Harricana River Mining will not be moving forward with the Copper Reef transaction afterall. As you may recall, Harricana is the private company that holds the mining property rights directly to the west, northwest and north of Lamaque. They seem to have about 200,000 ounces in their resource profile (with likely the potential to increase ounces further) and about $3 - 4M in cash. I don`t know for sure (as they are not public) but I get the feeling that their ore body is somewhat advanced, although I don`t think they are at the infrastructure development stage as yet (their property seem to be listed on a number of maps as an advanced stage property).
Peggy should contact them for 2 reasons:
1) To get an appreciation of what they are all about.
2) If our geologists think they look good, to see if they want to do some sort of deal (now or later). Century is the ideal partner for them due to mill location.
Here is part of today`s NR from Copper Reef:
``Copper Reef further reports that the offer it previously announced on March 19, 2010, by which it proposed to acquire all of the issued and outstanding shares of the private mineral exploration company, Harricana River Mining Corporation (“Harricana”) based in Val-d'Or, Quebec, has been terminated. The Company and certain leading shareholders of Harricana were unable to reach an agreement on terms satisfactory to each.``
Here is my original post on this subject matter (with a link to a property location map, relative to Lamaque):
http://www.stockigloo.com/2010/04/owner-of-property-immediately-to.html
7 comments:
Has anyone done any homework on the Alexandria Minerals claims to the south of Lamaque and Sigma? They have some interesting drilling results, though nothing spectacular-all quite shallow, though. I can't tell from their claim boundaries whether they want to develop the mineral content or build condos, but they do have a couple of interesting holes, just the same.
In my opinion, Alexandria has already sold their soul to Agnico-Eagle. They sold 10% of their company to Agnico for a measly $1.8M. In my opinion, it is a long-term business combination that has been set up with Agnico-Eagle. It`s not going to matter what they find and how much gold they find. Agnico-Eagle will heavily influence them now and potentially completely control them if they ever find anything of significant, in my view. That`s how it normally works when a major takes a 10% stake in a tiny company.
My guess is Agnico-Eagle is likely interested in Alexandria for long-term mill feed for their Goldex operation (on the other side of Val d`Or). Of course that would only work for the grades are high enough to be economical for trucking. With regards to Alexandria`s low grade ounces, unless they come out with a large enough ore body to justify putting in a new $35M milling operation near the low grade ounces, those ounces probably don`t hold much value if the grades aren`t high enough to be trucked to Agnico`s Goldex or the nearest milling operation from another company.
Doubtless the rush will come to a screeching halt if gold corrects below 800/ounce anytime in the next few years. Bulking aside, I get really amused at all the "great" finds with grades of a few g/t over a fewf feet. I'm hoping CMM will find a way to get down to extraction costs of 400/oz or less. That will keep them in business for a long time.
I'm very interested to see what turns up after Sigma and Lamaque have joined, and the drills really get some leeway to start turning. It would be good to see them give Rubicon a run for their honey by turning up the deeps.
Incidentally, p05, thank you for your insightful analysis on the chatter here. It makes good reading!
production05, I agree with your blog post a while back that stated we should not pursue any acquisitions until we reach at least 1.50 in share price. I think right now we just need to prove we can hit estimates / ore grade / cash cost projections and if we pursue our neighbors i will be seen by the street as a liability since were not proven. . . A little down the road however - for certain. I doubt our neighbors "price" will go up that much by then unless they hit bonanza grade which so far we have not seen.
Hi real-economics,
I agree, however (although I don`t think this will happen) I would like to see them send Richard Meschke (our Corporate Development guy) and the geologist up the road a bit (from Lamaque) to assess what Harricana has (if they are interesting in us of course). If Century does eventually do something (again, I doubt Century is looking in this direction) it would be a tiny (insignificant) market deal - perhaps maybe $2-3M net value (maybe about $6-7M gross, including the $3-4M cash that comes with them).
The objective would be for the geologist to assess the economics of the ore body and determine how advanced stage it is, and the objective for Rich is to get a feel as to whether the private owners are interested in doing something (now or later). If the geologist determine that the ore body is solid and at a very advanced stage then it is something I think Century should persue aggressively, especially if it is something that can provide ore feed to the mill within, say, the next year or so. If this is an advance stage ore body that can provide 30,000 to 40,000 ounces of mill feed per year for the next 3 to 4 years (and available cheaply) I would do a deal in a heartbeat. (IF all that lines up) it would represent a short-term solution for ramping Lamaque up to 140,000 - 150,000 while we wait for the shafts to be reburished in about 4 years time.
Also, having a production ore source feeding into the Lamaque mill that is not located on the Lamaque property will add some much needed diversity and flexibility (just in case unforseen mining down periods occur in the future at one of our key Lamaque mining zones).
Again, I agree completely, all production resources at Lamaque should be focused 100% on delivering Lamaque. We have to deliver Lamaque or we will have serious issues to overcome. However, I think we are ok if a couple of people not involved in production (such as Rich and a geologist) do some advance scouting for us. That is my thinking anyway.
verobeach fl introduces veropax who says we will be trading tuesday morn the 25th
look for support around 1172 on a closing basis
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