Century is starting to get some notice, primarily due to its recent increase in share price. In this MineWeb article it is at the top of a list of companies showing the greatest gains in the past year in percentage terms:
http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=81673&sn=Detail
Here's an excerpt:
Century Mining stays on top; this week it announced high grade intercept results from exploration drilling at its existing Lamaque mine in Canada. Century is just one example of a stock price previously sold down to "priced to go bust" levels during the worst latter months of 2008. It secured financing, a key to recovery, around 31 March.
The key to the company's success still remains the closing of the previously announced financing that was estimated to close in approximately 21 days from March 24, which would be sometime this week if all goes well.
It is Jim Sinclair's opinion that many of junior gold companies have been beaten down to ridiculously low levels by naked short selling. He speculates that the reasons they haven't covered yet is to force predatory financing terms on those juniors that need to raise cash to survive. If that is the case with Century and PK does pull off this financing and there is a significant short position on Century, then we could see some short covering after the financing closes.
Looking at the trading patterns of Century's stock for the past 9 months, it didn't need short selling to drive it down to the low single digits as Wega took care of that, but it is interesting to note that they had an accomplice in Canaccord. Since June of 2008, Canaccord has had net sales of 22 million shares. This wasn't institutional sales either as the only remaining large institutional holder didn't sell their shares until last December when they sold their 11+ million shares to PK and RB.
I suspect that a substantial portion of the 22 million in net Canaccord sales were for clients that were shorting the stock.
Here's the text of the Jim Sinclair article:
Why would an organized short seller not cover in the marketplace even after having accomplished extremely low prices in Gold juniors?
The main purpose of this new multi-year attack of the entire investment group of junior exploration, development and even producing shares has as its goal “To prevent the field from obtaining financing.”
The plan of the organized shorts is not to re-buy their short positions back in the marketplace but rather to by preventing the companies from normal financing do the following:
1. Force by necessity the company to do participation financing on predatory terms on extremely exciting properties.
2. Force the company by necessity to do private placements with warrants and options that favored the private placee to the degree of dilution to the present stockholder that is egregious.
3. Force by necessity the company to accept loans terms based on their property sure to result because of short timeline in the failure on the note and title on the property to pass to the hands of the private loan note placement party.
This explains the enigma of no cover.
The strategy of defense has been to determine any and all other means of financing rather than the normal chain of broker dealer networks now making more money from the perpetrators than the operating companies.
http://www.jsmineset.com/
Saturday, April 11, 2009
Thursday, April 9, 2009
The target date is quickly approaching
I guess yesterday's increase in share price was due to increased anticipation that the deal is moving along well.
Back to our recent high grade drill results:
Agnico-Eagle is producing gold at Goldex for $24 Cdn ($19 US) per tonne. Remember, their reserve grade is only 2.05 g/t (or .07 oz/t). They are achieving such low cost per tonne through high volume bulk mining. Remember though, their low grade means that they have to go through 17 tonnes to produce 1 ounce of gold, thus their $323 US cash cost per oz in Q4. Having a grade of 1 oz/t only requires going through 1 tonne to produce 1 ounce.
As mentioned before, all of the 4 new high grade zones (5 of the 6 drill holes) at Lamaque show grades of close to 1 oz/t. We don't know what the final grade average will be for each zone (once the entire zone is fully drilled), but we know it will be high (some may even continue to be close to 1 oz/t). However, let's do a sensitivity analysis of the cash cost per oz of these zones, assuming 1 oz/t, .75 oz/t, .50 oz/t and .25 oz/t averages.
Let's use Goldex's Q4 result of $19 US cost per tonne. There doesn't appear to be any fundamental disadvantages with our 4 new high grade zones. None are located deeper than the Goldex reserves. Also, the thickness of our 4 new zones are better than vein thickness at Goldex, best I can see. In addition, we will likely perform high volume bulk mining also (assuming we firm up the deposits of course).
Remember, Goldex had to go through 17 tonnes to produce 1 oz of gold.
Using Goldex's cost per tonne, Lamaque's potential cash cost per ounce for each of our 4 high grade new zones (assuming we have success in firming up the deposits):
* @ 1 oz/t = $19 US cash cost per ounce
* @ .75 oz/t = $26 US
* @ .50 oz/t = $39 US
* @ .25 oz/t = $77 US
Remember, this is cash cost per oz for high volume bulk mining of ounces in these new high grade zones. Be it $19 or $26 or $39 or $77, it's all hugely profitable relative to a $900 gold price.
This is the potential of that last NR, just in case it wasn't quite clear.
Back to our recent high grade drill results:
Agnico-Eagle is producing gold at Goldex for $24 Cdn ($19 US) per tonne. Remember, their reserve grade is only 2.05 g/t (or .07 oz/t). They are achieving such low cost per tonne through high volume bulk mining. Remember though, their low grade means that they have to go through 17 tonnes to produce 1 ounce of gold, thus their $323 US cash cost per oz in Q4. Having a grade of 1 oz/t only requires going through 1 tonne to produce 1 ounce.
As mentioned before, all of the 4 new high grade zones (5 of the 6 drill holes) at Lamaque show grades of close to 1 oz/t. We don't know what the final grade average will be for each zone (once the entire zone is fully drilled), but we know it will be high (some may even continue to be close to 1 oz/t). However, let's do a sensitivity analysis of the cash cost per oz of these zones, assuming 1 oz/t, .75 oz/t, .50 oz/t and .25 oz/t averages.
Let's use Goldex's Q4 result of $19 US cost per tonne. There doesn't appear to be any fundamental disadvantages with our 4 new high grade zones. None are located deeper than the Goldex reserves. Also, the thickness of our 4 new zones are better than vein thickness at Goldex, best I can see. In addition, we will likely perform high volume bulk mining also (assuming we firm up the deposits of course).
Remember, Goldex had to go through 17 tonnes to produce 1 oz of gold.
Using Goldex's cost per tonne, Lamaque's potential cash cost per ounce for each of our 4 high grade new zones (assuming we have success in firming up the deposits):
* @ 1 oz/t = $19 US cash cost per ounce
* @ .75 oz/t = $26 US
* @ .50 oz/t = $39 US
* @ .25 oz/t = $77 US
Remember, this is cash cost per oz for high volume bulk mining of ounces in these new high grade zones. Be it $19 or $26 or $39 or $77, it's all hugely profitable relative to a $900 gold price.
This is the potential of that last NR, just in case it wasn't quite clear.
Monday, April 6, 2009
Very impressive drill results
It's hard to ask for too much more, as far as drill results go.
Five of the six drill holes are close to 1 ounce per tonne (this is enormous). Grades converted to ounce per tonne (from grams per tonne):
*drill hole #1243 - 1 oz/t
*#369 - .7
*#10875 - 1.2
*#1676 - .9
*#9251 - .8
*#9477 - .3
Historically, the Val d'Or area has realized great successes in mining high grade/narrow veins (well below 1 meter interval true thickness). Today's true thickness is significantly greater. Today's true thickness coverted to meters (from feet):
*drill hole #1243 - 4.9 meters
*#369 - 11.4
*#10875 - 1.8
*#1676 - 3.2
*#9251 - 4.5
*#9477 - 7.7
You combined the 1 oz/t result with the excellent thickness and you get a lot of gold within a space, which can be mined really cheaply.
Here are some other very positive points:
1) Holes 369, 10875, 9251 and 9477 are likely bulk mineable (the other 2 holes likely have bulk mining potential also)
2) The vast area around holes 369 and 10875 gives the impression of being interconnected with ore. The depth of hole 369 is 1704 ft and the depth is 1721 ft with hole 10875. The proximaty of these 2 holes (distance wise), and at similar depth levels, strongly suggests that ore continues between the 2 drill points. Also, there is a high probability that the ore extends from the main mine workings to these newly modeled intersections (as mentioned on the NR). Thus, all of this is giving me the impression that the connection of all these points (plus the ore depth, interval thickness and ore grade) provides high probability of this being a massive zone of high grade gold.
3) I see the area surrounding drill holes #9251 and #9477 having the exact potential as what I've described above (point #2).
4)Hole #1243 is only 113 meters down (345 ft) from the surface. As such, it represents yet another high grade area that can be mined early at Lamaque (if required).
Five of the six drill holes are close to 1 ounce per tonne (this is enormous). Grades converted to ounce per tonne (from grams per tonne):
*drill hole #1243 - 1 oz/t
*#369 - .7
*#10875 - 1.2
*#1676 - .9
*#9251 - .8
*#9477 - .3
Historically, the Val d'Or area has realized great successes in mining high grade/narrow veins (well below 1 meter interval true thickness). Today's true thickness is significantly greater. Today's true thickness coverted to meters (from feet):
*drill hole #1243 - 4.9 meters
*#369 - 11.4
*#10875 - 1.8
*#1676 - 3.2
*#9251 - 4.5
*#9477 - 7.7
You combined the 1 oz/t result with the excellent thickness and you get a lot of gold within a space, which can be mined really cheaply.
Here are some other very positive points:
1) Holes 369, 10875, 9251 and 9477 are likely bulk mineable (the other 2 holes likely have bulk mining potential also)
2) The vast area around holes 369 and 10875 gives the impression of being interconnected with ore. The depth of hole 369 is 1704 ft and the depth is 1721 ft with hole 10875. The proximaty of these 2 holes (distance wise), and at similar depth levels, strongly suggests that ore continues between the 2 drill points. Also, there is a high probability that the ore extends from the main mine workings to these newly modeled intersections (as mentioned on the NR). Thus, all of this is giving me the impression that the connection of all these points (plus the ore depth, interval thickness and ore grade) provides high probability of this being a massive zone of high grade gold.
3) I see the area surrounding drill holes #9251 and #9477 having the exact potential as what I've described above (point #2).
4)Hole #1243 is only 113 meters down (345 ft) from the surface. As such, it represents yet another high grade area that can be mined early at Lamaque (if required).
Saturday, April 4, 2009
Results from our neighbour’s mine (Lamaque’s bulk mining potential)
Agnico-Eagle’s Goldex mine (located in the Val d’Or area) recently finished its first full quarter (Q4) after achieving commercial production. Agnico-Eagle uses a bulk mining method to mine gold at that location. Here are some stats from Goldex:
*grade – 2.05 g/t (based on historical production, Lamaque’s bulk mining ounces will likely grade 4.5 to 5.5 g/t – gold grade more than twice as high as ounces at Goldex)
*location of gold reserves – about 1500 to 2300 ft down
*LOM expected cash cost per oz - $230
*Q4’s actual cash cost per oz - $323 (it will likely move lower, closer to the $230 target, once Goldex is fully ramped up)
*expected production – 160,000 ounces per year
Lamaque’s bulk mining potential:
1) bulk mining method may be possible with mining some zones identified in the Feb. 24’09 NR (“These newly defined dyke and shear structures indicate the presence of large virgin ore zones, which may be bulk mined within 2,000 feet of surface.”) – 1000 to 2000 ft
2) West Plug – 2800 to 5500 ft
3) Lamaque Main Plug – 4000 to 6000 ft
In addition, the Bedard Dyke appears to have at least 3 large high grade zones. The Bedard Dyke appears to start at the surface and go down to about 1000 ft.
The West Plug and the Lamaque Main Plug, combined, has potential for 2 million bulk mineable ounces.
We will likely not be able to begin upgrading (firming up) those 2 million bulk ounces for another 3 years. That’s alright though as we will not need those ounces for many years into the future (we have plenty of other economical ounces). Longer term though, those 2 million bulk mining ounces (once firmed up) should ensure Lamaque stays economically viable, under all gold price situations (even if by chance the gold price should happen to fall back to, say, $350 in 7 years time). Lamaque should be well positioned to succeed. It will help Century to ride out potential rough times in the gold price cycle, and become a multi-decade gold mining company (similar to what the LaRonde Mine did for Agnico-Eagle over the past couple of decades). This bulk mining contingency will eventually allow for greater long-term investor confidence in Century.
It may be possible to more rapidly access the bulk ounces (and high grade zones) located at 2,000 ft and below.
The ounces at Goldex are closer to the surface than most of the bulk mineable ounces at Lamaque, however, the much higher gold grade at Lamaque (relative to Goldex) should likely more than compensate for that shortfall.
I think it’s fairly reasonable to assume that cash cost per ounce for Lamaque’s bulk mineable ounces should be somewhat consistent with results being achieved by Goldex ($230 to $300 range) – perhaps even better.
*grade – 2.05 g/t (based on historical production, Lamaque’s bulk mining ounces will likely grade 4.5 to 5.5 g/t – gold grade more than twice as high as ounces at Goldex)
*location of gold reserves – about 1500 to 2300 ft down
*LOM expected cash cost per oz - $230
*Q4’s actual cash cost per oz - $323 (it will likely move lower, closer to the $230 target, once Goldex is fully ramped up)
*expected production – 160,000 ounces per year
Lamaque’s bulk mining potential:
1) bulk mining method may be possible with mining some zones identified in the Feb. 24’09 NR (“These newly defined dyke and shear structures indicate the presence of large virgin ore zones, which may be bulk mined within 2,000 feet of surface.”) – 1000 to 2000 ft
2) West Plug – 2800 to 5500 ft
3) Lamaque Main Plug – 4000 to 6000 ft
In addition, the Bedard Dyke appears to have at least 3 large high grade zones. The Bedard Dyke appears to start at the surface and go down to about 1000 ft.
The West Plug and the Lamaque Main Plug, combined, has potential for 2 million bulk mineable ounces.
We will likely not be able to begin upgrading (firming up) those 2 million bulk ounces for another 3 years. That’s alright though as we will not need those ounces for many years into the future (we have plenty of other economical ounces). Longer term though, those 2 million bulk mining ounces (once firmed up) should ensure Lamaque stays economically viable, under all gold price situations (even if by chance the gold price should happen to fall back to, say, $350 in 7 years time). Lamaque should be well positioned to succeed. It will help Century to ride out potential rough times in the gold price cycle, and become a multi-decade gold mining company (similar to what the LaRonde Mine did for Agnico-Eagle over the past couple of decades). This bulk mining contingency will eventually allow for greater long-term investor confidence in Century.
It may be possible to more rapidly access the bulk ounces (and high grade zones) located at 2,000 ft and below.
The ounces at Goldex are closer to the surface than most of the bulk mineable ounces at Lamaque, however, the much higher gold grade at Lamaque (relative to Goldex) should likely more than compensate for that shortfall.
I think it’s fairly reasonable to assume that cash cost per ounce for Lamaque’s bulk mineable ounces should be somewhat consistent with results being achieved by Goldex ($230 to $300 range) – perhaps even better.
Friday, April 3, 2009
AGM - held June 1, 2009 (Vancouver)
This might be a positive meeting, if all continues to go well over the next 10-12 days of course. Posted on SEDAR:
Date: 30/03/2009
510 Burrard St, 3rd Floor
Vancouver BC, V6C 3B9
www.computershare.com
To: All Canadian Securities Regulatory Authorities
Subject: CENTURY MINING CORPORATION
Dear Sirs:
We advise of the following with respect to the upcoming Meeting of Security Holders for the subject Issuer:
Meeting Type : Annual General and Special Meeting
Record Date for Notice of Meeting : 27/04/2009
Record Date for Voting (if applicable) : 27/04/2009
Meeting Date : 01/06/2009
Meeting Location (if available) :
Vancouver Club
915 W. Hastings St.
Vancouver BC
Voting Security Details:
Description CUSIP Number ISIN
COMMON 15662P101 CA15662P1018
Sincerely,
Computershare Trust Company of Canada /
Computershare Investor Services Inc.
Agent for CENTURY MINING CORPORATION
Date: 30/03/2009
510 Burrard St, 3rd Floor
Vancouver BC, V6C 3B9
www.computershare.com
To: All Canadian Securities Regulatory Authorities
Subject: CENTURY MINING CORPORATION
Dear Sirs:
We advise of the following with respect to the upcoming Meeting of Security Holders for the subject Issuer:
Meeting Type : Annual General and Special Meeting
Record Date for Notice of Meeting : 27/04/2009
Record Date for Voting (if applicable) : 27/04/2009
Meeting Date : 01/06/2009
Meeting Location (if available) :
Vancouver Club
915 W. Hastings St.
Vancouver BC
Voting Security Details:
Description CUSIP Number ISIN
COMMON 15662P101 CA15662P1018
Sincerely,
Computershare Trust Company of Canada /
Computershare Investor Services Inc.
Agent for CENTURY MINING CORPORATION
CMM closes remainder of FT financing
Century Mining Closes Remainder of Flow-Through Share Financing
BLAINE, WA, April 3 /CNW/ - Century Mining Corporation (CMM: TSX-V) announced today that it has closed the remaining balance of a non-brokered private placement of 1,902,474 flow-through shares at a subscription price of C$0.13 per flow-through share for gross proceeds of C$247,321. Today's closing completes the flow-through financing originally announced on March 24, 2009 of 15,384,615 flow-through shares for total gross proceeds of $2.0 million.
About Century Mining Corporation
Century Mining Corporation is a junior gold producer. The Company owns and is working towards the restart of the Lamaque mine in Québec that historically has produced over 9.2 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Total gold production for 2006 and 2007 was 70,401 ounces and 63,124 ounces of gold, respectively.
"Margaret M. Kent"
Chairman, President & CEO
BLAINE, WA, April 3 /CNW/ - Century Mining Corporation (CMM: TSX-V) announced today that it has closed the remaining balance of a non-brokered private placement of 1,902,474 flow-through shares at a subscription price of C$0.13 per flow-through share for gross proceeds of C$247,321. Today's closing completes the flow-through financing originally announced on March 24, 2009 of 15,384,615 flow-through shares for total gross proceeds of $2.0 million.
About Century Mining Corporation
Century Mining Corporation is a junior gold producer. The Company owns and is working towards the restart of the Lamaque mine in Québec that historically has produced over 9.2 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Total gold production for 2006 and 2007 was 70,401 ounces and 63,124 ounces of gold, respectively.
"Margaret M. Kent"
Chairman, President & CEO
Wednesday, April 1, 2009
Updated technical report - Lamaque
The report has been updated to include the additional ounces (recently published) - 700,000 or so. It now reflects the new Lamaque 43-101 total - 5.3 million ounces. Report is now on SEDAR - March 31, 2009 filing date.
Trading Summary for April 1
Fairly predictable market action today. After running up fairly quickly to 19 cents, the profit takers started hitting the bids and lowering the asks.
BMO Nesbitt had placed asks of 100,000 shares at the 15, 16, 18 and 19 cent levels in late February and when all of the 19-cent shares failed to sell today, they dumped another 200k shares at 16 to 17 cents.
TD has been a consistent profit taker the past week or more after accumulating over 8 million shares in Jan and Feb. UBS bought 100k shares at 14.5 cents on Friday and sold them today at 17 cents for a $2,500 gain.
It's all part of the normal process of moving higher and the new buyers will probably want much higher prices before they take profits.
Odds and ends
1) I guess some bottom feeders are cashing in their big profits today. Too bad they are not interested in $.35 - $.60, which is likely not too far away. I guess it provides a good entry point for other new investors. I look forward to Century closing off the remaining $250K FT financing (on or before April 3rd). It's not clear if any of those participants are still raising cash today (via sales of exising CMM shares), but it's possible also.
2) The Calgary investment conference is happening this upcoming weekend. Century's value proposition is becoming more compelling with each passing day. It's unclear if new folks will invest in Century via the conference, but at least Century can now paint a picture that most investors an relate to.
3) Based on a previous NR, it sounds like analysts were kicking Century's tires a little bit at the Toronto conference. I wouldn't be surprised if we finally get analyst coverage at some point down the road (after financing has been closed off and perhaps after some other improvements have been made).
4) Also, with financing and operational progress, both a TSX big board listing and a Lima listing may be possible. I think the TSX listing is way into the future, perhaps not until Lamaque is substantially ramped up and demonstrates solid performance results (including cash cost). I wouldn't be surprised if the Lima listing comes first. By the way, there are likely multiple ways of getting a Lima listing. I don't necessarily think it has to be by way of only the traditional method, as other ways may allow for 2 or 3 company goals to be achieved at the same time - I think our options are open.
5) I vaguely remember seeing a picture of an assay lab that is located at the Lamaque Complex, but I don't recall where I saw it (thus I don't know where to look to view it again). An active assay lab (if it exists and if they reopen it for this purpose) should help quite a bit with the exploration efforts. They will be able to get quicker results, thus be able to better pinpoint their targets. They would still need to send away for some independent confirmation (I assume), but an active in-house assay lab should still be of great assistance. They would also need to weigh the cost of reopening it versus the benefits gained.
6) Century had a couple of new drill rigs at Lamaque, but I will assume they had to send them back due to the 2008 credit situation (although I don't know). Nevertheless, it should be extremely easy to sign up a drill contractor these days, with what has happened to exploration companies over the past year. Also, Century should have absolutely no problems with hiring miners and purchasing/leasing mining equipment, once that time has arrived.
7) IQ was willing to reduce our LT Debt amount from $15M Cdn to $9M Cdn if the Fortis deal had gone through - if was their part to help us close off the Fortis deal, and thus create jobs in Quebec. It is not clear where they stand with this current (Union) deal. IQ's balance will be paid down at closing, but it's unclear what the amount will be. Let's hope we still get some sort of discount, as the extra money will provide more contingency down the road. (although I have said it many times before, I'll say it one more time) IQ has been a great partner, from what I can see. We have been fortunate to have them over the past year or two. IMO, they have contributed quite a bit to the success we are now beginning to realize. Perhaps they will continue to partner with us on new projects down the road.
2) The Calgary investment conference is happening this upcoming weekend. Century's value proposition is becoming more compelling with each passing day. It's unclear if new folks will invest in Century via the conference, but at least Century can now paint a picture that most investors an relate to.
3) Based on a previous NR, it sounds like analysts were kicking Century's tires a little bit at the Toronto conference. I wouldn't be surprised if we finally get analyst coverage at some point down the road (after financing has been closed off and perhaps after some other improvements have been made).
4) Also, with financing and operational progress, both a TSX big board listing and a Lima listing may be possible. I think the TSX listing is way into the future, perhaps not until Lamaque is substantially ramped up and demonstrates solid performance results (including cash cost). I wouldn't be surprised if the Lima listing comes first. By the way, there are likely multiple ways of getting a Lima listing. I don't necessarily think it has to be by way of only the traditional method, as other ways may allow for 2 or 3 company goals to be achieved at the same time - I think our options are open.
5) I vaguely remember seeing a picture of an assay lab that is located at the Lamaque Complex, but I don't recall where I saw it (thus I don't know where to look to view it again). An active assay lab (if it exists and if they reopen it for this purpose) should help quite a bit with the exploration efforts. They will be able to get quicker results, thus be able to better pinpoint their targets. They would still need to send away for some independent confirmation (I assume), but an active in-house assay lab should still be of great assistance. They would also need to weigh the cost of reopening it versus the benefits gained.
6) Century had a couple of new drill rigs at Lamaque, but I will assume they had to send them back due to the 2008 credit situation (although I don't know). Nevertheless, it should be extremely easy to sign up a drill contractor these days, with what has happened to exploration companies over the past year. Also, Century should have absolutely no problems with hiring miners and purchasing/leasing mining equipment, once that time has arrived.
7) IQ was willing to reduce our LT Debt amount from $15M Cdn to $9M Cdn if the Fortis deal had gone through - if was their part to help us close off the Fortis deal, and thus create jobs in Quebec. It is not clear where they stand with this current (Union) deal. IQ's balance will be paid down at closing, but it's unclear what the amount will be. Let's hope we still get some sort of discount, as the extra money will provide more contingency down the road. (although I have said it many times before, I'll say it one more time) IQ has been a great partner, from what I can see. We have been fortunate to have them over the past year or two. IMO, they have contributed quite a bit to the success we are now beginning to realize. Perhaps they will continue to partner with us on new projects down the road.
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