I didn`t include the Osisko mill and Agnico`s Goldex mill as they are both low grade huge tonnage type mills. Plus, Osisko`s mill will likely not be active for another couple of years.
1) Lamaque (Century) - 3,000 tpd, but (per the Jan`09 DD rpt) the option exists to ramp it back up to previous higher levels after additional modification (perhaps even back to the old 5,000 tpd level, but with efficient high grade crushing this time around).
2) Kiena (Wesdome) - 2,000 tpd
3) Aurbel (Alexis Minerals) - 1,400 tpd
4) Camflo (Richmont Mines) - 1,300 tpd
5) Beacon (Northern Star Mining) - 900 tpd
This 30 km radius area comes across as being one of the hottest and one of the most actively explored areas by gold juniors in the entire world. In my view, there will be huge demand, both near-term and many years into the future, for milling assistance by junior exploration companies. These juniors will not be able to build their own processing facilities - the going rate to build the smallest of milling operations is something like $35M.
Lamaque is the flagship (higher grade) u/g asset in this entire space. This should be an advantage to Century when consolidation begins (consolidation is badly needed and far overdue in this area). IMO, the whole area has gotten so fragmented because none of the management teams wanted to give up control and everyone overvalued their own situations. As a result, shareholders from most of these companies have suffered mightily. It would be wise for all the small struggling producers in this area (and slightly further above this area) to finally take advantage of their surroundings and finally participate in the gold bull market.
7 comments:
From the last NR:
``The onsite assay lab is now fully operational and will be essential to ensure that accurate and timely sampling from the mine stope development continues without delay, and will also play a key role in ensuring assays are received from the drill program.``
I remember reading in the Lamaque 43-101 tech rpt that our assay lab can handle 600 assay samples per day. I don`t know what a good size number would be. Nonetheless, I believe 600 sounds like a reasonable number.
I think the accomplishment highlighted on the NR is a very important step, on perhaps 3 different fronts (off the top of my head):
1) Having an in-house lab to provide quick results of assay samples while they are in the middle of developing the mining stopes is crucial. Developing the mining areas precisely, and gathering as much info for the mining crews, in advance of mining the newly developed areas is essential.
2) Using the in-house assay lab to get back quick assay results will be vital to our exploration programs. We can take the new (quickly returned) drilled data and quickly adjust the drill targets to reflect more accurate info. This could save costs and also lead to a more successful drill program.
3) Having an in-house assay lab will be one of many synergestic advantages that Century will be able to highlight during M&A discussions later in this year.
The installation of an onsite lab is really impressive. These guys really know what they're doing.
Also, from the last NR:
``The current design is being reviewed by Golder Associates for rock mechanics, and the Company is currently implementing the staffing plan and services engineering and design for the project. The development crews are currently preparing to secure the ground above the Bedard Dyke portal area, level the pad in front, and finalize the purchase of the required electrical equipment. The Bedard Dyke is the second zone in the mine plan to be developed through long-hole open-stoping, which will subsequently increase the daily tonnage. The Company is currently finalizing the mine plans for the third zone, named the North Wall, which will be mined with the same method and is expected to be developed in the latter part of 2010. All three areas, Lamaque #2, Bedard Dyke and North Wall, are all accessed via the historical Sigma pit.``
I wonder if the note ``the Company is currently implementing the staffing plan`` is the same thing as the Company is in the process of staffing up to mine the Bedard Dyke.
The Bedard Dyke mine plan has been completed already (per the last NR). With regards to the status of the Lamaque Exploration permit, authorizing the bulk sample mining of the Sigma West (Bedard Dyke) - 15,000 tonnes, the way the Bedard Dyke mining plans are coming together my guess is we either have it or we are close to getting it (only a guess though).
What is interesting to me is what happens after we finish mining the 15,000 tonne bulk sample (which will probably not take us too long). Our next permit will give us authorization to perform full scale long-hole stoping of the Sigma West region (Bedard Dyke) and
full scale mining of the North Wall region. However, the January 14th DB agreement document (on SEDAR) states this: ``Issuance of permit expected 150 days after issuance of Lamaque Exploration permit.`` Remember, the Lamaque Exploration permit is the Bedard Dyke bulk sample permit.
What is interesting is which permit will they use to mine the Bedard Dyke during the period after mining the 15,000 tonne bulk sample and while waiting for the long-hole stoping permit.
Now, we do have our primary mining permit which allows for the exploitation of the Lamaque Mine up to 1,200 tpd (which will obviously have to get upgraded to 2,000 tpd at some point, if it hasn`t already). My guess is that the Bedard Dyke will fall under the Lamaque mining permit (like Sigma does) once the bulk sample test period is over (but, again, only my guess). As such, the logical thinking is that the 1,200 tpd Lamaque permit will allow for Bedard Dyke mining until (and after) the long-hole stoping permit is ready. Century just wouldn`t be able to use the long-hole stoping mining method until later in the year. I`m sure the company has it all figured out, with Bedard Dyke playing a continuous/non-stop role (once we begin mining it) for all of the remaining months of 2010. The company has a 1,200-1,400 tpd ore processing target average for 2010. I`m sure they have a very defined and detailed plan in place.
Although, I do look forward for once we switch over to mining the Bedard Dyke and the North Wall via long-hole stoping. It`s a very efficient mining method for those 2 particular mineralized structures. Here is a comment from the World Gold Council website with regards to the long-hole stoping method (http://www.trustingold.com/production/mining-methods/):
``Where large blocks of ore can be identified and the surrounding rock is reasonably strong, then a long hole mining method is generally the lowest cost mining method.``
test
Not sure why the comment counter didn`t change. At least my long winded Bedard Dyke comment got through (and not a wasted effort, lol).
I took another look at the SEDAR document with regards to the 1,200 tpd Lamaque mining permit. I have one point to clarify from this comment:
``My guess is that the Bedard Dyke will fall under the Lamaque mining permit (like Sigma does) once the bulk sample test period is over (but, again, only my guess).``
With regards to my ``Sigma`` reference, the permit refers to the authorization to sink a 200 meter long ramp from the Sigma mine open pit. It does not specifically say that Sigma underground mining falls under the 1,200 tpd Lamaque Mine exploitation permit. It likely does, similar to the term ``Lamaque Exploration`` being used at the title for the Bedard Dyke bulk sample permit. However, there is insufficient info in the document for me to make that conclusion. We have no historical examples to refer to either. Century has never mined the Sigma underground side of the property since owning the property. The Bedard Dyke will be the first and the North Wall will be the second.
By the way, for the new people to Century, the 200 meter long ramp from the Sigma mine open pit is the same structure as the haulage drift that connects the Lamaque side of the complex to the open pit. It is already in place. It leads to the Lamaque no. 2 decline. It is currently used to transport underground mining ore.
One point everyone should be aware of when reading all Century documents, especially the permits, is the name change to the property that happened (late 2007 I think). Sigma and Lamaque use to be 2 separate mines. They were referred to by 2 separate names. However, with the closing of the Sigma open pit in late 2007, Century changed the name of the entire complex to simply Lamaque.
As such, we probably have to pay special attention on dates/timing of original launch date of documents to determine if pre name change or post name change (and ultimately the scope of the document). For example, the Bedard Dyke permit would have never been called ``Lamaque Exploration permit`` if it had been launched in early 2007 (prior to name change).
Comment to production5 onsite assay lab:
I looked at Century's San Juan Video it is good. Whoever put it together knew what they were doing. For a first attempt, I have to give it an A for content and an A+ for production quality. Having said that, here is what needs to be in the follow-up video to address problems and make improvements.
The gold pour into the mold looks small in comparison with the ozT expected out of San Juan. Suggestion: Delete
No modern gold mining operation uses fire assay as the principle assay method. What is used is Atomic Absorptive Spectral Photometry or simply AA. Here is why:
Fire Assay is good to .17 parts per million while AA comes in at .001 parts per million. Source is Tom Glover's Pocket Ref. The rough implication here being AA is x170 greater accuracy than fire assay.
Any operator experienced in both methods will confirm that the throughput after sample grinding prep gives AA a x10 to x100 advantage.
Additionally, why would we want to waste precious fuel doing fire assay when there is a better way. Energy consumption clearly favors AA.
AA's are not that expensive. Here is one going on EBay for $5k. Realize, I do not have a dog in the AA fight / decision but I am a serious investor. The last thing we, the investors, need is a 'mining consultant' viewing Century’s fine video and responding to institution investment firm, who hired them in the first place, with something like "These Century people down in Peru are living in the Stone Age". Do not for a minute think that these consultants won't do this. They are deal busters who are paid to find problems. Let’s not give them an ample supply of rocks to throw at us.
http://cgi.ebay.com/Perkin-Elmer-3030-Atomic-Absorption-Spectrometer-Zeeman_W0QQitemZ230385449538QQcmdZViewItemQQptZLH_DefaultDomain_0?hash=item35a40afa42
In the follow-up video consider showing the following:
Trucks pulling into San Juan with the shipment of equipment from Canada.
Underground drilling with 'new equipment'.
Show a new Assay Lab with fire assay equipment in the background while the old assayer is morfed into a contemporary lab technician in front of an AA machine.
Show a massive gold pour from much larger furnace set-up.
Music theme should be the theme song from 'Rocky'.
To really do it right have the miner emerge from the mine wearing miner's clothes but wearing boxing gloves shown subtly.
If you did this expect a 12% share holder price spike.
petercz
Post a Comment