This was the BNN video from last December (for anyone who hasn`t seen as yet). It`s with Mark Lackey who is the VP of strategies at Hampton Securities. It`s only 30 seconds but his comments were genuine. He backed up his views by purchasing over 500,000 Century shares with his own personal money. He is probably up about 75% (at least) on this investment. He talks Century at about the 5.15 mark of the video.
Carib, we now have 2 analyst videos on Century. Not sure if it`s worth having a video area on the blog page to link these 2 analyst videos (perhaps more to come). They are not posted on the Century site so this can act as a compliment for people performing DD on Century.
http://watch.bnn.ca/clip247949#clip247949
Friday, April 9, 2010
Today`s BNN clip on Century
Victor says Century is easily $1.50. He says he is a big believer in the story. He was on the Commodities Mailbag show on BNN. He mentions Century Mining at around the 3.30 mark on the video. Hopefully Mark Lackey (Hampton Securities) will get back on BNN soon also.
http://watch.bnn.ca/#clip287051
http://watch.bnn.ca/#clip287051
Thursday, April 8, 2010
Even though (now) fully financed, Century`s $.47 share price still includes ZERO value for Lamaque
No value given for almost 6M 43-101 ounces in the ground and no value for having one of the largest milling operations (and one of the very few milling operations) in the entire gold mining region (and the only mill in the region with significant spare capacity (both from 2,000 to 3,000 tpd, and the abilities to scale back up to 5,000 tpd with further midifications) - in a region where there seems to be limitless small exploration companies, with gold deposits, that will be looking to hook up with a local mill operation to process their ore in the near-future and for many years into the future (either via JV or M&A, custom milling or otherwise)).
Century needs to do a far better job in selling itself. It actually has something of significant value to sell, unlike the majority of the companies in the space, in my opinion.
Century`s financial stats for the first 9 months of 2009 (YE numbers should be out around April 15th):
1) 2009 (first 9 months) Earnings from Mine Operations = $6,269,460
2) 2009 (first 9 months) Cash Flow from Operations = $7,716,484
3) 2009 (first 9 months) Net Profit for Century overall = $5,439,938
Century realized record gold production at San Juan in Q4. Also, the gold price was a historical record high in Q4. Century`s full year numbers will be higher than those 9 month numbers.
Let`s say that Cash Flow from Operations come in at around $9.0M for full year 2009.
We know that San Juan`s production target is around 20,000 ounces in 2010, which is about 3,000 ounces greater than 2009. Let`s say that it (plus the US$1,100+ gold price for the entire year) pushes the 2010 cash flow up to $11M (just San Juan, without Lamaque).
$11,000,000 / 340,000,000 outstanding Century shares = $.032 CF per share
$.032 * 15 CF to share price ratio in a US$1,150 gold price bull market = $.485 share price
Today`s Century share price closed at $.47
As such, WE (SHAREHOLDERS) HAVE RECEIVED ZERO VALUE FOR OUR LAMAQUE ASSET THUS FAR.
By the way, San Juan has been hugely successful relative to other small gold focused producers. San Juan has carried costs for the entire Century business. Very few small producers in the space even show a profit.
Below is a comparative analysis (of companies with small producing gold mines) I had orginally posted back in February. Look especially at the cash cost per oz of these small operations.
The results below reflect Q3`09 results .
San Juan Gold Mine (Century Mining):
*Operating country - Peru
*Operating earnings - $2,334,568
*Net income (Net loss), company overall - $2,689,470
*Gold production or sale (ounces) - 4,561
*Total cash cost per oz - US$486
1) Dynacor Gold Mines:
*Operating country - Peru
*Operating earnings (Loss) - $(329,215)
*Net income (Net loss), company overall - $(1,529,000)
*Gold production or sale (ounces) - 3,321
*Total cash cost per oz - US$877
2) Sierra Minerals:
*Operating country - Mexico
*Operating earnings - $806,445
*Net income (Net loss), company overall - $30,751
*Gold production or sale (ounces) - 5,162
*Total cash cost per oz - US$753
3) Olympus Pacific:
*Operating country - Vietnam
*Operating earnings (Loss) - $330,247
*Net income (Net loss), company overall - $(2,175,166)
*Gold production or sale (ounces) - 4,053
*Total cash cost per oz - n/a
4) Alexis Minerals:
*Operating country - Canada (Quebec)
*Operating earnings - $352,619
*Net income (Net loss), company overall - $(1,714,536)
*Gold production or sale (ounces) - 7,883
*Total cash cost per oz - US$888
5) Avnel Gold:
*Operating country - Mali
*Operating earnings - $415,000
*Net income (Net loss), company overall - $(1,420,000)
*Gold production or sale (ounces) - 4,314
*Total cash cost per oz - US$802
6) Caledonia Mining:
*Operating country - Zimbabwe
*Operating earnings - $1,802,000
*Net income (Net loss), company overall - $846,000
*Gold production or sale (ounces) - 4,117
*Total cash cost per oz - n/a
7) Starcore International:
*Operating country - Mexico
*Operating earnings - $1,687,000
*Net income (Net loss), company overall - $562,000
*Gold production or sale (ounces) - 5,400 (gold equivalent)
*Total cash cost per oz - US$449
Century needs to do a far better job in selling itself. It actually has something of significant value to sell, unlike the majority of the companies in the space, in my opinion.
Century`s financial stats for the first 9 months of 2009 (YE numbers should be out around April 15th):
1) 2009 (first 9 months) Earnings from Mine Operations = $6,269,460
2) 2009 (first 9 months) Cash Flow from Operations = $7,716,484
3) 2009 (first 9 months) Net Profit for Century overall = $5,439,938
Century realized record gold production at San Juan in Q4. Also, the gold price was a historical record high in Q4. Century`s full year numbers will be higher than those 9 month numbers.
Let`s say that Cash Flow from Operations come in at around $9.0M for full year 2009.
We know that San Juan`s production target is around 20,000 ounces in 2010, which is about 3,000 ounces greater than 2009. Let`s say that it (plus the US$1,100+ gold price for the entire year) pushes the 2010 cash flow up to $11M (just San Juan, without Lamaque).
$11,000,000 / 340,000,000 outstanding Century shares = $.032 CF per share
$.032 * 15 CF to share price ratio in a US$1,150 gold price bull market = $.485 share price
Today`s Century share price closed at $.47
As such, WE (SHAREHOLDERS) HAVE RECEIVED ZERO VALUE FOR OUR LAMAQUE ASSET THUS FAR.
By the way, San Juan has been hugely successful relative to other small gold focused producers. San Juan has carried costs for the entire Century business. Very few small producers in the space even show a profit.
Below is a comparative analysis (of companies with small producing gold mines) I had orginally posted back in February. Look especially at the cash cost per oz of these small operations.
The results below reflect Q3`09 results .
San Juan Gold Mine (Century Mining):
*Operating country - Peru
*Operating earnings - $2,334,568
*Net income (Net loss), company overall - $2,689,470
*Gold production or sale (ounces) - 4,561
*Total cash cost per oz - US$486
1) Dynacor Gold Mines:
*Operating country - Peru
*Operating earnings (Loss) - $(329,215)
*Net income (Net loss), company overall - $(1,529,000)
*Gold production or sale (ounces) - 3,321
*Total cash cost per oz - US$877
2) Sierra Minerals:
*Operating country - Mexico
*Operating earnings - $806,445
*Net income (Net loss), company overall - $30,751
*Gold production or sale (ounces) - 5,162
*Total cash cost per oz - US$753
3) Olympus Pacific:
*Operating country - Vietnam
*Operating earnings (Loss) - $330,247
*Net income (Net loss), company overall - $(2,175,166)
*Gold production or sale (ounces) - 4,053
*Total cash cost per oz - n/a
4) Alexis Minerals:
*Operating country - Canada (Quebec)
*Operating earnings - $352,619
*Net income (Net loss), company overall - $(1,714,536)
*Gold production or sale (ounces) - 7,883
*Total cash cost per oz - US$888
5) Avnel Gold:
*Operating country - Mali
*Operating earnings - $415,000
*Net income (Net loss), company overall - $(1,420,000)
*Gold production or sale (ounces) - 4,314
*Total cash cost per oz - US$802
6) Caledonia Mining:
*Operating country - Zimbabwe
*Operating earnings - $1,802,000
*Net income (Net loss), company overall - $846,000
*Gold production or sale (ounces) - 4,117
*Total cash cost per oz - n/a
7) Starcore International:
*Operating country - Mexico
*Operating earnings - $1,687,000
*Net income (Net loss), company overall - $562,000
*Gold production or sale (ounces) - 5,400 (gold equivalent)
*Total cash cost per oz - US$449
Tuesday, April 6, 2010
We are only scratching the surface in gold potential at Lamaque
1) 6 million ounces (or so) already identified (a lot of it being located only 1,000 ft/305 metres of the surface)
2) Century has reasons (including a limited few deep, strictly historical (non-43-101 compliant), drill holes in the database) to believe that the Lamaque Main Plug and the West Plug (both bulk mineable plugs) extends below the 3,500 ft/1,067 metre level on the Lamaque side (last depth mined). In the past, Teck was able to mine millions of ounces within (and around) the Lamaque Main Plug, down to 3,500 ft. Century geologists believe that the potential exist for these 2 plugs still host another 2 million ounces.
3) With Lamaque only being mined down to 3,500 ft/1,067 metres, (aside from bulk mineable plug potential) the logical thinking is that vein potential exist at Lamaque that could be similar to what has been realized next door on the Sigma side.
4) From today`s NR:
``Historically the Sigma mine was developed to the 6,100 foot level and the Lamaque mine to the 3,500 foot level. The Company believes that the gold mineralization continues to depth beneath both areas, and historically the grade has increased as the mine was developed deeper.``
The Sigma side has been mined down to 6,100 ft/1,860 metres. With expected higher grades at further depth (similar to many other u/g mines in the world) Century geologists are thinking there might be mineable mineralization below this level. This would have been a major challenge back when the gold price was US$250 - 300. However, a longer term gold price of anywhere between US$500 and US$1,100 makes for a good avenue to explore (especially if the grades at lower depth increases as is expected). One thing to remember is if the gold price happens to fall back then it means that operating costs (the inflated costs) will fall back also. For example, when the gold price was say US$350 to US$400 some of Barrick`s mines use to incur about US$150 to produce an ounce of gold. Now, I believe those same ounces (for those particular mines) are costing Barrick US$350 to US$500 to produce.
One should note that 1,860 metres convert to 1.86 kilometres.
Up the road from Lamaque, Agnico-Eagle is mining the LaRonde Mine down to 2.2 kilometres. They are currently putting in an internal shaft extention below that level to allow them to mine below 3.0 kilometres next year. In addition, Agnico-Eagle is currently exploration below 3.0 kilometres in hopes of going even deeper.
Agnico-Eagle can do this partly because they have by-product base metal credits. Lamaque will never be able to March LaRonde`s very low (net of by-product credits) cash cost per oz. However, if Century is able to identify reasonable grades at depth, mining below 1.86 kilometres on the Sigma side of Lamaque should be a profitable venture.
Check out Agnico`s video to see what they are doing with LaRonde (you have to click to the right where it says ``LaRonde video`` to get the video started). Century should try to do a similar video for Lamaque.
http://www.agnico-eagle.com/Our-Business/Operating-Mines/LaRondeMine/default.aspx
2) Century has reasons (including a limited few deep, strictly historical (non-43-101 compliant), drill holes in the database) to believe that the Lamaque Main Plug and the West Plug (both bulk mineable plugs) extends below the 3,500 ft/1,067 metre level on the Lamaque side (last depth mined). In the past, Teck was able to mine millions of ounces within (and around) the Lamaque Main Plug, down to 3,500 ft. Century geologists believe that the potential exist for these 2 plugs still host another 2 million ounces.
3) With Lamaque only being mined down to 3,500 ft/1,067 metres, (aside from bulk mineable plug potential) the logical thinking is that vein potential exist at Lamaque that could be similar to what has been realized next door on the Sigma side.
4) From today`s NR:
``Historically the Sigma mine was developed to the 6,100 foot level and the Lamaque mine to the 3,500 foot level. The Company believes that the gold mineralization continues to depth beneath both areas, and historically the grade has increased as the mine was developed deeper.``
The Sigma side has been mined down to 6,100 ft/1,860 metres. With expected higher grades at further depth (similar to many other u/g mines in the world) Century geologists are thinking there might be mineable mineralization below this level. This would have been a major challenge back when the gold price was US$250 - 300. However, a longer term gold price of anywhere between US$500 and US$1,100 makes for a good avenue to explore (especially if the grades at lower depth increases as is expected). One thing to remember is if the gold price happens to fall back then it means that operating costs (the inflated costs) will fall back also. For example, when the gold price was say US$350 to US$400 some of Barrick`s mines use to incur about US$150 to produce an ounce of gold. Now, I believe those same ounces (for those particular mines) are costing Barrick US$350 to US$500 to produce.
One should note that 1,860 metres convert to 1.86 kilometres.
Up the road from Lamaque, Agnico-Eagle is mining the LaRonde Mine down to 2.2 kilometres. They are currently putting in an internal shaft extention below that level to allow them to mine below 3.0 kilometres next year. In addition, Agnico-Eagle is currently exploration below 3.0 kilometres in hopes of going even deeper.
Agnico-Eagle can do this partly because they have by-product base metal credits. Lamaque will never be able to March LaRonde`s very low (net of by-product credits) cash cost per oz. However, if Century is able to identify reasonable grades at depth, mining below 1.86 kilometres on the Sigma side of Lamaque should be a profitable venture.
Check out Agnico`s video to see what they are doing with LaRonde (you have to click to the right where it says ``LaRonde video`` to get the video started). Century should try to do a similar video for Lamaque.
http://www.agnico-eagle.com/Our-Business/Operating-Mines/LaRondeMine/default.aspx
Century Prepares for First Gold Pour on Schedule at Lamaque Gold Project
Apr 06, 2010 09:38 ET
Century Prepares for First Gold Pour on Schedule at Lamaque Gold Project
BLAINE, WASHINGTON--(Marketwire - April 6, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to provide a progress update at its 100% owned Lamaque gold project located in Val-d'Or, Quebec, Canada. The Company is fully financed for the reopening of the Company's Lamaque gold project, and is on schedule and budget for its first gold pour in the second quarter of 2010.
Since reopening the Lamaque gold project in early January 2010, the Company has rehired and brought on a mining team in excess of 115 employees, and continues to fill vacant positions. The underground development crews continue to make excellent progress by re-opening the existing workings and are currently mining in #90 and #107 stopes, gearing up for the opening of #115 stope, and mining in several jumbo development headings that are located in ore. The crews continue to slash areas of the underground workings and main ramp to allow access for larger mine vehicles to reach the deeper ore zones, and have completed the installation of the new ventilation infrastructure. The development crews continue to stockpile underground ore at surface next to the crusher in preparation of production.
The Company has received a significant amount of the new equipment required for the re-opening of the Lamaque gold mine including the jaw crusher, cone crusher and crusher motors for the milling facility, and a 6 yard scooptram, a single boom jumbo drill, a 35 tonne truck, two scissor lifts and a boom truck for use underground. The new low profile equipment is expected to arrive on site in April, and the engineering team is in the process of procuring and installing the long term mine electrical system. Additional mine equipment not required at the Lamaque mine, including a two boom jumbo drill, small scooptram, two small underground trucks, and multiple jacklegs are being readied for shipment to the Company's San Juan gold mine in Peru to assist in the modernization and expansion of that operation.
The milling team continues to make significant progress as they complete the modifications within the Lamaque mill facility and maintain the refurbishment on schedule. The 3,000+ tonne per day milling facility is expected to commence grinding test runs on April 8, 2010 in preparation for mill feed throughput from the stockpiled ore mined underground since March 1, 2010. As indicated earlier in the year, gold production is expected by the end of May 2010, but with the current progress both on surface and underground, the first gold pour could be brought forward if operations continue at the current rate. The engineering and operational teams continue to monitor this situation and will adjust mine plans accordingly.
Information and data received from the February 2010 exploration and definition drill program on the Bedard Dyke has assisted in the completion of the mine plan and block model for the upcoming underground development program in the Bedard Dyke zone. The current design is being reviewed by Golder Associates for rock mechanics, and the Company is currently implementing the staffing plan and services engineering and design for the project. The development crews are currently preparing to secure the ground above the Bedard Dyke portal area, level the pad in front, and finalize the purchase of the required electrical equipment. The Bedard Dyke is the second zone in the mine plan to be developed through long-hole open-stoping, which will subsequently increase the daily tonnage. The Company is currently finalizing the mine plans for the third zone, named the North Wall, which will be mined with the same method and is expected to be developed in the latter part of 2010. All three areas, Lamaque #2, Bedard Dyke and North Wall, are all accessed via the historical Sigma pit.
The Company is finalizing the upcoming 150,000 foot (45,700+ meter) exploration and definition drill program at Lamaque, which is expected to commence in May 2010 and continue over a three-year period. Historically the Sigma mine was developed to the 6,100 foot level and the Lamaque mine to the 3,500 foot level. The Company believes that the gold mineralization continues to depth beneath both areas, and historically the grade has increased as the mine was developed deeper. The onsite assay lab is now fully operational and will be essential to ensure that accurate and timely sampling from the mine stope development continues without delay, and will also play a key role in ensuring assays are received from the drill program.
Members of the environmental team are preparing plans for waste dump reclamation and expect to commence the removal of material in the second quarter of 2010. Century is taking the steps and making the required investments to minimize the visible areas of the mine from the town and to also control any potential dust from the site. The Company has also arranged the sale of approximately one million tonnes of waste material from the waste dump on site, which will be used as road material offsite by an external contractor.
Senior management continues to focus its energy on the reopening of the Lamaque gold mine. Upon the first gold pour and successful commencement of operations at Lamaque, the Company will ramp up exploration efforts on priority targets and take action on its corporate strategy of reviewing synergistic gold opportunities to take the necessary steps to becoming a mid-tier gold producer.
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,
Margaret M. Kent, President & CEO
Century Prepares for First Gold Pour on Schedule at Lamaque Gold Project
BLAINE, WASHINGTON--(Marketwire - April 6, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to provide a progress update at its 100% owned Lamaque gold project located in Val-d'Or, Quebec, Canada. The Company is fully financed for the reopening of the Company's Lamaque gold project, and is on schedule and budget for its first gold pour in the second quarter of 2010.
Since reopening the Lamaque gold project in early January 2010, the Company has rehired and brought on a mining team in excess of 115 employees, and continues to fill vacant positions. The underground development crews continue to make excellent progress by re-opening the existing workings and are currently mining in #90 and #107 stopes, gearing up for the opening of #115 stope, and mining in several jumbo development headings that are located in ore. The crews continue to slash areas of the underground workings and main ramp to allow access for larger mine vehicles to reach the deeper ore zones, and have completed the installation of the new ventilation infrastructure. The development crews continue to stockpile underground ore at surface next to the crusher in preparation of production.
The Company has received a significant amount of the new equipment required for the re-opening of the Lamaque gold mine including the jaw crusher, cone crusher and crusher motors for the milling facility, and a 6 yard scooptram, a single boom jumbo drill, a 35 tonne truck, two scissor lifts and a boom truck for use underground. The new low profile equipment is expected to arrive on site in April, and the engineering team is in the process of procuring and installing the long term mine electrical system. Additional mine equipment not required at the Lamaque mine, including a two boom jumbo drill, small scooptram, two small underground trucks, and multiple jacklegs are being readied for shipment to the Company's San Juan gold mine in Peru to assist in the modernization and expansion of that operation.
The milling team continues to make significant progress as they complete the modifications within the Lamaque mill facility and maintain the refurbishment on schedule. The 3,000+ tonne per day milling facility is expected to commence grinding test runs on April 8, 2010 in preparation for mill feed throughput from the stockpiled ore mined underground since March 1, 2010. As indicated earlier in the year, gold production is expected by the end of May 2010, but with the current progress both on surface and underground, the first gold pour could be brought forward if operations continue at the current rate. The engineering and operational teams continue to monitor this situation and will adjust mine plans accordingly.
Information and data received from the February 2010 exploration and definition drill program on the Bedard Dyke has assisted in the completion of the mine plan and block model for the upcoming underground development program in the Bedard Dyke zone. The current design is being reviewed by Golder Associates for rock mechanics, and the Company is currently implementing the staffing plan and services engineering and design for the project. The development crews are currently preparing to secure the ground above the Bedard Dyke portal area, level the pad in front, and finalize the purchase of the required electrical equipment. The Bedard Dyke is the second zone in the mine plan to be developed through long-hole open-stoping, which will subsequently increase the daily tonnage. The Company is currently finalizing the mine plans for the third zone, named the North Wall, which will be mined with the same method and is expected to be developed in the latter part of 2010. All three areas, Lamaque #2, Bedard Dyke and North Wall, are all accessed via the historical Sigma pit.
The Company is finalizing the upcoming 150,000 foot (45,700+ meter) exploration and definition drill program at Lamaque, which is expected to commence in May 2010 and continue over a three-year period. Historically the Sigma mine was developed to the 6,100 foot level and the Lamaque mine to the 3,500 foot level. The Company believes that the gold mineralization continues to depth beneath both areas, and historically the grade has increased as the mine was developed deeper. The onsite assay lab is now fully operational and will be essential to ensure that accurate and timely sampling from the mine stope development continues without delay, and will also play a key role in ensuring assays are received from the drill program.
Members of the environmental team are preparing plans for waste dump reclamation and expect to commence the removal of material in the second quarter of 2010. Century is taking the steps and making the required investments to minimize the visible areas of the mine from the town and to also control any potential dust from the site. The Company has also arranged the sale of approximately one million tonnes of waste material from the waste dump on site, which will be used as road material offsite by an external contractor.
Senior management continues to focus its energy on the reopening of the Lamaque gold mine. Upon the first gold pour and successful commencement of operations at Lamaque, the Company will ramp up exploration efforts on priority targets and take action on its corporate strategy of reviewing synergistic gold opportunities to take the necessary steps to becoming a mid-tier gold producer.
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,
Margaret M. Kent, President & CEO
Sunday, April 4, 2010
Thoughts on first gold pour timeline
If one was to wear a PR campaign hat then first gold pour in April or May is better for short term positive market vibes AND FOR SHAREHOLDER CONFIDENCE IN THIS MANAGEMENT TEAM. Beating expectations is something this company NEVER did in the past. Long time shareholders suffered deeply and continually. Long time Century shareholders deserve the world for all that they have suffered through (even pre-financial crisis) during a period of the highest gold prices in the history of the planet.
However, when one puts on the operating efficiency hat then the view of a June 1st gold pour may be preferable.
With 200 tpd mining achieved at the end of March (assuming peak at 200 tpd for March, and not an avg of 200 tpd for the month), then we may be looking at about 3,000 to 3,500 tonnes of ore stockpiled in March.
If the company delivers on the target of 200 - 300 tpd ore mined in April then we may be looking at a further 6,000 to 8,000 tonnes of ore stockpiled in April.
This would bring us to a total of somewhere between 9,000 to 11,500 tonnes of ore stockpiled at the end of April.
Now, the company`s target for ore mining is 500 - 800 average for May. Let`s assume they deliver on that.
Let`s also assume they start the crushing process at mid May, with the intentions of first gold pour on June 1st (to hit the clock target on the company`s website).
It would likely mean a further 8,000 - 9,000 tonnes of ore gets stockpiled in the first half of May.
If all goes well, this would now bring the stockpiled ore total up to somewhere between 17,000 to 21,000 tonnes of ore.
If they are still mining 500 - 800 tpd in the second half of May, I can easily see them mixing in ore from the 17,000 to 21,000 tonne stockpile, to enable them to run 1,200 tpd through the mill once processing start up begins.
I think running 1,200 tpd through the mill starting in mid May is much more efficient than running maybe 400 - 600 tpd (daily mined + from stockpile) through the mill starting mid April.
Under this scenario, I can see them using the stockpile ore to enable them to process 1,200 tpd (through the mill) for both the second half of May and June, and maybe part of July.
As such (from the presentation):
``average daily tonnage is expected to average 1200-1400 tpd for 2010 as new zones are brought into production in the latter part half of 2010``
This statement may be refering to tpd average from the milling operation for 2010.
Who knows - only time will tell I suppose.
However, when one puts on the operating efficiency hat then the view of a June 1st gold pour may be preferable.
With 200 tpd mining achieved at the end of March (assuming peak at 200 tpd for March, and not an avg of 200 tpd for the month), then we may be looking at about 3,000 to 3,500 tonnes of ore stockpiled in March.
If the company delivers on the target of 200 - 300 tpd ore mined in April then we may be looking at a further 6,000 to 8,000 tonnes of ore stockpiled in April.
This would bring us to a total of somewhere between 9,000 to 11,500 tonnes of ore stockpiled at the end of April.
Now, the company`s target for ore mining is 500 - 800 average for May. Let`s assume they deliver on that.
Let`s also assume they start the crushing process at mid May, with the intentions of first gold pour on June 1st (to hit the clock target on the company`s website).
It would likely mean a further 8,000 - 9,000 tonnes of ore gets stockpiled in the first half of May.
If all goes well, this would now bring the stockpiled ore total up to somewhere between 17,000 to 21,000 tonnes of ore.
If they are still mining 500 - 800 tpd in the second half of May, I can easily see them mixing in ore from the 17,000 to 21,000 tonne stockpile, to enable them to run 1,200 tpd through the mill once processing start up begins.
I think running 1,200 tpd through the mill starting in mid May is much more efficient than running maybe 400 - 600 tpd (daily mined + from stockpile) through the mill starting mid April.
Under this scenario, I can see them using the stockpile ore to enable them to process 1,200 tpd (through the mill) for both the second half of May and June, and maybe part of July.
As such (from the presentation):
``average daily tonnage is expected to average 1200-1400 tpd for 2010 as new zones are brought into production in the latter part half of 2010``
This statement may be refering to tpd average from the milling operation for 2010.
Who knows - only time will tell I suppose.
Saturday, April 3, 2010
Idea for a Century base metals exploration company
The new company would strictly be to create shareholder value for existing Century shareholders (something that has been foreign to long suffering Century shareholders). I posted it on Stockhouse as a comment to a Stockhouse post.
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=28098373&l=0&r=0&s=CMM&t=LIST
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=28098373&l=0&r=0&s=CMM&t=LIST
Friday, April 2, 2010
Owner of the property immediately to the Northwest and West of Lamaque
Firstly, you`re very welcome Carib.
The property that borders Lamaque, to the northwest and west (the west portion represents mining rights underneath Val dÒr), is currently owned by a private (exploration) company called Harricana River Mining. It looks like Harricana`s Val dÒr property has about 195,000 (uncut) 43-101 ounces (@ 5.22 g/t) - per Copper Reef`s March 19th NR. Harricana is in the process of being acquired by a tiny company (Copper Reef) that trades of the CNSX exchange.
Here is Harricana`s website. There is hardly anything on the site. However, they do have a few maps, which might provide an appreciation of the property location.
http://www.harricanarivermining.com/45edit.htm
Link to Copper Reef`s website:
http://www.copperreef.com/
The property that borders Lamaque, to the northwest and west (the west portion represents mining rights underneath Val dÒr), is currently owned by a private (exploration) company called Harricana River Mining. It looks like Harricana`s Val dÒr property has about 195,000 (uncut) 43-101 ounces (@ 5.22 g/t) - per Copper Reef`s March 19th NR. Harricana is in the process of being acquired by a tiny company (Copper Reef) that trades of the CNSX exchange.
Here is Harricana`s website. There is hardly anything on the site. However, they do have a few maps, which might provide an appreciation of the property location.
http://www.harricanarivermining.com/45edit.htm
Link to Copper Reef`s website:
http://www.copperreef.com/
A Few Comments
Thank-you Production05 for your continuing excellent contributions to the Blog. It is very much appreciated by me and I'm sure all readers of the blog.
I don't know how Century can say they expect to average 1200 - 1400 tpd in 2010, but only peak at 2,000 tpd in 2011. If we start in March at 200 tpd and finish in December at 2,000 tpd then that is an average of 1,100 tpd for the March to December period - assuming a steady rate of increase. Over the whole year, it is less than 1,000 tpd average.
If we exit 2010 at a production rate of 2,000 tpd, that is equivalent to over 100,000 oz/yr from Lamaque alone. San Juan should be at an annual rate of 20,000 oz/yr by then as well giving an annual production rate of 120,000 oz/yr by year-end. I don't see how we can still be capitalizing costs for the full year if commercial production is defined as 60% of rated capacity.
At a production rate of 120,000 oz/yr and a cash cost of say $550/oz, we would be generating annual cash flows (at $1100 gold) of $66,000,000. A 10x multiple would equate to a share price of about $1.65. 9 months is not long to wait for a quadrupling of the current share price if Century "walks the talk". A key to shorter term price appreciation may be the Analysts' Tour in May. I don't think pouring the first gold bar will be all that significant. We poured lots of gold bars from the Sigma Pit. The key for institutions will be cash flow and earnings.
I've added a new link to the right entitled "2010 Trading Summary" and provided a direct link to the April Corporate Presentation.
I don't know how Century can say they expect to average 1200 - 1400 tpd in 2010, but only peak at 2,000 tpd in 2011. If we start in March at 200 tpd and finish in December at 2,000 tpd then that is an average of 1,100 tpd for the March to December period - assuming a steady rate of increase. Over the whole year, it is less than 1,000 tpd average.
If we exit 2010 at a production rate of 2,000 tpd, that is equivalent to over 100,000 oz/yr from Lamaque alone. San Juan should be at an annual rate of 20,000 oz/yr by then as well giving an annual production rate of 120,000 oz/yr by year-end. I don't see how we can still be capitalizing costs for the full year if commercial production is defined as 60% of rated capacity.
At a production rate of 120,000 oz/yr and a cash cost of say $550/oz, we would be generating annual cash flows (at $1100 gold) of $66,000,000. A 10x multiple would equate to a share price of about $1.65. 9 months is not long to wait for a quadrupling of the current share price if Century "walks the talk". A key to shorter term price appreciation may be the Analysts' Tour in May. I don't think pouring the first gold bar will be all that significant. We poured lots of gold bars from the Sigma Pit. The key for institutions will be cash flow and earnings.
I've added a new link to the right entitled "2010 Trading Summary" and provided a direct link to the April Corporate Presentation.
Thursday, April 1, 2010
April`s Corporate Presentation
Now on website. No major changes. A few quick notes:
1) (pg. 17 ) They confirmed that they have started to receive the new u/g equipment.
2) (pg. 17) Tender out for the 45,000 meter drill program.
3) (pg. 17) They mined 200 tpd u/g in March. Now, it doesn`t say if that is an average or if it is the max. If it`s the average for the month then the current tpd mining level might be slightly higher, at they would have been ramping up throughout the month. Having said that, I noticed that they kept the April targeted tpd at 200 - 300. If it`s not a conservative range then it likely means they expect to mine at current levels for the next month. Their target is 500 - 800 in May. I would like to see them ramp up much higher in April than the current 200 tpd level, but they likely need to wait for the additional ore sources to be prepared for mining first. I guess the good part is that all of the ore mined in March, and the ore to be mined in April (until they begin processing), is being stockpiled - eventually we will see the tpd mining numbers ramped up (the 500-800 in May) complimented further by the stockpiled ore (to push production in the first month or two).
4) (pg. 18) They have left this comment in place: ``average daily tonnage is expected to average 1200-1400 tpd for 2010``
5) (pg. 18) This comment is new to the presentation: ``in 2011 production is anticipated to peak around 2,000tpd``
http://www.centurymining.com/i/pdf/Presentation_April_2010_FINAL.pdf
1) (pg. 17 ) They confirmed that they have started to receive the new u/g equipment.
2) (pg. 17) Tender out for the 45,000 meter drill program.
3) (pg. 17) They mined 200 tpd u/g in March. Now, it doesn`t say if that is an average or if it is the max. If it`s the average for the month then the current tpd mining level might be slightly higher, at they would have been ramping up throughout the month. Having said that, I noticed that they kept the April targeted tpd at 200 - 300. If it`s not a conservative range then it likely means they expect to mine at current levels for the next month. Their target is 500 - 800 in May. I would like to see them ramp up much higher in April than the current 200 tpd level, but they likely need to wait for the additional ore sources to be prepared for mining first. I guess the good part is that all of the ore mined in March, and the ore to be mined in April (until they begin processing), is being stockpiled - eventually we will see the tpd mining numbers ramped up (the 500-800 in May) complimented further by the stockpiled ore (to push production in the first month or two).
4) (pg. 18) They have left this comment in place: ``average daily tonnage is expected to average 1200-1400 tpd for 2010``
5) (pg. 18) This comment is new to the presentation: ``in 2011 production is anticipated to peak around 2,000tpd``
http://www.centurymining.com/i/pdf/Presentation_April_2010_FINAL.pdf
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