Value Microcaps Junior Miners

[dr_airtime]

TMR.TO - Highlights of TMAC's PR from Today...

...it is a big one intended to help new investors understand the company. I've bolded the important parts below. Original PR here. I couldn't paste some tables obviously.

http://finance.yahoo.com/news/tmac-provides-path-production-hope-232653029.html

Don't forget that the CEO worked at INCO for 30 years so understands underground mining as well as anyone.

TMAC Provides Update on Path to Production at Hope Bay for Third Quarter 2015

TORONTO, ON--(Marketwired - November 05, 2015) - TMAC Resources Inc. (TMR.TO) ("TMAC" or the "Company") filed its Third Quarter Financial Statements and Management's Discussion & Analysis ("MD&A") for the period ended September 30, 2015, which documents can be found on the Company's website at www.tmacresources.com or on SEDAR at www.sedar.com. Highlights of the quarter are provided below.

Dr. Catharine Farrow, Chief Executive Officer of TMAC, stated, "We are pleased with our progress in moving the Hope Bay Project along the Path to Production. The third quarter of 2015 was our first quarter as a TSX-listed, fully-financed, gold development company. During the quarter, we significantly de-risked the Hope Bay Project financially by securing equity and debt financing for gross proceeds of over $350 million. In addition, we continued test mining underground at Doris, commenced construction on the foundations for the Mill Building, shipped the Mill Building components to site, and continued our work with Gekko Systems of Australia to execute on the procurement, fabrication and testing of the processing plant for shipment and installation during the third and fourth quarters of 2016. We remain on track and on budget for reaching production at the end of 2016."

THIRD QUARTER HIGHLIGHTS

Hope Bay Project

In the second quarter of 2015 Gekko Systems Pty Ltd of Ballarat, Australia ("Gekko") was engaged to engineer, fabricate and prepare for shipping a processing plant (the "Processing Plant"). The flowsheet design was completed and fabrication commenced. To the date of this news release the Processing Plant detailed engineering is 88% complete, the procurement, fabrication and factory testing is 22% complete, and it remains on budget and on track for shipping early in the third quarter of 2016.
Completed the 2015 sealift including the purchase and delivery to Hope Bay of:
underground mobile mine equipment capable of mining at a rate of 1,000 tonnes per day;
15 million litres of diesel fuel;
the building that will house the Processing Plant (the "Mill Building), to allow for erection of the building in the second and third quarters of 2016; and
first year mining parts and supplies.
Initiated on site construction of the foundations for the Mill Building.
Developed a narrow vein undercut test drift at Doris to validate the mining model and cost assumptions in the PFS.
Widened the Doris mine vent raise and installed an escape-way.
Increased underground development activities in September with the arrival of the underground mobile mining equipment noted above.
Financial and Corporate

Raised aggregate gross proceeds of $135,000,000 from the Initial Public Offering ("IPO") completed July 7, 2015.
Arranged a loan for an aggregate principal amount of up to US$120 million maturing on December 31, 2018 (the "Debt Facility").
Raised additional aggregate gross proceeds of $20,100,000 through the exercise of the IPO over-allotment option on August 11, 2015.
TMAC's common shares commenced trading on the Toronto Stock Exchange on July 7, 2015.
FINANCIAL AND OPERATING RESULTS

Statement of Profit or Loss

Net loss and comprehensive loss for the three and nine months ended September 30, 2015 were $1,851,000 and $6,500,000, respectively, compared with $1,245,000 and $4,989,000 for the three and nine months ended September 30, 2014.

Cash and Liquidity

Cash and cash equivalents totalled $84,991,000 at September 30, 2015 compared with $32,044,000 at December 31, 2014. In addition, TMAC had $18,006,000 and $650,000 of cash invested in long-term cash deposits or restricted cash at September 30, 2015, for a total of $103,647,000 of cash and cash investments. The increase in cash and cash equivalents resulted from the net proceeds of $146,830,000 from the IPO and the Over-Allotment Option offset with expenditures incurred on the continuing evaluation of, and the commencement of, the development of the Hope Bay Project.

Development

Doris Underground

The fleet of underground mining equipment was delivered to site in the 2015 sealift and was commissioned in preparation for mine operations.

Mining crews began extracting a test stope in Doris in order to validate planned mining methods and increase management's confidence in the assumptions for the mining costs in the Pre-Feasibility Study, with an effective date of March 31, 2015, (the "PFS"). The crews were able to achieve a stope width of less than one metre because blast vibration monitoring enabled the crews to refine the drill pattern and blast timing design. The importance of this result is that it reduced the number of tonnes in this particular stope from an estimate of 1,600 to 650 and increased the estimate of the grade from 13 to 31 grams per tonne due to less dilution. Additionally, this resulted in the consumption of less explosives when compared with the amounts assumed in the PFS. The lessons learned in drift and stope over-break control from the mining conducted in the test stope are being applied to the 2015 and 2016 mine plans to reduce mining dilution and improve head grades.

Site Construction and Support Activities

The sealift delivery of 15 million litres of diesel fuel was successful. Seven million litres of diesel fuel have been transferred from TMAC's tank farm at Roberts Bay to the Doris fuel tanks to support a full year's operations. Five sealift transfers included the fuel noted above, surface and underground mobile equipment, mining supplies, spares, explosives and the structural steel and panelling for constructing the Mill Building. In addition, widening and lengthening of the airstrip started. Currently measuring 3,000 feet or just under 900 metres, the plan is to increase the airstrip's length to 1,400 metres and double its width to 40 metres giving TMAC access to larger aircraft when chartering airfreight and for moving personnel in and out of site.

Innovative Steel ("IS") of Vancouver, BC completed the design and fabrication of the Mill Building. TMAC management's coordination of Gekko and IS, which began in November 2014, has helped to advance the Project toward Mill Building erection and Processing Plant installation at site in 2016. The foundations for the Mill Building are 83% complete and are on track to be largely finished by the end of November. With average daily temperatures dropping, the remaining concrete pours require insulation and heating to cure properly. This was anticipated and the transition to cold weather pouring has gone smoothly. The current plan, weather dependent, is to start erecting the Mill Building itself in April 2016.

Processing Plant Engineering & Fabrication

The test work for Madrid ores was completed in the first quarter of 2015, included in the PFS and incorporated into the design of the Processing Plant to ensure it meets the long-term requirements of the various ore types identified in the PFS. Gekko has completed the system design. Processing Plant detailed engineering is 88% complete, and the procurement, fabrication and factory testing is 22% complete.

The Processing Plant is to be delivered during the 2016 sealift. Planning for the installation and commissioning of the Processing Plant is in progress.

Exploration

Hope Bay

The primary objective of the 2015 exploration and evaluation budget is to support the advancement of Hope Bay through continued geological modelling, diamond drilling and metallurgical test work and resource definition at both Doris and Madrid. Drilling at Doris will support short to medium term mine planning and is focused on further definition of stopes within the one to two year detailed mine plan. Drilling during the fall of 2015 on Madrid was focused on the Naartok zone with the objective of further defining high grade areas and the addition of gold ounces to the resources base. Airborne geophysical surveying will cover Boston as part of the larger Hope Bay survey described below.

The drilling program in the first half of 2015 focused on the Naartok and Suluk zones of Madrid North, building on the success of the 2014 program. The helicopter supported drilling program for the second half of 2015 is testing areas that were not accessible during the winter drill program and, as noted above, is focused on two areas: Doris Deposit, specifically the North zone; and Madrid North Deposit, specifically the northern expression of the Naartok zone.

Surface diamond drilling on the Naartok zone, was focused on near surface high-grade gold targets associated with north-south structures off the Madrid Deformation zone. Several widely spaced, historical drillholes have intersected near surface, high-grade gold that is not currently accounted for in the Hope Bay Project resource base. Drilling in the third quarter of 2015 followed up some of these intersections with closer spaced drilling with the objective of better defining the geological controls on mineralization to allow resource estimation. A total of 6,163 metres were drilled in 24 drillholes during third quarter 2015 on the Naartok zone. Assay results are pending and geological interpretation is in progress.

Surface diamond drilling at Doris during the third quarter was focused on infill drilling within the mid-term production areas of the Doris North zone. Drilling on the southern extent of the Doris North zone targeted areas of wider spaced drilling within the Indicated Resources and drilling on the Doris North hinge area focused on defining local fault structures and their impact on mineralization. This drilling will facilitate detailed mine planning for 2016 pre-production development and 2017 production. A total of 4,382 metres in 38 drillholes was completed on the Doris North zone in the third quarter of 2015. No underground drilling was done in the third quarter of 2015.

The secondary objective of the 2015 exploration program is to begin regional exploration work outside of the three known deposits of Doris, Madrid and Boston. Two airborne geophysical surveys were planned over the Hope Bay greenstone belt, one being the SkyTEM 516 Mag/EM system, and the other the CGG HeliFalcon Gravity system. To the end of September, a total of 8,671 line km, representing 72% of the total Hope Bay SkyTEM Mag/EM survey, had been flown. Surveying was concentrated on the north end of the belt, over Doris and Madrid and, near the end of the quarter, the surveyors moved south to cover the Boston Deposit. Due to deteriorating weather and fewer daylight hours, the SkyTEM survey has been suspended for the season and the remainder of the survey is expected to be completed in the winter/spring of 2016 when daylight hours are sufficient to resume surveying. Data acquired during the 2015 season will be incorporated into the 2016 exploration program planning.

Due to delays with commissioning the CGG HeliFalcon gravity system, deteriorating weather conditions and fewer daylight hours the surveying, originally scheduled to commence at the end of September, has been postponed to the 2016 season.

Elu claims

In addition to Hope Bay, in the original purchase of properties in March 2013 from Newmont, TMAC acquired certain mineral claims, located approximately 35 km to the north-east of Hope Bay and comprising an area of approximately 305 square km, entitled the Elu claims (the "Elu Claims") that are contained within the Elu belt (the "Elu Belt"). The Elu Belt is a greenstone belt similar in age to the Hope Bay greenstone belt. Limited historical exploration suggests that there is potential for significant gold mineralization similar to those deposits found within the Hope Bay greenstone belt.

In July and August, a Sander airborne gravity geophysical survey was completed over the entire Elu Claim block. During late August and September a SkyTEM Mag/EM airborne geophysical survey commenced over the Elu Claims. As at the end of September, approximately 53% of the SkyTEM survey had been completed with 2,139 km of the total planned 4,067 line km, including tie lines. Due to deteriorating weather conditions and fewer daylight hours, the remaining surveying has been suspended until the winter/spring 2016 season. Work completed during the 2015 season is sufficient to fulfil the 2015 work commitments and to maintain the claims in good standing until 2017 if no further work is done.

Path to Production

With the proceeds received from the completion of the IPO and the funds made available through the Debt Facility, TMAC is now in a position to execute a path to production ("Path to Production") plan which incorporates the overall costs of the PFS plus the related bonding, exploration and general and administrative expenditures necessary for executing the development of the Hope Bay Project to initial production. TMAC intends to take a "bootstrap" approach to developing the Hope Bay Project. This approach to development has been used for decades in historical gold mining camp development in the Canadian Shield, most notably in the Kirkland Lake, Timmins and Val D'Or gold camps. At the Hope Bay Project, initial production at Doris is expected to generate cash flow to fund the development of Madrid, the cash flow from which will subsequently fund the development of Boston and/or other potential discoveries that TMAC may make elsewhere along the Hope Bay greenstone belt.

The following table, taken from the Prospectus dated June 26, 2015, illustrates the estimated amount to be expended during 2015 and 2016 to achieve initial production at the end of 2016:

[Dr_Airtime: See PR]

As at September 30, 2015, TMAC had incurred $120 million of the planned $165 million of the Path to Production expenditures for the 2015 financial year. The expenditures to date are in line with the Path to Production plan in terms of timing and the amount of expenditure. The total estimated expenditure and working capital for 2015 and 2016 currently remains at $290 million.

Common Shares

As at November 5, 2015, the Company had 77,613,259 Common Shares issued and outstanding, 2,765,822 common share purchase options issued at a weighted average of $5.26 per Common Share, nil restricted shares issued and outstanding, and 1,900,000 share purchase warrants issued with an exercise price of $7.50, totalling 82,279,081 Common Shares outstanding on a fully-diluted basis.