Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (17625)	4/14/2008 9:22:07 AM
From: LoneClone	Read Replies (1) \| Respond to of 193970

Analysts See Rebirth of British Columbia’s Copper Mountain By Jane Perry 11 Apr 2008 at 04:36 PM GMT-04:00 resourceinvestor.com VANCOUVER (ResourceInvestor.com) -- This past month has been upbeat for Copper Mountain Mining [TSX-V:CUM] with the release of encouraging drill results on its namesake project, followed by strong buy recommendations from two mining analysts. The project, located 15 kilometres south of Princeton, B.C. consists of 18,000 acres of claims. Copper Mountain is considered a bulk-tonnage, alkalic porphyry copper deposit in a volcanic setting. The company aims to become a mid-tier copper producer in the near-future. Its President, Jim O’Rourke, confirmed this with RI: “We’re cautiously optimistic that we’re going to be in production by the end of 2010,” he said. This would be a case of déja vu, as Mr. O’Rourke was President of Princeton Mining Corp. from 1987-1997, which operated Copper Mountain before low copper prices forced the mine’s closure in 1996. The report released March 14th by Canaccord Adams recounts the “past-producing Similco operation, now owned by Copper Mountain, [as having] a history of mining dating back to the early 1920s. Newmont operated Similco from 1972 through 1988 before selling its interest to Cassiar Mining, which later became Princeton Mining. Princeton operated until November 1996 ... total production from the company was 1.7 billion pounds of copper, 8.4 million ounces of silver and 620,000 ounces of gold.” At the end of 2007, the company completed a Titan 24 geophysical survey which, according to the company’s website, “identified several large chargeability anomalies, both near surface and at depth.” Mr. O’Rourke highlighted the project’s “blue-sky” potential based on the anomalies, which have been borne out to some extent by the positive results of this most recent round of drilling. Best intersections were 370 feet of 1.05% Cu, 0.28 g/t Au and 2.35 g/t Ag. The company is in the final stage of a feasibility study based on recommendations outlined in its preliminary assessment, which outlined “measured and indicated resources, based on a 0.25% Cu cut-off grade, [of] 163 million tonnes grading 0.43% Cu containing 1.4 billion pounds of copper,” with “inferred resources at 0.25% Cu cut-off grade are 113 million tonnes grading 0.37% Cu containing 0.8 billion pounds Cu.” The feasibility study’s design criteria are for a 35,000 tonne per day operation which, according to a March news release, “would produce approximately100 million pounds of copper, 38,000 ounces of gold and 800,000 ounces of silver annually.” Investment Outlook On the financial side: * The company is two years old and has only been public for eight months; * At only at only 27.7 million shares fully diluted, Copper Mountain is one of the few relatively tight issuers left, given the bloated junior market; * It’s trading in a comfortable price range (C$1.90-C$2.00) and stands out in a market rife with companies trading in the 20-40 cent range; * Much of the risk has been taken out at this point, as we’re dealing with a past-producer with a great track record; * The company is in the process of applying for a full TSX listing; * Management builds on its years of experience with this project; * British Columbia, with its stable legal system and developed infrastructure is looking better in light of the trouble miners are experiencing in far-flung places like Mongolia, Peru and the DRC; * Rising long-term copper price expectations. On the technical side: * Focus is on one, high-quality, 100%-owned project; * A newly discovered high-grade mineralized zone in a past-producer; * A short time horizon to production (3 years); * The project is supported by solid infrastructure with permitting in place- making it the most advanced copper project in the province; * The preliminary assessment report’s grade, tonnage and recovery rates are extremely conservative. Analysts’ Conclusions Canaccord Adams gives Copper Mountain a “SPECULATIVE BUY recommendation [with] a 12-month target of C$3.05.” Jennings Capital, in its report released April 4th, views the project as having “a much lower risk profile than any other project of comparable stage, scope and size,” and rates Copper Mountain as a SPECULATIVE BUY with a 12-month price target of C$4.40. Market cap is C$41.4 million, cash on hand is C$4.5 million. As of Friday, shares traded at C$2.00 per share. Well, dear readers, it looks as if we could be watching BC’s next big copper mine being born. I’ll keep you posted as things unfold.