Saturday, July 31, 2010

BOD Sketch: Ricardo M. Campoy

Well, I still can't find my market cap, so I'll just wear the bio cap this's a rundown on Mr. Campoy, B. Sc., M.IM: This is courtesy of Bloomberg, and serves as a more concise summary than mine:
Ricardo M. Campoy, B.Sc. has been Corporate and Financial Advisor of Bayswater Uranium Corp. since May 2008. Mr. Campoy serves as an Executive Officer of ING Capital LLC. He served as an Advisor to the Board and Consultant of Century Mining Corp. since January 2010. He is a Co-founder and manages Minerals Capital & Advisory LLC. Mr. Campoy is a seasoned international mineral resources banker and advisor with industry experience as a mining engineer and as a financial and corporate adviser. His 28-year career in natural resource finance has included merchant, commercial and investment banking. He has 34 years of international experience as a mining engineer, merchant and investment banker and as a financial advisor. Mr. Campoy has been involved in project finance, debt and equity private placements, and mergers and acquisitions. He is in private practice in New York as a financial and corporate adviser to the resources industry and other sector groups. He served as Managing Director of Specialized Finance Unit at WestLB AG. He served as Head of the Mining and Metals Group at WestLB AG from 2004 to 2006. Before his banking career, he worked in various engineering and supervisory production capacities for Inspiration Copper and BCL Bamangwato Concessions. He served as Senior Advisor of Project Finance, Minerals, and Metals at McFarland Dewey & Co. LLC from 2000 to 2004. Mr. Campoy served as Investment Banker of McFarland Dewey Securities Co since April 2000, Managing Director of Carver Cross Inc. since October 1999 to March 2000, Investment Banker of ING Barings LLC from July 1998 to September 1999 and Investment Banker of ING Baring (U. S.) Securities Inc., from November 1997 to July 1998. His international banking career has included advisory services at ING Capital Corporation, Swiss Bank Corporation, European Banking Corporation, Elders Resource Finance Inc. and the Continental Illinois National Bank. He served as Associate Mining Engineer with Dravo Corp. from 1974 to 1975, Mining Engineer with Amax, Inc. from 1975 to 1978, Second Vice President of Continental Illinois National Bank from 1980 to 1984, Senior Manager of European Banking Company, London from 1984 to 1986, President of Elders Resource Finance, Inc., from 1986 to 1991, Managing Director of ING Capital Corporation, New York from 1995 to 1998, Managing Director of Carver Cross, Inc., from 1998 to 2000. His 27-year career in natural resource finance has included merchant, commercial and investment banking. He has been a Director of Century Mining Corp. since June 2010 and serves as its Lead Director. He has been Director of Endeavour Silver Corp. since July 2010. He has been Director of Standard Steam Canada Corp. since September 8, 2009; Forsys Metals Corp. since May 2010 and General Moly Inc. since August 10, 2006. He serves as Independent Lead Director of General Moly, Inc. He serves as Director of Idaho General Mines, Inc. Mr. Campoy served as Director of Kilgore Minerals Ltd. since May 12, 2003. He served as Director of Century Mining Corp. since March 22, 2007 until January 2010. He served as Director of SBCI Swiss Bank Corporation, New York from 1992 to 1995. He served as Member of McFarland Dewey & Co., LLC. Mr. Campoy is a Member of the Society of Mining Engineers, AIME. Mr. Campoy earned a Bachelor of Science in Mining Engineering at the Colorado School of Mines and a Master of International Management in Finance from American Graduate School of International Management.

My summary: mining engineer with proven track record in resource finance: A major asset to CMM in sorting out gold from rock at Sigma/Lamaque. I like the recent tie-up with EXK...raises some interesting possibilities.

Friday, July 30, 2010

off-topic comment

We seem to continually operate under the assumption that people are incapable of improvement, especially when they have any history of mistakes. Its true enough that some folks are ne'er- do- wells who continually make the wrong choices. Its an assumption that is incorrect, so often that it will never get into cliche school. Granted, some folks are born to make golden choices at every turn, or find some way to avoid responsibility for their actions. We engage an entire industry, on the great fear that something is inherently bad about making mistakes (lawyers). How in the world can you improve your performance if you aren't failing at some of your efforts? Our too-frequent credo is, "Once wrong, always wrong." Imagine an entire stream of expletives here, followed by a pronounced cow chip. I'll see your cow-chip and raise you an ingot.
I don't know any serious people who don't learn from their mistakes. Certainly not folks who go thousands of feet into the earth in search of largely invisible metal. It is absurd to compare the CMM of today with the CMM of three years ago. If Max Finskiy, Fran Scola, Ricardo Campoy, William Lamarque, Keith Hulley, Peter Ball and all the rest of our team are that stupid, then I hate to think what it says about us.
We have watched a remarkable event happen in front of our eyes at Lamaque, especially since last December. There are still some decisions to be made as we come through the next period, some new people to hire. Whatever the past is, it is. The recent past has much more to do, probability (and profitability)-wise, with what happens next than anything that happened before 2008. We certainly will learn a lot from the next 60 days.
I ask you, where else can you buy four million - plus ounces of producing gold for less than a buck a share? Look, for a minute, at the laws of moving averages. Show me how much the 200 day MA influences the 30 day. Or how much the 2006-2008 numbers mean relative to the charts we currently have?
Any thoughts?

Thursday, July 29, 2010

House Position

Increasing volume and share price along with some new buyers makes me hopeful that we have turned a corner. If we deliver good operational results next week for July, we should see a nice performance in our share price. Here is the house positions for today: Make note of Hampton as our biggest buyer followed by Anonymous. House position in the comment section, would not copy here.

Why we own Century

It is worth remembering why we own this company. Fundamentals: A world-class deposit of gold in a global shrinking production scenario that is producing now; competent teams at the helm and in both mines; sound financial backing, perfectly regardless of whatever we may think about whom; excellent potential for upgrading of resources; a vastly undervalued company that is visibly improving its profile; and finally, a strong probability of a continued bull market for bullion, for a miner with decent production costs.
Let us also not forget the rarely-heard of directors of our company - Mssr's Campoy and Lamaque, who are, IMO, very strong assets for the company. Not to mention our very excellent IR department.

Victor's comments posted today on Mineweb

Sorry I can't figure out how to make a hyperlink- but there's the address.

Videos with experts talking about the gold price and global economic conditions

If you have the time, I highly recommend watching all 6 of these videos. Of the 6 videos, 5 were recorded in the last day or 2.

1) Ben Davies, CEO Hindi Capital, giving his views on gold being the currency of first resort.

2) Frank McGhee, head precious metals trader, Integrated Brokerage Services, explaining about the unwinding of the Euro carry trade, (a short-term impact) which has been primarily what has driven down gold over the last couple of days. I`ve watched this guy for a few years now. He has always done a really good job analyzing the situation.

3) Lloyd Khaner, general partner at Khaner Capital Management, talks about the outlook for gold prices, based on the supply demand equation. This guy is a value investor (a bull investor) and not even a gold bug, yet he is expecting a huge increase in the gold price over the next 12 months (way beyond the gold increase I am expecting).

4) Martin Hennecke, associate director at Tyche Group, believes sovereign risk in Europe and the U.S. is underestimated. This is another guy I have watched for years. He often makes a lot of good points.

5) Bob Tebbutt, vice-president, corporate risk management, Peregrine Financial Group, who talks about the inflation that is guaranteed to arrive eventually. He also talks about how the banks are refusing to lend money even though they have plenty of it building up and will eventually burst.

6) Evy Hambro, managing director at BlackRock and fund manager of the BlackRock Gold and General Fund. Evy talks about decreases in gold production supply as being a key gold price driver. Evy is in charge of the BlackRock Gold Fund. BlackRock overall is one of the largest fund companies in the world. Evy is also one of those experts I`ve watched for years now. He is also normally on the ball. I couldn`t find a recent video of his - this one is from Sept. 2009 but just as relevant as if it was made today.

Wednesday, July 28, 2010

The End of An Era

The company won't be the same without Peggy around, but in spite of the turnaround in the company's fortunes in the past 7 months, that is a good thing.  There is no question in my mind that she was shown the door and that has to be a very bitter pill for Peggy.  This was her last good chance to realize her dream of presiding over a mid-tier gold company, but her history of failure that created a bad relationship with Bay Street was too much to overcome. I think the final straw was the apparent disinterest shown by the analysts and institutions after the Lamaque tours and the need for change was likely communicated to Keith Hulley by those same analysts before they would invest.  Certainly the CTO for missing the filing deadline was unforgivable, especially when it also happened last year.  The BOD probably finally realized that as long as PK was at the helm, the share price was going to be discounted, and when you are looking to grow by acquisition by using your shares as currency, that is unacceptable. 

Usually when a company issues a news release announcing the resignation of the President and CEO effective immediately, the share price takes a hit, but the market reacted positively to the news.  And if you're a shareholder, the share price is all that matters.  That's why we invest.

Personally PK has done very well.  She extracted a payment in the order of $1 million for herself and $800k for McNutt to be retained when Finsky and Scola made their investment.  She and Ross really benefited from the share price decline to 1.5 cents when they scooped up 11 million shares from a NY PP investor at 1.5 cents.  It was her mismanagement that caused a former financial backer, Wega Mining, to vindictively sell their shares and drive the price down to the single digits.  Ironically that allow PK and Ross to acquire the 11 million shares at a bargain basement price.

I had been advocating her removal for a couple of years and I and others wrote to the BOD a long time ago asking for a change.  That was in the days when PK controlled the BOD and they did nothing.  We had a blog poll over 2 years ago and 70% voted for her removal.  Yet now that she is gone, I have mixed feelings about it.  Production wrote a very good post the other day that highlighted recent accomplishments in spite of long odds.  She definitely has some very valuable talents and could have been a very good asset when evaluating and negotiating potential acquisitions.

I suspect that PK was the recipient of a good chunk of those 1.4 million options that were granted today as well in return for her leaving on good terms and being available for 12 months.
Here is today's trading summary:

Victor Gonçalves: Putting Money on the Juniors

TGR: What are a few of your favorite gold juniors going into the fall? Why?

VG: I have a few companies that I like right now. One of them is Century Mining Corporation (TSX.V:CMM). A month ago, Century Mining brought some low-profile scooptrams and jumbo drills from South Africa to its Lamaque Gold Mine in Val d'Or, Quebec. No other North American mining company has used this type of equipment before. These vehicles are only five feet high. Even I tower over them. The small size of these machines allows them to operate in smaller spaces, thus moving less dirt and waste, which means getting a higher grade out of the mine.

When underground, I watched this new equipment in action. Talk about productivity. The company is training their team on how to use this new equipment to increase productivity. They are now focused on adjusting blasting patterns and loading of the holes, to ensure minimal over-breakage on the blasted round. They have started to see positive results over the last month, and higher grades are coming out of the mine and into the mill. This type of operation requires time, as more stopes are opened, and room and pillar flats production increases.

I understand they have a couple more low-profile pieces of equipment on order. This seems like a logical purchase decision from what I have seen. This addition of modern technology, combined with rethinking the operation, should increase efficiencies by a very nice factor. Of the three zones to be mined and operated in 2010, the room and pillar flats are just the beginning and will provide the lowest production of the three zones. Next in line is the Bedard Dyke Gold Zone, which was opened up the same day I arrived at the mine site, and finally, they are moving on to the North Wall zone.

The Bedard Dyke will be a very welcome addition to the mill, as it will be a long-hole, open-stope complex, and is expected to grade higher than the flats. The face of the Bedard Dyke portal, prior to its first blast, graded 37 grams per ton gold (g/t Au), and recent drilling showed intersections close to 100 g/t Au. The daily tonnage expected from the Bedard Dyke will be significantly higher than the flats, as it is the meat and gravy of the operation's future. The Goldex Mine (Agnico-Eagle Mines Ltd. (NYSE:AEM; TSX:AEM), down the road a few kilometers, is mining below 5,500 feet with a head grade of only 2.8 g/t Au, but is moving a lot of ore via their long-hole stopes, and at a low mining cost. I can see the Bedard Dyke lowering their operating costs at Lamaque going forward.

An interesting point is that the development work required to access the Bedard Dyke will be right through this high-grade vein before they access the underground to extract their 20,000 ton bulk sample. Obviously, this material will be crushed and sent to the mill, as it has plenty of visible gold, as well as massive chalcopyrite widely disseminated all through the veins. Once the sample is removed and tested, the company will look to receiving its next permit to mine the zone.

In terms of the current mill operation, it is operational and processing about 700 tons per day (tpd), with tonnage from underground reaching peaks of 700 to 750 tpd. The mill can be cranked up to adjust for higher tonnage on any given day, as they have put through 1,100 tpd on certain days during the ramp-up of the facility. As in any normal startup and commissioning of an operation, this number is progressively increasing and will do so until they hit their daily tonnage requirements. A good thing is their 2010 requirement is only needed to average 1,200 tpd, and in 2011 just over 2,000 tpd. With a facility that can process 3,000–3,400 tpd, they have lots of extra capacity to ensure they don't operate too close and max out.

2 points

1) Everything from the NR would suggests that Finskiy and Scola liked what Peggy accomplished with the early stage Lamaque start up, at least operationally. Her being with the company for another 12 months (as a consultant) would further suggest this. My guess is that the move is being made strictly due to feedback from the professional players. Century had 14 analysts go through Lamaque recently and it sounds like it was very positive. Century likely met with a lot of institutional types recently also. It`s not clear what type of feedback Century received about what it would take for more analysts to initiate coverage on Century and for institutions to take up shareholder positions in Century. I have absolutely no inside information. However, if one was to add 2 plus 2 together, I`m sure one can conclude what type of feedback the analysts and the institutions were likely giving Century as to what it would take for them to finally be involved with Century Mining.

2) "The Company has a dedicated management team in place and noting this key period of operational expansion, Adrian McNutt has been promoted to Chief Operating Officer from VP Operations. Mr. McNutt has played a key role in the successful early startup of the Lamaque operation in Quebec and in the excellent operational statistics seen at the San Juan operation in Peru over the past four years."

This can only mean one thing: The Lamaque start up is going extremely well.

With no longer having Peggy to protect him, I don`t see how they keep him with the company without the Lamaque start up being hugely successful thus far. Not only are they keeping him, but they have promoted him to VP Operations for the entire company (Lamaque, San Juan, future organic mines and future acquired mines.....).

This is probably a huge statement of the positive state of Lamaque.

It`s scary having Mr. McNutt in charge of all operations at Century, but maybe he has turned the corner (we have no say in the matter so we can only hope). He seems to have done a good job with San Juan. If Lamaque is in great shape, and worthy of such a promotion, then maybe he deserves a second chance. Let`s hope that Mr. Hulley has his full pulse on the situation as there is no room for such errors with Lamaque.

11:00 ET Trade Resumption

Investment Industry Regulatory Organization of Canada - Trade Resumption - Century Mining Corp. - CMM


VANCOUVER, July 28 /CNW/ - Trading resumes in:

Issuer Name: Century Mining Corp.
TSX-V Ticker Symbol: CMM
Resumption Time: 11:00 ET

Peggy Kent has resigned

Century Announces Resignation of Chairman, President and CEO Margaret Kent; Keith Hulley Appointed Interim President and CEO


BLAINE, WASHINGON--(Marketwire - July 28, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) announces that Margaret ("Peggy") Kent, Century's Chair, President and CEO, has resigned her position for personal reasons effective July 28, 2010. Ms. Kent, the founder and leader of Century since its inception in 2003, will remain on as a Consultant for 12 months.

The Board of Century has, with regret, accepted Ms. Kent's resignation. Ms. Kent, or "Peggy" as many in the mining industry have known her for over 35 years, led Century through its series of strategic acquisitions to secure both the Sigma-Lamaque gold property in Quebec in 2004 and the San Juan gold property in Peru in 2006. The Board acknowledges that it was through her dedication and tenacity that Century was able to acquire these assets and, subsequently, to survive the worldwide credit crisis in 2008 and 2009. Peggy successfully negotiated and finalized the major recapitalization of Century's balance sheet, including debt and equity financings in excess of $60 million at the end of 2009. Through her leadership, Lamaque has recommenced production, achieving the first gold pour ahead of schedule, only four months after completion of these financings. The Board also appreciates Ms. Kent being available to Century throughout the next 12 months in a consulting capacity and this transition period.

Ricardo M. Campoy, Lead Director of Century, stated: "Peggy has led Century through some very difficult times and has positioned the Company to achieve its corporate production goals in Quebec, Canada and Peru. The Company is greatly indebted to her for her dedication of time and effort and personal sacrifices which she has made for the Company. On behalf of the Board, I wish her every success in her future endeavors."

"After more than 35 years in the gold industry, with memorable successes and of course even some memorable struggles, I needed to make this difficult decision to move forward and take some time to spend with my young family and close friends, and to also review other business opportunities and the next stage in my career. The current excellent gold environment, along with both the Lamaque and San Juan gold mining assets in production, will create the stepping stone to a successful future for Century Mining. I am proud to be a shareholder of Century now and in the foreseeable future," commented Margaret M. Kent.

The Board of Century is initiating a global executive search for a new President and CEO. During this period of transition, the board has appointed Mr. Keith Hulley, a Century director, as interim President & CEO. Mr. Hulley brings over 40 years of experience in the mining industry and most recently acted as the former Interim President and CEO of Gabriel Resources, which has a market capitalization in excess of $1.5 billion, and remains as non-Executive Chairman. Previously, Mr. Hulley served seven years successively as President, Chief Executive Officer and Executive Chairman of Apex Silver Mines before retiring in 2004. Mr. Hulley has held other senior executive roles before Apex, including Western Mining Holdings Ltd., and USMX Inc.

Keith Hulley, Interim President and CEO and Director of Century, stated: "We wish her all the best for the future and thank her for her efforts positioning the Company with two operating gold mines and extensive property holdings throughout Canada, Peru, and Alaska."

Mr. Hulley further commented, "The Company has a dedicated management team in place and noting this key period of operational expansion, Adrian McNutt has been promoted to Chief Operating Officer from VP Operations. Mr. McNutt has played a key role in the successful early startup of the Lamaque operation in Quebec and in the excellent operational statistics seen at the San Juan operation in Peru over the past four years."

Noting the recent changes in management and pursuant to the Company's shareholder approved Stock Option Plan, the Company has granted stock options to Directors, Officers and employees to purchase up to 1,400,000 shares at a price of $0.53 per share for a period of five years, which includes 1,150,000 options to Officers and Directors. Century's management team is planning to host a conference call in the near future to discuss the recent management changes at the Company and will advise when the date has been determined.

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,

Keith Hulley, "Interim" 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

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.


Century Mining Corporation
Peter A. Ball
Director of Investor Relations
(360) 332-4653 or Toll Free: (877) 284-6535
(360) 332-4652 (FAX)


nvestment Industry Regulatory Organization of Canada - Trading Halt - Century Mining Corp. - CMM

VANCOUVER, July 28 /CNW/ - The following issues have been halted by Investment Industry Regulatory Organization of Canada (IIROC):

    Issuer Name: Century Mining Corp.
TSX-V Ticker Symbol: CMM
Time of Halt: 9:05 ET
Reason for Halt: Company request pending news

Index of Releases


Just chatted to peter he said there should be a news release within the hour.

Tuesday, July 27, 2010

house positions 7/27: 11:15amEST

  1. Exch
HouseBought$ValueAveSold$ValueAveNet$Net2 RBC 201,000 92,540 0.46 0 201,000 -92,540 7 TD Sec 71,000 32,753 0.46 50,900 23,653 0.46 20,100 -9,100 19 Desjardins 10,500 4,830 0.46 0 10,500 -4,830 6 Union 2,800 1,282 0.46 400 184 0.46 2,400 -1,098 57 Interactive 200 92 0.46 0 200 -92 85 Scotia 16,200 7,547 0.47 27,000 12,480 0.46 -10,800 4,933 99 Jitney 5,000 2,350 0.47 18,500 8,570 0.46 -13,500 6,220 9 BMO Nesbitt 10,500 4,950 0.47 40,400 18,657 0.46 -29,900 13,707 124 Questrade 0 180,000 82,800 0.46 -180,000 82,800 Total 317,200 146,344 0.46317,200 146,344 0.46 00

Monday, July 26, 2010

This is 2 months old, but hadn`t seen it previously

"We would never have come down here if we didn't expect to continue to build on operations"

Peter Ball

Director of investor relations/Century Mining

Published Thursday, May 20, 2010

Since forming in 2003, Canadian junior Century Mining has made significant acquisitions of producing gold operations in Peru and Canada, as well as various exploration properties.

In southern Peru's Arequipa region, Century operates its 82.6%-owned San Juan gold mine, where the company intends to increase production to 30,000oz in 2012.

BNamericas spoke with director of investor relations Peter Ball during his recent trip to Lima to attend the 9th International Gold Symposium.

BNamericas: What is Century doing to increase production at San Juan?

Ball: We are shipping a number of pieces of equipment from the Lamaque operation [in Quebec] down to the San Juan operation so we can work to modernize the entire facility and eventually expand production. We are expanding production from 20,000oz this year to 24,000oz next year, and 30,000oz the following year.

We're looking to bring a number of scoop trams, trucks and jumbo drills, which this operation has never seen yet. So this is going to be really beneficial for the mine and personnel because we are bringing in modernized equipment. We've never been able to afford this before, but with the Lamaque operation up-and-running this has allowed us to ensure that we can get some equipment down here. It should be arriving in early Q3.

BNamericas: Do the current high gold prices impact Century’s business plan?

Ball: Not really. Our overall cash costs for the company are in the US$475-550/oz range.

BNamericas: What is Century’s outlook for cash costs in 2010?

Ball: We are hoping to keep them in the US$500-550/oz range. We produced at US$488/oz in 2008 and US$497/oz in 2009. As we look to expand the operation and to bring in more modernized equipment, cash costs could potentially decrease.

It’s a diesel run facility, so one day we would like to work with the Peruvian government to bring in a power line. There is a grid that we could connect to and if we can work together, it could bring electricity to the community. We work in part now to provide electricity through our diesel plant to members of the community. It would be beneficial for everyone. We have to work to see how that can move forward, including who will fund it, how it will be funded and when it will be funded.

BNamericas: Does Century have any plans for new exploration activities or expansions in Peru?

Ball: Century believes that Peru is an excellent place to operate as a mining company. It’s a leader in many of the precious and base metal commodities. We want to be part of that growth. We have a corporate office in Lima that has 25-30 fulltime employees, so we have a great step into Peru. We have a proven and stable operation in San Juan and if there are other opportunities [to expand] then for sure. We would never have come down here if we didn’t expect to continue to build on operations.

BNamericas: What is the progress of works on the storage capacity at San Juan's tailings facility?

Ball: We are about 95% done. I was talking to the guys from the site yesterday [May 17] and I believe that the tailings capacity will be done at the end of June, so the end of the second quarter.

BNamericas: Century has also been carrying out exploration on the San Juan property, how is that progressing?

Ball: Since the economy struggled through 2008-09, we have been mainly focused on just keeping the operation running, keeping employment at the mine site and getting the company through the tough times.

Now that we are heading into the later part of 2010, we have a 220km2 land position in the Chorunga valley and there are a number of prospects to do some regional reconnaissance exploration, but I’m not sure about a drilling program. We could potentially have a drilling program going in H2.

BNamericas: Can you discuss the February strike at San Juan?

Ball: There was a work stoppage for about a week and we worked with the Canadian embassy and local officials. We worked through it and I think we were successful, and both parties are marching forward to keep the mine in production.

BNamericas: Will it have any impact on this year's production?

Ball: There were a few days that affected the operation, but we expect to meet our production target.

BNamericas: How does Century see the current labor situation in Peru?

Ball: I think there is always room for improvements to ensure the needs of the workers, the community and the environment are taken care of. Century has taken steps on those initiatives to get to know what those needs are, what people want to see for their community and for their families. Together, Century and the community can move forward. We need each other.

BNamericas: What are Century’s expectations from the International Gold Symposium?

Ball: It's a great opportunity to network, to meet your colleagues in the industry in Peru and to find new opportunities, as well as just being here. We are part of Peru, part of the mining community. We’ve been here for a number of years and we look forward to coming back.

By Ryan Dube,Century_Mining,

Sunday, July 25, 2010

CMM Valuation

Century Mining Valuation as of July 23rd 2010

Okay Jason,,, I hope you can read the above link. Peace!


Hey P05-
Do you remember a project manager from San Juan named Larry Hillesland?

Saturday, July 24, 2010

It`s early still, but the upward production ramp is starting to take a nice shape

Of course, again, the production levels that mean the most to us are the ones that (over the next year or so):

1) enables us to access the funds sitting in the performance hurdle account

2) allows us to achieve commericial production status

3) puts us in a position to discontinue the start up guarantee agreement with DB

Everything appears to be moving along well so far.

Nevertheless, I think it`s a good exercise to profile how quickly we are moving on the gold production front, company overall (a nice upward ramp is starting to take shape):

Q1`10 - 4,921 ounces

Q2`10 - 8,800 ounces (est., 3.8K Lamaque, 5.0K SJ)

Q3`10 - 18,500 ounces (est., 13.5K Lamaque, 5.0K SJ), based on reasonable tpd levels (900 Jul, 1,100 Aug, 1,100 Sep) with targeted grade and recovery

Q4`10 - 21,500 ounces (est., 16.5K Lamaque, 5.0K SJ), based on reasonable tpd levels (1,200 Oct, 1,200, Nov, 1,400 Dec) with targeted grade and recovery

These numbers work out to 53,700 (33.8K Lamaque, 19.9K SJ) company overall ounces in 2010.

Century`s target range for production ounces in 2010 is 55,000 - 60,000 for company overall.

Century will have to go a bit higher with Q4 Lamaque or/and SJ, to hit the low end of the range (55,000 ounces) from the numbers I have profiled. Also, any shortfalls from the Q3 numbers I have used will have to made up in Q4. In my view, Century will need to have a massive Q4 at Lamaque to hit the high end of the range (60,000 ounces). We don`t have enough info (at this time) to know what their capabilities will look like for Q4. I suppose anything is possible, especially if they are able to drive production from all fronts effective early Q4. I guess we`ll have to wait and see how everything shapes up.

Also, another reminder, the Lamaque production ounces will have no impact on the bottom line of Century`s Income Statement until commericial production gets achieved in 2011 (and reported in quarterlies) - until then, the net of dollars from Lamaque gold sales (these ounces profiled above) and costs associated with work done at Lamaque will be netted together and further netted against the asset book value of Lamaque that resides in the Balance Sheet (as a capitalized items).

Friday, July 23, 2010

Interesting read on the BIS and SDR's

or Tipping Points by Gordon Long

Thursday, July 22, 2010

New Trenching

Might be just my old brain not having paid previous attention, or the lack of camera resolution, but I'd swear there's some serious trenching going on on the NE corner of the mine - up on the other side of the tailings ponds. Anybody else see what I see?

Some potential development items for the next 3 months (or so)

Of course, everything is secondary to ramping up production at Lamaque.

Nevertheless, here are some other (random) areas we might see progress in (over the next 3 months or so):

(not in any particular order)

1) updated San Juan 43-101 report

2) reach the North Wall zone through drifting

3) access the next C$9.0 million from the performance / escrow account

4) exploration roundup report from Mr. Daniels (our new chief geologist)

5) exploration results from the flats and other target areas surrounding the Bedard Dyke

6) launch of the new San Juan exploration program (perhaps Oct-Nov timeframe if we are fortunate)

7) receive our permit to move forward with low cost / high tonnage long-hole stope mining of the Bedard Dyke and the North Wall Zone

8) updated 43-101 report for Lamaque, including the latest Vulcan Resource Modeling contributions (though, this might be outside of the 3 month timeframe)

9) either slightly more analyst coverage or/and finally a bit of institutional buying (if we are fortunate of course)

10) close off of the $9M capital lease (equipment) funding agreement

11) arrival of the extra low-profile equipment

These are just random items that came immediately to mind as I was typing. There may be others. Feel free to add to the list via the comment section or another post (if you think of others).

Market Depth 22/07/2010 ~ 9:33

Wednesday, July 21, 2010

Century Videos Posted To YouTube

I know, these are the same videos from the site but if you want to show your friends it is much easier to link them to them via you tube. Here is century's page on you tube.

And just so this post id not a complete waste lol here is the market depth as of 8:39 TORONTO Time.

# Orders Shares Bid Ask Shares # Orders
6 144500 0.480 0.490 14000 1
5 146500 0.470 0.495 10000 1
1 6000 0.465 0.500 73500 6
3 25500 0.460 0.510 18000 2
3 47000 0.455 0.520 108500 2
21 Jul 2010 8:39 AM ET Real-time quote TSX Venture

Management Philosophy 101

I'm sure that I'm going to open myself to some education here, but wish to progress just the same. I don't come from generations of mining men, but I do have a 30 years of experience working at the interface of management and labor. It is the proverbial position of being between rocks and hard places, and the spot most likely, in any organization, to strike sparks. Those sparks can ignite productive combustion or destructive conflagration. The attitudes on each side equally impact the very dynamic equation that exists between labor and mgt. It isn't at all unusual to find hard noses and heads in the leadership of both sides-in fact there is usually something wrong if there aren't. The trick is in managing that dynamic in a constructive way, especially when times are hard or unexpected difficulties arise. The easiest road, often taken, is that both sides end up in a blame game. It takes very strong leadership skills to make the hard decisions in such events, as well as a certain ruthlessness.
The mandate of company mgt. is to do what is best for the company and its shareholders. Labor, on the other hand, is generally more concerned with the day-to-day and annual progression of discrete items - pay, qwl, bonus levels and job satisfaction. The two are not really ever in total sync, and their goals frequently collide. When the company finds itself in financial trouble, it must perforce cut its labor costs, as this is usually the only option available-especially if it is involved in Basic Industry (mining, manufacturing, etc). We North Americans are all about blaming our politicians for "sending our jobs overseas." I hate to say it, but it isn't altogether their fault. Basic Industry follows cheap labor, and has since the time of the Phoenicians. Extractive and production costs are generally very fixed. Labor cost is often the only place where a company can increase its bottom line. (cont'd)

Tuesday, July 20, 2010

Thoughts on availability of the next C$9.0 million cash in escrow

We still have a chance, in about 70 days from now, of pulling the C$9.0 million (US$8.5M) prepaid gold sales cash amount from the escrow holding account.

I wouldn`t be so quick to discard June from the mix.

To pull the next C$9.0 million from escrow, we have to generate production of 70,000 ounces (on an annualized run rate basis). We are allowed to count both Lamaque and San Juan ounces within the 70,000 run rate. We need to do it for 4 consecutive months, based on the average of the sum of the 4 months. This means that some of the months can be low (i.e. June) and others high, just as long as the annualized run rate of the total ounces produced within the 4 months meets the requirement.

Let`s assume 20,000 run rate ounces for San Juan. It would mean Lamaque would need to generate ounces at a rate of 50,000, of the 70,000 total.

50,000 / 12 months * 4 months = 16,667 ounces

Lamaque needs to deliver 16,667 ounces over a consecutive 4 month period (regardless of breakdown by month).

June`s Lamaque production was 1,870 ounces.

Let`s say that Lamaque`s tpd averages 900 in Jul, 1,100 in Aug and also 1,100 in Sept, with 4.76 g/t grade and 96% recovery for all 3 of those months.

It means 15,533 ounces for Lamaque from June to September. It might be close enough to the 16,667 ounces required from the Lamaque portion of the target to allow us to access the C$9.0 million (similar to what occurred with Performance Hurdle A, where we were able to amend the target slightly, in order to access the $US5.0 million cash in late April). Failing that, management could try to push more of the 20,000 BD bulk sample tonnes through (quicker) coupled with driving out more short-term ounces from Peru (and perhaps contributions from the North Wall, if they can get it into the mix quick enough), in order to make up the difference. The key is to find a way to use June (as one of the 4 consecutive months) in order to gain the quickest access to the C$9.0M cash.

It would be good if management can get this to happen for the end of September (about 70 days from now). It would likely mean that we would have a lot of cash on hand at that point. We would have this C$9.0 million injection from escrow, plus good cash from both ramped up Lamaque gold sales and ongoing San Juan gold sales.

This would be a great position to be in. It would allow us to move aggressively forward with both development and exploration. It would speed up the process of getting to 2,000 tpd or 100,000 – 110,000 ounces from Lamaque. It would make us somewhat cash loaded again.

Monday, July 19, 2010

Finskiy injected another $1.5 cash (via warrants)

5,000,000 more warrants @ $.30 (Jul 15th transaction date, Jul 19th filed date)

That`s $2.0 million in total now (injected recently).

Cash to help us bridge the gap, as we expected would be both required and supported by Finskiy. Good to see that Finskiy is following through with the support. I think the cash injection is likely going towards positive initiatives. Per the Union Securities document, Century was attempting to pay down a decent chunk of the Accounts Payables at the end of June. Century will likely carry an A/P balance of $8 million in Current Liabilities on an ongoing basis (regardless of cash balance in bank) - there are normally no interest/fee payments maid on A/P amounts if the invoices are paid within the allowable windows (and not in outstanding buckets). Keeping an A/P balance on the books is very typical of most companies. The A/P balance carried is normally based on the size of the company and monthly positive cash flow of the company and perhaps the balance is also based on the size of the Accounts Receivables balance (i.e. a larger mining company may carry, say, $20 million in A/P at any given time). The A/P and the A/R amounts normally cancel themselves from a working capital perspective.

In addition, the Finskiy cash injection is likely also going towards early development work being done with the initiative of drifting over to the North Wall zone (likely via the Bedard Dyke portal).

Thursday, July 15, 2010

Commodity Channel Index

Although the name CCI uses the term "Commodity" the oscillator is commonly used for analyzing equities. A CCI is based on a comparison of price and moving average. The CCI is expressed as percentage that oscillates between -100 and 100. However, these levels can be exceeded. More...
Event Date: Jul 15, 2010
Opportunity Type: Short-Term Bullish
Close Price: $0.53
Price Period: Daily
Volume: 496,700
1mth | 3mth | 6mth | 1yr | 2yr | 5yr | More Chart Options

Price Crosses Moving Average

A moving average is an indicator that shows the average value of a security's price over a period of time. This type of event occurs when the price crosses a moving average. Three moving averages are supported: 21, 50 and 200 price bars. A price cross of a longer moving average indicates a longer term signal. A bullish signal is generated when the price rises above its moving average and a bearish signal is generated when the price falls below its moving average. More...
Event Date: Jul 13, 2010
Opportunity Type: Short-Term Bullish
Close Price: $0.49
Price Period: Daily
Volume: 690,904
Price crossed above the 21-day moving average.
1mth | 3mth | 6mth | 1yr | 2yr | 5yr | More Chart Options

A Continuation Wedge (Bullish)

A Continuation Wedge (Bullish) is considered a bullish signal, indicating that the current uptrend may continue. Prices edge steadily lower in a converging pattern i.e. there are lower highs and lower lows. The Technical Event® occurs when prices break above the upper trendline, thereby confirming the pattern. More...
Event Date: Jul 13, 2010
Opportunity Type: Intermediate-Term Bullish
Close Price: $0.49
Target Price Range: $0.64 - $0.68
Price Period: Daily
Volume: 690,904
Pattern Duration: 30 days
Inbound Trend Duration: 93 days
1mth | 3mth | 6mth | 1yr | 2yr | 5yr | More Chart Options

Tuesday, July 13, 2010

Today's Trading & other comments

There was strong buying pressure today near the close.  The last trade was a 132,000 buy at market by Scotia which was all of the shares for sale under 50 cents.  Scotia was the largest net seller yesterday and for much of today before the strong buying near the close. 

I echo the comments made by others that have expressed appreciation to production05 for all of the research he has done and his sharing of that information with blog visitors.  I may have originally set up this blog, but it is production who has sustained it through the good times and the bad. 

Welcome to the new contributors.  I must ask again though that you all choose a posting name and use it when commenting.  It makes it difficult for anyone to respond to an "Anonymous" post.  We have few blog rules, but one is that anonymous posts are subject to deletion.

If you want to do more than comment on someone else's post, become a member by sending me an email at  You have much better posting tools when you post as a member.

I added the Union Securities Analyst Report to the Information Links on the left and cleaned up a few others.  I don't have the time to keep everything up-to-date anymore.

Here is today's trade summary:


Firstly, welcome to the Century blog.

With regards to your question, on a longer term basis, I don`t think 10 million ounces in resource from strictly our Val d`Or area properties is inconceivable. The 2 million represent strictly bulk mineable potential from the 2 key plugs (Lamaque Main Plug and the West Plug). This does not factor in vein/other stockwork potential (flats, north dippers, high grade shears and porphyry dykes) from numerous still to be tested target areas within the Lamaque Complex, both at depth and along strike, as well as newly discovered (via the Vulcan modeling program) zones within the complex.

There is also the enormous long-term potential of our Val d`Or area properties outside of the Lamaque Complex. If our Union Gold area properties (just outside of the Lamaque Complex) turns out to house a mini Lamaque Complex within its borders (as discussed in my post about potential exploration targets) then only the sky will be the limit at that point.

Union`s initial target price for CMM - $.90

Typically, analysts begin with a very conservative target price. As Century achieves significant production milestones over the next year, we will see the analysts increase target prices accordingly. Here is the detailed Union Securities document:

Union Securities has initiated coverage of CMM

BLAINE, WASHINGTON--(Marketwire - July 13, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce that investment dealer Union Securities Ltd. has initiated coverage of Century Mining Corporation.

For further information and access to the report, please contact Mr. Brian Mok at Union Securities. Mr. Mok can be reached by email at or by telephone at 416.775.5135.

Saturday, July 10, 2010

Near-term Lamaque Gross Revenue scenarios


*gross production ounces = 1,870

*net production ounces (after the 667 ounce DB prepaid delivery) = 1,203

*approximate Lamaque Gross Revenue in June = C$1,500,000
(@ US$1,200 price, 1.04 exch rate)


Scenario 1 (4.37 g/t grade):

*1A) 800 tpd = 3,237 gross ounces or 2,570 net ounces = C$3,200,000 Gross Revenue available entirely to Century, based on net ounces

*1B) 900 tpd = 3,642 gross ounces or 2,975 net ounces = C$3,700,000 Gross Revenue ....

*1C) 1,000 tpd = 4,046 gross ounces or 3,379 net ounces = C$4,200,000 Gross Revenue ....

*1D) 1,100 tpd = 4,451 gross ounces or 3,784 net ounces = C$4,700,000 Gross Revenue ....

(@ US$1,200 price, 96% recovery, 1.04 exch rate instead of 1.06 due to the bounce back in C$, 667 monthly DB ounces)

Scenario 2 (4.76 g/t grade):

*2A) 800 tpd = 3,526 gross ounces or 2,859 net ounces = C$3,570,000 Gross Revenue available entirely to Century, based on net ounces

*2B) 900 tpd = 3,967 gross ounces or 3,300 net ounces = C$4,100,000 Gross Revenue ....

*2C) 1,000 tpd = 4,407 gross ounces or 3,740 net ounces = C$4,670,000 Gross Revenue ....

*2D) 1,100 tpd = 4,848 gross ounces or 4,181 net ounces = C$5,200,000 Gross Revenue ....

(@ US$1,200 price, 96% recovery, 1.04 exch rate instead of 1.06 due to the bounce back in C$, 667 monthly DB ounces)

This is only for Lamaque. The 1,700 monthly San Juan produced ounces have been excluded.