onepath I am putting together a little info on why I like canyon. Lot of reasons. US location. Reward project has a very high IRR though small. Briggs in feas. Uranium JV shows good potential. They own a lot of equipment. Always a chance in court on the Montana lawsuit.Relatively low share float. Depressed price. Here is some stuff in no particular order:
<Canyon Resources Reports on Uranium Project:
Acquisition of Claims Golden, CO—Canyon Resources Corporation (AMEX:CAU), a Colorado-based mining company, is pleased to report on the recent acquisition activities of its uranium
program in Wyoming. In the early 1980s, Canyon conducted an aggressive uranium exploration program in the western United States. Recently, the Company made the decision to review its historic files and reactivate one of its prior projects in Wyoming. Canyon Resources has acquired mineral rights on approximately 3,500 acres by claim staking in three separate locations within the program area, located along the
southern end of the Powder River Basin in Wyoming. Drilling during 1981 and 1982 in the program area by Canyon and a prior joint venture partner, Aquintaine Mining Corporation, consisted of 88 drill holes for approximately 69,000 feet. Within the program area, uranium drill hole intercepts, as defined by down hole gamma logging, showed a range of grades of up to 0.43% equivalent U3O8. This program identified the
potential for multiple uranium roll fronts. Additionally, a separate third company drilled out a reported three million pounds of uranium oxide material in the program area. It is
believed that they drilled approximately 114 drill holes for about 68,000 feet.“The reactivation of one of Canyon’s prior uranium programs represents an opportunity for the discovery of uranium deposits in Wyoming. While the Company will
continue a focus on gold, we are pleased to be able to develop value for our shareholders from prior exploration activities conducted. We are considering our options for this program, which may include seeking a joint venture partner to fund and continue the uranium exploration program,” stated James Hesketh, President and CEO of Canyon Resources.>
canyonresources.com
They sold and then stoled back at a great price their crushing plant that apparently was sold to Corner Bay so it has portability to be used at Briggs goldtooth or the reward deposit IMO:
< Canyon Resources Reacquires Briggs Crushing Plant
Golden, CO—Canyon Resources Corporation (AMEX:CAU), a Coloradobased
mining company, is pleased to announce that it has signed an agreement to
reacquire the Briggs Mine crushing plant and conveyor systems for $50,000 cash,
500,000 shares of Canyon stock and waiver of certain storage fees, for a total purchase
price of approximately $440,000. This plant was purchased by Corner Bay Silver Inc. for
its subsidiary Minera Corner Bay S.A. de C.V. in May 2002 for $2.6 million in cash plus
equity. The 600 ton per hour capacity, three stage crushing plant was never dismantled
and remains on its original foundations at the Briggs Mine site.
“The purchase of this equipment, besides being good value, provides Canyon with
the strategic flexibility needed to rapidly develop any production opportunities that may
be developed in our previously announced $700,000 Goldtooth exploration program or
from other production opportunities that are currently being studied by Canyon in and
around our Briggs Mine. Additionally, we have retained the engineering firm of CAM
located in Lakewood, Colorado to conduct a pre-feasibility study analysis of our Reward
project, near Beatty, Nevada, which, if the results are positive, may also utilize this
equipment once it is permitted,” states James Hesketh, President and CEO.>
canyonresources.com
REWARD:
<Contained within the general bounds of this resource is a diluted Proven and Probable ore reserve, which at a
gold price of $400/oz (no silver values taken) totals 2,610,066 tons averaging 0.0314 ounces-per-ton (opt)
gold. The ore reserve includes only probable ore, as there is no proven ore. Additionally, within the pit there
are 739,503 tons of mineralized material averaging 0.0280 opt gold.
The reserve has been estimated to contain 82,070 ounces of gold at a gold price of $400.00 per ounce.>
Low start up costs:
Item Base Estimate Contingency Total
Feasibility & Permitting* Drilling $870,000 $100,000 $970,000
Preproduction $3,846,425 $750,000 $4,596,425
Working Capital $1,544,111 $0 $1,544,321
Sustaining $500,000 $0 $500,000
Total $6,760,536 $850,000 $7,610,746
<The project is economic at the base price of $425/oz gold, with an internal rate of return of 31%, and a net
present value at a 5% discount rate in excess of $3.13 million. The project is extremely robust, and is
projected to have a LOM positive net cash flow (before Income Taxes and excluding sunk costs), through a
decline in metals prices of up to 10%.>
But at 600 POG it has a 147% IRR whoa! Page119 or and table 14-3
Gold Price Sensitivity
Au Price 375 425 475 525 600
NPV(0%) M 0.341 4.323 8.306 12.287 18.260
NPV(5%) M -0.344 3.136 6.617 10.097 15.317
NPV(7.5%) M -0.618 2.645 5.908 9.172 14.067
IRR % 2 31 63 96 147
Still working the Montana property in the courst. I suggest talking to the President of CAU on this if interested:
canyonresources.com
Here is a great 29 page slide presentation:
canyonresources.com
I added to canyon this AM. |
