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You know, this is just soooooooooooooooo disappointing...no blank holes, no runout of mineralization, just gold, gold, gold. Such terrible values, too! Ha! Take that, all ye disbelievers! Off to the races... GOOD JOB A.M. and CREW!
``This first drill station was designed to test the extent of both the Bedard Dyke contacts and the internal structure of the mineralization in areas where no previous drilling has been done. These results, along with the continued drilling campaigns in the Bedard Dyke, will be used to complete a new 3D wireframe model to assist in mine planning and resource estimation.``
It doesn`t sound like all of the holes were below the top layer of existing mineralization. It sounds like a combination of everything - test the extent of the contacts, test the internal structure where it wasn`t drilled before, etc. It sounds like the program was designed with a number of objectives in mind. Either way, the drill program provided excellent info that will be very useful for both mining purposes and resource building exercises, as well as future drill programs.
I'm struggling to understand why we're getting no s/p movement today. I'd expected a positive bump from the Toronto Mining Conference alone, but with the drilling results announcement we should we should be way up today.
Unfortunately, I don`t have a technical answer for you. I don`t have the expertise. I can only provide what has been my intrepreation all alone. I have always figured that they cut the sample (mainly for very high grade assays) in order for it not to influence the general population (the average). For example, one could come across an isolated high grade rock of 3,000 g/t, while the general population of the ore body is 99.9% within the 5 g/t grade area. If they don`t cut the 3,000 g/t rock down to a more reasonable max limit, say, 31.1 g/t, (before entering the results into the database for resource calculation) then that 3,000 g/t assay will misrepresent the general population (and move the average higher than the more realistic average). I`ve always assumed that they do this especially for mine planning and resource management purposes.
Anyway, that has always been my own thinking as to why they do it. Perhaps someone else has a more technical answer.
Myles,
Yeah, it`s difficult to comprehend about the share price. The drill results couldn`t have been much better. It confirms that we have some extremely high grade pockets within the Bedard Dyke. There are naturally a lot of benefits. One of the benefits that come to mind is the abilities to blend the high grades with the lower grades. In my view, it helps the extremely low grades to become economical. For example, let`s say they bulk mine a vast area during long-hole mining. I imagine they can just blast out a giant area without having to worry about if some of the grades are too low. The 20 g/t ore that they are pulling in the blast can compensate for 3 or 4 ore items that are, say, only .5 to 1.0 g/t, in order to average out to 5.0 g/t for the entire blast pool. In order words, in my view, in a long-hole big bulk blast, we can maximize our gold output (allow us to send lower grade ore to the mill, as part of the blast group) without sacrificing average grade.
Anyway, the market didn`t have a reaction to any of our previous Bedard Dyke drill results either (and they were great also). I guess people are only interested in production numbers when it comes to Century.
Also, the NR didn`t include a clear date as to when the Bedard Dyke production will come onstream. Thus, people are probably confused as to when that will happen. My understanding is they (the company) is expecting late/end of October, which I kinda figured anyway (based on progress status showed in the 2 recent BD diagrams in the Corp Presentation). I don`t mind all that much. I just want them to do it right. This is an important part of our operation.
This was what Stockwatch assigned to Century`s NR heading today:
``Century Mining drills 1.34 m of 67.5 g/t Au at Bedard``
Now this was what Century used as the heading for their version of the NR:
``Century Mining's Underground Drill Program at Bedard Dyke Continues to Intersect High Grade Gold Values``
There was nothing wrong with Century`s version of the heading, as I think they tried to keep the focus on the overall performance of the drill program.
It probably wouldn`t have made a difference to the market which NR heading was used. After all, Century included 100 g/t in the heading of a previous BD news release earlier in the year and the market reaction was the same as it was today (a non-event or sell off).
However, with a US$1,300 gold price now, there are a lot of new people looking at gold and gold companies. Some of these people are likely looking for high grade exploration results when scanning headings of new releases.
It would be wise for the company to weigh this factor in when putting together their next exploration news release.
There is something seriously deficient in the presentation of CMM to the investment community. I confess to being a Margaret Kent fan and note that today Tamerlane, her newest venture, moved up 25 % today following her presentation at the Global Mining Finance Forum in London, England on Sept. 23, (last Thursday) I also recall that under her leadership, the share price reached .87. Unfortunately she let the CTO happen which undid the growth. Maybe its time to take advantage of her present consultancy to CMM role.
Cut and uncut [cut value (1)]is a term that refers to the grade of ore or rocks in the ground. In many veins or deposits there might be "nugget effects" (2) - where a highly concentrated spot or area is intersected by the core sample. A reasonable geologist will recognize this high concentration as anomalous and not representative of the entire vein, or not representative of the "average" concentration throughout and orebody. Therefore, rather than use a number based on a very high value, the geologist will "cut" or pare back the concentration to a value that seems more reasonable or representative of conditions on a wider basis.
So a value reported as "cut" tells you the geologist suspects the original (gross) concentration might be abnormally high and the geologists prefers a more conservative "cut" value as more representative of the actual conditions.
Therefore to get all excited about "uncut" numbers and to make an assumption that they represent actual wide-spread conditions is a trap one can easily fall into.
The other thing that investors frequently do is get excited by high numbers regardless of THE WIDTH of the intersection of the vein. While Bonanza grades are great to find, when they occur in narrow veins it makes the mining more difficult. Narrow vein material is harder to capture without including a bunch of barren "waste" rock and thus diluting the over all concentration fed to the mill.
1. Definition: cut value 1. Applies to assays that have been reduced to some arbitrary maximum to prevent erratic high values from inflating the average. Source: Northern Miner http://xmlwords.infomine.com/xmlwords.htm?term=cut&action=Mine+It!
2. Definition: nugget effect 1. Anomalously high precious metal assays resulting from the analysis of samples that may not adequately represent the composition of the bulk material tested due to nonuniform distribution of high-grade nuggets in the material to be sampled. Source: SME, 1 http://xmlwords.infomine.com/xmlwords.htm?term=cut&action=Mine+It!
Though not a totally 'in-tune' thing to comment under this posting, I still wish to say that CMM should consider seriously a name change to include the word Gold. New investors (particularly those not adequately informed) who are searching for gold stocks to buy may give CMM an unintended miss. Options mentioned were Century Gold Mining, New Century Gold Corp and Century Gold Corp. Hope to see this name change soonest possible.
We need to get production out of the Bedard Dyke first,the the SP will shake, rattle and roll. This NR looks like a prelude to a much bigger announcement coming up.It's like they laid it out there to keep us interested,especially the recent investors.Gold is high,a little bit of a roll lately BAM New CEO!
Production, the Stockwatch headline is nothing new for them. Do you remember what the Stockwatch headline was when we announced our first gold pour at Lamaque? It was "Century Mining fails to file 2009 results on time."
The Century headline was "CENTURY COMPLETES FIRST GOLD POUR AT LAMAQUE AND DISCUSSES LATE FILING OF DECEMBER 31, 2009 FINANCIAL STATEMENTS"
We got no mileage from the positive news from the first gold pour that was ahead of schedule because of the late filing of financials. Stockwatch likes to focus on the negatives in their headlines - not just for Century but other companies as well.
One of the reasons that I really hate dilution is that the shares and warrants that get offered up for private placements or debt settlements can weigh on the share price for a long time. BMO Nesbitt has been steadily selling shares for a long time - usually in blocks at the bid. Since last Monday they have sold another 678,000 shares. Someone at TD has been selling large blocks at the bid during the same period, but other TD buyers have made TD a net buyer. It's so hard to move up in share price when these shares that have not been purchased in the market are sold into strength when there is a little good news like we had today.
BTW Dennis this is part of Margaret Kent's legacy as she presided over a share price decrease from $1.89 to one cent! What we really need is a new CEO, a new head office location and a new company name.
``No resource estimate is currently published at the Bedard Dyke zone and all potential resources derived from the zone will be in addition to the current mineral resources already published for the Lamaque complex.``
The Sigma West area includes the Bedard Dyke zone, but I think its boundries likely extends slightly beyond BD, both horizontally and vertically.
The current 43-101 report classifies about 22,000 P&P Reserve ounces for Sigma West and an additional 71,000 Inferred ounces for Sigma West, for a total of 93,000 ounces. Now, it`s not clear if those ounces are too far at depth for near-term mining or if they can be mined with drifting from the Bedard Dyke decline.
It sounds like whatever our Bedard Dyke resource count will eventually be, it will likely be incremental to the existing 93,000 Sigma West ounces.
As an fyi, there are a couple of historical high grade-high thickness Sigma West holes at the 1,700 ft level, about 150 ft step out from a previously mined zone. It was mentioned in the April 6`09 NR. It steps out to the west (maybe bordering on being under the city). The company believes it`s a dyke structure. I guess they must know this from historical records of the zone that was previously mined down there. It`s likely not the Bedard Dyke because they haven`t drilled the BD beyond about 750 ft as yet. There must be a second dyke down there somewhere, perhaps one that was previously mined, but has the potential of still having significant step out (high grade-high thickness) mineralization.
Given that over 9 million ounces have been recovered right next to the city, one has to wonder how many more ounces can be recovered by going just a tiny bit under the city. Century owns the underground mining rights to go about 25% (or so) under the city. As mentioned in the past, it appears as if Wesdome`s very successful Kiena mine is almost entirely under a lake. Poster Moich has mentioned in the past that Yellowknife miners mined under the city of Yellowknife and underneath the Great Slave Lake quite frequently. Also, I think some salt mines are under lakes, such as the one under Lake Erie.
I think both the mid-term and long-term possibilities to add new ounces at Lamaque are endless, in add directions - depth (everything is still open), south (Lamaque Plug and veins below 3,500 ft, and West Plug), North (North Wall beyond the pit), East (huge land position, highly perspective properties beyond the current complex, with some very encouraging historical drill results), West (under the city), Sigma II (4 sq km land position with pit resource open at depth, about 20-25 km from Lamaque) and Aumaque (small historical resource base with good expansion potential - 3 km from our mill).
14 comments:
You know, this is just soooooooooooooooo disappointing...no blank holes, no runout of mineralization, just gold, gold, gold. Such terrible values, too! Ha! Take that, all ye disbelievers!
Off to the races...
GOOD JOB A.M. and CREW!
``This first drill station was designed to test the extent of both the Bedard Dyke contacts and the internal structure of the mineralization in areas where no previous drilling has been done. These results, along with the continued drilling campaigns in the Bedard Dyke, will be used to complete a new 3D wireframe model to assist in mine planning and resource estimation.``
It doesn`t sound like all of the holes were below the top layer of existing mineralization. It sounds like a combination of everything - test the extent of the contacts, test the internal structure where it wasn`t drilled before, etc. It sounds like the program was designed with a number of objectives in mind. Either way, the drill program provided excellent info that will be very useful for both mining purposes and resource building exercises, as well as future drill programs.
Production05
Could you please explain the "cut" and "uncut" process.
Thanks
Dennis, Fredericton
I'm struggling to understand why we're getting no s/p movement today. I'd expected a positive bump from the Toronto Mining Conference alone, but with the drilling results announcement we should we should be way up today.
These results are consistent with what we found in March news release. I think the mineralization will continue at depth as well.
Does anyone know if Agnico Eagle's mine close to us have a similar mineralization as Bedard Dyke?
Thanks
Hi Dennis,
Unfortunately, I don`t have a technical answer for you. I don`t have the expertise. I can only provide what has been my intrepreation all alone. I have always figured that they cut the sample (mainly for very high grade assays) in order for it not to influence the general population (the average). For example, one could come across an isolated high grade rock of 3,000 g/t, while the general population of the ore body is 99.9% within the 5 g/t grade area. If they don`t cut the 3,000 g/t rock down to a more reasonable max limit, say, 31.1 g/t, (before entering the results into the database for resource calculation) then that 3,000 g/t assay will misrepresent the general population (and move the average higher than the more realistic average). I`ve always assumed that they do this especially for mine planning and resource management purposes.
Anyway, that has always been my own thinking as to why they do it. Perhaps someone else has a more technical answer.
Myles,
Yeah, it`s difficult to comprehend about the share price. The drill results couldn`t have been much better. It confirms that we have some extremely high grade pockets within the Bedard Dyke. There are naturally a lot of benefits. One of the benefits that come to mind is the abilities to blend the high grades with the lower grades. In my view, it helps the extremely low grades to become economical. For example, let`s say they bulk mine a vast area during long-hole mining. I imagine they can just blast out a giant area without having to worry about if some of the grades are too low. The 20 g/t ore that they are pulling in the blast can compensate for 3 or 4 ore items that are, say, only .5 to 1.0 g/t, in order to average out to 5.0 g/t for the entire blast pool. In order words, in my view, in a long-hole big bulk blast, we can maximize our gold output (allow us to send lower grade ore to the mill, as part of the blast group) without sacrificing average grade.
Anyway, the market didn`t have a reaction to any of our previous Bedard Dyke drill results either (and they were great also). I guess people are only interested in production numbers when it comes to Century.
Also, the NR didn`t include a clear date as to when the Bedard Dyke production will come onstream. Thus, people are probably confused as to when that will happen. My understanding is they (the company) is expecting late/end of October, which I kinda figured anyway (based on progress status showed in the 2 recent BD diagrams in the Corp Presentation). I don`t mind all that much. I just want them to do it right. This is an important part of our operation.
This was what Stockwatch assigned to Century`s NR heading today:
``Century Mining drills 1.34 m of 67.5 g/t Au at Bedard``
Now this was what Century used as the heading for their version of the NR:
``Century Mining's Underground Drill Program at Bedard Dyke Continues to Intersect High Grade Gold Values``
There was nothing wrong with Century`s version of the heading, as I think they tried to keep the focus on the overall performance of the drill program.
It probably wouldn`t have made a difference to the market which NR heading was used. After all, Century included 100 g/t in the heading of a previous BD news release earlier in the year and the market reaction was the same as it was today (a non-event or sell off).
However, with a US$1,300 gold price now, there are a lot of new people looking at gold and gold companies. Some of these people are likely looking for high grade exploration results when scanning headings of new releases.
It would be wise for the company to weigh this factor in when putting together their next exploration news release.
There is something seriously deficient in the presentation of CMM to the investment community. I confess to being a Margaret Kent fan and note that today Tamerlane, her newest venture, moved up 25 % today following her presentation at the Global Mining Finance Forum in London, England on Sept. 23, (last Thursday) I also recall that under her leadership, the share price reached .87. Unfortunately she let the CTO happen which undid the growth. Maybe its time to take advantage of her present consultancy to CMM role.
Dennis, Fredericton, N.B.
Cut and uncut [cut value (1)]is a term that refers to the grade of ore or rocks in the ground. In many veins or deposits there might be "nugget effects" (2) - where a highly concentrated spot or area is intersected by the core sample. A reasonable geologist will recognize this high concentration as anomalous and not representative of the entire vein, or not representative of the "average" concentration throughout and orebody. Therefore, rather than use a number based on a very high value, the geologist will "cut" or pare back the concentration to a value that seems more reasonable or representative of conditions on a wider basis.
So a value reported as "cut" tells you the geologist suspects the original (gross) concentration might be abnormally high and the geologists prefers a more conservative "cut" value as more representative of the actual conditions.
Therefore to get all excited about "uncut" numbers and to make an assumption that they represent actual wide-spread conditions is a trap one can easily fall into.
The other thing that investors frequently do is get excited by high numbers regardless of THE WIDTH of the intersection of the vein. While Bonanza grades are great to find, when they occur in narrow veins it makes the mining more difficult. Narrow vein material is harder to capture without including a bunch of barren "waste" rock and thus diluting the over all concentration fed to the mill.
1. Definition: cut value
1. Applies to assays that have been reduced to some arbitrary maximum to prevent erratic high values from inflating the average.
Source: Northern Miner
http://xmlwords.infomine.com/xmlwords.htm?term=cut&action=Mine+It!
2. Definition: nugget effect
1. Anomalously high precious metal assays resulting from the analysis of samples that may not adequately represent the composition of the bulk material tested due to nonuniform distribution of high-grade nuggets in the material to be sampled.
Source: SME, 1
http://xmlwords.infomine.com/xmlwords.htm?term=cut&action=Mine+It!
123
Though not a totally 'in-tune'
thing to comment under this posting, I still wish to say that CMM should consider seriously a name change to include the word Gold. New investors (particularly those not adequately informed) who are searching for gold stocks to buy may give CMM an unintended miss. Options mentioned were Century Gold Mining, New Century Gold Corp and Century Gold Corp. Hope to see this name change soonest possible.
We need to get production out of the Bedard Dyke first,the the SP will shake, rattle and roll. This NR looks like a prelude to a much bigger announcement coming up.It's like they laid it out there to keep us interested,especially the recent investors.Gold is high,a little bit of a roll lately BAM New CEO!
Production, the Stockwatch headline is nothing new for them. Do you remember what the Stockwatch headline was when we announced our first gold pour at Lamaque? It was "Century Mining fails to file 2009 results on time."
The Century headline was "CENTURY COMPLETES FIRST GOLD POUR AT LAMAQUE AND DISCUSSES LATE FILING OF DECEMBER 31, 2009 FINANCIAL STATEMENTS"
We got no mileage from the positive news from the first gold pour that was ahead of schedule because of the late filing of financials. Stockwatch likes to focus on the negatives in their headlines - not just for Century but other companies as well.
One of the reasons that I really hate dilution is that the shares and warrants that get offered up for private placements or debt settlements can weigh on the share price for a long time. BMO Nesbitt has been steadily selling shares for a long time - usually in blocks at the bid. Since last Monday they have sold another 678,000 shares. Someone at TD has been selling large blocks at the bid during the same period, but other TD buyers have made TD a net buyer. It's so hard to move up in share price when these shares that have not been purchased in the market are sold into strength when there is a little good news like we had today.
BTW Dennis this is part of Margaret Kent's legacy as she presided over a share price decrease from $1.89 to one cent! What we really need is a new CEO, a new head office location and a new company name.
Carib
I am eagerly waiting for the three things U mentioned in your last paragraph to happen
Just a few side notes.
From the BD NR:
``No resource estimate is currently published at the Bedard Dyke zone and all potential resources derived from the zone will be in addition to the current mineral resources already published for the Lamaque complex.``
The Sigma West area includes the Bedard Dyke zone, but I think its boundries likely extends slightly beyond BD, both horizontally and vertically.
The current 43-101 report classifies about 22,000 P&P Reserve ounces for Sigma West and an additional 71,000 Inferred ounces for Sigma West, for a total of 93,000 ounces. Now, it`s not clear if those ounces are too far at depth for near-term mining or if they can be mined with drifting from the Bedard Dyke decline.
It sounds like whatever our Bedard Dyke resource count will eventually be, it will likely be incremental to the existing 93,000 Sigma West ounces.
As an fyi, there are a couple of historical high grade-high thickness Sigma West holes at the 1,700 ft level, about 150 ft step out from a previously mined zone. It was mentioned in the April 6`09 NR. It steps out to the west (maybe bordering on being under the city). The company believes it`s a dyke structure. I guess they must know this from historical records of the zone that was previously mined down there. It`s likely not the Bedard Dyke because they haven`t drilled the BD beyond about 750 ft as yet. There must be a second dyke down there somewhere, perhaps one that was previously mined, but has the potential of still having significant step out (high grade-high thickness) mineralization.
Given that over 9 million ounces have been recovered right next to the city, one has to wonder how many more ounces can be recovered by going just a tiny bit under the city. Century owns the underground mining rights to go about 25% (or so) under the city. As mentioned in the past, it appears as if Wesdome`s very successful Kiena mine is almost entirely under a lake. Poster Moich has mentioned in the past that Yellowknife miners mined under the city of Yellowknife and underneath the Great Slave Lake quite frequently. Also, I think some salt mines are under lakes, such as the one under Lake Erie.
I think both the mid-term and long-term possibilities to add new ounces at Lamaque are endless, in add directions - depth (everything is still open), south (Lamaque Plug and veins below 3,500 ft, and West Plug), North (North Wall beyond the pit), East (huge land position, highly perspective properties beyond the current complex, with some very encouraging historical drill results), West (under the city), Sigma II (4 sq km land position with pit resource open at depth, about 20-25 km from Lamaque) and Aumaque (small historical resource base with good expansion potential - 3 km from our mill).
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