from the May issue of Resource world magazine a decent write up of Century Mining by Doug Hadfield. i cannot access their site at the moment, not even sure if they post it on their site, so i typed it out for all to peruse??..................enjoy??
Century Mining-6 million ounces and growing fast.
In less than three years, Century Mining Corp, (CMM-TSXV) has grown from a dormant company on the TSX Venture Exchange into Canadas latest gold producer on track for 90,000 ounces this year alone. COnsidering the CEO behind the company is none other than Peggy Kent, without whom Northgate Mineral's flagship Kemess Mine would not be in production, the evolutionary pace should come as no shock. Peggy's skill as a tenacious negotiator combined with her technical expertise in solving the operational problems make her a valuable asset to any mining company.
Century kicked off its aggressive growth strategy in mid-2003 with the aquisition of10 properties in Alaska's Juneau Gold Belt and the appointment of Ms. Kent as the President/CEO. Some of the properties are past producers, and others have previous exploration intercepts as significant as 56 metres grading .4 grams gold/tonee.
A year later, Century aquired the Sigma-Lamaque complex in a deal worth $24.9 from McWatters Mining and Investment QUebec, getting the whole operation for a tenth of its value. Sigma is a large low grade mine with substantial reserves that was operated on a break-even basis before becoming illiquid in the first part of this decade. The project came with an estimated 4 million ounces of gold with 800,000 of those in the reserve category. Century aquired the property and promptly eliminated production bottlenecks that had put the mines cost performance in the red. With the addition of four new large tonnage trucks, the mine, began producing profitably.
The Lamaque Mine, adjacent to the Sigma Mine and part of the same vein system, operated from 1935 to 1985 with total prduction of about 24.2 million tonnes averaging 5.81 grams gold/tonne for a total of 4.55 million ounces.
As announced February 6,1006, Century plans to begin an extensive underground exploration and development program at the Lamaque Mine by end of Q2. Blending of higher-grade material from the Lamaque underground mine with ore from the Sigma pit will allow production to be increased and operating costs reduced.
Century continuees to be aggressive on both the aquisition and financing fronts. Formation of a Peruvian subsidiary was announced in February to accommodate the aquisition of the San Juan mine in Peru. This mine has a historical resource calculated in excess of 1,000,000 ounces averaging 8 grams gold/tonne. The mine produces about 12,000 ounces annually from two veins in a 32-vein porphyry system. Century intends to expand that production to 25,000 ounces immediately.
Mineralization at San Juan consists quartz-pyrite-gold veins which are persistent structures traceable in outcrop. More than 35 mineralized strucures have been identified on the property. The veins exhibit classic "pinch and swell" structures (sigmoid loops), with an average width of 1 metre. These structures persist for 3 km or more along strike, and more than 800 metres verically.
However, the big story in Peru is the four systems that surround the San Juan project, to which Century has also obtained title as part of the same deal. These four epitherma/porphyry systems are believed by Century and other informed persons to host millions of additional ounces of gold, as well as substantial gold and silver credits.
"Peru has enormous potential" says Ms Kent. She emphasizes that her goal for Century is to produce 1,000,000 ounces per year within five years.
The management team, led by Ms Kent, raised more than $1 billion on US and Canadian public and private equity and debt markets to fund aquisition and development of mining projects in Canada. She is complemented by a group of experienced engineering, finance, and communications professionals.
Century just announced a $25 million private placement, the bulk of which was taken down by a respected US-based resource fund. The financing was achieved through the issuance of units at $1.25 per unit, each of which comes with a half-warrant at $2.00. If Century shares trade over $2.25 for 20 consecutive sessions at any point in the warrant's two-year life, the warrant holders must exercise the warrant within 10 days.
Proceeds of the unit offering will be used to acquire new mining equipment for the Sigma open pit mine; exploration and development of the Lamaque underground mine; the repurchase and settlement of the outstanding precious metal royalty agreement over the Sigma-Lamaque property, which is currently held by SGF Mines Inc., for the cash consideration for the San Juan Gold Mine acquisition; and for general corporate purposes.
Look for these events this year - a listing on the TSX senior board (soon followded by a listing on AMEX, enhanced production at all properties now in production, and decreasing cash costs per ounce.
"Douglas Hadfield is the editor of the Resourcex Investor Newsletter for Resourse Investment, and co-author of Resource Investment 101, a guide for investors who wish to learn about evaluation emerging mining and energy companies. Find out more by visiting www.resourcexinvestor.com, or email him at doug.hadfield@resourcex.com
hmmmm..............some thoughts??
in less than three years??
Sigma-Lamaque Mine re-opened and now producing, in less than two years??
in less than five months, created a Peruvian subsidiary, aquired a near term producer with huge upside exploration properties to boot??
re-equiped the Sigma Mine??
have now begun underground refurbishing of the Lamaque Mine complex??
have been hiring more expertise as required??
soon to take delivery of 4 new tonka trucks??
since the beginning of the year, share price appreciation is now over 250%??
volumes of over 80 million shares since the beginning of the year??
have brought on a number of new instituional investors??
and they are still persuing other deals??
and lets not forget this last paragraph from this article;
"Look for these events this year - a listing on the TSX senior board (soon followded by a listing on AMEX, enhanced production at all properties now in production, and decreasing cash costs per ounce."
tanoose.........................and some think??........"yeah but what have you done for me lately"?? |
