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AGT not only has potentially toxic hedges, but they also have a whopping 232.81M shares outstanging according to yahoo.
GORO has gotten to this point with no hedges and only 41.10M shares out. IF they need more money, it will be a miniscule amount and won't add much to their shares out at a share price of almost $5. Plus their last raise was over the market price with one of the top names in the entire industry without warrants or options as is the norm. To think that AGT could do such a thing is laughable imo. Not trying to bash AGT, just drawing parallels.
I sleep soundly with GORO. With AGT's pretty dissapointing history, I won't touch them. But I guess that's what makes a market. Good luck.
Agreed. One of my top long term holdings.
Little early to close out on GORO don't ya think? My minimum target is $20.
While most everything else is falling, GORO continues marching higher today on its fantastic news, currently up over 9% to $4.90
Gold is in a bull market and rising. No crystal ball needed.
Any hedging at all is toxic in my book.
And I don't undersand this board's recent interest in CDE either. The fact that they need to do a 10-1 r/s speaks for itself about the history of the company. They dilute and dilute and then dilute some more. They don't mine silver or gold, they mine shareholders and only produce more and more shares. I was at the Silver Summit in Coeur d'Alene a couple/few years ago. I remember going through the gorgeous town and seeing CDE's HUGE and new office building over looking the lake there. I went to the conference and watched presentations by nearly every silver company out there, large and small. If they didn't present they at least had a booth so you could talk to them. Yet, CDE, with their huge office right in town, did not even bother to show up. That says it all in my book.
Why mess with hedgers like AGT and diluters like CDE when there are so many other quality miners out there? Sure the rising tide will lift all turds with it, but why not ride in a top notch boat? GORO for gold, SLW, FR.TO for silver, TLR for drilling and exploring, and so many others who have management that have proven themselves to be without the pitfalls of the likes of CDE, AGT, etc.
Timberline Provides Butte Highlands Gold Project Overview, Files Underground Exploration Plan with Montana DEQ, Acquires Additional Property
COEUR D'ALENE, Idaho, April 30, 2009 (GLOBE NEWSWIRE) -- Timberline Resources Corporation (NYSE Amex:TLR) today provides a Butte Highlands Gold Project overview and announces the filing of the Underground Exploration Plan and the acquisition of additional property at its Butte Highlands Gold Project in southwestern Montana.
Timberline has rapidly advanced its Butte Highlands Gold Project toward development and production since first purchasing the property in 2007. Project highlights include:
2007 - May - Entered agreement to acquire Butte Highlands Property.
July - Completed acquisition of the Butte Highlands Property.
August - Staked additional claims at the project.
October - Initiated Phase 1 drill program.
2008 - May - Initiated preliminary scoping study.
August - Resumed Phase 1 drill program.
September - Released highlights of preliminary economic analysis and development timeline.
October - Discovered new high-grade gold zone at Butte Highlands Gold Project.
October - Announced plans to form 50/50 joint-venture with Small Mine Development.
November - Initiated Underground Exploration Plan for permitting process.
2009 - January - Drilled water monitoring well, announced positive results of a hydrogeologic study.
April - Filed Underground Exploration Plan with Montana DEQ.
April - Acquired additional property for project.
Timberline recently filed its Underground Exploration Plan with Montana's Department of Environmental Quality (DEQ). The work plan at Butte Highlands is primarily aimed at advancing the deposit toward near-term development and production. The review and approval process is expected to take approximately 60 days after which the Company expects to begin the development ramp and drilling. The plan includes:
* Driving a 6,700-foot decline, providing access for 10 to 15 underground drill stations and doubling as a production ramp.
* 60,000 feet of underground drilling to further define and potentially expand known mineralized zones and to provide material for metallurgical testing.
* Additional surface drilling to test the deposit's western extension discovered last fall in Hole #08-03. (See Timberline's press release dated October 21, 2008 for more information.)
* A 10,000-ton bulk sample to provide material for pre-production ore characterization.
* Additional water monitoring drill holes for further definition of the hydrological character, verifying continuity with last year's single test hole.
In support of the project, Timberline has recently acquired approximately 150 acres of private land adjacent to and just south of its main Butte Highlands property. The strategic parcel is expected to reduce development and mining costs by providing improved portal access and more optimal facilities locations and staging areas.
Timberline V-P of Exploration Paul Dircksen stated, ``While this stage of the development process is fairly quiet from a public announcement perspective, it is typically when exploration companies are most active. The combination of Timberline geologists, contributions from our drilling staff, permitting and oversight of Klepfer Mining Services, and the engineering and design input from the team at Small Mine Development have allowed the plan to come together according to the time frame we originally outlined. In addition to the Underground Exploration Plan, we have been advancing geologic modeling, geologic targeting for resource expansion, mine modeling, engineering design, property consolidation, and permitting. We are looking forward to an acceleration of activities this summer.''
Butte Highlands is located 15 miles south of Butte, Montana within a favorable geologic domain that has hosted several multi-million ounce gold deposits including Butte, Golden Sunlight, Montana Tunnels, and Virginia City. The property was extensively drilled by Placer Dome, Battle Mountain, ASARCO, and Orvana Minerals in the 1980s and 1990s, and contains historic mineralization outlined by Orvana (not compliant with NI 43-101 or SEC Guide 7) exceeding 500,000 ounces of gold at a grade of nearly 0.30 ounces of gold per ton (oz/t). Past drilling highlights include gold intercepts of 50 feet of 0.65 oz/t, 31 feet of 1.06 oz/t, and 11.50 feet of 1.99 oz/t.
This press release has been reviewed and approved by Paul Dircksen, a Qualified Person as defined by NI 43-101.
Timberline Resources Corporation has taken the complementary businesses of mining services and mineral exploration and combined them into a unique, forward-thinking investment vehicle that provides investors exposure to both the ``picks and shovels'' and ``blue sky'' aspects of the mining industry. Timberline has contract drilling subsidiaries in the western United States and Mexico and an exploration division focused on district-scale gold projects with the potential for near-term, low-cost development. The Company is forming a 50/50 joint-venture with Small Mine Development, LLC at its Butte Highlands Gold Project, which is scheduled for development in 2009. Timberline is listed on the NYSE Amex and trades under the symbol ``TLR''.
Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties, including but not limited to the Company's 50/50 joint venture with SMD, the development and production of the Company's Butte Highlands project, and the Company's expected operations in 2009. When used herein, the words ``anticipate,'' ``believe,'' ``estimate,'' ``plan,'' ``intend'' and ``expect'' and similar expressions, as they relate to Timberline Resources Corporation, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors, including risk factors, discussed in the Company's Annual Report on Form 10-KSB for the year ended September 30, 2008. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.
Contact:
Timberline Resources Corporation
John Swallow, Chairman
208.664.4859
Timberline Provides Butte Highlands Gold Project Overview, Files Underground Exploration Plan with Montana DEQ, Acquires Additional Property
COEUR D'ALENE, Idaho, April 30, 2009 (GLOBE NEWSWIRE) -- Timberline Resources Corporation (NYSE Amex:TLR) today provides a Butte Highlands Gold Project overview and announces the filing of the Underground Exploration Plan and the acquisition of additional property at its Butte Highlands Gold Project in southwestern Montana.
Timberline has rapidly advanced its Butte Highlands Gold Project toward development and production since first purchasing the property in 2007. Project highlights include:
2007 - May - Entered agreement to acquire Butte Highlands Property.
July - Completed acquisition of the Butte Highlands Property.
August - Staked additional claims at the project.
October - Initiated Phase 1 drill program.
2008 - May - Initiated preliminary scoping study.
August - Resumed Phase 1 drill program.
September - Released highlights of preliminary economic analysis and development timeline.
October - Discovered new high-grade gold zone at Butte Highlands Gold Project.
October - Announced plans to form 50/50 joint-venture with Small Mine Development.
November - Initiated Underground Exploration Plan for permitting process.
2009 - January - Drilled water monitoring well, announced positive results of a hydrogeologic study.
April - Filed Underground Exploration Plan with Montana DEQ.
April - Acquired additional property for project.
Timberline recently filed its Underground Exploration Plan with Montana's Department of Environmental Quality (DEQ). The work plan at Butte Highlands is primarily aimed at advancing the deposit toward near-term development and production. The review and approval process is expected to take approximately 60 days after which the Company expects to begin the development ramp and drilling. The plan includes:
* Driving a 6,700-foot decline, providing access for 10 to 15 underground drill stations and doubling as a production ramp.
* 60,000 feet of underground drilling to further define and potentially expand known mineralized zones and to provide material for metallurgical testing.
* Additional surface drilling to test the deposit's western extension discovered last fall in Hole #08-03. (See Timberline's press release dated October 21, 2008 for more information.)
* A 10,000-ton bulk sample to provide material for pre-production ore characterization.
* Additional water monitoring drill holes for further definition of the hydrological character, verifying continuity with last year's single test hole.
In support of the project, Timberline has recently acquired approximately 150 acres of private land adjacent to and just south of its main Butte Highlands property. The strategic parcel is expected to reduce development and mining costs by providing improved portal access and more optimal facilities locations and staging areas.
Timberline V-P of Exploration Paul Dircksen stated, ``While this stage of the development process is fairly quiet from a public announcement perspective, it is typically when exploration companies are most active. The combination of Timberline geologists, contributions from our drilling staff, permitting and oversight of Klepfer Mining Services, and the engineering and design input from the team at Small Mine Development have allowed the plan to come together according to the time frame we originally outlined. In addition to the Underground Exploration Plan, we have been advancing geologic modeling, geologic targeting for resource expansion, mine modeling, engineering design, property consolidation, and permitting. We are looking forward to an acceleration of activities this summer.''
Butte Highlands is located 15 miles south of Butte, Montana within a favorable geologic domain that has hosted several multi-million ounce gold deposits including Butte, Golden Sunlight, Montana Tunnels, and Virginia City. The property was extensively drilled by Placer Dome, Battle Mountain, ASARCO, and Orvana Minerals in the 1980s and 1990s, and contains historic mineralization outlined by Orvana (not compliant with NI 43-101 or SEC Guide 7) exceeding 500,000 ounces of gold at a grade of nearly 0.30 ounces of gold per ton (oz/t). Past drilling highlights include gold intercepts of 50 feet of 0.65 oz/t, 31 feet of 1.06 oz/t, and 11.50 feet of 1.99 oz/t.
This press release has been reviewed and approved by Paul Dircksen, a Qualified Person as defined by NI 43-101.
Timberline Resources Corporation has taken the complementary businesses of mining services and mineral exploration and combined them into a unique, forward-thinking investment vehicle that provides investors exposure to both the ``picks and shovels'' and ``blue sky'' aspects of the mining industry. Timberline has contract drilling subsidiaries in the western United States and Mexico and an exploration division focused on district-scale gold projects with the potential for near-term, low-cost development. The Company is forming a 50/50 joint-venture with Small Mine Development, LLC at its Butte Highlands Gold Project, which is scheduled for development in 2009. Timberline is listed on the NYSE Amex and trades under the symbol ``TLR''.
Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties, including but not limited to the Company's 50/50 joint venture with SMD, the development and production of the Company's Butte Highlands project, and the Company's expected operations in 2009. When used herein, the words ``anticipate,'' ``believe,'' ``estimate,'' ``plan,'' ``intend'' and ``expect'' and similar expressions, as they relate to Timberline Resources Corporation, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors, including risk factors, discussed in the Company's Annual Report on Form 10-KSB for the year ended September 30, 2008. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.
Contact:
Timberline Resources Corporation
John Swallow, Chairman
208.664.4859
http://www.proactiveinvestors.com/companies/news/1389/bill-reid-of-gold-resource-corporation-speaks-to-proactiveinvestors-1389.html
Bill Reid of Gold Resource Corporation Speaks to Proactiveinvestors
If you would like to listen to this interview click here
Please give us a brief introduction to Gold Resource Corp, the company’s business strategy and what distinguishes Gold Resource Corps from its peers.
Gold Resource Corporation was created to maximise shareholder value with a focus on cash flow and potential dividends. This company undertook its IPO in September of 2006. We did a self-underwritten IPO because we wanted to stay in control and to focus on having the fewest number of shares outstanding. So we have no warrants outstanding today.
Our strategy is different than most; we make our decisions based on anticipated financial performance, not some arbitrary number like one million ounces in the ground or three million ounces of gold in the ground. We actually look at what is the capital expenditure to put this property into production and then how long before we get our capital paid back. So we have our own internal rate of return of one year or less – so we have to have the project pay itself back within one year or less. This keeps us focused on very profitable, high grade, low cost operations. On our present El Aguila project, our anticipated capital payback is six to seven months.
Another aspect of our company is the fact that we wanted to get into production at the earliest possible date so that we could build this company with cash flow and not go back to the equity markets every six months to sell more shares. So we have done enough drilling to justify putting this project into production and that’s what we’re doing. We want to limit shareholder dilution by getting into production and building the company with cash flow because we have as our goal, to distribute a meaningful dividend and we want to do that with the fewest number of shares outstanding.
Tell us about the capital structure of Gold Resource Corp, Bill.
Today we have approximately 41 million shares outstanding. Approximately one third are owned by management which we feel is very important – as you’ll see when we talk about our dividend policy, one third by institutions and about one third by retail.
Two of the many shareholders we’re very proud of; one being ‘Hochschild Mining’, is a mid tier gold silver producer and we have a good relationship with them, they own 15 percent of the company; another shareholder is Tocqueville Gold Fund which is one of the most well known gold funds out of New York. John Hathaway runs that fund and they own 15 percent of our company also. So we are very proud of the caliber of investor owning the 41 million shares outstanding of Gold Resource . That’s pretty much the capital structure.
Tell us about your flagship property El Aguila in Mexico, and what is the plan about getting into production at El Aguila?
Yes this is very exciting. Our flagship property, El Aguila property in the state of Oaxaca, Mexico, we anticipate being in production mid 2009. I can’t say exactly which month but it will be soon. We’re in construction at the present time and I actually I leave this afternoon to go back down there and it’s absolutely thrilling to see all the continuing work from the last time I was there. At this point in time all the concrete work is done and the structural steel and the buildings are going up and we’re starting to ship equipment to the project. So it’s very exciting. As I said, we expect to be in production this year and we’re really looking at 70,000 ounces of gold the first year of production from our El Aguila project. Building up to 177,000 ounces of gold equivalent precious metals (gold and silver) in the third year.
What is the metallurgy like at El Aguila and how will the metallurgy impact the company’s cash flows and the valuation of Gold Resource going forward?
This property has the best metallurgy that I’ve ever seen in my history. We have multiple types of ore bodies. The first type is our gold and silver open pit that we’ll be processing in the first twelve months. In a milling operation we can grind to a 150 mesh which is not that fine and in 48 hours we achieve 90 percent recovery of the silver and 94 percent recovery of the gold.
So that’s very good and as I said we’re targeting to produce 70,000 ounces of gold from the open pit. The first year we’ll use the silver as a credit so that our cost to produce the 70,000 ounces of gold will be at $100 cash cost per ounce of gold. Then in our second year we have our polymetallic vein deposit. Our polymetallic deposit is underground, it’s very high grade and in that deposit we have not only have gold and silver but we also have lead, zinc and copper. That requires a different milling process which is floatation, but in these floatation concentrates we’re recovering approximately 94 to 95 percent of each metal and this gives us the ability to say – because we have this copper, lead and zinc – the revenue we get from those base metals, we use as a credit against our costs, and actually gives us the ability to say “We have zero cost”, because those base metals will pay for the entire operation.
So our gold and silver – the gold and silver which we anticipate producing in the third year is targeted at 177,000 ounces gold equivalent, at zero cost. So, we know we have a very high grade deposit. It’s very exciting, with very low cost and we think this, of course, will help our valuation on a going forward basis.
Tell us about Gold Resource Corp’s project pipeline, Bill.
In the state of Oaxaca we actually have four properties. The first is our El Aguila property where we are building our mill at this point in time. But we have three other properties and they are all high grade. Their close proximity should give us the ability to truck that high grade to this strategically located mill so the concept is four properties feeding one mill. That’s a very advantageous situation.
Our second property, EL Rey, is high grade gold. Drill results include up to one metre of four ounces of gold and another metre of two ounces of gold. So we expect to have a small underground mine there, primarily high grade gold and we can ship that to the mill also.
We have two other properties, Las Margaritas and Solaga which are high grade silver properties which we haven’t done much work on yet but once again the focus has been to get El Aguila into production, generating the cash flow and then we’ll have cash flow to explore the balance of these properties. So we have a very good pipeline of properties ahead of us.
What experience does the Gold Resource team have in finding and developing profitable gold mining projects?
Before Gold Resource Corporation, my brother Dave and I founded our first gold company in 1977. That was US Gold Corporation and we ran that company for 28 years. More importantly than our longevity was the fact that we put six mines into production in the United States. Then in 2005 we sold controlling interest in that company to Rob McEwen of Gold Corp fame and he took that company and this allowed us to then go forward with Gold Resource Corporation and use our 30 years worth of experience to maximise value for the shareholders.
Hochschild Mining is a shareholder in Gold Resource and recently increased its stake. How is your relationship with Hochschild Mining?
Our relationship is very good. We’re very pleased to have Hochschild as our strategic alliance partner. Hochschild today is a shareholder like any other shareholder, they own 15 percent of our company through a private placement - that private placement was at $3 a share - so we received 18 million, which is the balance of the money we needed to put this project into production.
But Hochschild is an experienced company that’s well known for their underground expertise and the future of our project is certainly underground so we expect a real alliance there and the possibility of helping us with our underground situation.
Just to give you an example, Hochschild invited our geologist up to their open pit Morris mine in Mexico for several weeks of training to help our people understand more control in the pit and they came back very excited, learned a lot and this I think is just another example of how we have a very positive strategic alliance with Hochschild.
What is Gold Resource Corp’s financial situation, Bill?
Well at this point we believe we have enough money to get the project into production and start the cash flow and that’s what our focus is all about. We raised our initial production funding 23 million in December 2007 and then we did this private placement just a couple of months ago with Hochschild for 18 million. Our target is to have the project built for $25 million.
What can we expect from Gold Resource over the next 12 to 18 months?
Well I think it’s a very exciting time for this company. First of all we’re going to make the transition from an exploration company into a production company and historically when companies have made that transition the market place has rerated the company, so we’re expecting that.
We also have a very high grade deposit with a lot of potential and we will have continued exploration over the next 12 to 18 months and we think we’re going to be able to come out with some very exciting results. Nobody can really argue that we have world class grades, we do have world class grades, and then secondly we believe that we have a world class geologic setting. So the only question is “Well how big is this deposit?” Nobody knows at this point but everything indicates that we’ve got a lot more to find.
What is Gold Resource Corp’s dividend policy, Bill?
We’ve been very specific that our goal is, and there are certainly no guarantees, but our goal is to pay a meaningful dividend. What we are targeting, and if we get to that position what we will do is we want to pay one third of the cash flow of the company back to the shareholders. Essentially sometimes people ask, “Well now, a lot of the time there’s lip service to dividends. What makes us think you will actually pay those?” Well this is where the fact that management essentially are the larger shareholders in this company and so if we get into a position to pay a meaningful dividend, will we? We believe we will. This is the difference between owner management and caretaker management. We are very motivated to pay back a significant proportion of the cash flow to the shareholders.
El Aguila is part of an epithermal gold system. What do investors who are just getting interested in the world of gold, need to know about epithermal gold systems, Bill?
Essentially, epithermal gold systems are a class of deposit that really forms some of the highest grade gold deposits in the world and therefore they’re the most sought after deposits in the world. These deposits have a specific character and they can occur anywhere between the surface down to 800 metres. We have an epithermal system; we’ve traced it down 600 metres and it’s still going. So if you put the epithermal model with what we’ve got we believe we’ve got a lot more to find.
Is Mexico well understood as a place to be in the mining business by investors in North America and Europe and what would you want better understood about Mexico, Bill?
Mexico today is probably one of the best venues for mining and if you’re in the industry you understand that and you see that. To kind of give some information to investors who may not understand it; first of all Mexico has a 500 year history of mining and they are a mining oriented culture. They probably graduate more mining engineers and geologists from their schools than we do in the United States. We have all Mexican nationals down at our project and they are doing an exceptional job for us. Couple that with the history and the very competent people; Mexico is an excellent place to be today.
What do you think are the prospects for gold or the ‘anti dollar’ as you call it, in the medium and long term, Bill?
Well as far as I’m concerned, but I’m biased on the side the gold mining business, it’s a great place to be in these times. Here in the United States, we seem to be just printing trillions of more dollars and if history is any help, you can’t just continue to print money and debase your currency with out causing severe inflation.
Over time it’s pretty much been shown that as the dollar strengthened gold goes down but as the dollar goes down, gold goes up. It is the hedge against paper money.
So I have to say I’m quite bullish on the gold price both near term and certainly long term. I would certainly think every investor ought to have a certain amount of exposure to the gold industry and the gold price.
http://www.proactiveinvestors.com/companies/news/1389/bill-reid-of-gold-resource-corporation-speaks-to-proactiveinvestors-1389.html
Bill Reid of Gold Resource Corporation Speaks to Proactiveinvestors
If you would like to listen to this interview click here
Please give us a brief introduction to Gold Resource Corp, the company’s business strategy and what distinguishes Gold Resource Corps from its peers.
Gold Resource Corporation was created to maximise shareholder value with a focus on cash flow and potential dividends. This company undertook its IPO in September of 2006. We did a self-underwritten IPO because we wanted to stay in control and to focus on having the fewest number of shares outstanding. So we have no warrants outstanding today.
Our strategy is different than most; we make our decisions based on anticipated financial performance, not some arbitrary number like one million ounces in the ground or three million ounces of gold in the ground. We actually look at what is the capital expenditure to put this property into production and then how long before we get our capital paid back. So we have our own internal rate of return of one year or less – so we have to have the project pay itself back within one year or less. This keeps us focused on very profitable, high grade, low cost operations. On our present El Aguila project, our anticipated capital payback is six to seven months.
Another aspect of our company is the fact that we wanted to get into production at the earliest possible date so that we could build this company with cash flow and not go back to the equity markets every six months to sell more shares. So we have done enough drilling to justify putting this project into production and that’s what we’re doing. We want to limit shareholder dilution by getting into production and building the company with cash flow because we have as our goal, to distribute a meaningful dividend and we want to do that with the fewest number of shares outstanding.
Tell us about the capital structure of Gold Resource Corp, Bill.
Today we have approximately 41 million shares outstanding. Approximately one third are owned by management which we feel is very important – as you’ll see when we talk about our dividend policy, one third by institutions and about one third by retail.
Two of the many shareholders we’re very proud of; one being ‘Hochschild Mining’, is a mid tier gold silver producer and we have a good relationship with them, they own 15 percent of the company; another shareholder is Tocqueville Gold Fund which is one of the most well known gold funds out of New York. John Hathaway runs that fund and they own 15 percent of our company also. So we are very proud of the caliber of investor owning the 41 million shares outstanding of Gold Resource . That’s pretty much the capital structure.
Tell us about your flagship property El Aguila in Mexico, and what is the plan about getting into production at El Aguila?
Yes this is very exciting. Our flagship property, El Aguila property in the state of Oaxaca, Mexico, we anticipate being in production mid 2009. I can’t say exactly which month but it will be soon. We’re in construction at the present time and I actually I leave this afternoon to go back down there and it’s absolutely thrilling to see all the continuing work from the last time I was there. At this point in time all the concrete work is done and the structural steel and the buildings are going up and we’re starting to ship equipment to the project. So it’s very exciting. As I said, we expect to be in production this year and we’re really looking at 70,000 ounces of gold the first year of production from our El Aguila project. Building up to 177,000 ounces of gold equivalent precious metals (gold and silver) in the third year.
What is the metallurgy like at El Aguila and how will the metallurgy impact the company’s cash flows and the valuation of Gold Resource going forward?
This property has the best metallurgy that I’ve ever seen in my history. We have multiple types of ore bodies. The first type is our gold and silver open pit that we’ll be processing in the first twelve months. In a milling operation we can grind to a 150 mesh which is not that fine and in 48 hours we achieve 90 percent recovery of the silver and 94 percent recovery of the gold.
So that’s very good and as I said we’re targeting to produce 70,000 ounces of gold from the open pit. The first year we’ll use the silver as a credit so that our cost to produce the 70,000 ounces of gold will be at $100 cash cost per ounce of gold. Then in our second year we have our polymetallic vein deposit. Our polymetallic deposit is underground, it’s very high grade and in that deposit we have not only have gold and silver but we also have lead, zinc and copper. That requires a different milling process which is floatation, but in these floatation concentrates we’re recovering approximately 94 to 95 percent of each metal and this gives us the ability to say – because we have this copper, lead and zinc – the revenue we get from those base metals, we use as a credit against our costs, and actually gives us the ability to say “We have zero cost”, because those base metals will pay for the entire operation.
So our gold and silver – the gold and silver which we anticipate producing in the third year is targeted at 177,000 ounces gold equivalent, at zero cost. So, we know we have a very high grade deposit. It’s very exciting, with very low cost and we think this, of course, will help our valuation on a going forward basis.
Tell us about Gold Resource Corp’s project pipeline, Bill.
In the state of Oaxaca we actually have four properties. The first is our El Aguila property where we are building our mill at this point in time. But we have three other properties and they are all high grade. Their close proximity should give us the ability to truck that high grade to this strategically located mill so the concept is four properties feeding one mill. That’s a very advantageous situation.
Our second property, EL Rey, is high grade gold. Drill results include up to one metre of four ounces of gold and another metre of two ounces of gold. So we expect to have a small underground mine there, primarily high grade gold and we can ship that to the mill also.
We have two other properties, Las Margaritas and Solaga which are high grade silver properties which we haven’t done much work on yet but once again the focus has been to get El Aguila into production, generating the cash flow and then we’ll have cash flow to explore the balance of these properties. So we have a very good pipeline of properties ahead of us.
What experience does the Gold Resource team have in finding and developing profitable gold mining projects?
Before Gold Resource Corporation, my brother Dave and I founded our first gold company in 1977. That was US Gold Corporation and we ran that company for 28 years. More importantly than our longevity was the fact that we put six mines into production in the United States. Then in 2005 we sold controlling interest in that company to Rob McEwen of Gold Corp fame and he took that company and this allowed us to then go forward with Gold Resource Corporation and use our 30 years worth of experience to maximise value for the shareholders.
Hochschild Mining is a shareholder in Gold Resource and recently increased its stake. How is your relationship with Hochschild Mining?
Our relationship is very good. We’re very pleased to have Hochschild as our strategic alliance partner. Hochschild today is a shareholder like any other shareholder, they own 15 percent of our company through a private placement - that private placement was at $3 a share - so we received 18 million, which is the balance of the money we needed to put this project into production.
But Hochschild is an experienced company that’s well known for their underground expertise and the future of our project is certainly underground so we expect a real alliance there and the possibility of helping us with our underground situation.
Just to give you an example, Hochschild invited our geologist up to their open pit Morris mine in Mexico for several weeks of training to help our people understand more control in the pit and they came back very excited, learned a lot and this I think is just another example of how we have a very positive strategic alliance with Hochschild.
What is Gold Resource Corp’s financial situation, Bill?
Well at this point we believe we have enough money to get the project into production and start the cash flow and that’s what our focus is all about. We raised our initial production funding 23 million in December 2007 and then we did this private placement just a couple of months ago with Hochschild for 18 million. Our target is to have the project built for $25 million.
What can we expect from Gold Resource over the next 12 to 18 months?
Well I think it’s a very exciting time for this company. First of all we’re going to make the transition from an exploration company into a production company and historically when companies have made that transition the market place has rerated the company, so we’re expecting that.
We also have a very high grade deposit with a lot of potential and we will have continued exploration over the next 12 to 18 months and we think we’re going to be able to come out with some very exciting results. Nobody can really argue that we have world class grades, we do have world class grades, and then secondly we believe that we have a world class geologic setting. So the only question is “Well how big is this deposit?” Nobody knows at this point but everything indicates that we’ve got a lot more to find.
What is Gold Resource Corp’s dividend policy, Bill?
We’ve been very specific that our goal is, and there are certainly no guarantees, but our goal is to pay a meaningful dividend. What we are targeting, and if we get to that position what we will do is we want to pay one third of the cash flow of the company back to the shareholders. Essentially sometimes people ask, “Well now, a lot of the time there’s lip service to dividends. What makes us think you will actually pay those?” Well this is where the fact that management essentially are the larger shareholders in this company and so if we get into a position to pay a meaningful dividend, will we? We believe we will. This is the difference between owner management and caretaker management. We are very motivated to pay back a significant proportion of the cash flow to the shareholders.
El Aguila is part of an epithermal gold system. What do investors who are just getting interested in the world of gold, need to know about epithermal gold systems, Bill?
Essentially, epithermal gold systems are a class of deposit that really forms some of the highest grade gold deposits in the world and therefore they’re the most sought after deposits in the world. These deposits have a specific character and they can occur anywhere between the surface down to 800 metres. We have an epithermal system; we’ve traced it down 600 metres and it’s still going. So if you put the epithermal model with what we’ve got we believe we’ve got a lot more to find.
Is Mexico well understood as a place to be in the mining business by investors in North America and Europe and what would you want better understood about Mexico, Bill?
Mexico today is probably one of the best venues for mining and if you’re in the industry you understand that and you see that. To kind of give some information to investors who may not understand it; first of all Mexico has a 500 year history of mining and they are a mining oriented culture. They probably graduate more mining engineers and geologists from their schools than we do in the United States. We have all Mexican nationals down at our project and they are doing an exceptional job for us. Couple that with the history and the very competent people; Mexico is an excellent place to be today.
What do you think are the prospects for gold or the ‘anti dollar’ as you call it, in the medium and long term, Bill?
Well as far as I’m concerned, but I’m biased on the side the gold mining business, it’s a great place to be in these times. Here in the United States, we seem to be just printing trillions of more dollars and if history is any help, you can’t just continue to print money and debase your currency with out causing severe inflation.
Over time it’s pretty much been shown that as the dollar strengthened gold goes down but as the dollar goes down, gold goes up. It is the hedge against paper money.
So I have to say I’m quite bullish on the gold price both near term and certainly long term. I would certainly think every investor ought to have a certain amount of exposure to the gold industry and the gold price.
Certainly not an OT pick, but certainly not your traditional mining play either - TLR! It's doubled since I first started pounding the table on it here a little over a month ago, but it still has much much futher to go.
"Timberline Resources Corporation has taken the complementary businesses of mining services and mineral exploration and combined them into a unique, forward-thinking investment vehicle that provides investors exposure to both the ``picks and shovels'' and ``blue sky'' aspects of the mining industry. Timberline has contract drilling subsidiaries in the western United States and Mexico and an exploration division focused on district-scale gold projects with the potential for near-term, low-cost development. The Company has agreed to a 50/50 joint venture with Small Mine Development, LLC at Timberline's royalty-free Butte Highlands Gold Project which is scheduled to begin development in 2009. Timberline is listed on the NYSE Amex and trades under the symbol ``TLR''."
TLR in ThomWatch again, and up another 14% to $0.41
http://www.stockhouse.com/Columnists/2009/April/27/Reading-between-swine-lines--ThomWatch
"In other developments, shares of Timberline Resources (TLR in USA) rose after being featured in a Ticker Trax report as a possible candidate for Instant Value. Our thesis, initiated by Gene Arensberg of The Got Gold Report, was that distribution of the shares by a hedge fund company late last year unfairly battered shares of the rig driller. See Ticker Trax report.
The fund company, Praetorian, distributed some of its 3.3 million or so shares of Timberline to investors when general partner Harris Kupperman merged two of his Florida-managed funds into one. Timberline's shares proceeded to plunge.
Kupperman tells me from Florida, "I have not sold a single share of Timberline. In fact, I am having to work to see value restored to investors in our fund." That already is happening. Kupperman said he is adding to Prateorian's holdings, which Friday triggered a stock market filing that showed a fund purchase of 50,000 shares at an average of around 30 cents a share.
The shares Friday rose to about US 36 cents from 25 cents before our first report on Timberline. That's down from $4 a share in 2008.
For a company with cash, with at least 11 drill rigs (diamond hydraulic rigs and such) at work for companies such as Newmont Mining, and with just 35 million shares outstanding, that looks like Instant Value to us.
Timberline, in addition to its drilling subsidiaries, has an exploration division. Got to make use of those drill rigs, after all. John Swallow, Timberline's chairman, told me Friday that drilling activity at a gold site near Butte, Montana, likely will start this coming summer."
TLR in ThomWatch again, and up another 14% to $0.41
http://www.stockhouse.com/Columnists/2009/April/27/Reading-between-swine-lines--ThomWatch
"In other developments, shares of Timberline Resources (TLR in USA) rose after being featured in a Ticker Trax report as a possible candidate for Instant Value. Our thesis, initiated by Gene Arensberg of The Got Gold Report, was that distribution of the shares by a hedge fund company late last year unfairly battered shares of the rig driller. See Ticker Trax report.
The fund company, Praetorian, distributed some of its 3.3 million or so shares of Timberline to investors when general partner Harris Kupperman merged two of his Florida-managed funds into one. Timberline's shares proceeded to plunge.
Kupperman tells me from Florida, "I have not sold a single share of Timberline. In fact, I am having to work to see value restored to investors in our fund." That already is happening. Kupperman said he is adding to Prateorian's holdings, which Friday triggered a stock market filing that showed a fund purchase of 50,000 shares at an average of around 30 cents a share.
The shares Friday rose to about US 36 cents from 25 cents before our first report on Timberline. That's down from $4 a share in 2008.
For a company with cash, with at least 11 drill rigs (diamond hydraulic rigs and such) at work for companies such as Newmont Mining, and with just 35 million shares outstanding, that looks like Instant Value to us.
Timberline, in addition to its drilling subsidiaries, has an exploration division. Got to make use of those drill rigs, after all. John Swallow, Timberline's chairman, told me Friday that drilling activity at a gold site near Butte, Montana, likely will start this coming summer."
First Majestic Silver Corp.: Silver Production Increases 4% in 1st Quarter
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 27, 2009 -- First Majestic Silver Corp. ("First Majestic" or the "Company") (Toronto:FR.TO - News)(Other OTC:FRMSF.PK - News)(Frankfurt:FMV.F - News)(WKN: A0LHKJ) is pleased to announce that production in the first quarter ending March 31, 2009 consisted of 1,040,117 equivalent ounces of silver.
The equivalent silver production for the quarter consisted of 929,964 ounces of silver representing an increase of 4% compared with the first quarter of 2008 and a minor decrease of 156 ounces of silver when compared with the fourth quarter of 2008. 1,828,739 pounds of lead were produced in the quarter representing a 2% decrease over the first quarter of 2008 and a decrease of 13% or 265,248 pounds when compared with the fourth quarter of 2008. 491 ounces of gold were produced in the quarter representing an increase of 105% when compared with the first quarter of 2008 and an increase of 22% compared with the fourth quarter of 2008.
The ore processed during the quarter at the Company's three operating silver mines: La Parrilla Silver Mine, the San Martin Silver Mine and La Encantada Silver Mine; amounted to 216,047 tonnes showing an increase of 36% over the same quarter of 2008 and a modest increase of 401 tonnes over the fourth quarter of 2008.
The overall average silver head grade in the quarter for the three mines increased to 222 g/t silver compared to 207 g/t Ag achieved in the fourth quarter of 2008.
Total combined recoveries of silver at the Company's three different mills were 60% compared to 65% in the prior quarter. At the La Encantada operation low recoveries were caused by high manganese in the ore and increased throughput through the mill. At the San Martin operation, some high carbonaceous ore affected metallurgy however this was compensated by increased head grades. Steps are being taken at La Encantada to improve recoveries; however, until the new 3500 tpd cyanidation plant is completed in June of this year, recoveries are only expected to increase modestly.
As reported previously the Company has reduced exploration and development programs at each of its operations in the fourth quarter of 2008. The Company continues to analyze its expenditures in order to optimize the operations and improve profitability.
A total of 4,610 meters of underground development was completed in the quarter compared to 6,006 metres of development completed in the first quarter of 2008 and 5,847 metres completed in the fourth quarter of 2008. This program is important as it provides access to new areas within the different mines and prepares the mines for continued growth of silver production going forward. The Company has recently reduced its drilling program to two rigs operating at San Martin only; however, in the first quarter 31 holes were completed marking an end to those drill programs commenced last year. A total of 5,048 meters of diamond drilling was completed during the quarter compared to 10,256 metres drilled in Q1 2008 and 4,193 metres drilled in Q4 2008.
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its significant corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Contact:
Contacts:
First Majestic Silver Corp.
Keith Neumeyer
President & CEO
(604) 688-3033 or Toll Free: 1-866-529-2807
(604) 639-8873 (FAX)
info@firstmajestic.com
http://www.firstmajestic.com
First Majestic Silver Corp.: Silver Production Increases 4% in 1st Quarter
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 27, 2009 -- First Majestic Silver Corp. ("First Majestic" or the "Company") (Toronto:FR.TO - News)(Other OTC:FRMSF.PK - News)(Frankfurt:FMV.F - News)(WKN: A0LHKJ) is pleased to announce that production in the first quarter ending March 31, 2009 consisted of 1,040,117 equivalent ounces of silver.
The equivalent silver production for the quarter consisted of 929,964 ounces of silver representing an increase of 4% compared with the first quarter of 2008 and a minor decrease of 156 ounces of silver when compared with the fourth quarter of 2008. 1,828,739 pounds of lead were produced in the quarter representing a 2% decrease over the first quarter of 2008 and a decrease of 13% or 265,248 pounds when compared with the fourth quarter of 2008. 491 ounces of gold were produced in the quarter representing an increase of 105% when compared with the first quarter of 2008 and an increase of 22% compared with the fourth quarter of 2008.
The ore processed during the quarter at the Company's three operating silver mines: La Parrilla Silver Mine, the San Martin Silver Mine and La Encantada Silver Mine; amounted to 216,047 tonnes showing an increase of 36% over the same quarter of 2008 and a modest increase of 401 tonnes over the fourth quarter of 2008.
The overall average silver head grade in the quarter for the three mines increased to 222 g/t silver compared to 207 g/t Ag achieved in the fourth quarter of 2008.
Total combined recoveries of silver at the Company's three different mills were 60% compared to 65% in the prior quarter. At the La Encantada operation low recoveries were caused by high manganese in the ore and increased throughput through the mill. At the San Martin operation, some high carbonaceous ore affected metallurgy however this was compensated by increased head grades. Steps are being taken at La Encantada to improve recoveries; however, until the new 3500 tpd cyanidation plant is completed in June of this year, recoveries are only expected to increase modestly.
As reported previously the Company has reduced exploration and development programs at each of its operations in the fourth quarter of 2008. The Company continues to analyze its expenditures in order to optimize the operations and improve profitability.
A total of 4,610 meters of underground development was completed in the quarter compared to 6,006 metres of development completed in the first quarter of 2008 and 5,847 metres completed in the fourth quarter of 2008. This program is important as it provides access to new areas within the different mines and prepares the mines for continued growth of silver production going forward. The Company has recently reduced its drilling program to two rigs operating at San Martin only; however, in the first quarter 31 holes were completed marking an end to those drill programs commenced last year. A total of 5,048 meters of diamond drilling was completed during the quarter compared to 10,256 metres drilled in Q1 2008 and 4,193 metres drilled in Q4 2008.
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its significant corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Contact:
Contacts:
First Majestic Silver Corp.
Keith Neumeyer
President & CEO
(604) 688-3033 or Toll Free: 1-866-529-2807
(604) 639-8873 (FAX)
info@firstmajestic.com
http://www.firstmajestic.com
TLR also adding to yesterday's 30%+ gains. Up another 8.82% to $0.37
The below article is an absolute must read and gives you the inside track on why TLR was up 30% today and why it is going much much higher. I am pounding the table now on TLR like I did for GORO at $1.30. Please take a look.
http://www.stockhouse.com/Columnists/2009/April/23/Drilling-down-on-Timberline-ThomWatch
Drilling down on Timberline: ThomWatch
Tattered fund reverses course, purchases shares
Note: This article was first published for Ticker Trax subscribers on Thursday April 23.
Writer and investor Gene Arensberg resurrected a deep-value prospect this week.
Mr. Arensberg, writer of the GOT GOLD Report on Stockhouse, is a friend and confidant for many, many years. Gene’s research more than a year ago shone a light on minerals monger Rob McEwen and his U.S. Gold Corp (AMEX: UXG), which is searching for silver and gold in Nevada and Mexico.
In March 2008, Arensberg was following Goldcorp founder McEwen’s accumulation of shares in Rubicon Minerals (AMEX: RBY), which has rights to a large swath of the Red Lake gold mining district of Ontario in Canada. McEwen (in filings: Robert Ross McEwen) owns about a quarter of Rubicon’s shares, filings show.
Arensberg’s persistence paid off. Mr. McEwen, one of the mineral world’s natural resources (and, as they say on the radio these days), a “really nice guy, too,” in a two-week span of January this year scooped up for himself and an asset company he operates about 550,000 shares more of his U.S. Gold Corp’s shares … some of it at 96 cents and 94 cents.
Duhnh! Three months later, U.S. Gold sells for $2 a share in the U.S. market. The boost comes in part as silver’s price undergoes dramatic trading this month (April). Gene has since sold most of his shares – because as he told me today (Thursday), those Mexico gun and drug runners are making him a tad nervous.
(I beg to differ. Our Ticker Trax wealth service for qualified investors has built a large part of its Planetary Prospect Portfolio on silver and one Mexico mining company in particular. I shall be traveling south in about one week to see a silver property.)
At any rate, my friend Gene, who hops between Atlanta and Sugar Land, Texas, now is cruising the timberline. He is tracking a tattered fund manager’s sales and purchases of a drilling company called Timberline Resources (AMEX: TLR).
For our Ticker Trax™ subscribers, who receive this Instant Value (IV) information first, Timberline appears worthy of what Gene Arensberg craftily calls “a stink bid.”
Gene’s focus is a tiny asset manager (probably less than $25 million under management) called Praetorian. “It had accumulated a very large amount of Timberline last year and the year before,” Gene Arensberg, who like me is in his young 50s, tells me. “When the crash came they had big redemptions. Praetorian was then a big seller of TLR, which collapsed the price so much they couldn't sell anymore and then folded the old Praetorian and opened a new one.”
Praetorian’s status as guardian of the elite, in other words, expired. Even the Roman Empire had its decline.
This kind of mess happened to countless hedge funds and other speculators in the second six months of 2008. “When the old Praetorian folded, it distributed shares to some investors in-kind rather than liquidate the shares at almost no bid. That was what created the large overhang in the first three months of this year.”
Overhangs in Gene-speak are shares that almost surely will be sold at fire sale by worthy but needy holders. This leads to stinky share prices and what G.A. calls “stink bids.”
Thus: Praetorian, based in Florida, USA, moved what was left, its remaining position of 3.3 million TLR shares, into a “new” Praetorian. “They basically did a reset of the fund.”
Sounds sl … sli … well, slippery to me. But Gene says this happens all the time. Well, these capital crushing days anyway. Maybe we can call the first quarter of 2009, then, the Reconstruction of the Praetorian Guard.
“The managers decided to close Old Praetorian (B.C.) and reset with New Praetorian (A.D.), but still had some redemptions to do,” Gene Arensberg says. “It did the redemptions by distributing shares to the investors that wanted out. That overhang filtered into the market.”
Gene says the selling appears “mostly over.” The fund according to stock market filings is buying the driller’s shares again.
Gene told his small guardians of the cheap and stinky that he would this week move his stink bid for Timberline shares up to 23 cents or so. The shares sell for about 27 cents each right now.
“I managed to accumulate a little over 150,000 shares when it got hammered down to as low as 20 cents,” he tells me. “If it's anything like the past, Praetorian doesn't just buy once. It buys in multiple trades over a span of days or weeks. “
Timberline and its subsidiaries drill holes for mining companies. These are the kinds of folks we see at mines around the world, and especially in North America (Western USA) and Mexico: stinky but sweet, burly but beautiful. Thank you for smoking.
The company a week ago said it likely would see “positive net cash flow and a forecast to roughly break even on revenues of $3.7 million” for its drilling units.
The company of Timberline also said it extended a contract with Newmont Mining (NYSE: NEM) through February 2011. I reproduce here a shot of a Form 4, which tracks purchases and sales of securities by large holders of an individual company’s stock in the U.S. markets.
That is all for now. Thanks Gene.
Ticker Trax™
TLR +30.77% to $0.34! Cash flow from drilling revenues and a gold project coming on line with all expenses paid for by their partner.
NGD: Anyone taken a serious lok at New Gold?
New Gold Announces 2009 First Quarter Production and Cash Cost Results Ahead of Guidance
Tuesday April 21, 2009, 7:00 am EDT
(All figures are in US dollars unless otherwise stated)
VANCOUVER, April 21 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE AMEX - NGD) today announces 2009 first quarter gold sales of 55,397 ounces at a cash cost(1) of $513 per ounce, net of by-product sales. Excluding Amapari, cash cost(1) at mining operations (Cerro San Pedro and Peak Mines) was $437 per ounce net of by-product sales. Ounces sold were higher and cash cost(1) was lower than the forecast underlying annual guidance of 190,000 to 210,000 ounces at $465 to $485 per ounce. This previously announced guidance for New Gold remains unchanged. The production and cash cost(1) information provided are approximate figures and may differ slightly from the first quarter earnings.
The first quarter highlights reflect the operating results for the three
months ended March 31, 2009 for Cerro San Pedro, Peak and Amapari Mines.
- Gold sales were 55,397 ounces at a cash cost(1) of $513 per ounce,
net of by-product sales.
- Gold production was 54,938 ounces, copper production was 3.81 million
pounds and silver production was 427,439 ounces.
- As previously announced, the debt position was reduced by C$50 million
with the buy back of a portion of the company's Senior Secured Notes
for cash consideration of C$30 million.
- The Amapari mine in Brazil was placed on temporary care and
maintenance on January 2, 2009, due to depletion of ore suitable for
treatment at the existing facilities.
- A business combination with Western Goldfields Inc. ("Western
Goldfields") was announced on March 4, 2009. Highlights of the
proposed transaction include stronger cash flow to fund the New Afton
project and diversified gold production expected to grow to over
400,000 ounces by 2012.
"I'm pleased to report that New Gold continues to deliver on its operational targets with first quarter production and costs better than planned" said Robert Gallagher, President and Chief Executive Officer. "We remain focussed on our strategic direction, and have continued positioning the company to execute on our accretive growth strategy. The announcement of the proposed business combination with Western Goldfields on March 4, 2009, is the next milestone in the exciting growth of this company."
Operations Overview
Cerro San Pedro
Cerro San Pedro production for the first quarter was 20,583 gold ounces and 427,439 silver ounces. Gold sales for the first quarter were 18,314 ounces at a cash cost(1) of $551 per ounce, net of by-product sales. Silver production for the quarter increased significantly from previous quarters due to higher feed grade resulting from a positive model reconciliation and increased pad area under secondary leaching. Cash cost(1) was well in line with guidance and was positively impacted by the increased silver production, a favorable foreign exchange rate and lower realized operating costs in Mexican pesos.
First quarter gold production and cash cost(1) are consistent with the 2009 guidance of 90,000 to 100,000 ounces of gold and 1.1 million to 1.3 million ounces of silver at a cash cost(1) (net of by-product sales) of between $550 and $570 per ounce.
Peak Mines
Peak Mines production for the first quarter was 20,629 ounces of gold and 3.81 million pounds of copper. Gold sold in the first quarter was 20,856 ounces at a cash cost(1) of $337 per ounce, net of by-product sales. Gold production was slightly lower in the first quarter than in previous quarters as per the mine plan, with production scheduled to increase in the coming quarters as mining progresses into the higher grade Perseverance Zone D ore body. Cash cost(1) net of by-product sales, was favorable due to lower operating expenditures, a favorable foreign exchange rate and the re-pricing of copper in transit.
First quarter gold production and cash cost(1) are in line with the mine plan and guidance of 90,000 to 100,000 ounces of gold and 13 million to 15 million pounds of copper at a cash cost(1) (net of by-product sales) of between $370 and $390 per ounce.
Amapari
On January 2, 2009, the Amapari mine in Brazil was placed on temporary care and maintenance due to depletion of ore suitable for treatment at the existing facilities. Gold production from previously stacked ore was 13,726 ounces for the quarter, exceeding 2009 production guidance of 10,000 to 12,000 ounces. First quarter gold sales were 16,227 ounces at a cash cost(1) of $696 per ounce. Leaching of the material stacked in the fourth quarter has now been completed and leach pads are in the final stage of neutralization.
New Gold is evaluating a recently completed Preliminary Assessment on the economics of developing the sulphide resources at Amapari which would require installation of a conventional crush/grind/carbon-in-leach mill. Considering the large land package in a geologically permissive setting and the occurrence of several interesting targets, the company is also investigating other strategic alternatives for the project. This analysis is expected to be completed in the coming weeks.
New Afton and El Morro Development Projects
New Afton, New Gold's primary development project, is expected to commence production in the second half of 2012. The project will be an underground block cave mine, which will produce an annual estimated average of 85,000 ounces of gold and 75 million pounds of copper over a 12 year mine life.
The development schedule for New Afton, which was revised in November of last year, involves continuation of underground development and resumption of surface construction at the end of 2010 with commencement of production in the second half of 2012. During the first quarter of 2009, the New Afton mining team successfully transitioned from a contractor operator to owner operator work force of 87 employees with the new crews completing 195 metres of development. Erection of the mill building was completed in the first quarter, providing a secure location for the storage of mine and mill equipment that has been received.
The El Morro copper-gold project entered the permitting stage with the submission of the Environmental Impact Statement in November of 2008. It is anticipated that the permit will be obtained within 12 to 18 months from that date, after which development activities could proceed. Permitting activities continue and detailed engineering of infrastructure has commenced.
Robert Gallagher, President and Chief Executive Officer said, "The previously announced 2009 production and cash cost guidance for New Gold remains unchanged. We will continue to demonstrate our commitment to delivering on our operational targets. We remain excited about our growth potential founded on solid cash producing operations, a strong balance sheet and an experienced board and management. Based on this foundation we will execute on our growth strategy through development at our existing assets and through further merger and acquisition activity such as the recently announced combination with Western Goldfields."
Update on Business Combination with Western Goldfields Inc.
On March 4, 2009, the company announced a proposed business combination with Western Goldfields. Under the terms, New Gold will acquire by way of a plan of arrangement all of the outstanding common shares of Western Goldfields on the basis of one New Gold common share and C$0.0001 in cash for each common share of Western Goldfields (the "Transaction"). Upon completion of the Transaction, existing New Gold and Western Goldfields shareholders will own approximately 58% and 42% of the combined company, respectively. Based on the closing price of New Gold's common shares on the TSX of C$2.30 on March 3, 2009, this offer represented a premium of 19.2% to the closing price of Western Goldfields shares on the TSX on March 3, 2009 and 20.1% to the 20-day volume weighted average trading price of both companies' shares on the TSX. Highlights of the Transaction:
- Diversified gold production base from three gold mines in
mining-friendly jurisdictions with forecasted gold production of
approximately 335,000 ounces in 2009, expected to increase to over
400,000 ounces in 2012
- Strong cash flow to fund development of the New Afton copper-gold
project in British Columbia, Canada
- Delivers on industry consolidation in a rising gold price environment
- Combines experienced management teams and boards of directors
- Enhances market presence
The Annual and Special Meetings for the shareholders of New Gold and Western Goldfields will be held on May 13, 2009 and May 14, 2009, respectively. The meeting materials for both companies were mailed to shareholders last week and filed on SEDAR at www.sedar.com. The New Gold materials are also available on the homepage of the company's website at www.newgold.com. The Transaction is expected to close on or about June 1, 2009.
Robert Gallagher, President and Chief Executive Officer said "We are thrilled with the opportunity of building the leading intermediate gold producer with the recent announcement of the business combination with Western Goldfields. This is in line with our growth strategy and vision of becoming a one million ounce gold producer by 2012. This combination represents significant value for both the New Gold and Western Goldfields shareholders with a greater leverage to gold, immediate increase in production and operating cash flow, and strengthened financial position to contribute to the funding of our New Afton development project."
Conference Call-in Details
The first quarter financial results will be issued before market open on Wednesday, May 13, 2009. New Gold will hold a conference call to discuss these results at 10:00am E.T. Anyone may join the call by dialling toll free 1-888-789-9572 or +1-416-695-7806 to access the call from outside Canada or the U.S. Passcode 5423385. You can listen to a recorded playback of the call after the event until June 25, 2009 by dialling 1-800-408-3053 or +1-416-695-5800 for calls outside Canada and the U.S. Passcode No. 2830064.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this press release, including any information relating to New Gold's future financial or operating performance, may be deemed "forward looking". All statements in this press release, other than statements of historical fact, that address events or developments that New Gold expects to occur, are "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions, or that events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward looking statements are subject to important risk factors and uncertainties, many of which are beyond New Gold's ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause New Gold's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: New Gold and Western Goldfields will be able to satisfy the conditions in the business combination agreement, that the required approvals (shareholder, third party regulatory and governmental) will be obtained and all other conditions will be satisfied or waived; the results of the preliminary assessment assessing the viability of a new process facility at Amapari; New Gold's operations are subject to significant capital requirements; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Brazil, Mexico and Chile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States, Australia, Brazil, Mexico and Chile or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as "Risks Factors" included in New Gold's Annual Information Form filed on March 31, 2009 and management information circular filed on April 15, 2009, both available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this press release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.
(1) CASH COST
"Total cash cost" figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard is the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary and the cost measures presented may not be comparable to other similarly titled measures of other companies. New Gold reports total cash cost on a sales basis. Total cash cost includes mine site operating costs such as mining, processing, administration, royalties and production taxes, but is exclusive of amortization, reclamation, capital and exploration costs. Total cash cost is reduced by any by-product revenue and is then divided by ounces sold to arrive at the total by-product cash cost of sales. The measure, along with sales, is considered to be a key indicator of a company's ability to generate operating earnings and cash flow from its mining operations. This data is furnished to provide additional information and is a non-GAAP measure. It should not be considered in isolation as a substitute for measures of performance prepared in accordance with GAAP and is not necessarily indicative of operating costs presented under GAAP.
For further information
Mélanie Hennessey, Vice President Investor Relations, New Gold Inc., Direct: (604) 639-0022, Toll-free: 1-888-315-9715, Email: info@newgold.com, Website: www.newgold.com
Here is an article on that 60 minutes story on Cold Fusion and palladium use: http://www.cbsnews.com/stories/2009/04/17/60minutes/main4952167.shtml
Hey Kipp regarding palladium,
Don't know yet about possible cold fusion uses or its actual future viability as such a use, but my plays in platinum and palladium have been limited (and there are limited miner choices as well as an aside). Their precious metal values are far thirds and fourths to gold and silver, so I have chosen to leave them aside given how currently ignored the silver market is in this respect. I hope to do some more digging as well. As far as current and industrial uses it seems both plat/pal are mostly involced in catalytic converters (car market) which is certainly not in favor at the moment. Their other major uses are in jewelry as far as I know, but I'm no expert.
As you say more digging is warranted, but perhaps nothing to get excited about at the time (which in itself may mean this is the time to get in?)
Good thought though. And by the way Kipp, I will respond to your PM when I have PM ability Friday afternoon as I don't have it otherwise as the freeloader that I am for this message board site.
didn't GPXM sell their remaining interest in Ashdown (the moly property) to WEX.v? GPXM is just another crappy gold explorer now with horrible management.
Amen to that! SLW has been a core holding of mine for many years and its prospects remain as bright as ever.
I've been to Rocky Mountain Coin as well and think their premiums are too high. I typically browse and buy online. Tulving.com almost always has the best premiums for what they have in stock. Amergold.com I've been satisfied with before. Monex.com seems to do well also. My new favorite is the auction format at Seekbullion.com. There is always Goldmoney.com too for a dif. way.
TLR - Timberline Provides Second Quarter Update On Drilling Services, Announces Contract Extension With Newmont Mining
Thursday April 16, 2009, 2:18 pm EDT
COEUR D'ALENE, Idaho, April 16, 2009 (GLOBE NEWSWIRE) -- Timberline Resources Corporation (NYSE Amex:TLR) (``Timberline'') today provided an update of its drilling service subsidiaries, Timberline Drilling, Incorporated (``Timberline Drilling'') and World Wide Exploration, S.A. de C.V. (``World Wide'').
Pending completion of the quarterly review, preliminary results for the second fiscal quarter, ending March 31, 2009, for our two drilling subsidiaries indicate positive net cash flow and a forecast to roughly break even on revenues of $3.7-million. These figures are consistent with management's expectations given the number of drill rigs in operation during the quarter. The two subsidiaries currently have a total of 11 drill rigs in operation with additional rigs planned for near-term mobilization.
Timberline CEO Randal Hardy stated, ``Over the past year, we have successfully established a new corporate culture in our drilling subsidiaries and have renewed our focus on underground drilling at established mining operations. We have reduced the layers of management between the head office and the field, streamlined our processes and operations, strengthened our balance sheet, and implemented new employee incentive programs. We are pleased to have achieved these objectives under extremely difficult market conditions.''
Mr. Hardy continued, ``We are also pleased to announce that Timberline Drilling has extended its current contract with Newmont Mining through February 2011, enhancing an already solid relationship. We have established joint planning and safety review teams with Newmont and, furthermore, Newmont has provided us with mine site facilities to support our operations. The contract extension provides a higher degree of certainty in future cash flows for Timberline Drilling while presenting an excellent opportunity for future stability and growth. It also allows us to focus on further improvements in customer service and safety with our largest client.''
Also during the second fiscal quarter, Timberline Drilling agreed to sell several under-utilized, non-core drill rigs, increasing the overall rig utilization rate and decreasing depreciation expenses. Additionally, former management of Timberline Drilling also agreed to forego the remaining $350,000 in severance payments. Subsequent to the quarter end, proceeds from the drill sales were used to help retire more than $1.3-million in debt.
Timberline Resources Corporation has taken the complementary businesses of mining services and mineral exploration and combined them into a unique, forward-thinking investment vehicle that provides investors exposure to both the ``picks and shovels'' and ``blue sky'' aspects of the mining industry. Timberline has contract drilling subsidiaries in the western United States and Mexico and an exploration division focused on district-scale gold projects with the potential for near-term, low-cost development. The Company has agreed to a 50/50 joint venture with Small Mine Development, LLC at Timberline's royalty-free Butte Highlands Gold Project which is scheduled to begin development in 2009. Timberline is listed on the NYSE Amex and trades under the symbol ``TLR''.
Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties, including but not limited to the Company's 50/50 joint venture with SMD, the development and production of the Company's Butte Highlands project, and the Company's expected operations in 2009. When used herein, the words ``anticipate,'' ``believe,'' ``estimate,'' ``plan,'' ``intend'' and ``expect'' and similar expressions, as they relate to Timberline Resources Corporation, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors, including risk factors, discussed in the Company's Annual Report on Form 10-KSB for the year ended September 30, 2008. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.
Contact:
Timberline Resources Corporation
John Swallow, Chairman
208.664.4859
Timberline Provides Second Quarter Update On Drilling Services, Announces Contract Extension With Newmont Mining
Thursday April 16, 2009, 2:18 pm EDT
COEUR D'ALENE, Idaho, April 16, 2009 (GLOBE NEWSWIRE) -- Timberline Resources Corporation (NYSE Amex:TLR) (``Timberline'') today provided an update of its drilling service subsidiaries, Timberline Drilling, Incorporated (``Timberline Drilling'') and World Wide Exploration, S.A. de C.V. (``World Wide'').
Pending completion of the quarterly review, preliminary results for the second fiscal quarter, ending March 31, 2009, for our two drilling subsidiaries indicate positive net cash flow and a forecast to roughly break even on revenues of $3.7-million. These figures are consistent with management's expectations given the number of drill rigs in operation during the quarter. The two subsidiaries currently have a total of 11 drill rigs in operation with additional rigs planned for near-term mobilization.
Timberline CEO Randal Hardy stated, ``Over the past year, we have successfully established a new corporate culture in our drilling subsidiaries and have renewed our focus on underground drilling at established mining operations. We have reduced the layers of management between the head office and the field, streamlined our processes and operations, strengthened our balance sheet, and implemented new employee incentive programs. We are pleased to have achieved these objectives under extremely difficult market conditions.''
Mr. Hardy continued, ``We are also pleased to announce that Timberline Drilling has extended its current contract with Newmont Mining through February 2011, enhancing an already solid relationship. We have established joint planning and safety review teams with Newmont and, furthermore, Newmont has provided us with mine site facilities to support our operations. The contract extension provides a higher degree of certainty in future cash flows for Timberline Drilling while presenting an excellent opportunity for future stability and growth. It also allows us to focus on further improvements in customer service and safety with our largest client.''
Also during the second fiscal quarter, Timberline Drilling agreed to sell several under-utilized, non-core drill rigs, increasing the overall rig utilization rate and decreasing depreciation expenses. Additionally, former management of Timberline Drilling also agreed to forego the remaining $350,000 in severance payments. Subsequent to the quarter end, proceeds from the drill sales were used to help retire more than $1.3-million in debt.
Timberline Resources Corporation has taken the complementary businesses of mining services and mineral exploration and combined them into a unique, forward-thinking investment vehicle that provides investors exposure to both the ``picks and shovels'' and ``blue sky'' aspects of the mining industry. Timberline has contract drilling subsidiaries in the western United States and Mexico and an exploration division focused on district-scale gold projects with the potential for near-term, low-cost development. The Company has agreed to a 50/50 joint venture with Small Mine Development, LLC at Timberline's royalty-free Butte Highlands Gold Project which is scheduled to begin development in 2009. Timberline is listed on the NYSE Amex and trades under the symbol ``TLR''.
Statements contained herein that are not based upon current or historical fact are forward-looking in nature. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties, including but not limited to the Company's 50/50 joint venture with SMD, the development and production of the Company's Butte Highlands project, and the Company's expected operations in 2009. When used herein, the words ``anticipate,'' ``believe,'' ``estimate,'' ``plan,'' ``intend'' and ``expect'' and similar expressions, as they relate to Timberline Resources Corporation, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, such factors, including risk factors, discussed in the Company's Annual Report on Form 10-KSB for the year ended September 30, 2008. Except as required by the Federal Securities law, the Company does not undertake any obligation to release publicly any revisions to any forward-looking statements.
Contact:
Timberline Resources Corporation
John Swallow, Chairman
208.664.4859
Seems to me the recent copper move is mostly hedge fund related. The funds decided they like copper so they are going after it all the way and they have the money to do what they want. Once the ball gets rolling it doesn't stop until they want it too. Could be today, could be 6 months from now, but it appears copper is the way to play a rebounding economy, likely with some extravagant hedges shorting certain currencies or something. Just my take, I stay out of that game. I'll stick to gold and silver and those that mine them thank you very much.
BTW, Impact IPT.V announced another solid quarter last night at first glance.
Gold Resource Corporation's Geologists Discover New High-Grade Silver Vein; New Drilling Contract
DENVER, CO--(MARKET WIRE)--Apr 9, 2009 -- Gold Resource Corporation (GRC) (OTC BB:GORO.OB - News) (Frankfurt:GIH.F - News) is pleased to report fieldwork completed recently by its geologists discovered a new high-grade silver vein averaging 737 grams per tonne (23.7 oz/tonne) silver, over a vein width of at least 1 meter, in a historic mine adit from a new area of the Aguila Project. Additionally, GRC is contracting with GeoDrill S.A. de C.V. to undertake an initial 5000 meter core drilling program at GRC's El Aguila high-grade gold and silver project in the state of Oaxaca, Mexico. GRC targets production at its El Aguila Project mid-2009, subject to obtaining remaining permits, regulatory approvals, equipment deliveries and construction schedules.
Related Quotes
Symbol Price Change
GORO.OB 4.15 0.00
{"s" : "goro.ob","k" : "c10,l10,p20,t10","o" : "","j" : ""}
Gold Resource Corporation's geologists, while field mapping an area of the Aguila Project on the western flank of Cerro Colorado, found a historic adit (tunnel) previously partially hidden by vegetation. The adit, now named La Escondida, is located two kilometers west from GRC's Aguila mill site. La Escondida is geologically located near the western contact of a resurgent dome within a zone of nested calderas (volcanic centers). The northern contact of the same resurgent dome hosts GRC's Aguila open pit deposit and to the east of this resurgent dome are the high-grade underground deposits of the Aire, Arista and Baja veins which currently comprise the majority of GRC's drilled mineralization to date.
La Escondida adit was historically driven following a quartz vein in the volcanic rocks. The vein is striking north 35 degrees west, dipping -72 degrees to the southwest. GRC geologists mapped the adit, which is 40 meters in length and took channel samples, each approximately one meter or more in width across the vein and at two meter intervals along the strike of the vein. All samples reported significant mineralization with 22 contiguous samples averaging 737 grams per tonne (23.7 oz/tonne) silver. Four samples assayed over 1 kilogram per tonne of silver and the highest-grade sample was 3.73 kilograms per tonne (120 oz/tonne) silver. Minor gold values, including 2.05 grams per tonne were present in the vein as well.
22 channel samples from La Escondida vein
Sample Gold Silver
Number g/tonne g/tonne
3478 0.20 437.0
3619 0.40 957.0
3620 0.71 1890.0
3621 0.09 323.0
3622 0.32 905.0
3623 0.10 107.0
3624 0.17 398.0
3625 0.71 1810.0
3626 0.12 188.0
3627 0.64 237.0
3628 2.05 3730.0
3629 0.38 560.0
3630 0.05 88.7
3631 0.23 284.0
3632 0.03 213.0
3633 0.19 635.0
3634 1.50 1370.0
3635 0.20 256.0
3636 0.07 594.0
3637 0.05 634.0
3638 0.04 32.6
3639 0.15 563.0
Average 0.38Au 736.9 g/t Ag (23.7 oz/tonne Ag)
Assays by ALS Chemex, Vancouver, BC Canada
Gold Resource Corporation's president William W. Reid stated, "The El Aguila Project encompasses 4 kilometers along an important regional structural corridor trending north 70 west. At the eastern end of the corridor we have our high-grade Aire and Arista vein systems, in the middle we have our Aguila open pit deposit and now with this new discovery on the western edge we have indications of high-grade silver at La Escondida. The Aguila Project's epithermal system continues to impress us with its high-grade values as we continue to expand its size through exploration and further development of our geologic model. All this mineralization is within 2 kilometers of our Aguila mill currently under construction."
Mr. Reid continued, "This new discovery was made by Gold Resource Corporation's fieldwork completed during down time between drill programs and La Escondida has been added to our long list of drill targets on the project. We are excited to begin our new drill program."
Gold Resource Corporation has contracted the drilling company GeoDrill S.A. de C.V., based in Peru with offices in Mexico, to continue GRC's core drilling exploration program. Drilling will target the expansion of established mineralization at GRC's La Arista deposit as well as explore many of the additional drill targets at the Aguila Project. GeoDrill S.A. de C.V. expects drilling to begin mid-April. GRC will continue its exploration efforts using one drill with the goal of accelerating exploration using multiple drills once cash flow from operations is achieved.
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 41,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=957505
Contact:
Contact:
Jason Reid
VP / Corporate Development
303-320-7708
GORO.OB news:
Gold Resource Corporation's Geologists Discover New High-Grade Silver Vein; New Drilling Contract
DENVER, CO--(MARKET WIRE)--Apr 9, 2009 -- Gold Resource Corporation (GRC) (OTC BB:GORO.OB - News) (Frankfurt:GIH.F - News) is pleased to report fieldwork completed recently by its geologists discovered a new high-grade silver vein averaging 737 grams per tonne (23.7 oz/tonne) silver, over a vein width of at least 1 meter, in a historic mine adit from a new area of the Aguila Project. Additionally, GRC is contracting with GeoDrill S.A. de C.V. to undertake an initial 5000 meter core drilling program at GRC's El Aguila high-grade gold and silver project in the state of Oaxaca, Mexico. GRC targets production at its El Aguila Project mid-2009, subject to obtaining remaining permits, regulatory approvals, equipment deliveries and construction schedules.
Related Quotes
Symbol Price Change
GORO.OB 4.15 0.00
{"s" : "goro.ob","k" : "c10,l10,p20,t10","o" : "","j" : ""}
Gold Resource Corporation's geologists, while field mapping an area of the Aguila Project on the western flank of Cerro Colorado, found a historic adit (tunnel) previously partially hidden by vegetation. The adit, now named La Escondida, is located two kilometers west from GRC's Aguila mill site. La Escondida is geologically located near the western contact of a resurgent dome within a zone of nested calderas (volcanic centers). The northern contact of the same resurgent dome hosts GRC's Aguila open pit deposit and to the east of this resurgent dome are the high-grade underground deposits of the Aire, Arista and Baja veins which currently comprise the majority of GRC's drilled mineralization to date.
La Escondida adit was historically driven following a quartz vein in the volcanic rocks. The vein is striking north 35 degrees west, dipping -72 degrees to the southwest. GRC geologists mapped the adit, which is 40 meters in length and took channel samples, each approximately one meter or more in width across the vein and at two meter intervals along the strike of the vein. All samples reported significant mineralization with 22 contiguous samples averaging 737 grams per tonne (23.7 oz/tonne) silver. Four samples assayed over 1 kilogram per tonne of silver and the highest-grade sample was 3.73 kilograms per tonne (120 oz/tonne) silver. Minor gold values, including 2.05 grams per tonne were present in the vein as well.
22 channel samples from La Escondida vein
Sample Gold Silver
Number g/tonne g/tonne
3478 0.20 437.0
3619 0.40 957.0
3620 0.71 1890.0
3621 0.09 323.0
3622 0.32 905.0
3623 0.10 107.0
3624 0.17 398.0
3625 0.71 1810.0
3626 0.12 188.0
3627 0.64 237.0
3628 2.05 3730.0
3629 0.38 560.0
3630 0.05 88.7
3631 0.23 284.0
3632 0.03 213.0
3633 0.19 635.0
3634 1.50 1370.0
3635 0.20 256.0
3636 0.07 594.0
3637 0.05 634.0
3638 0.04 32.6
3639 0.15 563.0
Average 0.38Au 736.9 g/t Ag (23.7 oz/tonne Ag)
Assays by ALS Chemex, Vancouver, BC Canada
Gold Resource Corporation's president William W. Reid stated, "The El Aguila Project encompasses 4 kilometers along an important regional structural corridor trending north 70 west. At the eastern end of the corridor we have our high-grade Aire and Arista vein systems, in the middle we have our Aguila open pit deposit and now with this new discovery on the western edge we have indications of high-grade silver at La Escondida. The Aguila Project's epithermal system continues to impress us with its high-grade values as we continue to expand its size through exploration and further development of our geologic model. All this mineralization is within 2 kilometers of our Aguila mill currently under construction."
Mr. Reid continued, "This new discovery was made by Gold Resource Corporation's fieldwork completed during down time between drill programs and La Escondida has been added to our long list of drill targets on the project. We are excited to begin our new drill program."
Gold Resource Corporation has contracted the drilling company GeoDrill S.A. de C.V., based in Peru with offices in Mexico, to continue GRC's core drilling exploration program. Drilling will target the expansion of established mineralization at GRC's La Arista deposit as well as explore many of the additional drill targets at the Aguila Project. GeoDrill S.A. de C.V. expects drilling to begin mid-April. GRC will continue its exploration efforts using one drill with the goal of accelerating exploration using multiple drills once cash flow from operations is achieved.
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 41,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=957505
Contact:
Contact:
Jason Reid
VP / Corporate Development
303-320-7708
SLW but their model is obviously a bit different from most miners.
DENVER, CO--(MARKET WIRE)--Apr 1, 2009 -- Gold Resource Corporation (GRC) (OTC BB:GORO.OB - News) (Frankfurt:GIH.F - News) announces the appointment of one new director to the GRC Board of Directors. GRC targets production at its El Aguila Project in mid-2009, subject to obtaining remaining permits, regulatory approvals, equipment deliveries and construction schedules.
As part of the recent strategic investment by Hochschild Mining plc (Hochschild) in which Hochschild acquired 15% of Gold Resource Corporation, Hochschild is permitted to nominate one new board member to the GRC Board, which now stands at 4 directors. Hochschild, which has over forty years experience in underground mining, has nominated Mr. Isac Burstein to fill the vacant seat and the Directors of GRC have unanimously appointed him to the Board.
Mr. Burstein is Corporate Manager of Business Development for Hochschild Mining Plc. where he has been employed for the last 12 years. He holds a BSc in Geological Engineering from the Universidad Nacional de Ingenieria, in Peru, an MSc in Geology from the University of Missouri and an MBA from Krannert School of Management, Purdue University in Indiana.
Gold Resource Corporation's president, William W. Reid stated, "We are very pleased with the appointment of Mr. Burstein to GRC's Board of Directors. We appreciate the experience and professionalism he brings to the board and look forward to his future contribution to the Company."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 41,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission
About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L for Reuters / HOC LN for Bloomberg) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years experience in the mining of precious metal epithermal vein deposits and currently operates five underground epithermal vein mines, four located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has over sixteen long-term prospects throughout the Americas.
For further information please visit www.hochschildmining.com
Contact:
Contact:
Jason Reid
VP / Corporate Development
303-320-7708
DENVER, CO--(MARKET WIRE)--Apr 1, 2009 -- Gold Resource Corporation (GRC) (OTC BB:GORO.OB - News) (Frankfurt:GIH.F - News) announces the appointment of one new director to the GRC Board of Directors. GRC targets production at its El Aguila Project in mid-2009, subject to obtaining remaining permits, regulatory approvals, equipment deliveries and construction schedules.
As part of the recent strategic investment by Hochschild Mining plc (Hochschild) in which Hochschild acquired 15% of Gold Resource Corporation, Hochschild is permitted to nominate one new board member to the GRC Board, which now stands at 4 directors. Hochschild, which has over forty years experience in underground mining, has nominated Mr. Isac Burstein to fill the vacant seat and the Directors of GRC have unanimously appointed him to the Board.
Mr. Burstein is Corporate Manager of Business Development for Hochschild Mining Plc. where he has been employed for the last 12 years. He holds a BSc in Geological Engineering from the Universidad Nacional de Ingenieria, in Peru, an MSc in Geology from the University of Missouri and an MBA from Krannert School of Management, Purdue University in Indiana.
Gold Resource Corporation's president, William W. Reid stated, "We are very pleased with the appointment of Mr. Burstein to GRC's Board of Directors. We appreciate the experience and professionalism he brings to the board and look forward to his future contribution to the Company."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 41,095,489 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission
About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L for Reuters / HOC LN for Bloomberg) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years experience in the mining of precious metal epithermal vein deposits and currently operates five underground epithermal vein mines, four located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has over sixteen long-term prospects throughout the Americas.
For further information please visit www.hochschildmining.com
Contact:
Contact:
Jason Reid
VP / Corporate Development
303-320-7708
Seriously people, take a hard look at TLR. Their P/E and potential are simply amazing given their current market cap. Monty, Cl, Bobwins, and all others too. I would love to hear your take.
Ah yes that is it thank you. eom
Who is that explorer in Indonesia? They paid a huge dividend a year or so ago after developing and selling off a Mongolian uranium property I think. Can't remember the name.
TLR up 30% to $0.28. They have positive cash flow from drilling revenues (mostly underground) and their partner is covering the costs to bring their gold mine into production. Seems like a no brainer to me.
Sold my SMC and bought TLR. I am out all next week and expect it to be doubled by the time I get back.
Here's an excellent summary from another member on another board:
GORO Conference Call Notes...
Hope you find this to be of some value.
Update on the El Aguila mine construction.
Quick Summary: We are making great progress and have 2 months to go until the lack of permit slows us down. Can't promise when the first pour is. Still "targeting" mid year. Still planning on delivering 1/3 of all cash flow as dividends. Hochshield investment demonstrates how credible we are.
MontyHigh..........
Bill Reid, CEO speaking: (paraphrase, not quote)
Its a very exciting time. Just got back from the mine camp opening. A very beautiful place to live that shows the commitment of the company to the local community. 80 people for the mine opening. Most were Ejido members, local residents (the local government is important.)
The dignitaries were there and the Ejido presidents were very appreciative for bringing jobs to the community. They see it as a real, positive development given that jobs are disappearing everywhere.
The construction situation:
o Concrete work will be done by the end of this month. Reid is very pleased with the contractor that did the job. It was a fixed price bid for 1.2 million $. Came in with changes of an extra $40,000. That's like within 4% of the original bid.
o First loads of steel arrived. The next phase is the construction of the structural steel and buildings.
o Just about to move the mill and crushing plant from Laredo Tx staging area.
o Note: They do a 3-D model of the mill as part of designing it and you can "virtually" walk thru the mill.
o Tailings: The dirt work at the tailings pond is effectively complete. This is a great job, they have an excellent on-site manager (Jorge...).
o Tailings: The liners are getting ready to ship and they are working on the paper work now.
o Tailings: They are building it with two liners even though Mexican authorities only require one. They care about the environment. The first liner is made of clay and it automatically seals holes. The top liner is a synthetic liner.
o Open Pit: Got permission to remove the top waste to build the tailings dam. They effectively have a mining operation underway doing this.
o NOTE: They use small trucks which are from local operators. The current method uses $.60/tonne. No capex. Very efficient. Very low-cost.
o Water Line: Moving up the hill to mill and almost complete. Have the powder magazines.
o Mining Permit: Don't have it yet, but expect it soon.
Exploration: Are signing a new contract with a new driller. So, no exploration for a couple of months. Have found very exciting things looking at the surface. Drilling should start again fairly shortly.
Portal location for underground mine is also making progress.
Hochshield Mining:
o Very glad they bought the second tranche.
o They are the best possible shareholder to have.
o Validates GORO's business plan.
o Example of how they work together.
o Two GORO engineer/geologists visited a Hochshield open pit mine for two weeks to get trained on operating an open pit.
o Hochshield has had 3 or 4 geologists on site ever since they got involved.
o Current financial situation
Summary:
This year this will make the transition from exploration to production. You could justify an investment because of this.
You could justify an investment because they have high-grade rocks.
Also because they care about the financials and are keeping the finances well disciplined.
The big thing is they want to make money and share it with their shareholders via 1/3 of cash flow in dividends.
Questions:
Q1: Don, how much gold will you produce in the first 12 months of operation, starting september. ANSWER: Targeting 70K oz of gold (only gold). Will use silver as a byproduct and thus get a $100 cash cost for the gold.
Q2: There has been some concern about stability and crime (kidnappings, etc.). What's the stability of your area of Mexico? ANSWER: It is very scary in some places. Mostly on the border or in another state where drugs are grown. Doesn't think there are drugs being grown nearby. There is a military post just 20 km from the mine. They understand the problem Mexico is having with drugs by reading about it. Its does not appear that they have the problems near their mine. They are just 2 - 3 km from Pan American highway. They are not in the middle of no where which is less secure.
Q3: Don Phillips, An old silver mine is due west of you. Means you have a big 35 mile hot spot near you. Means your situation could be like Nevada. ANSWER: We approach it differently but come to the same conclusion. They see, structurally, a 26 mile corridor. They have only drilled 300 meters so far.
Q4: Peter Norton, What is target date for first pour. ANSWER: I don't have a date, so I won't give a date. Mid 2009, but can't say what month. Concrete contractor is only 2 week late. That's good.
Q5: Peter Norton, The permit process, where do we stand. ANSWER: Only have one permit left. The mining permit. Got the waste removal permit. Thinks this means the regulators will come through. Claims they don't need it for another couple of months. Haven't heard anything from them to put the permit in question.
Q6: Peter Norton, How does the balance sheet look. ANSWER: From the last filing, can't say anything new.
Q7: Peter Norton, Do you have enough cash to get to first pour. ANSWER: We are doing the project for about half what the industry would do. They feel very comfortable and think they have enough, but can't say for sure.
Q8: Peter Norton, How many oz third year. ANSWER: 177 au equiv. Half of that is gold, half is silver. This would mean they are producing 10% of all of Mexico's silver.
Q9: Peter Norton, Will it be mostly silver after that? ANSWER: Well our property has a bunch of gold. El Rey, for example is just gold. There will be plenty of gold and silver.
Q10: Security, how do you secure the gold bricks that have been poured. What's the plan to store them securely. How are they transported. ANSWER: All I'll say about that is this. On the day they pour, the armored truck will be there and will receive them directly. After its in the armored car, its insured, its their problem. I do not intend to store any gold on the problem. There have also been some preliminary discussions with the army. They may be nearby on the days they pour.
Q11: Fundamental Research Vancouver, how are you going to smelt the copper and how does it get shipped there? ANSWER: Mexico has a bunch of operations. They haven't made any decisions yet. They expect they will truck it to the smelter or to a rail head. They expect they will do it with Mexican smelters. Also they are not that far from the port and could go internationally with that. We have several different options.
Q12: Bo. About the dividend policy. Could you reiterate your policy. ANSWER: Nothing is guaranteed, these are goals. They expect to pay 1/3 of cash flow to go in dividends. Hopes to do that right from the beginning. It depends on things going well, which he thinks they will.
Q13: Chris, private investor: Your mine plan maps out growth and mining of 643 k oz. The key for growing the share price, the key is the amount of mineral resources. What's the plan? How do we get closer to the 3 million oz potential. ANSWER: I need to explain a little about our philosophy. The philosophy is to get into production as soon as possible. The made the decision to only drill enough to get production going. They only had to drill 300 meters to do that. It justified to early funders and hochshield well enough to raise the money they needed to get started. It wasn't important to us to get to proven and probable, because they know what they are doing and want to get into production. In the future, they want to get to proven and probable reserves. One criteria for proven probable is to get your permits. So, they talk about mineralize material. Once they get into production, it will be much easier to get proven and probable. They were focused just on getting into production. Once they get cash flow they will have 3 or 4 drill rigs drilling away expanding on what they've already found and finding more.
Huge volume here recently. That overhanging supply is getting eaten up. We move substantially higher sooner rather than later I think.