine (Century Mining):
*Operating country - Peru
*Operating earnings - $2,334,568
*Net income (Net loss), company overall - $2,689,470
*Gold production or sale (ounces) - 4,561
*Total cash cost per oz - US$486
1) Dynacor Gold Mines:
*Operating country - Peru
*Operating earnings (Loss) - $(329,215)
*Net income (Net loss), company overall - $(1,529,000)
*Gold production or sale (ounces) - 3,321
*Total cash cost per oz - US$877
2) Sierra Minerals:
*Operating country - Mexico
*Operating earnings - $806,445
*Net income (Net loss), company overall - $30,751
*Gold production or sale (ounces) - 5,162
*Total cash cost per oz - US$753
3) Olympus Pacific:
*Operating country - Vietnam
*Operating earnings (Loss) - $330,247
*Net income (Net loss), company overall - $(2,175,166)
*Gold production or sale (ounces) - 4,053
*Total cash cost per oz - n/a
4) Alexis Minerals:
*Operating country - Canada (Quebec)
*Operating earnings - $352,619
*Net income (Net loss), company overall - $(1,714,536)
*Gold production or sale (ounces) - 7,883
*Total cash cost per oz - US$888
5) Avnel Gold:
*Operating country - Mali
*Operating earnings - $415,000
*Net income (Net loss), company overall - $(1,420,000)
*Gold production or sale (ounces) - 4,314
*Total cash cost per oz - US$802
6) Caledonia Mining:
*Operating country - Zimbabwe
*Operating earnings - $1,802,000
*Net income (Net loss), company overall - $846,000
*Gold production or sale (ounces) - 4,117
*Total cash cost per oz - n/a
7) Starcore International:
*Operating country - Mexico
*Operating earnings - $1,687,000
*Net income (Net loss), company overall - $562,000
*Gold production or sale (ounces) - 5,400 (gold equivalent)
*Total cash cost per oz - US$449
Key low-profile equipment expected in April (should substantially advance mechanization of Lamaque)
From the Feb. 2nd update NR:
``Low-profile underground mechanized mine equipment has been ordered, with delivery expected in April of 2010.``
From the latest conference call:
*25% of our reserves and resources are sitting in flats
*historically, room and pillar mining was done on these flats at Lamaque, using jacklegs, slushers, etc.
*a couple of the mining equipment companies have built this new low-profile new mining equipment
*with the advent of this new low-profile equipment, long tom drills and low-profile trucks (low-profile jumbos), we are going to convert completely to what Century calls mechanized mining
*as a result, Lamaque will have some of the latest technology in the industry – some of the equipment is actually coming up from South Africa, where they are currently using this low profile equipment
*all of our jacklegs are going to Peru, where we are still mining very narrow veins and fairly flat dipping areas (the jacklegs will represent an update at San Juan)
``Low-profile underground mechanized mine equipment has been ordered, with delivery expected in April of 2010.``
From the latest conference call:
*25% of our reserves and resources are sitting in flats
*historically, room and pillar mining was done on these flats at Lamaque, using jacklegs, slushers, etc.
*a couple of the mining equipment companies have built this new low-profile new mining equipment
*with the advent of this new low-profile equipment, long tom drills and low-profile trucks (low-profile jumbos), we are going to convert completely to what Century calls mechanized mining
*as a result, Lamaque will have some of the latest technology in the industry – some of the equipment is actually coming up from South Africa, where they are currently using this low profile equipment
*all of our jacklegs are going to Peru, where we are still mining very narrow veins and fairly flat dipping areas (the jacklegs will represent an update at San Juan)
Workforce at San Juan Gold Mine in Peru Returns to Work
BLAINE, WASHINGTON--(Marketwire - Feb. 8, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce that strike action taken by union workers on February 2, 2010, at the Company's San Juan Gold Mine in Peru, was ruled illegal by the Ministry of Work in Peru. The union workforce returned to work on February 7, 2010, and mining operations have resumed.
Sunday, February 7, 2010
The math is strongly suggesting that ore mining at Lamaque is on track to begin in 22 days (or shortly there after)
Century is currently working below the surface at Lamaque, and specifically, opening up the u/g workings (in preparation for mining). From the Feb. Corp. Presentation (pg 15):
``Gain access to underground; begin slashing ramp access and open up u/g workings - commenced and ongoing``
From the Underground Mine Superintendent posting (just posted on Friday):
``The Lamaque Mine, located in the heart of Val d`Or, has been reopened and underground production is ready to commence by the end of February.``
``Gain access to underground; begin slashing ramp access and open up u/g workings - commenced and ongoing``
From the Underground Mine Superintendent posting (just posted on Friday):
``The Lamaque Mine, located in the heart of Val d`Or, has been reopened and underground production is ready to commence by the end of February.``
Saturday, February 6, 2010
February`s Corporate Presentation
now posted on Century`s website. The plans are still intact. You might find page 15 to be very beneficial. It`s a check list of ``Lamaque Gold Mine Path to Production.`` If they can continue to add check marks to the items on the list over the next couple of months then we will be well on our way. Nonetheless, (although it`s still early) info provided on this presentation coupled with info from the NRs, in addition to info from other available souces, all suggests that we are moving well.
http://www.centurymining.com/investors/pdf/1002-century-mining-corporate-presentation.pdf
http://www.centurymining.com/investors/pdf/1002-century-mining-corporate-presentation.pdf
Friday, February 5, 2010
Brief history of San Juan acquisition
I posted some notes on the Stockhouse site, as part of comments to someone else`s post. I thought it might be beneficial to have the info available here also.
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=27902503&l=0&r=0&s=CMM&t=LIST
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=27902503&l=0&r=0&s=CMM&t=LIST
New posting - Underground Mine Superintendent
``The Lamaque Mine, located in the heart of Val d`Or, has been reopened and underground production is ready to commence by the end of February.``
``Reporting to the General Manager, the Underground Mine Superintendent will be responsible for the complete underground mining operation, which includes the extraction of ore from 3 different mining zones utilizing 3 different mining methods.``
``Reporting to the General Manager, the Underground Mine Superintendent will be responsible for the complete underground mining operation, which includes the extraction of ore from 3 different mining zones utilizing 3 different mining methods.``
Thursday, February 4, 2010
Wednesday, February 3, 2010
New job posting (23 positions)
The posting can be viewed to the right on this page.
It looks like a general posting (both English and French versions) which identifies 23 staff related job openings, as follows:
*Chief Metallurgist
*Technical Services Manager
*Mine Geologist
*Senior Project Engineer
*Planning Engineer, Long term
*Planning Engineer, Short term
*Drill/Blast Engineer
*Production Technician
*Geology Technician
*Surveyor
*General Foreman - Underground Mine
*Supervisor - Underground Mine
*Supervisor - Mobile Maintenance
*Supervisor - Mine Maintenance
*Assayer
*Supervisor - Mill Maintenance
*Supervisor - Surface
*Environmental Technician
*Paymaster
*Warehouse Clerk
*Trainer
*Coordinator - Health & Safety
*Coordinator - HR
Looks like a lot of good employment opportunities for people with the right skillsets.
It looks like a general posting (both English and French versions) which identifies 23 staff related job openings, as follows:
*Chief Metallurgist
*Technical Services Manager
*Mine Geologist
*Senior Project Engineer
*Planning Engineer, Long term
*Planning Engineer, Short term
*Drill/Blast Engineer
*Production Technician
*Geology Technician
*Surveyor
*General Foreman - Underground Mine
*Supervisor - Underground Mine
*Supervisor - Mobile Maintenance
*Supervisor - Mine Maintenance
*Assayer
*Supervisor - Mill Maintenance
*Supervisor - Surface
*Environmental Technician
*Paymaster
*Warehouse Clerk
*Trainer
*Coordinator - Health & Safety
*Coordinator - HR
Looks like a lot of good employment opportunities for people with the right skillsets.
Tuesday, February 2, 2010
San Juan Strike information
MINEROS DE SAN JUAN DE CHURUNGA INICIAN HUELGA INDEFINIDA MINING OF SAN JUAN DE CHURUNGA LAUNCH INDEFINITE STRIKE
Tired from the constant mockery of the Company CENTURY MINING PERU SAC, 600 workers in the Mining Center of San Juan Chorunga, who runs the aforementioned company, launched an indefinite strike at 00 am on Tuesday 02 February, demanding payment of wages and outstanding employee benefits.
The leaders of the entities belonging workers: Nemesio Mamani Lauri, Secretary General of the Mineworkers' Union of St. John Chorunga, Maurilio Chacondori Chavez, President of the Association of Defense Front of Workers of the LAUMAS - Minas Ocoña and He knew Saturnino, President of the Association of Minority Shareholders of San Juan GOLD MINES SAA, said that labor relations with the employer have been intolerable because of failure to comply with the deadlines for the payment of wages and employment benefits that CENTURY MINING SAC, undertook to solve, then take ownership of business, which was initially run by GOLDEN MINING PERU SAA.
Workers with family members who come from different parts of the country, decided to block their activities and an indefinite strike, while not formalizing the agreements signed by SAA Century Mining Company and the Union of Workers; minutes which were signed in the presence by Dr. Manuela Garcia Cochagne, the current Minister of Labor and Employment when he served as National Director of Labor Relations.
The totalized labor debt of Century Mining Peru SAC to their workers amounts to 9'061, 613.45 U.S. dollars, which is split into debt for pay 5'615, 429.72 dollars and debt for Compensation for Services - CTS 3'446, 183.73 dollars.
Mining Mine Workers of Peru SAC, to demand payment of their labor rights are distributed in the following subsections of the Employer: Minas Ocoña SAA, SAC Minas Cuno Cuno, Johannes Gold Mining SAC, Compania Minera SAC Erika, Small Business and San Juan Operations SAC.
The Secretary General of the San Juan Mine Workers of Chorunga also reported that lack the appropriate safety equipment to perform its work and existing security appliances and machinery, lack of maintenance, which puts at risk the lives of workers .
Tired from the constant mockery of the Company CENTURY MINING PERU SAC, 600 workers in the Mining Center of San Juan Chorunga, who runs the aforementioned company, launched an indefinite strike at 00 am on Tuesday 02 February, demanding payment of wages and outstanding employee benefits.
The leaders of the entities belonging workers: Nemesio Mamani Lauri, Secretary General of the Mineworkers' Union of St. John Chorunga, Maurilio Chacondori Chavez, President of the Association of Defense Front of Workers of the LAUMAS - Minas Ocoña and He knew Saturnino, President of the Association of Minority Shareholders of San Juan GOLD MINES SAA, said that labor relations with the employer have been intolerable because of failure to comply with the deadlines for the payment of wages and employment benefits that CENTURY MINING SAC, undertook to solve, then take ownership of business, which was initially run by GOLDEN MINING PERU SAA.
Workers with family members who come from different parts of the country, decided to block their activities and an indefinite strike, while not formalizing the agreements signed by SAA Century Mining Company and the Union of Workers; minutes which were signed in the presence by Dr. Manuela Garcia Cochagne, the current Minister of Labor and Employment when he served as National Director of Labor Relations.
The totalized labor debt of Century Mining Peru SAC to their workers amounts to 9'061, 613.45 U.S. dollars, which is split into debt for pay 5'615, 429.72 dollars and debt for Compensation for Services - CTS 3'446, 183.73 dollars.
Mining Mine Workers of Peru SAC, to demand payment of their labor rights are distributed in the following subsections of the Employer: Minas Ocoña SAA, SAC Minas Cuno Cuno, Johannes Gold Mining SAC, Compania Minera SAC Erika, Small Business and San Juan Operations SAC.
The Secretary General of the San Juan Mine Workers of Chorunga also reported that lack the appropriate safety equipment to perform its work and existing security appliances and machinery, lack of maintenance, which puts at risk the lives of workers .
Today's Trade Summary
Huge dumping by TD on the Peru strike news - over 350k at market and they continued until market close.
Comments on today`s Lamaque update info
1) Good to see they will be providing a monthly Lamaque update.
2) Initiated drilling on the remaining 8 holes at the Bedard Dyke. It`s good to see they were able to finalize the new contract and have the new contractor on site drilling so quickly, with one hole already completed. Fyi, there appears to be a lot of drills turning right now in the Val d`Or area - seems to be a high profile place to be drilling right now.
3) ``....Bedard Dyke...., with the first hole completed and visible gold identified in the drill core.`` It`s definitely a good thing when one starts identifying visible gold in the drill cores.
4) ``The drill program is designed to provide block model information for the dyke, which will allow mine planning to be completed on the area in the next four weeks.`` I think this has the potential of being very positive. They are saying that they expect to complete the mine plan on this area of the Bedard Dyke within the next 4 weeks. It likely suggests that they already have some very detailed info on this Bedard Dyke area (and may have more in time, from the holes being drilled now). Typically, firm mining plans are generated mainly for P&P reserve ounces. If they don`t have enough info to call these particular Bedard Dyke ounces ``P&P reserve`` as yet then they at least have solid info (they wouldn`t have been able to complete a mining plan otherwise). This is extremely encouraging.
5) Having the Bedard Dyke mining plan completed by the end of February will allow for good timing with regards to development work. We know the Bedard Dyke portal is in place, however the decline and mining areas will need to be developed. Some areas may not need as much development, especially the areas easily accessible in the pit wall.
6) Century appears to ramping up well at Lamaque. I believe they are eventually targeting 250 people once they get to full production. They now have 16 staff and 34 hourly employees. That`s 50 people (miners, management, supervisors, mill operators, etc.) already at Lamaque. It represents 20% of full production level. They plan to hire 50 more in February (excluding new staff hires in February). That would bring the total to at least 100, thus increasing the (end of February) people count to 40% of full production level.
7) This is a positive development: ``Additionally, the Company has started the upgrade work on the crushing circuit in the mill facility to adjust the capacity to approximately 3,000 tpd, and expects to complete this project in the next 8-10 weeks.`` They are now thinking that the crushing might be in place at some point between early April and mid April. This has been moved up from late April.
8) Mining from Lamaque 2 area is looking to be getting very close (it`s our most advance mining area to begin with): ``Power has been restored to the mine offices, shops and mill facility, and the main haulage way (Lamaque #2 Portal) into the mine has been re-opened.``
9) If stockpiling of ore from the Lamaque 2 access area goes well in March and first half of April and the new crushing circuit goes smoothly into place by mid April, we could realistically be pouring gold at some point in the second half of April (a bit more than 2.5 months from today).
2) Initiated drilling on the remaining 8 holes at the Bedard Dyke. It`s good to see they were able to finalize the new contract and have the new contractor on site drilling so quickly, with one hole already completed. Fyi, there appears to be a lot of drills turning right now in the Val d`Or area - seems to be a high profile place to be drilling right now.
3) ``....Bedard Dyke...., with the first hole completed and visible gold identified in the drill core.`` It`s definitely a good thing when one starts identifying visible gold in the drill cores.
4) ``The drill program is designed to provide block model information for the dyke, which will allow mine planning to be completed on the area in the next four weeks.`` I think this has the potential of being very positive. They are saying that they expect to complete the mine plan on this area of the Bedard Dyke within the next 4 weeks. It likely suggests that they already have some very detailed info on this Bedard Dyke area (and may have more in time, from the holes being drilled now). Typically, firm mining plans are generated mainly for P&P reserve ounces. If they don`t have enough info to call these particular Bedard Dyke ounces ``P&P reserve`` as yet then they at least have solid info (they wouldn`t have been able to complete a mining plan otherwise). This is extremely encouraging.
5) Having the Bedard Dyke mining plan completed by the end of February will allow for good timing with regards to development work. We know the Bedard Dyke portal is in place, however the decline and mining areas will need to be developed. Some areas may not need as much development, especially the areas easily accessible in the pit wall.
6) Century appears to ramping up well at Lamaque. I believe they are eventually targeting 250 people once they get to full production. They now have 16 staff and 34 hourly employees. That`s 50 people (miners, management, supervisors, mill operators, etc.) already at Lamaque. It represents 20% of full production level. They plan to hire 50 more in February (excluding new staff hires in February). That would bring the total to at least 100, thus increasing the (end of February) people count to 40% of full production level.
7) This is a positive development: ``Additionally, the Company has started the upgrade work on the crushing circuit in the mill facility to adjust the capacity to approximately 3,000 tpd, and expects to complete this project in the next 8-10 weeks.`` They are now thinking that the crushing might be in place at some point between early April and mid April. This has been moved up from late April.
8) Mining from Lamaque 2 area is looking to be getting very close (it`s our most advance mining area to begin with): ``Power has been restored to the mine offices, shops and mill facility, and the main haulage way (Lamaque #2 Portal) into the mine has been re-opened.``
9) If stockpiling of ore from the Lamaque 2 access area goes well in March and first half of April and the new crushing circuit goes smoothly into place by mid April, we could realistically be pouring gold at some point in the second half of April (a bit more than 2.5 months from today).
Lamaque Update
Century Provides Lamaque Gold Project Monthly Progress Update
BLAINE, WASHINGTON, Feb 2, 2010 (Marketwire via COMTEX News Network) --
BLAINE, WASHINGTON, Feb 2, 2010 (Marketwire via COMTEX News Network) --
Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to provide a progress update at its 100% owned Lamaque gold project located in Val-d'Or, Quebec, Canada. On January 4th, 2010, the Company announced the closing of the financing to provide the necessary capital for the continued exploration, development and reopening of the Company's Lamaque gold project, which is expected to be pouring gold in the second quarter of 2010.
Power has been restored to the mine offices, shops and mill facility, and the main haulage way (Lamaque #2 Portal) into the mine has been re-opened. To date, the Company has rehired 16 staff and 34 hourly employees. The Company anticipates rehiring an additional 50 hourly employees by the end of February 2010, as crews start to mobilize equipment underground and make preparations for underground development. Low-profile underground mechanized mine equipment has been ordered, with delivery expected in April of 2010. Additionally, the Company has started the upgrade work on the crushing circuit in the mill facility to adjust the capacity to approximately 3,000 tpd, and expects to complete this project in the next 8-10 weeks.
Exploration and definition drilling recommenced on the Bedard Dyke during the week of January 25th, 2010, with the first hole completed and visible gold identified in the drill core. The drill program is designed to provide block model information for the dyke, which will allow mine planning to be completed on the area in the next four weeks.
The Company continues to recruit employees to build the team that will bring the Lamaque mine back to full production, and Century currently has ten dedicated technical staff located in the corporate office working on additional reserve and resource delineation and project engineering.
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.
SOURCE: Century Mining Corporation
Century Mining Corporation Peter A. Ball Director of Investor Relations (360) 332-4653 or Toll Free: (877) 284-6535 pball@centurymining.com www.centurymining.com
Copyright (C) 2010 Marketwire. All rights reserved.Workforce at San Juan Gold Mine in Peru Takes Illegal Strike Action
1:43 PM ET, February 2, 2010
BLAINE, WASHINGTON, Feb 02, 2010 (MARKETWIRE via COMTEX) -- Century Mining Corporation ("Century" or the "Company") (TSX VENTURE: CMM) advises that the union representing the mine workers, excluding management, at the Company's San Juan Gold Mine in Peru have taken illegal strike action as of 5:00am eastern standard time on February 2nd, 2010.
The Ministry of Work in Peru has deemed the strike by the union members at the San Juan Gold Mine to be illegal. The Ministry of Work will be working closely with the union and the Company to resolve the work stoppage as quickly as possible, and meetings are scheduled for today. As the strike has been deemed illegal by the Ministry of Work, the mine workers will not be paid for their time not on the job.
The Company will provide additional updates after meetings have been held.
BLAINE, WASHINGTON, Feb 02, 2010 (MARKETWIRE via COMTEX) -- Century Mining Corporation ("Century" or the "Company") (TSX VENTURE: CMM) advises that the union representing the mine workers, excluding management, at the Company's San Juan Gold Mine in Peru have taken illegal strike action as of 5:00am eastern standard time on February 2nd, 2010.
The Ministry of Work in Peru has deemed the strike by the union members at the San Juan Gold Mine to be illegal. The Ministry of Work will be working closely with the union and the Company to resolve the work stoppage as quickly as possible, and meetings are scheduled for today. As the strike has been deemed illegal by the Ministry of Work, the mine workers will not be paid for their time not on the job.
The Company will provide additional updates after meetings have been held.
DD data on operating costs
From the Jan`09 independent DD report:
``Operating costs have been estimated using a combination of recent actual costs for mining and processing and G&A and current quotes for key supplies and consumables and estimates of labour wages. Mining costs were prepared for each of the mining methods and at varies production rates. Period costs were based on multiplying the detailed production schedule generated by Century for 3 years and the life of mine by the variable costs attributed to each mining method (e.g. conventional and mechanised flat mining, LHOS and ore development). Labour costs were scheduled separately by year as a fixed cost.``
``The operating cost in year 1 (2009) is US$ 101.3/t milled for a milling rate of 700 tpd and reduces to US$ 91.99/t milled in year 2 (2010) when mill production averages 950 tpd. From 2012 when steady state production rates of approximately 2,000 tpd are forecast, costs are typically estimated to range between US$ 54 to 58/t milled. Overall average cash cost are estimated to be US$ 60/t milled or US$ 421 per ounce. Based on a review of detailed costs and benchmarking data PRL considers that overall costs are acceptable and are expected to be achieved during steady state operations. The overall costs have an accuracy of +/- 15%.``
The company hasn`t issued any recent documents with details of its 2010 mining plan. As such, it`s not possible for us to be 100% clear on the near-term sources of ore feed or the timing of inclusion into the production process. However, based primarily on the Jan`09 DD report (assuming it`s still similar to today`s mine plan assumptions) the ore sources and ore feed timings appear to be as follows:
1)Lamaque 2 - starting month 1 of production – although narrow thickness in the flats, P&P grade appears to be 5.72 g/t (there will also likely be some bonus lower grade ore mined along the way)
2)Bedard Dyke/Sigma West – 15,000 tonne bulk mining beginning at (or shortly after) production start up period, then ramping up to higher levels (likely depending on pace of development) – based on drill results so far, grades appear to be greater than 5.0 g/t
3) North Wall – will likely be developed in Q4`10 and mined into production near the beginning of 2011 – the Jan`09 DD report has the North Wall P&P reserve grade at 4.99 g/t (253,000 ounces)
As a result, there appears to be a decent chance of the 2010 Lamaque grade being strong, perhaps even 5.0 g/t or above. It may partly depend on how much bonus lower grade ore they pick up along the way. It sounds like there may be some extra lower grade/bonus ore (not counted in reserves) that can be economically mined (along the way) via the Lamaque 2 decline. This extra ore could help us to ramp up quicker, but may reduce the overall average grade.
At a high level, the company is targeting to reach a run rate of 500 - 800 t/d in May or June of this year (per the current Corporate Presentation) if start up progresses well.
In addition to not knowing 100% what the current (detailed) mining plan looks like, it`s impossible to know what the current cost profiles look like. However, here are the calculations for various early ramped up scenarios based on the data posted above (for scenarios 2a to 2d, I rounded the t/d up to 1,000 instead of using 950, thus I lowered the $92 t/d cost to $90 in order to partly reflect the higher feed rate):
1a)At the 700 t/d milled level, assuming 4.75 g/t grade:
Production ounces in 1 month = 3,079
Annualized run rate production ounces under these assumptions = 36,948
Recovery rate = 96%
Cost per tonne = US $102
31.1 grams per ounce / 4.75 grams per tonne = 6.55 ore tonnes required to produce each ounce
(6.55 * 3,079 ounces produced) / .96 recovery = 20,999 ore tonnes milled
20,999 * $102 = $2,141,931
$2,141,931 / 3,079 ounces = US $696 cash cost per oz
1b)At the 700 t/d milled level, assuming 5.00 g/t grade:
Production ounces in 1 month = 3,241
Annualized run rate production ounces under these assumptions = 38,892
Recovery rate = 96%
Cost per tonne = US $102
Cash cost per oz = US $661
1c)At the 700 t/d milled level, assuming 5.25 g/t grade:
Production ounces in 1 month = 3,403
Annualized run rate production ounces under these assumptions = 40,836
Recovery rate = 96%
Cost per tonne = US $102
Cash cost per oz = US $629
1d)At the 700 t/d milled level, assuming 5.50 g/t grade:
Production ounces in 1 month = 3,565
Annualized run rate production ounces under these assumptions = 42,780
Recovery rate = 96%
Cost per tonne = US $102
Cash cost per oz = US $601
2a)At the 1,000 t/d milled level, assuming 4.75 g/t grade:
Production ounces in 1 month = 4,398
Annualized run rate production ounces under these assumptions =52,776
Recovery rate = 96%
Cost per tonne = US $90
Cash cost per oz = US $614
2b)At the 1,000 t/d milled level, assuming 5.00 g/t grade:
Production ounces in 1 month = 4,630
Annualized run rate production ounces under these assumptions =55,560
Recovery rate = 96%
Cost per tonne = US $90
Cash cost per oz = US $583
2c)At the 1,000 t/d milled level, assuming 5.25 g/t grade:
Production ounces in 1 month = 4,861
Annualized run rate production ounces under these assumptions =58,332
Recovery rate = 96%
Cost per tonne = US $90
Cash cost per oz = US $555
2d)At the 1,000 t/d milled level, assuming 5.50 g/t grade:
Production ounces in 1 month = 5,093
Annualized run rate production ounces under these assumptions =61,116
Recovery rate = 96%
Cost per tonne = US $90
Cash cost per oz = US $530
``Operating costs have been estimated using a combination of recent actual costs for mining and processing and G&A and current quotes for key supplies and consumables and estimates of labour wages. Mining costs were prepared for each of the mining methods and at varies production rates. Period costs were based on multiplying the detailed production schedule generated by Century for 3 years and the life of mine by the variable costs attributed to each mining method (e.g. conventional and mechanised flat mining, LHOS and ore development). Labour costs were scheduled separately by year as a fixed cost.``
``The operating cost in year 1 (2009) is US$ 101.3/t milled for a milling rate of 700 tpd and reduces to US$ 91.99/t milled in year 2 (2010) when mill production averages 950 tpd. From 2012 when steady state production rates of approximately 2,000 tpd are forecast, costs are typically estimated to range between US$ 54 to 58/t milled. Overall average cash cost are estimated to be US$ 60/t milled or US$ 421 per ounce. Based on a review of detailed costs and benchmarking data PRL considers that overall costs are acceptable and are expected to be achieved during steady state operations. The overall costs have an accuracy of +/- 15%.``
The company hasn`t issued any recent documents with details of its 2010 mining plan. As such, it`s not possible for us to be 100% clear on the near-term sources of ore feed or the timing of inclusion into the production process. However, based primarily on the Jan`09 DD report (assuming it`s still similar to today`s mine plan assumptions) the ore sources and ore feed timings appear to be as follows:
1)Lamaque 2 - starting month 1 of production – although narrow thickness in the flats, P&P grade appears to be 5.72 g/t (there will also likely be some bonus lower grade ore mined along the way)
2)Bedard Dyke/Sigma West – 15,000 tonne bulk mining beginning at (or shortly after) production start up period, then ramping up to higher levels (likely depending on pace of development) – based on drill results so far, grades appear to be greater than 5.0 g/t
3) North Wall – will likely be developed in Q4`10 and mined into production near the beginning of 2011 – the Jan`09 DD report has the North Wall P&P reserve grade at 4.99 g/t (253,000 ounces)
As a result, there appears to be a decent chance of the 2010 Lamaque grade being strong, perhaps even 5.0 g/t or above. It may partly depend on how much bonus lower grade ore they pick up along the way. It sounds like there may be some extra lower grade/bonus ore (not counted in reserves) that can be economically mined (along the way) via the Lamaque 2 decline. This extra ore could help us to ramp up quicker, but may reduce the overall average grade.
At a high level, the company is targeting to reach a run rate of 500 - 800 t/d in May or June of this year (per the current Corporate Presentation) if start up progresses well.
In addition to not knowing 100% what the current (detailed) mining plan looks like, it`s impossible to know what the current cost profiles look like. However, here are the calculations for various early ramped up scenarios based on the data posted above (for scenarios 2a to 2d, I rounded the t/d up to 1,000 instead of using 950, thus I lowered the $92 t/d cost to $90 in order to partly reflect the higher feed rate):
1a)At the 700 t/d milled level, assuming 4.75 g/t grade:
Production ounces in 1 month = 3,079
Annualized run rate production ounces under these assumptions = 36,948
Recovery rate = 96%
Cost per tonne = US $102
31.1 grams per ounce / 4.75 grams per tonne = 6.55 ore tonnes required to produce each ounce
(6.55 * 3,079 ounces produced) / .96 recovery = 20,999 ore tonnes milled
20,999 * $102 = $2,141,931
$2,141,931 / 3,079 ounces = US $696 cash cost per oz
1b)At the 700 t/d milled level, assuming 5.00 g/t grade:
Production ounces in 1 month = 3,241
Annualized run rate production ounces under these assumptions = 38,892
Recovery rate = 96%
Cost per tonne = US $102
Cash cost per oz = US $661
1c)At the 700 t/d milled level, assuming 5.25 g/t grade:
Production ounces in 1 month = 3,403
Annualized run rate production ounces under these assumptions = 40,836
Recovery rate = 96%
Cost per tonne = US $102
Cash cost per oz = US $629
1d)At the 700 t/d milled level, assuming 5.50 g/t grade:
Production ounces in 1 month = 3,565
Annualized run rate production ounces under these assumptions = 42,780
Recovery rate = 96%
Cost per tonne = US $102
Cash cost per oz = US $601
2a)At the 1,000 t/d milled level, assuming 4.75 g/t grade:
Production ounces in 1 month = 4,398
Annualized run rate production ounces under these assumptions =52,776
Recovery rate = 96%
Cost per tonne = US $90
Cash cost per oz = US $614
2b)At the 1,000 t/d milled level, assuming 5.00 g/t grade:
Production ounces in 1 month = 4,630
Annualized run rate production ounces under these assumptions =55,560
Recovery rate = 96%
Cost per tonne = US $90
Cash cost per oz = US $583
2c)At the 1,000 t/d milled level, assuming 5.25 g/t grade:
Production ounces in 1 month = 4,861
Annualized run rate production ounces under these assumptions =58,332
Recovery rate = 96%
Cost per tonne = US $90
Cash cost per oz = US $555
2d)At the 1,000 t/d milled level, assuming 5.50 g/t grade:
Production ounces in 1 month = 5,093
Annualized run rate production ounces under these assumptions =61,116
Recovery rate = 96%
Cost per tonne = US $90
Cash cost per oz = US $530
Monday, February 1, 2010
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