Please note that all of the exploration targets discussed below are based on either historical data or historical internal reports. When dealing with such info one should use extreme caution as there can be no certainty that the historical info is correct or even complete, at least not until sufficient modern work has been done to validate.
Also, (although impossible to know right now) there may not be exploration work on any of these target areas for years into the future as there are way too many high priority targets to drill that can contribute to cash flow much faster. These are interesting drill target areas nonetheless (perhaps they will find a way to drill 1 or 2 in the mid-term).
1) Our Union Gold property area just outside of the Lamaque Complex - I can`t help but to wonder if a 1 sq km area on this property could turn out to be a (new) mini Lamaque Complex in the future
Here are some comments on our properties to the east of Lamaque (outside of the complex, including the Union Gold property), from Century`s website: ``The properties are either contiguous with or in close proximity to the east side of the Sigma-Lamaque mine property. These claims cover the eastern extension of the mine mineralized zone, which has a strong east-west orientation parallel to the Larder Lake-Cadillac break. The strong east-west structures, diorite plugs and dykes, which localize the mineralization at Sigma-Lamaque, continue onto these claims and host known mineralization similar to that on the Sigma property.``
The part of the Union Gold property I have in mind has 7 solid gold mineralized areas within that 1 sq km space:
1. Union Gold: Decapage A
2. Cisaillement E-O (Sud. Zone S) - historic drill results labelled ``Auric West`` on CMM`s website
3. Union Gold: Decapage C
4. Val d`Or Mineral - historic drill results labelled ``Southern Diorite`` on CMM`s website
5. Union Gold: Decapage D - historic drill results labelled under ``Central Diorite`` on CMM`s website
6. Union Gold: Decapage E
7. Secteur Ouest
The mineralization is thought to be the same or similar to the Sigma side of the Lamaque Complex. I especially find historic drill hole NB-83-46 to be interesting. That 1983 hole (perhaps drilled by Placer Dome) hit mineralization 5 times (depth of the hole has not been published):
Hit 1. 14.10 g/t grade - .7 (m) thickness
Hit 2. 18.10 g/t - .6 (m)
Hit 3. 3.00 g/t - .9 (m)
Hit 4. 50.70 g/t - .6 (m)
Hit 5. 8.65 g/t - 1.2 (m)
There is not enough info published and I do not have enough geology knowledge to know firmly what that drill data info is telling us. However, it does remind me a lot of some of our Bedard dyke drill holes, as a number of the the BD drill attempts hit numerous mineralized areas as the drills progressed vertically down the dyke. As such, I can`t help but to wonder if this historical NB-83-46 drill hole was also hitting a dyke back during the 1983 drill program. If it is a dyke then do these high grade hits represent high grade zones and flats going down the dyke, similar the Bedard dyke. I guess we may not find out for years. This is an interesting drill target area nonetheless.
Here is an Alexandria Minerals map. The Century gold showings are in the top left corner. You will need to enlarge the map (try 125%).
http://www.azx.ca/pdf/Carte_geol_reg_UTM.pdf
Here is a link to the historical drill results from Century`s site:
http://www.centurymining.com/s/Canada.asp
2) U/g Sigma side below 6,100 ft (1,860 m)
From the April 6`10 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. ``
Grades appear to be strong at depth. The Sigma side has been mined down to about 1,800 m. Down the highway is Agnico-Eagle`s flagship mine (LaRonde). Agnico is mining LaRonde beyond 3,000 m (3 miles). That is way beyond where Sigma has been mined. LaRonde does have base metal credits as an advantage. It may also have good bulk mining capabilities. However, Sigma u/g does have a lot going for it also, which could make for economical mining below 1,860 m (Sigma has demonstrated some some high grade zones, we now have low profile equipment capabilities to perform efficient Room and Pillar mining in flats, we can perform long-hole stope (bulk) mining for areas with strong rock and the appropriate type of mineralization and our grades should increase with depth).
3) Lamaque side below 3,500 ft (1,067 m) – veins
Below this level has been virtually unexplored on the Lamaque side. Vein potential should be strong given vein mineralization success at this depth on the Sigma side historically. The reason work was done on the Sigma side in the past and not the Lamaque side is because of separate owners in the past. This is essentially the first time the properties have been under one owner (with both properties active). I have chosen to discuss the Lamaque Main Plug separately (see below).
4) Lamaque Main Plug
I believe this plug was Teck`s bread and butter (of its mining areas at Lamaque). It`s a bulk mining plug. Teck stopped mining Lamaque around 1985. I believe Placer Dome purchase all or some of Lamaque around 1993. I remember Peggy saying that Century has some very limited historical drill data in its database that shows mineralization in the Lamaque Main Plug at depth below 3,500 ft (I remember her mentioning 525,000 ounces @ 5 g/t grade). It also looks like Placer Dome prepared an internal report in 1996 that identified the resources. In the 2005 Century Annual report (pg 11), posted on both Century`s website and on SEDAR, Century includes the 525,000 ounces and 5 g/t (below level 24) in a schedule, and attributes it to an internal Placer Dome report.
I don`t believe these ounces (or at least the majority of these ounces) are counted in our current 43-101 report, as there is likely insufficient data.
In a past presentation, Century mentioned that they believe that the Lamaque Main Plug and the West Plug, combined, has the potential to provide 2,000,000 additional ounces (potentially bulk mineable also). I have chosen to discuss the West Plug u/g separately (see below).
5) West Plug (u/g)
Again, on the same internal Placer Dome report, it was identified that the West Plug has 423,000 ounces between level 23 and level 40 (@ 5.0 g/t grade). This would count as part of the 2,000,000 ounces that Century believes still remain in the Lamaque Main Plug and the West Plug combined. Also, the majority of the 423,000 ounces are likely not counted in our current 43-101 number due to insufficient data at this time.
6) East Plug
I see the East Plug as being extremely low on even the long-term exploration list. I am not even sure that Century will ever look at it. However, I wanted to mention it because it did historically provide production of 344,000 ounces @ 3.94 g/t. Also, on the Placer Dome internal report, it shows that the East Plug has 132,000 ounces still remaining @ 4.44 g/t (below level 36). Exploration technology (and knowledged gained) is far better these days relative to when the East Plug was previously mined. There may be some good exploration opportunities still remaining for the East Plug at some point in the future.
Of course, same as the 2 other plugs, the 132.000 East Plug ounces are not currently counted in Century`s 43-101 resource number.
7) Aumaque Mine
I wrote about Aumaque the other day. This is what I previously posted:
``It is located about 2 - 3 km from the Lamaque mill. It has non-43101 ounces of 50,000 (8.57 g/t grade) and 17,000 (6.03 g/t grade). The property has never been mined but it has a shaft that goes down to 165m and a winze from 150m to 198m. It also has a number of levels established.
`The mineralization was found to be consistent in style with the vein types found at the Lamaque mine in pyroclastic volcanics.`
`At the west end of the property and extending onto the Lamaque property there is an untested diorite plug similar to the Numbers 4 and 5 plugs found at Lamaque. It has been previously suggested that the known veins may extend into this plug with the result that a fractured and mineralized system similar to those mined at Lamaque may have developed.`
If the known Aumaque veins are found to actually extend into the untested diorite plug on the west end, I wonder what Mr. Daniels thinks about the 67,000 historical Aumaque ounce total maybe increasing to, say, 400,000 ounces. ``
8) Sigma II
To be honest, I don`t know what the status is of Sigma 2. Century hasn`t made any comments about it lately so I am not even positive we still own it. Although, it`s still listed on Century`s website and I don`t remember seeing anything in the MD&A about the lease not being renewed or it being sold (or something of that nature). Hopefully it`s a case where Century still owns it but it got lost in the shuffle due to obviously much much much bigger fish to fry right now.
Sigma II is located about 20 kilometers away from Lamaque, within trucking distance. In the late 80s (or 90s - I can`t remember), Placer Dome mined 155,000 ounces @ 2.67 g/t from Sigma II and trucked it to the Lamaque (Sigma) mill for processing - I think this was during a US$325 - US$425 gold price period. Sigma II is still open at depth today, but requires exploration work to establish the resource base and grades at depth and to assess if it is economically viable. The Sigma II property is about 4 Km2 in size, which is relatively large.
At US$1,255 gold, (in my opinion) Sigma II looks very attractive in terms of exploration potentially, for both open pit and underground, especially since we already know it is open at depth.
Sunday, June 27, 2010
Wednesday, June 23, 2010
Carib, short poll question idea
Lamaque`s tonnes per day at end of June (not avg June) - end of May was 420
*800 or above
*700 - 799
*600 - 699
*500 - 599
*499 or below
Maybe we can have it up for just a few days (until end of June).
It`s not important at all. Only if you have a bit of spare time. Also, feel free to replace the question if you think of a better idea - I absolutely wouldn`t mind at all.
*800 or above
*700 - 799
*600 - 699
*500 - 599
*499 or below
Maybe we can have it up for just a few days (until end of June).
It`s not important at all. Only if you have a bit of spare time. Also, feel free to replace the question if you think of a better idea - I absolutely wouldn`t mind at all.
Tuesday, June 22, 2010
Site tour, July 8th - executives to tour with analysts
From Century`s website (``updates/upcoming events``):
``Lamaque Gold Mine Operation & Site Analyst Tour
Century Mining's executive management team will tour the underground and the surface/mill infrastructure and review the operations and minesite with industry analysts.``
``Lamaque Gold Mine Operation & Site Analyst Tour
Century Mining's executive management team will tour the underground and the surface/mill infrastructure and review the operations and minesite with industry analysts.``
Monday, June 21, 2010
Back from Vacation
I've been away for 2 weeks and wasn't able to post the trading summaries that some of you requested. The summary of house positions for the month of June follows.
Once again Production has posted a compelling analysis of our current valuation compared to a number of peers. I've said it many times and I'll say it again, we have to contend with a huge management discount and have to rely on momentum retail traders. We had started to regain some credibility with the monthly scorecards, but not meeting the stated goal of 500 - 800 tpd in May, combined with the CTO and a little bit of insider selling certainly took its toll. The failure to name an independent Chairman of the Board is another hit to credibility and proves that Peggy is firmly in control.
All that being said, our share price continues to be a joke at $1200+ gold prices. We have to be patient because no institution will pay any attention to production forecasts until we actually start meeting them. If, as the new Lamaque video forecasts, we reach 1200 tonnes per day by the end of the year and 2000 tpd by the end of 2011, then institutional buying will ensure a much more reasonable valuation. Earnings cannot be ignored.
I expect we'll see a more positive update at the end of June and if so, the analysts tours in July may lead to some taking a position. I expect the retailers that are selling at sub 50 cents will jump back in once there is a reversal. In the meantime, I am continuing to accumulate at these prices because San Juan alone is almost enough to justify a 47 cent share price.
Maple Minerals Corp - would someone happen to know the latest on the Caribou Mine
As you know, Maple Minerals Corp is a private company owned mainly by Finskiy, but with partial ownership by Scola and Peggy also. They have been trying to purchase the zinc-lead-silver Caribou mine in NB (out of bankruptcy).
Maple Minerals Corp purchased the mining equipment for $3M. They essentially used Peggy`s approach of securing undervalued assets (Peggy used a similar approach in purchasing the San Juan Mine). By Maple Minerals purchasing the mining equipment, it allow them to control the situation, which subsequently allowed them to negotiate a nice $1.25M price for the Caribou mine. Thus, Maple Minerals was able to negotiate a total price of just $4.25M for everything (mine and mining equipment). I think they were also trying to negotiate some financial assistance from the NB government to help out with the restart, due to the potential of the mine to employ 250 people.
A price tag of $4.25M (plus restart cost) is probably not too bad, as the previous operator invested $150M in the Caribou mine operation.
However, as of March 30, 2010, the deal was at risk of falling apart. Two other parties were granted a total of 30% claims on the mine (just the mine and not the mining equipment). It is completely understandable that Maple Minerals Corp is interested only if they can own 100% of the operation.
I can`t find any latest info on the situation. I have no idea of the current status.
If Maple Minerals decide to move on then they can remove the mining equipment (they own the equipment). I think most of the equipment should only be a few years old (should be in good shape). Perhaps Maple Minerals can sell some of the equipment to Century. We will likely need more equipment once we get into long-hole stope mining of the Bedard dyke and once we start mining the North Wall zone. Also, I`m sure better equipment can also be used in Peru, to enable greater efficiency. Although, Caribou was last mined as an open pit mine (Maple Minerals intend to mine strictly the underground this time). As such, Century may not be able to use all of this equipment. However, Finskiy also has his own private gold mining company in Russia, which I think should be producing about 40,000 ounces right now but he plans on increasing production to 225,000 - 255,000 ounces by about 2013. I`m sure he can use mining equipment for the growth of his private Russian gold producer also (which has numerous different property/mine locations).
Here is the article from March 30, 2010:
Mining: Maple Minerals Corp. must decide whether to share Caribou Mine venture with two other firms, which have 30% stake in the zinc-lead mine, monitor says
The fate of a closed Bathurst-area mine has become unclear due to two court rulings that change the game for Maple Minerals Corp., the company interested in running the mine.
Enlarge Photo Bob Smith Bob Smith, the PricewaterhouseCoopers LLP monitor handling the receivership of Blue Note Caribou Mines Inc., said a judge recently ruled that two other firms have a stake in the zinc-lead Caribou Mine.
After a court hearing in January in which Smith asked for direction on two issues, Justice Réginald Léger of the Bathurst Court of Queen's Bench ruled recently that Fern Trust, an offshore entity, has a 10 per cent net profits interest on the Caribou Mine that it has maintained since 1991.
Breakwater Resources Ltd. (TSX:BWR), through its subsidiary CanZinco Ltd., sold the mine to Blue Note Caribou in 2006, and still has a 20 per cent joint venture interest in the facility, Léger ruled.
Smith said the various parties are formulating their positions and he expects to be back in court some time soon.
"Now we wait and the lawyers continue to exchange courteous comments back and forth to try to figure out, 'What now?'
"As we're doing that, the mine continues to flood. Water continues to roll into the mine, especially now that it's spring, so we have a very limited period of weeks to move on."
He said the situation creates uncertainly for Maple Minerals, which needs to decide whether it will take the mine equipment and move it elsewhere, or try to make a go of the flooded mine.
"Maple Minerals does not wish to give 20 per cent joint venture interest to Breakwater. They want to own, if they can, 100 per cent," Smith said.
Smith said he needs to know if Maple Minerals is prepared to proceed with operating the mine.
"That's a decision they have to make. Because if they're not, they get to take their above-ground equipment and go, or some other alternative we have yet to figure out."
Last fall, Maple Minerals completed the first of a two-stage process to acquire the assets of Blue Note Caribou Mines, the junior firm that operated the underground mine and nearby Restigouche open-pit mine until the markets crashed in the fall of 2008.
Blue Note went into receivership last February and declared bankruptcy in July.
Maple Minerals bought the mining equipment and other tangible personal property of Blue Note for US$3 million and but has since then been working with the court to work out the details of a $1.25-million purchase of the mines, land, buildings and other assets. The company had previously said it would like to operate the mine, employing as many people as through Blue Note - which created about 250 jobs in the Bathurst area while the mine was open.
Maple Minerals declined comment when reached by the Telegraph-Journal.
Maple Minerals Corp purchased the mining equipment for $3M. They essentially used Peggy`s approach of securing undervalued assets (Peggy used a similar approach in purchasing the San Juan Mine). By Maple Minerals purchasing the mining equipment, it allow them to control the situation, which subsequently allowed them to negotiate a nice $1.25M price for the Caribou mine. Thus, Maple Minerals was able to negotiate a total price of just $4.25M for everything (mine and mining equipment). I think they were also trying to negotiate some financial assistance from the NB government to help out with the restart, due to the potential of the mine to employ 250 people.
A price tag of $4.25M (plus restart cost) is probably not too bad, as the previous operator invested $150M in the Caribou mine operation.
However, as of March 30, 2010, the deal was at risk of falling apart. Two other parties were granted a total of 30% claims on the mine (just the mine and not the mining equipment). It is completely understandable that Maple Minerals Corp is interested only if they can own 100% of the operation.
I can`t find any latest info on the situation. I have no idea of the current status.
If Maple Minerals decide to move on then they can remove the mining equipment (they own the equipment). I think most of the equipment should only be a few years old (should be in good shape). Perhaps Maple Minerals can sell some of the equipment to Century. We will likely need more equipment once we get into long-hole stope mining of the Bedard dyke and once we start mining the North Wall zone. Also, I`m sure better equipment can also be used in Peru, to enable greater efficiency. Although, Caribou was last mined as an open pit mine (Maple Minerals intend to mine strictly the underground this time). As such, Century may not be able to use all of this equipment. However, Finskiy also has his own private gold mining company in Russia, which I think should be producing about 40,000 ounces right now but he plans on increasing production to 225,000 - 255,000 ounces by about 2013. I`m sure he can use mining equipment for the growth of his private Russian gold producer also (which has numerous different property/mine locations).
Here is the article from March 30, 2010:
Mining: Maple Minerals Corp. must decide whether to share Caribou Mine venture with two other firms, which have 30% stake in the zinc-lead mine, monitor says
The fate of a closed Bathurst-area mine has become unclear due to two court rulings that change the game for Maple Minerals Corp., the company interested in running the mine.
Enlarge Photo Bob Smith Bob Smith, the PricewaterhouseCoopers LLP monitor handling the receivership of Blue Note Caribou Mines Inc., said a judge recently ruled that two other firms have a stake in the zinc-lead Caribou Mine.
After a court hearing in January in which Smith asked for direction on two issues, Justice Réginald Léger of the Bathurst Court of Queen's Bench ruled recently that Fern Trust, an offshore entity, has a 10 per cent net profits interest on the Caribou Mine that it has maintained since 1991.
Breakwater Resources Ltd. (TSX:BWR), through its subsidiary CanZinco Ltd., sold the mine to Blue Note Caribou in 2006, and still has a 20 per cent joint venture interest in the facility, Léger ruled.
Smith said the various parties are formulating their positions and he expects to be back in court some time soon.
"Now we wait and the lawyers continue to exchange courteous comments back and forth to try to figure out, 'What now?'
"As we're doing that, the mine continues to flood. Water continues to roll into the mine, especially now that it's spring, so we have a very limited period of weeks to move on."
He said the situation creates uncertainly for Maple Minerals, which needs to decide whether it will take the mine equipment and move it elsewhere, or try to make a go of the flooded mine.
"Maple Minerals does not wish to give 20 per cent joint venture interest to Breakwater. They want to own, if they can, 100 per cent," Smith said.
Smith said he needs to know if Maple Minerals is prepared to proceed with operating the mine.
"That's a decision they have to make. Because if they're not, they get to take their above-ground equipment and go, or some other alternative we have yet to figure out."
Last fall, Maple Minerals completed the first of a two-stage process to acquire the assets of Blue Note Caribou Mines, the junior firm that operated the underground mine and nearby Restigouche open-pit mine until the markets crashed in the fall of 2008.
Blue Note went into receivership last February and declared bankruptcy in July.
Maple Minerals bought the mining equipment and other tangible personal property of Blue Note for US$3 million and but has since then been working with the court to work out the details of a $1.25-million purchase of the mines, land, buildings and other assets. The company had previously said it would like to operate the mine, employing as many people as through Blue Note - which created about 250 jobs in the Bathurst area while the mine was open.
Maple Minerals declined comment when reached by the Telegraph-Journal.
Saturday, June 19, 2010
The gap
I had posted a comparative analysis back on April 8th (located in the comment area of a post on that day). Century was trading at $.47 at the time (but Lamaque wasn`t pouring gold).
Developments/accomplishments since April 8th:
* Century is now pouring gold at Lamaque.
* The gold price is now at an all time high, at US$1,255 (up from around US$1,150 on April 8th).
* Twice as many mining stopes have been opened up and are being mined in the Lamaque flats (since April 8th).
* All of the low profile (room and pillar mining) equipment have arrived and have all likely been deployed (by now).
* We have launched a new exploration program which has many objectives (including provide vital rock info in advance of mining in the Lamaque flats)
* We are likely about 10 days away (or so) from start up of bulk sample mining at the Bedard dyke.
* We are about 2.5 months closer to getting our long-hole stoping permit to authorize long-hole stoping (low cost bulk mining) at both the Bedard dyke and the North Wall dyke.
* We are likely about 4 months away from development start up of the North Wall zone (our 3rd source for Lamaque near-term ore feed (with possible production in early 2011). I think the main mineralized structure is the North Wall zone is the North Wall dyke, but I believe the North Wall also has mineralized shears, flats and I think perhaps even dippers. Dykes, shears, flats and dippers are the 4 primary types of mineralized structures on the Sigma side of Lamaque. I don`t remember the details perfectly but I`m pretty sure the Bedard dyke has 2 (maybe still potential for 3) of the 4 types within its zone and the North Wall zone has all 4 types (I think - for sure it has 3 times). Again, low cost (long-hole stoping) bulk mining will be the primary mining method for both Bedard and North Wall.
* The property is a lot cleaner now than it was back on April 8th (with Century seeming to be working successfully with the government with the clear up efforts).
* Excellent progress made at San Juan since April 8th (including the successful lowering of hoisting capabilities with the internal shaft, thus providing greater mining access to deeper parts of San Juan`s mesothermal veins).
YET, Century`s share price is still pretty much the same as April 8th - $.51.
With the new exploration program, I would like to see Century move some of the 600,000 M&I Cross-over ounces into P&P and some of the 1.1M Inferred Cross-over into M&I – they should be able to eventually access most of the Cross-over ounces via the haulage drift and Lamaque no. 2 decline (it`s still worth it even if they have to put in other secondary declines and perform further development work).
Also, the North Wall has about 250,000 P&P ounces currently and 400,000 (+) Inferred ounces. I would like to see them move the Inferred ounces upwards at some point during the current exploration program.
After Century moves more Cross-over and North Wall ounces into P&P, I wonder if they will consider ramping up production at Lamaque to 155,000 ounces annually, strictly from mill feed from the declines (instead of waiting 4 years for the shafts to be refurbished). With the extra mill capacity and US1,255 gold, it`s a waste to just leave 1/3 of the (3,000 t/d) mill capacity idle for 4 years (that will be a huge opportunity cost).
If Century cannot not supply the Lamaque mill with 155,000 ounces per by mid-term then they need to go out and acquire a nearby property that can supply the extra mill feed to get to 155,000 ounces. Doing nothing, and not finding either an organic solution or an external solution, would be a terrible business decision (especially with US$1,255 gold, but likely more like US$1,500 gold).
Century Mining:
*Outstanding shares = 345,300,000
*Current market cap = $176,103,000
*2011 production = 115,000 ounces
*2013 production = 135,000 or 190,000 ounces
*Cash cost per ounce = $450 - 500
If Century continues successfully down the path I described, I do not see the following companies as having assets that are substantially more superior than what Century has (both with production and ounces in the ground). Yet, the gap in market value between Century and all these companies is unreal. Century`s share price will likely receive a major revaluation once management provides firm evidence that Lamaque is well on the way to being successful:
1) Alamos Gold:
*Outstanding shares = 115,127,000
*Current market cap = $2,014,722,500
*2011 production = 167,500 ounces (avg)
*2013 production = 300,000 ounces
*Cash cost per ounce = $338 (for core asset only)
2) Lake Shore Gold:
*Outstanding shares = 349,151,000
*Current market cap = $1,145,215,280
*2011 production = 120,000 ounces
*2013 production = 200,000 ounces
*Cash cost per ounce = $320 (old estimate only)
3) San Gold Corp:
*Outstanding shares = 277,934,000
*Current market cap = $1,264,599,700
*2011 production = unclear
*2013 production = unclear (at one point I remember seeing an old figure of 200,000 ounces)
*Cash cost per ounce = unclear (again, at one point I remember seeing an old figure of $350)
4) Aurizon:
*Outstanding shares = 159,421,000
*Current market cap = $825,800,780
*2011 production = 150,000 ounces
*2013 production = 240,000 ounces
*Cash cost per ounce = $435
5) Semafo:
*Outstanding shares = 268,640,000
*Current market cap = $2,407,014,400
*2011 production = 245,000 ounces (avg)
*2013 production = 245,000 ounces
*Cash cost per ounce = $500
6) Romarco Minerals:
*Outstanding shares = 465,554,000
*Current market cap = $912,485,840
*2011 production = no production ounces until 2012
*2013 production = 150,000 ounces
*Cash cost per ounce = $266 (old number)
7) Jinshan Gold:
*Outstanding shares = 170,744,000
*Current market cap = $689,805,760
*2011 production = 120,000 ounces
*2013 production = 140,000 ounces
*Cash cost per ounce = $401
8) B2Gold:
*Outstanding shares = 310,744,000
*Current market cap = $567,483,000
*2011 production = 125,000 ounces
*2013 production = 133,000 ounces
*Cash cost per ounce = $475
9) St Andrew Goldfields:
*Outstanding shares = 328,060,000
*Current market cap = $426,478,000
*2011 production = 110,000 ounces
*2013 production = unclear
*Cash cost per ounce = $550
Developments/accomplishments since April 8th:
* Century is now pouring gold at Lamaque.
* The gold price is now at an all time high, at US$1,255 (up from around US$1,150 on April 8th).
* Twice as many mining stopes have been opened up and are being mined in the Lamaque flats (since April 8th).
* All of the low profile (room and pillar mining) equipment have arrived and have all likely been deployed (by now).
* We have launched a new exploration program which has many objectives (including provide vital rock info in advance of mining in the Lamaque flats)
* We are likely about 10 days away (or so) from start up of bulk sample mining at the Bedard dyke.
* We are about 2.5 months closer to getting our long-hole stoping permit to authorize long-hole stoping (low cost bulk mining) at both the Bedard dyke and the North Wall dyke.
* We are likely about 4 months away from development start up of the North Wall zone (our 3rd source for Lamaque near-term ore feed (with possible production in early 2011). I think the main mineralized structure is the North Wall zone is the North Wall dyke, but I believe the North Wall also has mineralized shears, flats and I think perhaps even dippers. Dykes, shears, flats and dippers are the 4 primary types of mineralized structures on the Sigma side of Lamaque. I don`t remember the details perfectly but I`m pretty sure the Bedard dyke has 2 (maybe still potential for 3) of the 4 types within its zone and the North Wall zone has all 4 types (I think - for sure it has 3 times). Again, low cost (long-hole stoping) bulk mining will be the primary mining method for both Bedard and North Wall.
* The property is a lot cleaner now than it was back on April 8th (with Century seeming to be working successfully with the government with the clear up efforts).
* Excellent progress made at San Juan since April 8th (including the successful lowering of hoisting capabilities with the internal shaft, thus providing greater mining access to deeper parts of San Juan`s mesothermal veins).
YET, Century`s share price is still pretty much the same as April 8th - $.51.
With the new exploration program, I would like to see Century move some of the 600,000 M&I Cross-over ounces into P&P and some of the 1.1M Inferred Cross-over into M&I – they should be able to eventually access most of the Cross-over ounces via the haulage drift and Lamaque no. 2 decline (it`s still worth it even if they have to put in other secondary declines and perform further development work).
Also, the North Wall has about 250,000 P&P ounces currently and 400,000 (+) Inferred ounces. I would like to see them move the Inferred ounces upwards at some point during the current exploration program.
After Century moves more Cross-over and North Wall ounces into P&P, I wonder if they will consider ramping up production at Lamaque to 155,000 ounces annually, strictly from mill feed from the declines (instead of waiting 4 years for the shafts to be refurbished). With the extra mill capacity and US1,255 gold, it`s a waste to just leave 1/3 of the (3,000 t/d) mill capacity idle for 4 years (that will be a huge opportunity cost).
If Century cannot not supply the Lamaque mill with 155,000 ounces per by mid-term then they need to go out and acquire a nearby property that can supply the extra mill feed to get to 155,000 ounces. Doing nothing, and not finding either an organic solution or an external solution, would be a terrible business decision (especially with US$1,255 gold, but likely more like US$1,500 gold).
Century Mining:
*Outstanding shares = 345,300,000
*Current market cap = $176,103,000
*2011 production = 115,000 ounces
*2013 production = 135,000 or 190,000 ounces
*Cash cost per ounce = $450 - 500
If Century continues successfully down the path I described, I do not see the following companies as having assets that are substantially more superior than what Century has (both with production and ounces in the ground). Yet, the gap in market value between Century and all these companies is unreal. Century`s share price will likely receive a major revaluation once management provides firm evidence that Lamaque is well on the way to being successful:
1) Alamos Gold:
*Outstanding shares = 115,127,000
*Current market cap = $2,014,722,500
*2011 production = 167,500 ounces (avg)
*2013 production = 300,000 ounces
*Cash cost per ounce = $338 (for core asset only)
2) Lake Shore Gold:
*Outstanding shares = 349,151,000
*Current market cap = $1,145,215,280
*2011 production = 120,000 ounces
*2013 production = 200,000 ounces
*Cash cost per ounce = $320 (old estimate only)
3) San Gold Corp:
*Outstanding shares = 277,934,000
*Current market cap = $1,264,599,700
*2011 production = unclear
*2013 production = unclear (at one point I remember seeing an old figure of 200,000 ounces)
*Cash cost per ounce = unclear (again, at one point I remember seeing an old figure of $350)
4) Aurizon:
*Outstanding shares = 159,421,000
*Current market cap = $825,800,780
*2011 production = 150,000 ounces
*2013 production = 240,000 ounces
*Cash cost per ounce = $435
5) Semafo:
*Outstanding shares = 268,640,000
*Current market cap = $2,407,014,400
*2011 production = 245,000 ounces (avg)
*2013 production = 245,000 ounces
*Cash cost per ounce = $500
6) Romarco Minerals:
*Outstanding shares = 465,554,000
*Current market cap = $912,485,840
*2011 production = no production ounces until 2012
*2013 production = 150,000 ounces
*Cash cost per ounce = $266 (old number)
7) Jinshan Gold:
*Outstanding shares = 170,744,000
*Current market cap = $689,805,760
*2011 production = 120,000 ounces
*2013 production = 140,000 ounces
*Cash cost per ounce = $401
8) B2Gold:
*Outstanding shares = 310,744,000
*Current market cap = $567,483,000
*2011 production = 125,000 ounces
*2013 production = 133,000 ounces
*Cash cost per ounce = $475
9) St Andrew Goldfields:
*Outstanding shares = 328,060,000
*Current market cap = $426,478,000
*2011 production = 110,000 ounces
*2013 production = unclear
*Cash cost per ounce = $550
Friday, June 18, 2010
Wednesday, June 16, 2010
Some more details on my thoughts (per request)
1) Anonymous (1) said...
``prod-5, why not post a detailed explanation of what you think Century is doing wrong? I'd be interested in knowing what's got you so negative. Is it just the share price, alone?``
``And, btw, what's your average price? I can see you being annoyed if you're in the red right now. But me, I'm buying at this low price. (I'd never touch it at .60, though.)``
The average cost of my Century shares is low - that`s not an issue. Mid to longer term, I still see big (very positive) things for Century.
I`m fine. CMM will be fine. Finskiy will likely provide funding if they are any short-term cash shortfalls. With Finskiy and Scola now in the picture (with large investments from their own personal cash), we are far better off than we have ever been in the past.
There are likely a lot of good parts that will be added to the Lamaque mix over time (long-hole stoping of the Bedard dyke, mining of the North Wall, etc.). Lamaque will continue to build up to reasonable levels of performance.
My frustrations are mainly related to seeing Century`s old bad habits resurfacing again, such as really poor communications to the general market and long periods of leaving the market in the dark (even aside from CTO issues, operating delays, etc.). I find that Century does a very poor job at educating the market (in my view). Either Century`s management are too stubborn to change or do not fully understand that their past negative track record (whether simply perception or real) and lack of confidence by the market means that they have to (or they should) go out of their way to educate the market (more than most other management for other companies). Reputable management can give guidance (without much details) and the market will trust them. If there are minor setbacks, the market will still believe (and the share price will not be hammered - i.e. from $.87 to $.46). It`s the total opposite with Century`s management (in my humble opinion - again, this is only my opinion). That`s why it is important for Century to go above and beyond in communicating with the market (explaining plans and progress in extreme details - provide really good education, BE COMPLETELY PROACTIVE WITH EVERYTHING).
In my books, not providing a progress update via NR to the general market since early May (1.5 months ago) doesn`t cut it (not when trying to build investor confidence).
These bad habits are killing all of the great progress they are making at both Lamaque and San Juan and also killing (or delaying) good growth opportunities.
Century will be fine. It would just be nice if management begin learning from failures in the past.
I really want to see the company shed the images of the past. Ultimately, it`s about share price performance. However, a progressive (fair market value) and sustainable share price is only a result of establishing a professional (performance) driven company which the market embraces due to a high level of confidence. I find it frustrating when I see signs of the company reverting back to its old habits.
2) Anonymous (2) said...
``What annoys me most is that the Adrian guy is still around Lamaque. Thought he was shipped off to Peru. To me he represents the worst of all that went wrong at Sigma when they moved all that rock to find what? Bills (debt that sent our s/p crashing) There were other mismanagement issues of course.``
I agree completely. They need to purge all that was wrong with Sigma, and Mr. McNutt was in the centre of Sigma. I guess they needed to move him there to temporarily help out due to that Kelly guy (with his $30,000 signing bonus) leaving us a the bind (after 2 months of service).
Mr. McNutt appears to have done a good job with San Juan (a much smaller operation). Hopefully he has learned a little bit from his past and is able to do a better job at Lamaque this time around. Also, the underground geology is much better (we have a successful 70 year u/g track record at Lamaque) than the unpredictable open pit ore body (where open pit mining was essentially new to Lamaque - Lamaque had always been strictly an underground mine). In addition, we have fresh Bedard Dyke drill holes that can be mined near-term - it tells us (even if things are a bit slow in the Lamaque flats) good grade gold is there at the Bedard dyke and ready to be mined. I didn`t see any near-term critical dates to ramp up production in the DB performance agreement document on SEDAR. San Juan is pledged at the start up commitment guarantee, but I didn`t see any near-term critical dates - just as long as we deliver the ounces to DB (currently 667 ounces per month. We are well positioned with San Juan in production - if Lamaque needs short-term assistance with the ounces. In terms of cash, we have the US$15M worth of warrants from Finskiy, for emergency purposes.
Back to Mr. McNutt, as mentioned, I fully agree that having him back at Lamaque brings back bad memories. However, they are currently in search for a perminent Lamaque Ops person. Mr. McNutt`s stay at Lamaque is only temporary.
``prod-5, why not post a detailed explanation of what you think Century is doing wrong? I'd be interested in knowing what's got you so negative. Is it just the share price, alone?``
``And, btw, what's your average price? I can see you being annoyed if you're in the red right now. But me, I'm buying at this low price. (I'd never touch it at .60, though.)``
The average cost of my Century shares is low - that`s not an issue. Mid to longer term, I still see big (very positive) things for Century.
I`m fine. CMM will be fine. Finskiy will likely provide funding if they are any short-term cash shortfalls. With Finskiy and Scola now in the picture (with large investments from their own personal cash), we are far better off than we have ever been in the past.
There are likely a lot of good parts that will be added to the Lamaque mix over time (long-hole stoping of the Bedard dyke, mining of the North Wall, etc.). Lamaque will continue to build up to reasonable levels of performance.
My frustrations are mainly related to seeing Century`s old bad habits resurfacing again, such as really poor communications to the general market and long periods of leaving the market in the dark (even aside from CTO issues, operating delays, etc.). I find that Century does a very poor job at educating the market (in my view). Either Century`s management are too stubborn to change or do not fully understand that their past negative track record (whether simply perception or real) and lack of confidence by the market means that they have to (or they should) go out of their way to educate the market (more than most other management for other companies). Reputable management can give guidance (without much details) and the market will trust them. If there are minor setbacks, the market will still believe (and the share price will not be hammered - i.e. from $.87 to $.46). It`s the total opposite with Century`s management (in my humble opinion - again, this is only my opinion). That`s why it is important for Century to go above and beyond in communicating with the market (explaining plans and progress in extreme details - provide really good education, BE COMPLETELY PROACTIVE WITH EVERYTHING).
In my books, not providing a progress update via NR to the general market since early May (1.5 months ago) doesn`t cut it (not when trying to build investor confidence).
These bad habits are killing all of the great progress they are making at both Lamaque and San Juan and also killing (or delaying) good growth opportunities.
Century will be fine. It would just be nice if management begin learning from failures in the past.
I really want to see the company shed the images of the past. Ultimately, it`s about share price performance. However, a progressive (fair market value) and sustainable share price is only a result of establishing a professional (performance) driven company which the market embraces due to a high level of confidence. I find it frustrating when I see signs of the company reverting back to its old habits.
2) Anonymous (2) said...
``What annoys me most is that the Adrian guy is still around Lamaque. Thought he was shipped off to Peru. To me he represents the worst of all that went wrong at Sigma when they moved all that rock to find what? Bills (debt that sent our s/p crashing) There were other mismanagement issues of course.``
I agree completely. They need to purge all that was wrong with Sigma, and Mr. McNutt was in the centre of Sigma. I guess they needed to move him there to temporarily help out due to that Kelly guy (with his $30,000 signing bonus) leaving us a the bind (after 2 months of service).
Mr. McNutt appears to have done a good job with San Juan (a much smaller operation). Hopefully he has learned a little bit from his past and is able to do a better job at Lamaque this time around. Also, the underground geology is much better (we have a successful 70 year u/g track record at Lamaque) than the unpredictable open pit ore body (where open pit mining was essentially new to Lamaque - Lamaque had always been strictly an underground mine). In addition, we have fresh Bedard Dyke drill holes that can be mined near-term - it tells us (even if things are a bit slow in the Lamaque flats) good grade gold is there at the Bedard dyke and ready to be mined. I didn`t see any near-term critical dates to ramp up production in the DB performance agreement document on SEDAR. San Juan is pledged at the start up commitment guarantee, but I didn`t see any near-term critical dates - just as long as we deliver the ounces to DB (currently 667 ounces per month. We are well positioned with San Juan in production - if Lamaque needs short-term assistance with the ounces. In terms of cash, we have the US$15M worth of warrants from Finskiy, for emergency purposes.
Back to Mr. McNutt, as mentioned, I fully agree that having him back at Lamaque brings back bad memories. However, they are currently in search for a perminent Lamaque Ops person. Mr. McNutt`s stay at Lamaque is only temporary.
Monday, June 14, 2010
It`s too bad Century can`t get its crap together quicker
That is, if they truly want to do this:
``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.``
The share price for Northern Star Mining has now fallen to $.16. They have some good advanced stage properties in the Val d`Or area and also a 900 tpd mill (they also have some potential for low cost production). As I have always said (even back when their share price was $.36), Northern Star is in big trouble, IMO. I said that because they have some serious debt coming due mid next year and I don`t see a non-takeover scenario for them. They also now have some off-take gold delivery that starts early September and running for 12 months (it`s not even clear if they can meet that committment).
This is an ideal company for Century to take over, then refinance the debt (or pay it off partly through cash flow of the new consolidated company come mid next year).
It`s too bad Century didn`t have their crap together. If Century could have only just kept going with the $.87 share price, and up to a nice takeover price of $1.50.
With Northern Star Mining now at $.16, some other players might begin to come around to pick them up cheaply.
With a TRULY PATHETIC share price of $.46 while gold is US$1,200 (Century`s management is entirely to blame for the move down from $.87, IMO) Century will likey not be in a position to do anything meaningful on the takeover front for quite a while (without short selling Century shareholders with too much extra dilution), IMO.
Although Northern Star`s assets are perfect for us, Century will likely lose out on the opportunity if Northern Star`s situation becomes too desperate (and they have to sell out immediately to a shark). In such a situation, Northern Star`s shareholders lose out big time also, as the company they partner with would likely not have nearly the share price upside (as Century`s depressed share price can offer).
All in my opinion of course.
At this stage, management just need to focus on delivery Lamaque. Everything else is irrelavent until they begin showing significent progress at Lamaque.
``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.``
The share price for Northern Star Mining has now fallen to $.16. They have some good advanced stage properties in the Val d`Or area and also a 900 tpd mill (they also have some potential for low cost production). As I have always said (even back when their share price was $.36), Northern Star is in big trouble, IMO. I said that because they have some serious debt coming due mid next year and I don`t see a non-takeover scenario for them. They also now have some off-take gold delivery that starts early September and running for 12 months (it`s not even clear if they can meet that committment).
This is an ideal company for Century to take over, then refinance the debt (or pay it off partly through cash flow of the new consolidated company come mid next year).
It`s too bad Century didn`t have their crap together. If Century could have only just kept going with the $.87 share price, and up to a nice takeover price of $1.50.
With Northern Star Mining now at $.16, some other players might begin to come around to pick them up cheaply.
With a TRULY PATHETIC share price of $.46 while gold is US$1,200 (Century`s management is entirely to blame for the move down from $.87, IMO) Century will likey not be in a position to do anything meaningful on the takeover front for quite a while (without short selling Century shareholders with too much extra dilution), IMO.
Although Northern Star`s assets are perfect for us, Century will likely lose out on the opportunity if Northern Star`s situation becomes too desperate (and they have to sell out immediately to a shark). In such a situation, Northern Star`s shareholders lose out big time also, as the company they partner with would likely not have nearly the share price upside (as Century`s depressed share price can offer).
All in my opinion of course.
At this stage, management just need to focus on delivery Lamaque. Everything else is irrelavent until they begin showing significent progress at Lamaque.
Century Mining Announces Annual Meeting Results
Jun 14, 2010 18:02 ET
BLAINE, WASHINGTON--(Marketwire - June 14, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) announces that at its annual meeting (the "Meeting") held in Vancouver, BC on June 11, 2010, over 48% of the issued and outstanding shares were represented. Margaret M. Kent, Fran Scola, William Lamarque and William J.V. Sheridan were re-elected as directors. Messrs Ricardo M. Campoy and Keith Hulley were elected as directors of the Company at the Meeting.
Chairman Margaret Kent commented, "On behalf of the Board and shareholders, I would like to welcome Mr. Campoy and Mr. Hulley as directors of the Company. Mr. Campoy and Mr. Hulley have both recently acted as board advisors since January 2010, and I look forward to working closely with our strengthened and experienced board as we continue to build a mid-tier gold producer."
Mr. Campoy has 34 years of international experience as a mining engineer, merchant and investment banker and as a financial advisor. From 2004 to 2006 he was Managing Director and Head of the Mining and Metals Group for WestLB in New York. Before that he held several senior banking positions with McFarland Dewey & Co. LLC; ING Capital; Swiss Bank; and as President of specialized resources merchant bank, Elders Resources Finance Inc.; European Banking Company; and Continental Illinois National Bank. Mr. Campoy serves on a number of mining company boards. Mr. Campoy earned a Bachelor of Science degree in Mining Engineering at the Colorado School of Mines and a Master's of International Management (Finance) at the American Graduate School of International Management.
Mr. Hulley was until recently the interim CEO of Gabriel Resources Ltd. and has been a member of the Gabriel Board since 2006. Previously, Mr. Hulley served seven years successively as President, Chief Executive Officer and Executive Chairman of Apex Silver Mines before retiring in 2004. Mr. Hulley has more than 40 years experience in the mining business which includes, prior to joining Apex Silver, Board and senior executive experience at Western Mining Holdings Ltd. (Director of Operations) and USMX Inc. (President/CEO).
The Company is pleased to report that all of the resolutions that shareholders were asked to consider at the Meeting, including the continuation of the Company's stock option plan and the extension of the shareholder rights plan, were approved by a majority of the votes cast at the Meeting.
Century currently has 345,503,444 common shares issued and outstanding. Under the terms of the Company's "rolling" Incentive Stock Option Plan a maximum of 34,550,344 shares are available to be issued pursuant to the exercise of options at this time. Subject to the approval of the TSX Venture Exchange, the Company approved the issue of 1,750,000 stock options to officers and directors of Century. The stock options are exercisable into common shares of Century at an exercise price of C$0.53 per share for a period of five years. Century's common shares closed at C$0.53 on the TSX Venture Exchange on June 11, 2010. Including this grant of 1,750,000 options, a total of 9,930,000 shares have been reserved for issuance pursuant to outstanding option grants. A further 24,620,344 shares are available for issuance pursuant to future option grants at this time.
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
BLAINE, WASHINGTON--(Marketwire - June 14, 2010) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) announces that at its annual meeting (the "Meeting") held in Vancouver, BC on June 11, 2010, over 48% of the issued and outstanding shares were represented. Margaret M. Kent, Fran Scola, William Lamarque and William J.V. Sheridan were re-elected as directors. Messrs Ricardo M. Campoy and Keith Hulley were elected as directors of the Company at the Meeting.
Chairman Margaret Kent commented, "On behalf of the Board and shareholders, I would like to welcome Mr. Campoy and Mr. Hulley as directors of the Company. Mr. Campoy and Mr. Hulley have both recently acted as board advisors since January 2010, and I look forward to working closely with our strengthened and experienced board as we continue to build a mid-tier gold producer."
Mr. Campoy has 34 years of international experience as a mining engineer, merchant and investment banker and as a financial advisor. From 2004 to 2006 he was Managing Director and Head of the Mining and Metals Group for WestLB in New York. Before that he held several senior banking positions with McFarland Dewey & Co. LLC; ING Capital; Swiss Bank; and as President of specialized resources merchant bank, Elders Resources Finance Inc.; European Banking Company; and Continental Illinois National Bank. Mr. Campoy serves on a number of mining company boards. Mr. Campoy earned a Bachelor of Science degree in Mining Engineering at the Colorado School of Mines and a Master's of International Management (Finance) at the American Graduate School of International Management.
Mr. Hulley was until recently the interim CEO of Gabriel Resources Ltd. and has been a member of the Gabriel Board since 2006. Previously, Mr. Hulley served seven years successively as President, Chief Executive Officer and Executive Chairman of Apex Silver Mines before retiring in 2004. Mr. Hulley has more than 40 years experience in the mining business which includes, prior to joining Apex Silver, Board and senior executive experience at Western Mining Holdings Ltd. (Director of Operations) and USMX Inc. (President/CEO).
The Company is pleased to report that all of the resolutions that shareholders were asked to consider at the Meeting, including the continuation of the Company's stock option plan and the extension of the shareholder rights plan, were approved by a majority of the votes cast at the Meeting.
Century currently has 345,503,444 common shares issued and outstanding. Under the terms of the Company's "rolling" Incentive Stock Option Plan a maximum of 34,550,344 shares are available to be issued pursuant to the exercise of options at this time. Subject to the approval of the TSX Venture Exchange, the Company approved the issue of 1,750,000 stock options to officers and directors of Century. The stock options are exercisable into common shares of Century at an exercise price of C$0.53 per share for a period of five years. Century's common shares closed at C$0.53 on the TSX Venture Exchange on June 11, 2010. Including this grant of 1,750,000 options, a total of 9,930,000 shares have been reserved for issuance pursuant to outstanding option grants. A further 24,620,344 shares are available for issuance pursuant to future option grants at this time.
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
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