1) 6 million ounces (or so) already identified (a lot of it being located only 1,000 ft/305 metres of the surface)
2) Century has reasons (including a limited few deep, strictly historical (non-43-101 compliant), drill holes in the database) to believe that the Lamaque Main Plug and the West Plug (both bulk mineable plugs) extends below the 3,500 ft/1,067 metre level on the Lamaque side (last depth mined). In the past, Teck was able to mine millions of ounces within (and around) the Lamaque Main Plug, down to 3,500 ft. Century geologists believe that the potential exist for these 2 plugs still host another 2 million ounces.
3) With Lamaque only being mined down to 3,500 ft/1,067 metres, (aside from bulk mineable plug potential) the logical thinking is that vein potential exist at Lamaque that could be similar to what has been realized next door on the Sigma side.
4) From today`s NR:
``Historically the Sigma mine was developed to the 6,100 foot level and the Lamaque mine to the 3,500 foot level. The Company believes that the gold mineralization continues to depth beneath both areas, and historically the grade has increased as the mine was developed deeper.``
The Sigma side has been mined down to 6,100 ft/1,860 metres. With expected higher grades at further depth (similar to many other u/g mines in the world) Century geologists are thinking there might be mineable mineralization below this level. This would have been a major challenge back when the gold price was US$250 - 300. However, a longer term gold price of anywhere between US$500 and US$1,100 makes for a good avenue to explore (especially if the grades at lower depth increases as is expected). One thing to remember is if the gold price happens to fall back then it means that operating costs (the inflated costs) will fall back also. For example, when the gold price was say US$350 to US$400 some of Barrick`s mines use to incur about US$150 to produce an ounce of gold. Now, I believe those same ounces (for those particular mines) are costing Barrick US$350 to US$500 to produce.
One should note that 1,860 metres convert to 1.86 kilometres.
Up the road from Lamaque, Agnico-Eagle is mining the LaRonde Mine down to 2.2 kilometres. They are currently putting in an internal shaft extention below that level to allow them to mine below 3.0 kilometres next year. In addition, Agnico-Eagle is currently exploration below 3.0 kilometres in hopes of going even deeper.
Agnico-Eagle can do this partly because they have by-product base metal credits. Lamaque will never be able to March LaRonde`s very low (net of by-product credits) cash cost per oz. However, if Century is able to identify reasonable grades at depth, mining below 1.86 kilometres on the Sigma side of Lamaque should be a profitable venture.
Check out Agnico`s video to see what they are doing with LaRonde (you have to click to the right where it says ``LaRonde video`` to get the video started). Century should try to do a similar video for Lamaque.
http://www.agnico-eagle.com/Our-Business/Operating-Mines/LaRondeMine/default.aspx
1 comment:
That San Juan YouTube video is now posted on Century`s website. I watched it again. I continue to rate the production quality as being excellent. IMO, the San Juan video production quality is far superior to Agnico-Eagle`s LaRonde video - night and day difference actually (although Agnico`s wasn`t bad either, it`s just that the San Juan video was a far superior level of production, almost as if they were making a statement that the company is serious about delivering results in a professional manner and finally intends to now step up and play in the big leagues).
I would like to see them use the same type of production approach with the Lamaque video.
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