Tanoose.
LOL ..... I reposted that Western Standard article again. Sorry about that dude,.... Just call me Al,.... Zheimer. Guess I thought it was worth a repeat performance...???
Anyhow.
The latest acquisition in Peru certainly presents us with the potential for at least one "elephant", and maybe more. Once this latest financing closes, and the company completes the San Juan Gold Mines deal, CMM can get down to the business of moving the 1.5 million ounces at the mine back into NI 43 101 compliant reserves. Shouldn't be very difficult, considering the ounces already have an operating mill, and the original "historical" estimates were done with gold prices at US$300 - US$325.
As for your mentioning of the ongoing work of upgrading the Sigma Lamaque assets in Val D'or, the same can be applied to the historical estimates of the remaining 3.6 million ounces of gold that is not currently classified as reserves. Those older studies were also done at a time with gold prices hovering around the US$300 - $325/oz price levels.
Consider the company's June 20 2005 news release.
centurymining.com
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"BLAINE, WA: Century Mining Corporation (CMM: TSX-V) today announced the initiation of an exploration project at its Sigma and Lamaque properties to guide future mining expansion. The project will merge new information derived by the Company from its open pit mining with significant volumes of historic underground mapping, geochemistry and drill hole information to create a 3-D image of the mineralizing system.
“There are more than 6,000 drill holes on the Sigma and Lamaque properties dating from as early as the 1930s, when the mines first began operations. This does not include thousands of underground channel and face samples from the underground workings. Countless data sources exist, but to date, no one has compiled and interpreted the data,” said Ross Burns, the Company’s Vice President of Exploration. “Once completed, this project positions the Company for future mining expansion on the Sigma and Lamaque properties and will provide realistic guidance for exploration.”
The data compilation project is expected to cost $500,000 and take a year to complete.
In conjunction with this exploration program a feasibility study will be undertaken focused on upgrading some or all of the existing 2.33 million ounces of gold in underground resources into a mineable category. The Sigma and Lamaque properties currently host just over four million ounces of gold in combined open pit and underground resources.
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As we already know, feasibility studies have to consider the economics of an ore body's potential to be a mine, which normally requires the inclusion of the costs of financing and constructing a mill. Century Mining doesn't need one at Val D'or, now do they? As you do, I also believe that the comapny should be able to upgrade at least half of those targetted 2.33 million ounces into P&P reserves and the rest into higher resource classifications.
So, we have the potential for this company to be sitting with the current 857,000 ounces of reserves in the Sigma pit, plus perhaps 1.2 million ounces of reserves from Lamaque and moving the 1.5 million ounces at San Juan back into reserve category.
That would give us about 3.5 million ounces of reserves, plus all the remaining 2.5 million oz of potential resources at Val D'or, and the potential 250,000 resource ounces at Carolin, (at which the company believes there may be 1 million ounces), along with all the Alaskan prospects, and the Colina Dorado property along the Peru/Ecuador border, plus those 4 prospects acquired in the San Juan deal.
$1.42 x 111.5 million currently issued and O/S shares = C$158 million market cap.
I recently compiled some data on other junior producers I follow on April 4 2006 for a comparison with my projected CMM 2005 net loss of C$5.5 - $6.0 million, along with those companies' reported 2005 YE bottom lines. The Desert Sun comparison is about the closest in asset, production, cost per ounce structure, and share structure, prior to being bought out by Yamana.
Desert Sun Mining (DSM.to)
Net Loss for 2005 - CDN$7.9 Million
Market Cap ... 105 million shares x $7.20 = $756 Million
Alamos Gold (AGI.to)
Net Loss for 2005 - US$9.44 Million
Market Cap ... 77 million shares x $9.10 = $700 Million
Glencairn Gold (GGG.to)
Net Loss for 2005 - US$4.1 Million
Market Cap ... 171 million shares x $0.66 = $113 Million
Jaguar Mining (JAG.to)
Net Loss for 2005 - US$12.8 Million
Market Cap ... 45 million shares x $5.75 = $258 Million
Queenstake (QRL.to)
Net Loss for 2005 - US$19.7 Million
Market cap ... 550 million shares x $0.42 = $231 Million
Semafo (SMF.to)
Net Loss for 2005 - US$13.5 Million
Market cap ... 134 million shares x $2.60 = $348 Million
Aurizon Mines (ARZ.to)
Net Loss for 2005 - CDN$4.1 Million
Market cap ... 140 million shares x $2.74 = $383 million
Claude Resources (CTJ.to)
Net Loss for 2005 - CDN$3.5 Million
Market cap ... 72 million shares x $1.28 = $92 million |
