Tuesday, May 04, 2010
CMM
Century Mining Completes First Gold Pour at Lamaque
In the mining business, graduating from an exploration company to a producing company is the crowning moment.
If a company achieves that milestone ahead of schedule not only does it indicate astute planning on the part of the management but also confirm the potential of the underlying asset.
As the company’s cash flow improves along with production it becomes future financing considerably easier as well. Companies entering into the production phase prompt a market re-rating as well.
Canadian Venture listed Century Mining Corporation (TSX.V: CMM) announced that all systems are up and running at the Lamaque operation and the mill facility poured its first bar of gold one month ahead of schedule on April 30, 2010.
The first gold pour was from the gravity table concentrate from the first few days of operation, which yielded a gold dore bar weighing approximately 230 ounces.
The mill can now expect the commencement of regular weekly gold pours going forward as the Carbon-in-Pulp (CIP) circuit is now fully operational. Future gold pours will include gold from the stripping circuit as well as the gravity recovered gold.
Managing producing mines is not new to CMM.
The company has been operating San Juan underground gold mine in Peru for some time. CMM closed a financing in mid 2009 in its attempts to get Lamaque into production.
Much progress has been made since then and clearly the management has delivered what was promised in the business plan.
The Company expects to provide tonnage, grade and recovery statistics from the first weeks of production at a later date. CMM also reported that the first jumbo from the fleet of low profile underground mine equipment has arrived on schedule at the Lamaque operation and is being readied for underground deployment this week.
The low profile equipment is expected to significantly increase the underground production rate in the Lamaque #2 mineralized flat zones and also assist in lowering mining costs.
Sigma Lamaque complex has a NI 43-101 compliant Proven plus Probable Reserve of 17.49 million tonnes grading 1.46g/t gold containing 820,300 Oz gold.
Its open pit Measured and indicated resource amounts to 4.495 million tonnes grading 2.19g/t gold containing 317,000 Oz gold and the inferred resource amounts to 14.737 million tonnes grading 1.92g/t gold containing 907,700 Oz gold.
Its underground measured and indicated resource is 3.923 million tonnes grading 4.99g/t gold containing 630,000 Oz gold while the inferred resource is 10.10 million tonnes grading 5.26g/t gold containing 1,708,000 Oz gold.
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