Russ here is one of my favorite picks:
Long post but who knows it may be worth it:
FR.V a Saville silver pick is now my second largest position next to CKG.
firstmajestic.com
The president of FR built 1st Quantum into the company they are today. In addition they have recently brought on a top person from PAAS to help with acquisitions.
firstmajestic.com
<<Mr. Neumeyer has worked in the investment community for 18 years beginning his career at the Vancouver Stock Exchange and continued on with McLeod Young Weir (now Scotia McLeod), then Richardson Greenshields and then Walwyn Stogell McCuthchen (which became Midland Walwyn). Mr. Neumeyer moved on to work with several publically traded companies in the resource and high technology sectors. His roles have included senior management positions and directorships responsible in areas of finance, business development, strategic planning and corporate restructuring. Mr. Neumeyer was the original and founding President of First Quantum Minerals (T-FM). He was instrumental in the implementation of the acquisition of the Bwana Mkubwa Mine in Zambia and the assembly of a team of mining professionals who in turn built the first new mine in the region in 25 years. The Bwana Mkubwa was in production 18 months after acquisition and today remains the most significant investment by any company world wide in the copper belt of Africa. Mr. Neumeyer has collectively raised over $100 million to date, has listed two companies on the Toronto Stock Exchange and as such has extensive experience dealing with the financial, regulatory, legal and accounting issues that are relevant in the investment community.>>
firstmajestic.com.
Mon Feb 16, 2004
Strengthening the Management Team
The Company is pleased to announce its recent appointment of Mr. Ramon Davila as a consultant and is confident that Mr. Davila will become a vital component to the Company's management team and an important contributor to the Company's future success in Mexico.
Mr. Davila, a Mexican citizen, was educated at the University of Guanajuato in Mexico and graduated as a Mining and Metallurgist Engineer in 1975. After graduating, he obtained training in Canadian mining operations and returned to Mexico in 1978 to work for Industrias Penoles, the largest silver producer in Mexico. In 1987 Ramon became the VP of Mining Operations for Luismin where he was responsible for all aspects on mining operations for seven mines and 15 exploration projects in various parts of Mexico. Since 1998 Mr. Davila has been President of Plata Panamericana SA de CV, a wholly owned subsidiary of Pan American Silver Corp. (PAA: TSX; PAAS: NASDAQ) where he was in charge of all aspects of production, exploration and administration of Pan American's Mexican operations.
In 1993, Mr. Davila earned his masters degree in Mineral Economics at the Colorado School of Mines. He was also the National President for the Association of Mining Metallurgist and Geologists in Mexico from 1996 to 1998 and is currently a member of the board of Directors of the Chamber of Mines in Mexico. He is also a member of the Society of Mining Metallurgical and Exploration Engineers.
On January 13, 2004, the Company announced that it had entered into a letter agreement to acquire the La Parrilla Silver Mine in Durango, Mexico which is subject to certain conditions, including final due diligence which is presently underway and receipt of regulatory approvals. Upon closing of the acquisition of the La Parrilla Silver Mine, Mr. Davila will become a member of the Board of Directors and the Chief Operating officer of the Company. The Company has granted Mr. Davila 250,000 employment stock options at a price of $1.42.
Mr. Davila's position in the Company is a critical first step in achieving the corporate goal of becoming a mid-tier Silver producer focused on Mexico. Management of the Company believes that Mexico represents a significant opportunity for First Majestic to build a core of assets that will meet its short and long term objectives. Ramon's extensive experience in mining operations and knowledge base in Mexico is anticipated to bring immense value to shareholders.
Management is excellent. They are acquiring several closed past producing silver mines and using a centralized location to mill and use floatation to begin producing silver bars in an estimated 90-120 days.
firstmajestic.com.
Thu Apr 22, 2004
Financing & La Parrilla Update
Further to the Company's news release dated March 15th, the Company is pleased to announce that in connection with its previously announced private placement, the Company has now received and accepted subscriptions for a total of 8,000,000 units of the Company for total gross proceeds of $11,600,000.
Formal closing of the private placement will occur concurrently with the closing of the purchase of the La Parrilla Silver Mine. The Company and the vendors of the La Parrilla Silver Mine are presently finalizing all final documentation and closing is anticipated to be on or before April 30, 2004.
The private placement and the closing of the purchase of the La Parrilla Silver Mine are subject to receipt of regulatory approvals.
First Majestic continues to pursue other advanced stage silver projects in Mexico in accordance with its acquisition strategy. The Company is in negotiations with a number of potential vendors. At this time no agreements have been reached. These potential target acquisitions remain confidential in order for the Company to maintain its competitive position.>>>
In addition they have fantastic upside potential with their Niko project which they hope to be drilling by the end of May.
firstmajestic.com
They plan on a small number of holes initially (4) but plan on drilling to the 600 meter depth (estimated) with 2 holes each into two seperate but very large breccia pipes. Geo-physics already completed show a potential mineralized zone up to a kilometer long and 800+ meters wide and over 600 meters deep.
<<Geologic evidence to date suggests that Niko is part of the polymetallic mineral halo perhaps surrounding a buried igneous intrusion into Cretaceous limestones (Aurora formation) that may occupy the area between Niko Norte (north) and Niko Sur (south) hills hidden under soil cover and or limestone strata. The age of the intrusion (if it exists) and mineralization is mid-Tertiary. Because of its environment and being situated in receptive Cretaceous sedimentary rocks, the Aurora formation, it has potential for a very large body of mineralized rock. Niko Estrella breccia pipe manifests distal alteration and mineralization characteristics of other polymetallic replacement deposits including the near by Naica district ,20 km SW and the Santa Eulalia district 60 km NE, as reported by Megaw, 1986. Potential for large underground mining is thought to be excellent.>>
<<The Naica polymetallic carbonate replacement (CDR) district, discovered in the late part of the 18th century. It has had a production of about $6 billion at approximate modern metal prices, including silver, lead, zinc, copper, and tungsten with subordinate molybdenum and mercury. No significant mining took place at Naica until the last years of the 19th century when the Torino -- Tehuacan pipe outcrop was discovered. Consisting of massive iron oxide silver-lead-zinc rich gosson only about four meters in diameter, mining of the material which was surrounded by limestone with only a subtle surface expression consisting of silica, minor iron staining, decalcification of limestone, and subtle marbelization and bleaching, lead downward into the massive polymetallic carbonate replacement ores of the modern Naica mine. The Torino-Tehuacan pipe has a surface expression of about 16 square meters, an inclined length of 800 meters and contains 3.3 million tons of ore known to date. Projection from surrounding hills suggests that with another 30 to 60 meters of un-eroded limestone the only evidence of the pipe would have been weakly silver bearing black manganese breccia -- like the outcrop of the Estrella breccia pipe at Niko. Further, the Estrella pipe has an area of 418 square meters or 26 times larger than the Torino Tehuacan pipe. If the tonnage of the Estella is directly proportional to their respective surface areas and the length is the same, we could assign a potential tonnage of 86 million to the Estrella pipe. The pipes, known a chimineas, at Naica and Santa Eulalia lead downward into ore mantos. The Estrella pipe or chiminea is expected to do the same.>>
<<From the model proposed by the JV and endorsed by this report, there appear to be three probable types of mineralization to look for associated with the Niko Silver Project target complex and one unexpected, but rational type. Additional geochemistry may define yet a fifth.
The first and primary objective is a test of the Estrella breccia pipe. This is much larger than the Torino-Tehuacan pipe at nearby and thought to be look-a-like Naica, which appears to be the master mineralized feature at Naica. If of similar mineral grade, the Estrella could portend a much larger system than the $6 billion dollar production Naica system. Further, we know from study of these systems (Megaw, 1986, and J. Briscoe personal communication) that large ore bodies are surrounded by argentiferous manganese halos. As the center of the mineral system is approached, silver content increases drastically. A recent example of this phenomenon is the Excellon Resources Inc. La Platosa mine, near Torreon, south of Niko, where similar distal silver values are as much as 800 ounces or more per tone. Megaw attributes this to the "distal position of the ore shoots (personal communication with J. Briscoe 2002 -- Vancouver Gold Show). It is expected that the silver grade at Estrella (1 ounce per ton at the surface) at will increase rapidly with depth yielding similarly high-grade silver. With additional depth mineralization will increase in lead-zinc content and then transition again into high copper molybdenum content -- as it does at Naica (personal communication J. A. Briscoe, from mine tour to Naica, 1996). >>
Much more on their web site. I am long and strong and expect this stock to far out perform its peers. Do your own DD. And for those inclined to wonder yes I am pumping this stock as I own a very large position and I believe in it very much. Hopefully time will prove that management is much stronger and operates with a lot more integrity than my last silver venture. BTW that prior unnamed company still has not gotten that drill rig moving.<ng> Let's see how long it takes FR.V to lock up their acquisitions and proceed to production at La Parilla and drilling at Niko.Once again do your own DD and I am long the stock.
Tom |
