Someone posted on Stockhouse that Peter Ball mentioned that statements will be out mid to late next week.
As a result, I posted the following comment/note on Stockhouse:
Yeah, it means that CMM is not late with the YE statements. I think Venture companies have to submit by April 30th. I think TSX ``big board`` companies have to submit by March 31st.
However, I am still somewhat disappointed that CMM didn`t get the statements in by April 15th. This would have been a great opportunity to show the TSX that CMM is ready to play in the big leagues with the TSX ``big board`` players. CMM has had a checkered past in meeting statement deadlines (usually with legit reasons, but still), and this would have been a good opportunity to show that CMM can step up (and file on March 31st) if granted an opportunity to graduate to the TSX.
After all, CMM did file on April 16th three years ago so they have shown they can do better than April 30th.
Maybe it`s a cost situation. It may cost more to have CMM`s staff work overtime to prepare the statements earlier and then the auditors might charge greater fees to have more people assigned to the CMM audit in order to complete the audit in less time. I know how these things work. I bet this is a key reason Century didn`t push the audit far ahead of schedule. Once they are on the TSX board (hopefully next year) then they will be able to hire more Century staff in anticipation of higher requirements.
Tuesday, April 20, 2010
Sunday, April 18, 2010
My thoughts on synergistic opportunities for small Val dÒr area producers
This is what I would do if was was consolidating small gold producers in the Val dÒr area.
This is only what I would do. This is only for blog discussion purposes. Naturally, no one should make investment decisions based on this blog post. The reality of what is happening may look completely different from my ideas. I have absolutely no privileged info as to what is actually being discussed. Also, NONE OF THE COMPANIES DISCUSSED BELOW (INCLUDING CENTURY MINING) MIGHT BE EVEN REMOTELY INTERESTED IN ANY OF MY IDEAS FOR SYNERGISTIC GAINS.
Firstly, I would prefer to see Century`s management stay completely away from any consolidations until Century`s share price hits $1.50 per share. Unlike some of the small producers in the Val dÒr area, I do not believe that Century needs to consolidate with other companies in the near-term of mid-term for Century shareholders to realize a significantly appreciated share prices. I just think it is absolutely essential for Century to deliver and excel with Lamaque (and continue with good results from San Juan). I think it is also mandatory for Century to demonstrate high standards with other areas of the business too (which, among many other things, includes issuing financial statements on time).
The 4 companies I would like to see consolidate are: Century (CMM), Northern Star Mining (NSM), Richmont Mines (RIC) and Alexis Minerals (AMC). Metanor (MTO) is a longer term possibility also, but I personally wouldn`t involve them at this time. Metanor is located too far north and do not offer sufficient synergistic opportunities to justify being included in this first phase of the consolidation process, IMO (even though they have one good property in the Val dÒr area with Inferred 43-101 resources). Wesdome is way too expensive to be considered, IMO.
Along with CMM`s share price needing to go to $1.50, it is my personal view that the share price of RIC, AMC and NSM all need to decrease for me to feel comfortable with a consolidation. With Century at $1.50, I might be able to live with the current share price of AMC at around $.35 (although I would prefer to see them at $.30 due to likely still needing about $30M or so to move their projects forward) and NSM at around $.30 (although I would prefer to see NSM at $.26 to $.28 due to having $42M in debt coming due in Aug/Sep of 2011, and me seeing their share price in serious trouble unless they get significant external help, again only my opinion). I see RIC`s share price as being too high right now – for my consolidation proposal. It needs to come down for my liking, especially when looking at results from their current operating mines.
Having said all of that, I would like to see a consolidation with CMM, NSM, RIC and AMC, but again, ONLY AT THE RIGHT PRICES. I would like Century to take the NO PRICE, NO DEAL approach. Realistically, I think the chances of it (all of these companies consolidating together) happening in the first consolidation phase is SLIM TO NONE. I think it needs to happen, but I think (IMO) there are TOO MANY EGOS involved and there will likely be (IMO) TOO MUCH PROTECTIONISM (especially with senior management level). What I think is most likely to happen is Century merging with only one of the companies, at least in the first phase consolidation.
It`s too bad because I think a CMM, NSM, RIC and AMC merger (at the right prices) would result in shareholders of all 4 companies realizing a triple (and a lot more over time with demonstrated execution) in their respective share price used at consolidation point.
Assuming all 4 companies merge, Century will likely need to arrange for debt/credit line financing to support the AMC ramp up. Depending on how Lamaque comes along with ramping up, Lamaque may be able to fund exploration and development efforts for many of the small properties over the next couple of years. Also, Century might be able to use the $15M from warrants plus CF from the consolidated assets to pay down the NSM $42M debt coming due Aug/Sep of 2011.
The consolidated group will have a flagship asset in Lamaque, to anchor the company. Having a 150,000 ounce per year type pure gold producer is essential for a growth company like this. The market wouldn`t embrace this type of company as much without a flagship asset like Lamaque, with 6 million ounces in the ground. Also, for the market to embrace this, it is critical to show a clear strategy of how the consolidated company will take severally under performing assets and turn them into winners. I think I have identified one major change that will partly address this and a few minor ones also. Here is how I would structure CMM, NSM, RIC and AMC into one company or at least here is what the consolidated company would look like (if I was in charge of such a task):
1) Lamaque Mill (CMM)
Ramped up to 2,000 tpd will likely generate 110,000 oz per year production. Shaft refurbishment in about 4 years will likely take it to 150K oz per yr. However, I`m hoping they will implement the 150,000 mine plan prior to 4 years (without using the shafts), especially if they are able convert significant ounces into P&P (in the upper levels) via the upcoming exploration program.
2) Beacon Mill (NSM)
RIC is currently bringing back the Francoeur mine into production for mid 2011. For starters, they are expecting 35,000 ounces of production per year for about 4 years. I believe the grade is plus 6 g/t. There is solid exploration potential to increase mine life. The problem with Francoeur is it is located (25 Km west of Rouyn-Noranda, Quebec) 110 kilometres from RIC`s Camflo Mill (near Val dÒr). They are currently planning to truck the ore 110 kilometres for processing. I believe it will cost RIC about $15M more to bring Francoeur to production stage. They can handle this through their existing cash position.
RIC recently initiated exploration on its Wasamac (advance exploration) property. It is located 10 km from Francoeur and 100 km from RIC`s Camflo Mill. They are currently planning to truck the ore 100 km for processing, once in production. Over 285,000 inferred ounces have been identified (plus 6 g/t grade). Drilling soon to be under way to move those ounces upwards and to add new ounces. There appears to be excellent exploration potential on existing known zones. Of course, a production decision cannot be made on the property without much more work being done first. It`s also a past producer with some mining infrastructure in place.
AMC`s Lac Pelliteir property is located 10 km from Wasamac and 20 km from Francoeur, but 100 km from AMC`s Aurbel Mill. AMC is planning on trucking the Lac Pelliteir ore 100 km for processing.
NSM`s Beacon Mill is located 28 km from NSM`s main mining property. The mill can currently process 900 tpd.
This is the biggest synergistic opportunity for all the companies I believe. I would physically move NSM`s Beacon Mill from its current location (near Val dÒr) and put it on the Wasamac property (near Rouyn-Noranda). Simultaneously, I would upgrade that mill from 900 tpd to 1,800 tpd. I would then have the Francoeur ore, the Wasamac ore (once ready) and the Lac Pellitier ore all feeding into the relocated and expanded Beacon Mill. It would mean Francoeur ore travels only 10 km instead of 110 km, Wasamac ore travels zero km instead of 100 km and Lac Pelliteir ore travels only 10 km instead of 100 km. It likely means that marginal high cash cost mined suddenly become very competitive mines (with not just savings from less travelling but serious economies of scale savings also), with a much greater chance of remaining open if the gold price should happen to fall. It suddenly means an extremely attractive 110,000 oz per year operation with very solid further potential. The market should heavily embrace this approach especially relative to the extremely fragmented and super high cash cost per oz approach in the plans by the various companies today.
Century may need to fund the mill relocation and expansion through debt/credit line if timing of cash flow (of the consolidated company) does not support this initiative.
My thoughts on what to do with the NSM ore is discussed further down the post.
3) Aurbel Mill (AMC)
AMC`s Lac Herbin mining area (40K oz per yr) is fairly close to the Aurbel Mill.
RIC`s Beaufor ore (20K oz per yr) currently travels to the Camflo Mill located on the west side of Val dÒr. With the consolidation, the Beaufor ore can go to the Aurbel Mill which is much closer. This should represent a cost savings (trucking about 8 km instead of going about 30 km). Although, the biggest problem with Beaufor is inconsistent performance, mainly extremely poor performance (IMO) and lack of material exploration success despite significant exploration programs (IMO). It`s a relatively small operation, but I think assistance from new geologists might be able allow for new approaches, especially if it gets worked into the Vulcan approach that Century uses.
The McKenzie Break property (NSM) is a somewhat advanced exploration and development property, located about 25 km away from the Aurbel Mill. I would send the McKenzie Break ore to the Aurbel Mill (represents about 10 km savings as part of the consolidated group – NSM currently has plans for the ore to eventually be processed at the Beacon Mill (at the current Beacon Mill location). Although there are some significant infrastructure in place at McKenzie Break, there is still a lot of work remaining (especially on the exploration front) before a production decision can be made (I think). It is also not clear how much it can contribute to yearly production. I have plugged in 15K oz per year (once up and fully running), simply to max out the Aurbel Mill capacity. I have assumed the Aurbel Mill can contribute around 75,000 ounces per year to production.
The Aurbel Mill will likely be the highest cost per ounce operation within the consolidated portfolio.
4) Camflo Mill (RIC)
This mill is located about 3 or 4 km away from NSM`s Midway property (NSM`s primary property). The Midway property is a very advanced stage property. It may be ready to produce ounces on a consistent basis in the near-term, but it`s not clear if it needs an injection of cash to get it ramped up properly. It has a decent size resource base (about 550K 43-101 and about 300K non-43101) but appears to have really good potential for further ounces through exploration. I have the Midway property eventually maxing out the Camflo Mill capacity at say around 65,000 ounces per yr (although NSM doesn`t appear to provide production guidance on its properties). The consolidated approach provides a savings of about 24 km of trucking distance (sending ore next door to Camflo rather than sending it to the current Beacon Mill location).
Also, there is no guidance by NSM for cash cost per oz, but logic would suggest it should be decent.
Midway generates a bit of silver. I don`t know if Camflo can handle silver. I know base metal by-products need additional processing. I don`t believe additional processing is required for by-product silver also, although I really don`t know. I think the term dore bars are used to refer to pours that include both gold and silver combined. Either way, I`m sure an add on can be done if necessary.
5) Snow Lake Mill (AMC)
This is the old New Britannia mine (in Manitoba) that was successfully operated by Kinross and High River Gold (for 10 years I think). A good size resource base has been identified. There also remains good exploration potential. Most of the cash needed by AMC will go towards work on this operation. I believe the mill is fully operational and can handle around 80,000 oz per yr (once they ramp to such levels over the next couple of years).
Cash cost per oz should be solid, if execution goes well.
6) San Juan Mill (CMM)
Will be ramped up to 30,000 ounces per yr.
7) Island Gold Mill (RIC)
The mine is located in Ontario. The operation has been relatively poor thus far, in my opinion of course. However, I like the potential for performance becoming better. I also really like the exploration upsides. There are a number of good targets elsewhere on the property.
The operation can probably deliver steady state production of around 45,000 ounces per year. It has a 650 tpd mill.
Transition:
I`m not concerned with too many projects coming together all at once. I say that for many reasons. Firstly, the flagship asset (Lamaque) would be up and running. Secondly, all of the assets discussed are currently being worked on with solid plans in place to bring them to production (none of these represent building a mining operation from scratch, which would be a totally different game).
I would keep all of the operating teams in place. The teams can continue to progress with their respective projects as if nothing happened. Where the redundancy can be found is at top level management (duplicate CEOs, duplicate Vps, etc.). I would remove all of that redundancy and use some of those savings to create a transition/co-ordination team. I would have all of the projects report into this team. The team will ensure the master plan is being followed and will be in charge of driving efficiencies.
Value:
After successful execution, and if we continue to realize a strong gold price, I see this type of company with a $2.0(+++) billion market cap – easily realizing significant gains for all of the shareholders participating in the consolidated company. On the flipside, I see it as a lost opportunity for shareholders of small producers in the Val dÒr area if the management of those companies don`t get their act together and finally start creating shareholder value. IMO, it has been a pathetic last 5 years for shareholders of these companies (yet the gold price has more than doubled, almost tripled, in that timeframe).
Status of certain management teams:
RIC – a 20% shareholder of RIC is now Chairman. He recently appointed 4 additional directors (people he is comfortable with). He is looking for a partner (or partners) to transform the company to mid-tier producer status.
NSM – they recently appointed a new CEO with a primary mandate of growing their company.
This is only what I would do. This is only for blog discussion purposes. Naturally, no one should make investment decisions based on this blog post. The reality of what is happening may look completely different from my ideas. I have absolutely no privileged info as to what is actually being discussed. Also, NONE OF THE COMPANIES DISCUSSED BELOW (INCLUDING CENTURY MINING) MIGHT BE EVEN REMOTELY INTERESTED IN ANY OF MY IDEAS FOR SYNERGISTIC GAINS.
Firstly, I would prefer to see Century`s management stay completely away from any consolidations until Century`s share price hits $1.50 per share. Unlike some of the small producers in the Val dÒr area, I do not believe that Century needs to consolidate with other companies in the near-term of mid-term for Century shareholders to realize a significantly appreciated share prices. I just think it is absolutely essential for Century to deliver and excel with Lamaque (and continue with good results from San Juan). I think it is also mandatory for Century to demonstrate high standards with other areas of the business too (which, among many other things, includes issuing financial statements on time).
The 4 companies I would like to see consolidate are: Century (CMM), Northern Star Mining (NSM), Richmont Mines (RIC) and Alexis Minerals (AMC). Metanor (MTO) is a longer term possibility also, but I personally wouldn`t involve them at this time. Metanor is located too far north and do not offer sufficient synergistic opportunities to justify being included in this first phase of the consolidation process, IMO (even though they have one good property in the Val dÒr area with Inferred 43-101 resources). Wesdome is way too expensive to be considered, IMO.
Along with CMM`s share price needing to go to $1.50, it is my personal view that the share price of RIC, AMC and NSM all need to decrease for me to feel comfortable with a consolidation. With Century at $1.50, I might be able to live with the current share price of AMC at around $.35 (although I would prefer to see them at $.30 due to likely still needing about $30M or so to move their projects forward) and NSM at around $.30 (although I would prefer to see NSM at $.26 to $.28 due to having $42M in debt coming due in Aug/Sep of 2011, and me seeing their share price in serious trouble unless they get significant external help, again only my opinion). I see RIC`s share price as being too high right now – for my consolidation proposal. It needs to come down for my liking, especially when looking at results from their current operating mines.
Having said all of that, I would like to see a consolidation with CMM, NSM, RIC and AMC, but again, ONLY AT THE RIGHT PRICES. I would like Century to take the NO PRICE, NO DEAL approach. Realistically, I think the chances of it (all of these companies consolidating together) happening in the first consolidation phase is SLIM TO NONE. I think it needs to happen, but I think (IMO) there are TOO MANY EGOS involved and there will likely be (IMO) TOO MUCH PROTECTIONISM (especially with senior management level). What I think is most likely to happen is Century merging with only one of the companies, at least in the first phase consolidation.
It`s too bad because I think a CMM, NSM, RIC and AMC merger (at the right prices) would result in shareholders of all 4 companies realizing a triple (and a lot more over time with demonstrated execution) in their respective share price used at consolidation point.
Assuming all 4 companies merge, Century will likely need to arrange for debt/credit line financing to support the AMC ramp up. Depending on how Lamaque comes along with ramping up, Lamaque may be able to fund exploration and development efforts for many of the small properties over the next couple of years. Also, Century might be able to use the $15M from warrants plus CF from the consolidated assets to pay down the NSM $42M debt coming due Aug/Sep of 2011.
The consolidated group will have a flagship asset in Lamaque, to anchor the company. Having a 150,000 ounce per year type pure gold producer is essential for a growth company like this. The market wouldn`t embrace this type of company as much without a flagship asset like Lamaque, with 6 million ounces in the ground. Also, for the market to embrace this, it is critical to show a clear strategy of how the consolidated company will take severally under performing assets and turn them into winners. I think I have identified one major change that will partly address this and a few minor ones also. Here is how I would structure CMM, NSM, RIC and AMC into one company or at least here is what the consolidated company would look like (if I was in charge of such a task):
1) Lamaque Mill (CMM)
Ramped up to 2,000 tpd will likely generate 110,000 oz per year production. Shaft refurbishment in about 4 years will likely take it to 150K oz per yr. However, I`m hoping they will implement the 150,000 mine plan prior to 4 years (without using the shafts), especially if they are able convert significant ounces into P&P (in the upper levels) via the upcoming exploration program.
2) Beacon Mill (NSM)
RIC is currently bringing back the Francoeur mine into production for mid 2011. For starters, they are expecting 35,000 ounces of production per year for about 4 years. I believe the grade is plus 6 g/t. There is solid exploration potential to increase mine life. The problem with Francoeur is it is located (25 Km west of Rouyn-Noranda, Quebec) 110 kilometres from RIC`s Camflo Mill (near Val dÒr). They are currently planning to truck the ore 110 kilometres for processing. I believe it will cost RIC about $15M more to bring Francoeur to production stage. They can handle this through their existing cash position.
RIC recently initiated exploration on its Wasamac (advance exploration) property. It is located 10 km from Francoeur and 100 km from RIC`s Camflo Mill. They are currently planning to truck the ore 100 km for processing, once in production. Over 285,000 inferred ounces have been identified (plus 6 g/t grade). Drilling soon to be under way to move those ounces upwards and to add new ounces. There appears to be excellent exploration potential on existing known zones. Of course, a production decision cannot be made on the property without much more work being done first. It`s also a past producer with some mining infrastructure in place.
AMC`s Lac Pelliteir property is located 10 km from Wasamac and 20 km from Francoeur, but 100 km from AMC`s Aurbel Mill. AMC is planning on trucking the Lac Pelliteir ore 100 km for processing.
NSM`s Beacon Mill is located 28 km from NSM`s main mining property. The mill can currently process 900 tpd.
This is the biggest synergistic opportunity for all the companies I believe. I would physically move NSM`s Beacon Mill from its current location (near Val dÒr) and put it on the Wasamac property (near Rouyn-Noranda). Simultaneously, I would upgrade that mill from 900 tpd to 1,800 tpd. I would then have the Francoeur ore, the Wasamac ore (once ready) and the Lac Pellitier ore all feeding into the relocated and expanded Beacon Mill. It would mean Francoeur ore travels only 10 km instead of 110 km, Wasamac ore travels zero km instead of 100 km and Lac Pelliteir ore travels only 10 km instead of 100 km. It likely means that marginal high cash cost mined suddenly become very competitive mines (with not just savings from less travelling but serious economies of scale savings also), with a much greater chance of remaining open if the gold price should happen to fall. It suddenly means an extremely attractive 110,000 oz per year operation with very solid further potential. The market should heavily embrace this approach especially relative to the extremely fragmented and super high cash cost per oz approach in the plans by the various companies today.
Century may need to fund the mill relocation and expansion through debt/credit line if timing of cash flow (of the consolidated company) does not support this initiative.
My thoughts on what to do with the NSM ore is discussed further down the post.
3) Aurbel Mill (AMC)
AMC`s Lac Herbin mining area (40K oz per yr) is fairly close to the Aurbel Mill.
RIC`s Beaufor ore (20K oz per yr) currently travels to the Camflo Mill located on the west side of Val dÒr. With the consolidation, the Beaufor ore can go to the Aurbel Mill which is much closer. This should represent a cost savings (trucking about 8 km instead of going about 30 km). Although, the biggest problem with Beaufor is inconsistent performance, mainly extremely poor performance (IMO) and lack of material exploration success despite significant exploration programs (IMO). It`s a relatively small operation, but I think assistance from new geologists might be able allow for new approaches, especially if it gets worked into the Vulcan approach that Century uses.
The McKenzie Break property (NSM) is a somewhat advanced exploration and development property, located about 25 km away from the Aurbel Mill. I would send the McKenzie Break ore to the Aurbel Mill (represents about 10 km savings as part of the consolidated group – NSM currently has plans for the ore to eventually be processed at the Beacon Mill (at the current Beacon Mill location). Although there are some significant infrastructure in place at McKenzie Break, there is still a lot of work remaining (especially on the exploration front) before a production decision can be made (I think). It is also not clear how much it can contribute to yearly production. I have plugged in 15K oz per year (once up and fully running), simply to max out the Aurbel Mill capacity. I have assumed the Aurbel Mill can contribute around 75,000 ounces per year to production.
The Aurbel Mill will likely be the highest cost per ounce operation within the consolidated portfolio.
4) Camflo Mill (RIC)
This mill is located about 3 or 4 km away from NSM`s Midway property (NSM`s primary property). The Midway property is a very advanced stage property. It may be ready to produce ounces on a consistent basis in the near-term, but it`s not clear if it needs an injection of cash to get it ramped up properly. It has a decent size resource base (about 550K 43-101 and about 300K non-43101) but appears to have really good potential for further ounces through exploration. I have the Midway property eventually maxing out the Camflo Mill capacity at say around 65,000 ounces per yr (although NSM doesn`t appear to provide production guidance on its properties). The consolidated approach provides a savings of about 24 km of trucking distance (sending ore next door to Camflo rather than sending it to the current Beacon Mill location).
Also, there is no guidance by NSM for cash cost per oz, but logic would suggest it should be decent.
Midway generates a bit of silver. I don`t know if Camflo can handle silver. I know base metal by-products need additional processing. I don`t believe additional processing is required for by-product silver also, although I really don`t know. I think the term dore bars are used to refer to pours that include both gold and silver combined. Either way, I`m sure an add on can be done if necessary.
5) Snow Lake Mill (AMC)
This is the old New Britannia mine (in Manitoba) that was successfully operated by Kinross and High River Gold (for 10 years I think). A good size resource base has been identified. There also remains good exploration potential. Most of the cash needed by AMC will go towards work on this operation. I believe the mill is fully operational and can handle around 80,000 oz per yr (once they ramp to such levels over the next couple of years).
Cash cost per oz should be solid, if execution goes well.
6) San Juan Mill (CMM)
Will be ramped up to 30,000 ounces per yr.
7) Island Gold Mill (RIC)
The mine is located in Ontario. The operation has been relatively poor thus far, in my opinion of course. However, I like the potential for performance becoming better. I also really like the exploration upsides. There are a number of good targets elsewhere on the property.
The operation can probably deliver steady state production of around 45,000 ounces per year. It has a 650 tpd mill.
Transition:
I`m not concerned with too many projects coming together all at once. I say that for many reasons. Firstly, the flagship asset (Lamaque) would be up and running. Secondly, all of the assets discussed are currently being worked on with solid plans in place to bring them to production (none of these represent building a mining operation from scratch, which would be a totally different game).
I would keep all of the operating teams in place. The teams can continue to progress with their respective projects as if nothing happened. Where the redundancy can be found is at top level management (duplicate CEOs, duplicate Vps, etc.). I would remove all of that redundancy and use some of those savings to create a transition/co-ordination team. I would have all of the projects report into this team. The team will ensure the master plan is being followed and will be in charge of driving efficiencies.
Value:
After successful execution, and if we continue to realize a strong gold price, I see this type of company with a $2.0(+++) billion market cap – easily realizing significant gains for all of the shareholders participating in the consolidated company. On the flipside, I see it as a lost opportunity for shareholders of small producers in the Val dÒr area if the management of those companies don`t get their act together and finally start creating shareholder value. IMO, it has been a pathetic last 5 years for shareholders of these companies (yet the gold price has more than doubled, almost tripled, in that timeframe).
Status of certain management teams:
RIC – a 20% shareholder of RIC is now Chairman. He recently appointed 4 additional directors (people he is comfortable with). He is looking for a partner (or partners) to transform the company to mid-tier producer status.
NSM – they recently appointed a new CEO with a primary mandate of growing their company.
Thursday, April 15, 2010
AGM changed to June 3rd
From SEDAR:
To: All Canadian Securities Regulatory Authorities
Subject: CENTURY MINING CORPORATION (AMENDMENT)
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: 13/04/2010
Record Date for Voting (if applicable): 13/04/2010
Beneficial Ownership Determination Date: 13/04/2010
Meeting Date : 03/06/2010 (amended)
Meeting Location (if available) :
Tudor E & W Room
National Club
303 Bay Street
Toronto, ON
To: All Canadian Securities Regulatory Authorities
Subject: CENTURY MINING CORPORATION (AMENDMENT)
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: 13/04/2010
Record Date for Voting (if applicable): 13/04/2010
Beneficial Ownership Determination Date: 13/04/2010
Meeting Date : 03/06/2010 (amended)
Meeting Location (if available) :
Tudor E & W Room
National Club
303 Bay Street
Toronto, ON
Tuesday, April 13, 2010
Today's Trading Summary
Caldwell dumped 250k to drop the share price to 58 cents. I don't think these shares were purchased in the market and may possibly be some of those shares that were issued for debt at 25 cents. I'd say the other creditors are kicking themselves now for not accepting the shares for debt offer. Nice to see Canaccord buying for a change.I've added a couple of media links on the right.
One note about size of first gold pour
Unless I am mistaken, gold producers always pour their gold into gold bar containers. I believe the sizes vary. I know that there are 600 ounce bars, but there are likely 200 ounce bars as well. However, I do believe the typical bar size for gold pours is 400. I think 400 gold bar ounces is what the central banks store in their vaults. As a side note fyi, I think the Lamaque gold gets sold to the Canadian Mint.
As a result, first gold pour does not mean only 1 ounce, with only $1,150 in gross revenue value. First gold pour for Lamaque will likely provide us 400 ounces and gross revenue value of $460,000.
It`s possible that our stockpiled ore could be nearing 10,000 tonnes by now (March plus first 13 days of April). Assuming the target of 94-96% recovery rate and 4.76 g/t grade, those 10,000 tonnes might eventually (once processed) give us around 1,450 ounces or $1.7M in gross revenue.
Once we start processing at a rate of 1,200 tpd, it should only take 2.3 days worth of processed ore to drive out one 400 ounce gold bar. One day of processing 1,200 tonnes of ore can contribute 174 ounces of gold ($200,000 of gross revenue) towards a gold bar.
Again, we should also have the 2,015 ounces of unfinished gold sitting in Lamaque inventory. The Gerald Metals credit line balance was eliminated last December. These ounces should be now free of security obligations. Also, we should now (once the milling circuit is up and running again) be able to move them into finished gold (ready to be sold) - $2.3M in gross revenue for us.
Once ready, if we are able to crank up processing at Lamaque to 1,200 tpd on a very consistent basis (again, successfully hitting 94-96% and 4.76 g/t), I am able to visual the gross revenue from these ounces carrying the operating costs at Lamaque and allowing the financing dollars to be focused heavily on development and exploration.
There will be a lot of different types of costs, but labour should be one of the big ones. There were 115 employees at Lamaque at the beginning of April (per the last NR). Let`s assumed average annual (loaded) compensation of around $60,000 ($5,000 per mth). That likely means that about $575K per month for employee compensation. That will increase as we continue to staff up. However, increased staffing should also increase our gold output and gross revenue.
There are plenty of other high costs also that will widdle down our gross revenue (i.e. power, cost to operate heavy machinery, etc.). Nonetheless, if we can deliver a 400 ounce gold bar ($460,000 gorss revenue) every 2.3 days (once we crank things up) then we will likely be in good shape.
When we crank things further up to 2,000 tpd, we are looking at producing 291 gold ounces per day. That would mean driving out a 400 ounce gold bar (and $460,000 of gross revenue, at current gold price) every 1.4 days (from Lamaque alone).
Now, our prepaid gold sales commitment in 2010 (per the Jan. 14th SEDAR document) is as follows:
*200 ounces per month to DB from January to May = 1,000 ounces
*667 ounces per month to DB from June to December = 4,669 ounces
We should be having no problems delivering the 200 ounces to DB out of San Juan at this time (we currently produce 4,700 ounces at San Juan per quarter). Come June, if we are able to crank tpd up to 1,200 at Lamaque then I see no issues in delivery 667 ounces per month to DB for the balance of 2010. At 1,200 tpd, it should only take us 3.8 days of the month to drive out 667 ounces to DB from Lamaque. That only represents 12.8% of a standard month.
As a result, first gold pour does not mean only 1 ounce, with only $1,150 in gross revenue value. First gold pour for Lamaque will likely provide us 400 ounces and gross revenue value of $460,000.
It`s possible that our stockpiled ore could be nearing 10,000 tonnes by now (March plus first 13 days of April). Assuming the target of 94-96% recovery rate and 4.76 g/t grade, those 10,000 tonnes might eventually (once processed) give us around 1,450 ounces or $1.7M in gross revenue.
Once we start processing at a rate of 1,200 tpd, it should only take 2.3 days worth of processed ore to drive out one 400 ounce gold bar. One day of processing 1,200 tonnes of ore can contribute 174 ounces of gold ($200,000 of gross revenue) towards a gold bar.
Again, we should also have the 2,015 ounces of unfinished gold sitting in Lamaque inventory. The Gerald Metals credit line balance was eliminated last December. These ounces should be now free of security obligations. Also, we should now (once the milling circuit is up and running again) be able to move them into finished gold (ready to be sold) - $2.3M in gross revenue for us.
Once ready, if we are able to crank up processing at Lamaque to 1,200 tpd on a very consistent basis (again, successfully hitting 94-96% and 4.76 g/t), I am able to visual the gross revenue from these ounces carrying the operating costs at Lamaque and allowing the financing dollars to be focused heavily on development and exploration.
There will be a lot of different types of costs, but labour should be one of the big ones. There were 115 employees at Lamaque at the beginning of April (per the last NR). Let`s assumed average annual (loaded) compensation of around $60,000 ($5,000 per mth). That likely means that about $575K per month for employee compensation. That will increase as we continue to staff up. However, increased staffing should also increase our gold output and gross revenue.
There are plenty of other high costs also that will widdle down our gross revenue (i.e. power, cost to operate heavy machinery, etc.). Nonetheless, if we can deliver a 400 ounce gold bar ($460,000 gorss revenue) every 2.3 days (once we crank things up) then we will likely be in good shape.
When we crank things further up to 2,000 tpd, we are looking at producing 291 gold ounces per day. That would mean driving out a 400 ounce gold bar (and $460,000 of gross revenue, at current gold price) every 1.4 days (from Lamaque alone).
Now, our prepaid gold sales commitment in 2010 (per the Jan. 14th SEDAR document) is as follows:
*200 ounces per month to DB from January to May = 1,000 ounces
*667 ounces per month to DB from June to December = 4,669 ounces
We should be having no problems delivering the 200 ounces to DB out of San Juan at this time (we currently produce 4,700 ounces at San Juan per quarter). Come June, if we are able to crank tpd up to 1,200 at Lamaque then I see no issues in delivery 667 ounces per month to DB for the balance of 2010. At 1,200 tpd, it should only take us 3.8 days of the month to drive out 667 ounces to DB from Lamaque. That only represents 12.8% of a standard month.
Employees Ratify Terms of Collective Agreement at Lamaque
Apr 13, 2010 09:00 ET
Century Mining Employees Ratify Terms of Collective Agreement at Lamaque Gold Mine-Pushing Forward to First Gold Pour
BLAINE, WASHINGTON--(Marketwire - April 13, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce that the members of the Syndicat des Employes de les Mines Sigma (Quebec) Ltee, the bargaining unit representing its hourly employees at the Lamaque Gold Mine in Val d'Or, Quebec, have ratified the renewal of the existing collective agreement. This agreement, which was ratified by more than 90% of the voting union members, provides for the continuation of the existing collective agreement until March 31, 2011. As part of the negotiations the Company has agreed to make wage adjustments to bring Century's wage scale in line with other underground mine operators in the area.
"This agreement is another positive step in the continued advancement of the Lamaque Gold Mine towards its first gold pour in the second quarter of 2010. The signing of this collective agreement is a positive milestone, and the Company looks forward to working closely with all its employees, both hourly and staff, over the many years ahead at Lamaque. We have established excellent, safe working conditions at a competitive wage scale which will allow the retention and recruitment of the best miners, operators and tradespeople of the Abitibi region," commented Margaret M. Kent, President & CEO Century Mining.
Century Mining Employees Ratify Terms of Collective Agreement at Lamaque Gold Mine-Pushing Forward to First Gold Pour
BLAINE, WASHINGTON--(Marketwire - April 13, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce that the members of the Syndicat des Employes de les Mines Sigma (Quebec) Ltee, the bargaining unit representing its hourly employees at the Lamaque Gold Mine in Val d'Or, Quebec, have ratified the renewal of the existing collective agreement. This agreement, which was ratified by more than 90% of the voting union members, provides for the continuation of the existing collective agreement until March 31, 2011. As part of the negotiations the Company has agreed to make wage adjustments to bring Century's wage scale in line with other underground mine operators in the area.
"This agreement is another positive step in the continued advancement of the Lamaque Gold Mine towards its first gold pour in the second quarter of 2010. The signing of this collective agreement is a positive milestone, and the Company looks forward to working closely with all its employees, both hourly and staff, over the many years ahead at Lamaque. We have established excellent, safe working conditions at a competitive wage scale which will allow the retention and recruitment of the best miners, operators and tradespeople of the Abitibi region," commented Margaret M. Kent, President & CEO Century Mining.
Monday, April 12, 2010
Today's Trading Summary
You have to wonder where Canaccord is getting all of the CMM shares. I expected some short covering by now.
Carib,
It would be great if you could resume your postings on "today's trades". Someone must be doing a lot of buying lately. Perhaps even 'CANACRAP' is buying!? Maybe we are really close to the pouring of that first gold bar.
Cheers,
bigjohn37
PS: Production05--thanks again for your excellent postings.
It would be great if you could resume your postings on "today's trades". Someone must be doing a lot of buying lately. Perhaps even 'CANACRAP' is buying!? Maybe we are really close to the pouring of that first gold bar.
Cheers,
bigjohn37
PS: Production05--thanks again for your excellent postings.
Friday, April 9, 2010
Active high grade gold mills located within a 30 km radius of Val dÒr
I didn`t include the Osisko mill and Agnico`s Goldex mill as they are both low grade huge tonnage type mills. Plus, Osisko`s mill will likely not be active for another couple of years.
1) Lamaque (Century) - 3,000 tpd, but (per the Jan`09 DD rpt) the option exists to ramp it back up to previous higher levels after additional modification (perhaps even back to the old 5,000 tpd level, but with efficient high grade crushing this time around).
2) Kiena (Wesdome) - 2,000 tpd
3) Aurbel (Alexis Minerals) - 1,400 tpd
4) Camflo (Richmont Mines) - 1,300 tpd
5) Beacon (Northern Star Mining) - 900 tpd
This 30 km radius area comes across as being one of the hottest and one of the most actively explored areas by gold juniors in the entire world. In my view, there will be huge demand, both near-term and many years into the future, for milling assistance by junior exploration companies. These juniors will not be able to build their own processing facilities - the going rate to build the smallest of milling operations is something like $35M.
Lamaque is the flagship (higher grade) u/g asset in this entire space. This should be an advantage to Century when consolidation begins (consolidation is badly needed and far overdue in this area). IMO, the whole area has gotten so fragmented because none of the management teams wanted to give up control and everyone overvalued their own situations. As a result, shareholders from most of these companies have suffered mightily. It would be wise for all the small struggling producers in this area (and slightly further above this area) to finally take advantage of their surroundings and finally participate in the gold bull market.
1) Lamaque (Century) - 3,000 tpd, but (per the Jan`09 DD rpt) the option exists to ramp it back up to previous higher levels after additional modification (perhaps even back to the old 5,000 tpd level, but with efficient high grade crushing this time around).
2) Kiena (Wesdome) - 2,000 tpd
3) Aurbel (Alexis Minerals) - 1,400 tpd
4) Camflo (Richmont Mines) - 1,300 tpd
5) Beacon (Northern Star Mining) - 900 tpd
This 30 km radius area comes across as being one of the hottest and one of the most actively explored areas by gold juniors in the entire world. In my view, there will be huge demand, both near-term and many years into the future, for milling assistance by junior exploration companies. These juniors will not be able to build their own processing facilities - the going rate to build the smallest of milling operations is something like $35M.
Lamaque is the flagship (higher grade) u/g asset in this entire space. This should be an advantage to Century when consolidation begins (consolidation is badly needed and far overdue in this area). IMO, the whole area has gotten so fragmented because none of the management teams wanted to give up control and everyone overvalued their own situations. As a result, shareholders from most of these companies have suffered mightily. It would be wise for all the small struggling producers in this area (and slightly further above this area) to finally take advantage of their surroundings and finally participate in the gold bull market.
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