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EXN.v Excelon Resources Took a chance and bought some yesterday. Banking the government, now being involved and with motivation to settle the labor issue, will get things moving again. Fundamentally the company is worth way more than double the current price.
Re AUN When I think about the stock buy back - Reverse scenario and take into consideration what Lenic has created with the acretive dilution to date Im probably more happy to see them use the cash to grab the new high value propertys/3rd producing mine they are talking about increasing their production even higher.
Sometime shortly, they could just do a 1 for 2 reverse, get the SP up for the move to a new exchange and call it a day. The market would understand I think?
Then they could take all those gobs of cash and give it back to us.
Checkmate 28
Kozoh and Bobwins re AUN.V Aurcana just put out their new presentation titled Emerging Senior Silver producer. I think their going to just skip the mid tier producer status.
Lenic Rodriquez has been on record predicting 10 million ounces silver production rate in less than 12 months and will that they will surpass all their competition. Think he was talking about the mid tiers. This story is very impressive and the presentation is as well. Aurcana has gotten its 2nd Shafter mine up under budget and ahead of schedule. Low capex expansions will bring Shafter to 2500tpd and Lanegra to 3000tpd (total capex less than $4m) They have (dont quote me) 13 drills out under most under lead from legendary Peter Megaw and have just bumped their Lanegrs resource up 3500% to about 115m ounces at LaNegra alone and not even half of the ore bodies are in the NI43101. They are going to compete very well with the majors in total ounces as well as production.
Dont worry about Aurcanas near 500m OS? First Majestic has a MC pushing $2.5 billion and Aurcana is still below $500M MC Aurcana is probably going to surpass First Majestic in production. For Aurcana to reach that 2.5 billion MC, all those shares will trade at $5 Add the silver raising factor and things get better.
I was very happy to add in August at .85 when they had the water issue. Seems all mine start ups have problems and many mines have water to contend with.
Very easily could take out the 52 week high tomorrow as this information filters to all the smart investors and new analysts who pick up on this hot new story :) Got my warrants under .30 so this is going to work out very well for me.
Aurcana has arrived and the re rating is just beginning!
Checkmate28
Link to presentation
http://www.aurcana.com/i/pdf/CorporatePresentation.pdf
AUMN Golden Minerals Been moving nice lately. Going forward, they are one of my favorites. Huge ounces, increasing production, tight share structure and Ive met the management. Cash flow positive status on the way next year (half 1) should be coming and then they will get a lot of attention. This was a $25 stock before their production status, just based on their huge inventory of properties. Their new direction has been production and offing their marginal properties for cash. This allowed a short position in and they are leaving now.
GOLDEN, Colo., Aug. 30, 2012 /CNW/ -Golden Minerals Company (NYSE Mkt: AUMN; TSX: AUM) ("Golden Minerals" or "the Company") today provided an update for the Velardena Operations, located in Durango State in Mexico.
(Logo: http://photos.prnewswire.com/prnh/20120803/LA52082LOGO)
Golden Minerals is continuing to ramp up production at the Velardena Operations to reach a combined oxide and sulfide plant throughput of 850 tonnes per day during the second quarter of 2013. Capital and mine development costs for the 12 month period ending June 30, 2013 are estimated to be between $15.0 and $20.0 million, including approximately $5.0 million for mine development. At 850 tonnes per day, the Company anticipates an annualized production rate of payable metals in the range from 1.0 to 1.2 million ounces of silver and 12,000 to 16,000 ounces of gold, resulting in 1.6 to 2.0 million ounces of silver equivalent (using a ratio of 50:1, gold to silver). At 850 tonnes per day, the Velardena Operations are expected also to produce approximately 4.0 million pounds of combined payable lead and zinc.
The sulfide and oxide plants at Velardena are currently operating at a combined capacity of approximately 600 tonnes per day. Mine operations are no longer constrained by the lack of underground mining equipment, and mine development should now permit the Company to open access to new stopes for mining commencing in the third quarter 2012. The Company has commenced commissioning of the bulk flotation process in the oxide plant, designed to recover additional gold from pyrite. Based on actual production for July and August to date, and anticipated production in September, the Company expects payable production for the third quarter to be approximately 10% to 20% higher than the average quarterly payable production for the first half of 2012.
The Company intends to further expand its operations to 1,150 tonnes per day throughput, and has recently commenced preliminary design and engineering. The ramp-up to 1,150 tonnes daily throughput could begin as early as the first quarter of 2014, which could result in throughput at the full 1,150 tonne daily capacity being achieved by the fourth quarter of 2014. The Company's preliminary estimate of capital and mine development cost for the 1,150 expansion, most of which would be spent from mid-2013 through 2014, is between $40.0 and $50.0 million, of which between $20.0 and $30.0 million would be for an autoclave circuit and approximately $10.0 million would be for mine development. In addition to the autoclave circuit, the expanded facility would also include the replacement of one sulfide ball mill and the addition of flotation and filtration capacity. The Company's preliminary estimates of annualized payable production at 1,150 tonnes per day range from 1.8 to 2.2 million ounces of silver and 25,000 to 35,000 ounces of gold, resulting in 3.0 to 4.0 million ounces of silver equivalent (using a ratio of 50:1, gold to silver). At 1,150 tonnes per day, the Velardena Operations would also produce up to 10.0 million pounds combined payable lead and zinc on an annualized basis. The Company expects cash operating cost per ounce of silver at the 1,150 tonnes per day throughput rate to be lower than average 2011 cash costs of approximately $7.25 per ounce of silver as reported by The Silver Institute World Silver Survey 2012 of GFMS-Thomson Reuters, compared to anticipated cash operating cost at the 850 tonnes per day throughput rate which are expected to be higher than such average 2011 cash costs.
As previously reported, the Company would require external funding for most of the capital and mine development costs for the planned ramp-up to 850 tonnes per day and the anticipated subsequent expansion to 1,150 tonnes per day, which may include debt, equity, product, leasing or project financing transactions. There is uncertainty regarding whether the Company will be successful in obtaining sufficient funding on acceptable terms or at all.
ENZR Nice PR causing lot of volume. Lithium batteries are mostly made of graphite and Energizer is in the process of defining the largest high grade project in the world and already has the DRA as technical partner being the largest mine builder in Africa.
Energizer Resources Outlines 100 Million Tonne Footprint of the Molo Deposit with the Completion of Resource Drill Program
http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?docid=0815040001&sourceType=1http://www.ccnmatthews.com/logos/20100519-energizer20.jpg
TORONTO, ONTARIO -- (Marketwire) -- 08/29/12 -- Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) ("Energizer" or the "Company") is pleased to announce it has received additional assays from its recently completed National Instrument (NI) 43-101 graphite resource drill program on the Molo deposit. The Company is now in a position to outline the prospective deposit size and boundaries, as well as the grade and tonnage.
The Molo deposit is located in the Green Giant Graphite project, and is part of the joint venture (JV) property with Malagasy Minerals Limited in Madagascar. Energizer has a 75% ownership interest and is the operator of the Project.
NI 43-101 Graphite Resource Program Complete
The recently completed drill program will provide the necessary data to complete a National Instrument (NI) 43-101 graphite resource, which will be part of the Preliminary Economic Assessment (PEA) due in Q4 of this year. DRA Mineral Projects, Africa's largest mine engineering, construction and operations firm, is authoring the PEA Study, while Caracle Creek International Consulting Inc. of South Africa is authoring the resource statement. In total, 41 diamond drill holes over 8,450 metres, and 18 trenches over 2,100 metres were completed during the program.
Drill and Trench Intersections Confirm Large Footprint of Molo
The Company has now received assays for the first 9 (of 41) drill holes, and the first 8 (of 18) trenches completed during the course of the recently concluded resource delineation program. Coupled with the 6 diamond drill holes and 1 trench completed during the December 2011 exploration program, this assay data confirms that the Molo has a very large footprint.
The Molo deposit exists within a folded sequence over a 2 km strike length. In the north, it is between 50 to 60 metres wide then flares to over 500 metres in width. From this point, the graphite deposit tapers down to a width of approximately 250 to 350 metres. Finally, the deposit splits into two 'arms' of between 50 and 100 metre widths respectively. A satellite image of the Molo deposit footprint can be viewed on the Company's website at www.energizerresources.com.
Drill and trench data received to date, as well as mapping, prospecting and geophysical surveying, confirms graphite mineralization at surface, and over an area of at least 250,000 m2. Depth of mineralization has been confirmed by drilling in excess of 300 metres. Based on the size of the Molo footprint, as well as the tenor of mineralization found in the 15 drill holes (9 from 2012 and 6 from 2011) and 8 trenches received to date, the Company is confident of delineating a deposit in excess of 100 million tonnes at an average grade greater than 6% carbon (graphite)...
To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/EGZ2908_Figure1.pdf.
Assay Results
The drill hole and trenches were designed to delineate the extent of the Molo deposit. The first 3 holes were emplaced to help determine the eastern and western boundaries of the Molo deposit. Diamond drill holes MOLO-12-04 through MOLO-12-09 were drilled to delineate the eastern edge of the deposit.
Trench MOLO-TH-12-03 assayed 7.2% carbon over 413 metres and was emplaced to test the extent of surficial mineralization over the width of the Molo. This trench was extended further to the east. Assays are still pending on this extension. Trenches MOLO-TH-12-04 through MOLO-TH-12-07 were emplaced to test the mineralized width of the northern limb of the Molo deposit, while MOLO-TH-12-08 was emplaced to test the widths of the southern limbs of the deposit.
The table below summarizes the drill and trench intersections. An assay table summarizing all results is also provided on the Company's website.
---------------------------------------------------
DDH From (m) To (m) Length (m) C%
MOLO-12-04 0.8 221 220.2 5.42
MOLO-12-05 10.5 163.6 153.1 6.01
MOLO-12-06 0.5 362 361.5 5.60
MOLO-12-07 1.5 293.5 292 6.48
MOLO-12-08 1.2 212 210.8 6.45
MOLO-12-09 0.2 137 136.8 6.83
---------------------------------------------------
Trench From (m) To (m) Length (m) C%
MOLO-TH-12-03 5 418 413 7.20
MOLO-TH-12-04 2 119 117 6.64
MOLO-TH-12-05 22 90 68 6.73
MOLO-TH-12-06 52 118 66 7.49
MOLO-TH-12-07 37 138 101 6.45
MOLO-TH-12-08 86 140 54 7.45
MOLO-TH-12-08 186 296 110 6.70
---------------------------------------------------
Targeting Low Cost Production
Energizer's Molo deposit possesses four key attributes that set it apart from other deposits in the world and position it to be a potential low-cost production model for the industry. These include:
-- An excellent topographical setting. The Molo deposit rests in a flat and
semi-arid environment, with no environmental issues. With the deposit
immediately at surface, operations can be optimized through little to no
stripping requirements and easy access to site.
-- An ideal geographic location. The Molo deposit is uniquely located in
the centre of the hub of key graphite demand markets of China, India,
South Korea and Japan. Furthermore, the Molo deposit is in close
proximity to specialty-finishing battery producers in both Korea and
Japan. Currently, China must send almost all of its spherical cut
graphite (required for batteries) to both Korea and Japan for specialty
coating, which is the final, and very complex, process to produce
battery-grade graphite.
-- At 100 million tonnes and an average grade greater than 6% carbon, the
Molo would be the world's largest known single source deposit of high-
grade graphite. In addition, the Molo deposit possesses a unique
metallurgical characteristic that allows simple mechanical separation of
the graphite up to 93% without flotation.
-- Current in-place and serviceable infrastructure for transportation water
and power. Confirmed by the PanaAlpina Group, one of the world's leading
intercontinental air and ocean freight supply chain and logistics
companies, the in-place infrastructure at Molo will allow for immediate
production. Utilizing a now serviceable road structure from site to
port, 160km away, there are existing water sources proximal to the
Project. Over-the-fence power will be required initially and will be
satisfactory until the nearby Sakoa Coal Field (35km away) will upgrade
the now serviceable infrastructure to world-class status. Targeted to
produce 5 million tonnes of coal on an annualized basis, the Sakoa Coal
Field will require significant upgrades to road infrastructure, port
infrastructure, and on-sight power plants that Energizer expects to tap
into. It is the Company's understanding that the Sakoa Coal Field is
targeting operation between 2015 and 2016.
Energizer believes the Molo's 100 million tonnes will be required and relevant to what the Company views as the re-emergence of electric vehicles, evidenced in recent news from Ford, General Motors, BMW, Kia, Hyundai, Nissan and Toyota.
Basserdan Thanks for that How much higher would the price of gold be if GLD (or any metal ETF) didn’t exist? What would the price of gold be if the bankers had not hidden the money in a black box called GLD, but instead all that money was chasing real gold? We all know gold would be much higher. So GLD acts as a gold-price suppression tool designed to benefit the bankers and financial advisors.
Now we just need a few more of those funds to fail and the tide of money moving towards the physical
AUMN Golden Minerals Getting things together Moving from explorer to producer.
From phone call with IR
New equipment all in and in place, allowing for the work needed to access new stopes in previous unmined areas with higher grades. These areas were waiting on equipment that was held up on the border for 6 mths
Market Cap 200m
About 1/2 Billion Silver EQ oz No typo!
38 M OS shares and committed to organic growth with min financing
Small production bumping soon to 850 tpd and cash flow positive Q2 2013
They have properties on the market to bring in cash and reduce costs to further their production efforts
Further exp to 1150tpd being accessed but will need some outside financing.
Corporate presentation out next month.
I think the pres will tell us a lot.
Checkmate28
LC Re Aun.wt Sorry on the typo Long days lately. :) Yes Nov 2013 is a nice ways out.
ARZ.v AURizon still a good bargain. Although costs are going up, thats across the industry, and their costs are still on the lower side. The 2012 CAPEX bump is temporary. Producing 150k high grade ounces per year at close to $560 million EV, new cash coming in, enough money in the kitty to fund a new future project looks like a solid investment to me. Lot of drilling as well. I think those Hosko Heva projects East of Casa Berardi will prove feasible as more results come in.
Aurcana AUN.V AUNFF I spoke with IR last week. More important than the earnings, will be the Shafter updates and their exploration progress. They are banging out the new ounces. Problem is though, a large section of those new resource finding were contaminated (with gold that is) The Shafter test dore bars came out golden in color and contained 15% gold making them worth 700% more dollars.
Now if Shafter is announced to be up and running well, with no problems, the Q3 report could be titled Aurcana produces record earnings and ounces up 200%
Large increases in total ounces are on the way and they are shopping for a 3rd high grade mine.
Going forward cash shouldn't be to big a problem. If your not in, it might make for an interesting story next week.
The warrants are still cheap .40 and dont expire until Nov 2012 Strike 1.00
Checkmate28
Beacon Research on the Yukon Great read. Specially if you like Golden Predator or Alexco
http://www.beaconrockresearch.com/files/Special%20Report%20Scarsdale%20Equities%202012%20Yukon%20MineTour.pdf
We should have 2Q numbers here by the 9th and an update. Anyone have a clue what to expect ? Have they employed the new equipment. Do we get a bump in production? Any bites on Zacatecas? Cash flow positive, could you please surprise us this year.
OT Coin HA HA HA But your right, with the phone on the charger next to me Id get a surprise. But lookie lookie its 12:18. Headed up north MI tomorrow AM so thought Id have a quick look.
Coin Dont down load it. I just left the couch to see who messaged me LOL
OT Coin Thanks. Coolest thing just happened. I've been hearing this odd new noise come from my phone alerting me to something. I would check the text, voice, and e-mail and see nothing new. Huh, it just made the noise and across the top of the phone was your message from coin. Has to be the IHUB mobile phone app I installed.
Coin, absolutely beautiful (no pun intended) but there is no price. What was the price?
Energizer Resources article from Industrial Metals
http://www.indmin.com/Article/3063483/A-graphite-project-of-giant-proportions.html
A graphite project of giant proportions
August 2012
Madagascar could replace China as the world’s next bulk producer of graphite as Canada’s Energizer Resources fast-tracks development of its Green Giant graphite project in the south of the country, Jessica Roberts reveals
Graphite is an industrial staple. Its various properties - including high refractoriness, corrosion resistance and flexibility - have cemented its place in markets such as foundries and refractories, where stable, long-term growth appears to be assured.
Yet for this traditional mineral, times are quickly changing. The last three or so years have seen a sharp rise in market interest, owing to the collision of several factors: falling supply and quality from China (the world’s largest natural graphite producer), increasing prices, and booming interest in new applications which serve the hitech sector.
Natural graphite (and in particular, large flake) has seen a surge in interest similar to the peak in the late 1980s. Yet the market situation today is vastly different: China - then an emerging low-cost supplier - has turned its back on bulk exports in favour of consolidation and the development of high-value, domestic industries. As a result, numerous developers in Australia, Canada, the US and elsewhere are looking to capitalise on this.
It is no surprise that this has occurred just as graphite’s profile has risen as a key mineral in the green energy market. As the world aims to reduce its dependence on hydrocarbons (particularly oil) graphite looks to gain a significant market share in several areas, notably new energy sources, solutions for energy storage, and energy control.
Perhaps the most high profile of these applications is energy storage, and particularly lithium-based batteries. Lithium-ion (Li-ion) batteries - today found in a host of portable technologies including electric and hybrid electric vehicles (EV and HEVs), laptops and smart phones - generally use a graphite-based anode. Additionally, graphite is found in the majority of batteries today either in the anode or the cathode.
By weight, around 13 times more graphite than lithium is needed in a Li-ion battery (theoretically this figure should be 10.4 times, but inefficiencies increase this). Thus graphite is as, if not more, important than lithium in this application.
This is one of the key markets that Canada-headquartered Energizer Resources Inc. is looking to supply, via its Green Giant graphite project in Madagascar.
Massive Molo
The Green Giant project in Fotodrevo, southern Madagascar, has been under development by Energizer since 2007, although the company’s graphite exploration programme only commenced in November 2011.
Geologically, the entire area is part of the Ampanihy transpressive lithospheric shear zone - one of only a few several shear zones that exist worldwide formed during the continental collision and formation of Gondwana some 500-600m years ago. The shear zone A graphite project of giant proportions is indicative of very unique geologic conditions. Extremely high pressure and high temperature resulted in the metamorphism of the rocks, which upgraded the graphite present in the system.
This shear zone extends from surface level about 160 km down, deep into the mantle and extends over 180 kms north-south in strike length. Energizer’s 120-km long property straddles the majority of this shear system. The company’s focus is on the development of Green Giant’s largest graphite deposit, Molo, situated along the eastern edge of the property.
Energizer is working towards a NI 43-101 compliant resource for its Molo graphite, and drill results already obtained for Molo indicate a potential resource of 100m tonnes graphite, grading 6-10% C (7-10m tonnes graphite concentrate). If confirmed, Molo alone would enable Energizer to produce enough graphite to meet current and expected demand for decades.
The strike zone of the Molo is impressive, stretching over 2km, with a graphite zone over 400 m wide and drill-tested to at least 300 m deep.
Key to recognise is that the graphite begins immediately at surface, an important aspect of Molo, as it will clearly bring down mining costs. Energizer is expecting assays shortly on a spectacular 434-metre drill intersection of continuous new graphite.
World production of natural graphite is around 1m tonnes, with around 600,000 tpa of this amorphous(microcrystalline) graphite and 400,000 tpa being flake graphite. Estimates vary, but Euro Pacific Capital believes natural graphite demand could hit 2m tonnes by 2020 - leaving a gap of 1m tonnes by today’s levels.
Of the three main natural graphite types (microcrystalline, flake and vein), flake is the most tied to the battery market, for which it is processed and converted to spherical graphite. Initial results from Energizer indicate that it will be able to supply a range of grades including large flake (+80 mesh), jumbo flake (+50 mesh) and a +20 mesh flake size, depending on processing.
Processing & infrastructure
One of the major advantages of the Green Giant graphite is the ease of liberation from the ore. Tests confirm Molo is largely comprised of a broad range of flake graphite, making the deposit ideally suited for a host of applications.
Testing also confirms that the more desirable jumbo flake graphite (averaging 93% purity) can easily be extracted simply by crushing the ore (see figure 2). This fact is critical for Energizer as it greatly reduces the capital and operating costs of the future mine while potentially reducing the timeline for mine completion to within two years.
The host country, Madagascar, is already home to Canadian mining giant Sherritt International’s $5.7bn Ambatovy Project, slated to be the world’s largest nickel mine and Rio Tinto’s $1bn minerals sands project.
The company has demonstrated that a simple crushing and processing circuit would enable production of a +50 mesh flake grading 93% C.
This is a significant benefit for Energizer, allowing rapid project development through the pilot plant stage and also reducing the project’s reliance on water for wet flotation and energy required for drying. Economical production costs could be the key advantage for Energizer, given forecasts that graphite pricing is starting to drift lower following three years of price hikes.
Another major advantage for Energizer is Green Giant’s proximity to the Sakoa coal project, around 30 km north-west of Energizer’s camp, which is currently under development by Thailand-based Asia Pacific Mining Resources (APMR). The group plans to install a coal processing facility and a power plant near to the Sakoa coal mine - opening up potential synergies for energy, water and rail.
APMR is also constructing a new deepwater port to the south of the existing port of Tulear (around 160 km away) on the west coast of Madagascar, in addition to road and eventual rail network to serve this. Despite the added advantage of having the coal project nearby, Energizer is quick to emphasise it is not at all dependent upon these logistics.
Madagascar is not a new entrant to the graphite market. For decades, Etablissements Gallois SA has been producing from a small-scale operation of about 5,000 tpa. Other producers were active during the 1990s, with a combined output of 16,000 tpa, but were thought to have closed owing to high processing and fuel costs.
With its sheer size, high grades and excellent metallurgy, Energizer has the potential to be a significant, low-cost producer for the rest of the world. Its next step is a bankable feasibility study, targeted for this October the results of which will be eagerly anticipated among market participants.
Spotlight on Molo
Energizer Resources acquired the rights to the Green Giant project near Fotodrevo, Madagascar, in August 2007.
The company has already delineated a NI 43-101 compliant vanadium resource estimate of 49.5m tonnes, grading 0.693% vanadium pentoxide (V2O5), containing 756.3m pounds of V2O5, and an inferred resource of 9.7m tonnes at an average grade of 0.632% V2O5, containing 134.5m pounds of V2O5. This ranks it as the third largest known vanadium deposit in the world.
Energizer expects that battery-grade vanadium pentoxide (V2O5) to be a significant growth market in the next few years owing to its role in flow batteries - used in grid storage and community storage applications.
Graphite camp
The company’s project was boosted in November 2011, when Energizer identified multiple areas of graphite mineralisation. The graphite deposits within Green Giant are currently under exploration, but one deposit in particular - Molo - dwarfs the vanadium resource. Energizer is targeting a resource of at least 100m tonnes grading 6-10% C.
Partnerships
Since the start of 2012, Energizer has secured several significant partnerships. The first, with Australian exploration company Malagasy Minerals (which holds a large land package around Green Giant) has provided a joint-venture agreement (75% Energizer, 25% Malagasy) that gives Energizer the rights to develop all of the industrial minerals in the joint-venture property.
Energizer has also appointed South Africa’s DRA Mineral Projects as its technical partner. DRA has since taken an equity investment into Energizer and will provide the full engineering, procurement and construction management (EPCM) services for Green Giant.
DRA’s director, Johann de Bruin, Pr. Eng, has joined Energizer’s board of directors as project leader for mine development. In addition, DRA’s Robin Borley, Pr. Eng director, has been appointed to Energizer’s special advisory committee overseeing capital projects and mine development. DRA is Africa’s leading mine engineering and construction company. DRA has built over 200 mines and is currently operating 24 mines worldwide.
ENZR EGZ.v 421.3 metres of graphite grades 6%+ 100 million tones graphite from MOLO zone and its one of 17 zones. PEA out Q4
There are a few here, that push off Energizer due to their MGT pumping of their news now and previously, but you CANNOT deny the significance of the numbers and what they are doing. From todays press: When reading below, remember, processing will be an at surface simple scoop and crush operation. Africa s largest mine developer DRA is on board now!
Energizer has completed 22 diamond drill holes over 4,600 metres as part of our 7,500-metre resource drill program. I am pleased to announce that the Company has received assays from the first 3 holes of its recently initiated National Instrument (NI) 43-101 graphite resource drill program on the Molo deposit.
Drill hole MOLO 12-01 in particular has verified 421.3 metres of graphite mineralization grading 6.12% carbon, and confirms that the Molo deposit is exposed at surface and extends to a vertical depth of over 300 metres.
Our latest drill core and trench assays confirm that the graphite mineralization at Molo is wider than originally anticipated. As such, the Company believes a resource target of >100 million tonnes (MT) grading over 6% C is obtainable for the Molo deposit. This resource will be available by Q4 of this year. To help put the size of the Molo into perspective, a 100 MT deposit grading at 6% C would be capable of producing 100,000 tonnes per year of graphite concentrate (or 10% of total current annual world-wide production of natural graphite) for over 50 years.
We are now focused on expediting the development of the project. Geologic and geotechnical data is being supplied on a continual basis to the Company’s technical partner, DRA Mineral Projects), which will be providing Energizer full engineering, procurement and construction management (EPCM) services to construct a modular graphite mine at Molo. DRA has also provided an independent onsite geologist to help facilitate information transfer, as well as to expedite the establishment of our NI 43-101.
http://www.energizerresources.com/news/543--energizer-resources-intersects-4213-metres-of-graphite-grading-612-c-in-drill-core-and-3585-metres-grading-621-c-in-trench-sampling.html
Disclosure I know they are or will be exercising some lower priced options and there are some warrants, but I think this company warrants a good look. They have cash as well.
Link back for more information.
Checkmate28
Mike There current processing set up has capacity to process 200,000 ounces/year with the current head grades going. Currently they are operation at 700tpd of the total 1200 tpd capacity. Additionally, their processing equipment is modular and it should not take much CAPEX to bring it up to 300,000 OZ capacity.
The upgrades to the 7-10 area should allow for a higher production rate when they are done.
So we wait. Hopefully some of the previous shorts took the opportunity to cover on the down turn.
CM
Unfortunately Mike they have a record of that and being a little late as well. While I feel as you do with the shorty volume and the rich future. Im hesitant to think Q3 will be back on track.
Q2 and todays NI43-101 Well two things here,
If were to believe what the company is saying. The production hit is to Q2 as the rehab/preperatioon for stoping levals 7 - 10 was completed in the second quarter leaving them to fully focus on production in the higher grade 7 - 10 levels during the second half. Its not real clear weather they are finished with the rehab project or is it going to carry into Q3. I look at this as a little CAPEX in return for higher future levals of production.
If this is true, then were looking at a tough few months and a possible hit when the earnings are reported. Hopefully the hit is already fully priced in based on the Q2 production news and Q3 reflects full production from the higher grade zones.
Todays NI43-101 Resource news didn't report the grades and only the AU EQ ounces above the 1gpt cutoff. I had to look in the report to see the grades. They are impressively between 10 and 13 grams per ton
Just my thoughts
Checkmate28
ARZ.v Aurizon Dr Air Feasibility Study of the Hosco Deposit
Haven't had time to read it yet. Looking forward to your cliff notes
Thanks in advance
Checkmate28
GWA.V Dr Air Im told Darren impresses a lot of people, even the professionals. Most company's don't have a talent like that on hand, and have to contract it out. Darrens there in the trenches, back with the drill, working on permitting issues, process flows, in Germany working on the ore sorting or in the regular office brain storming sessions.
------------------------
A spec of history PR
Castle Gold achieves commercial production at Mexico mine
Published: 11th August 2008
Canadian junior Castle Gold has declared commercial production at its new El Castillo mine, in Mexico's Durango state,
The mine produced 4 692 oz of gold during the second quarter of this year, and ran at more than 80% of budgeted levels in all areas of operation during the three months.
“Having attained commercial production rates over a sustainable period we're already planning for improved performance going forward as we endeavour to enhance the potential of the El Castillo mine,” said mine development VP Darren Koningen.
“We've achieved good operating results relative to our initial plans, and costs consistent with budget."
-----------------------------------------
Additionally Garth Wilcox Darrins right hand man at Gowest Gold, also worked for Castle Gold Ltd. as Manager of Engineering in the design and construction of two operating mines
Dr Air, I know, having met them, you would know they are very conservative with their information and would not talk about any specific staged start up plan unless they had enough info/signed agreements to put out publicly.
Ive expressed a few times, how happy we all would be, if they put together a low capex browns field with permits in place to produce the 90gpt concentrate they talk about shipping. There are several in the Timmins area. Just have to do all the economic studys and see if one fits. They could announce a JV any day as well.
For .10 - .12 cents a share, and 10 - 15m MC, I'LL take my chances, hang in there, keeping up on the information. I am convinced their North Timmins gold project will be impressive. How they get there, remains to be seen.
Checkmate28
DrAir, Re GWA.v Disclosure, First My postings for Gowest are not to compare Gowest Gold with any producers or near term producers. Were here to make money looking for the most leveraged company's early on. Being right on high risk usually has the best rewards. Gowest has much risk, are a ways from production, & therefore more susceptible to bad markets or bad mgt decisions. As you say, there is a potential for hurting dilution.
This is my star, for the riskier part of my portfolio and therefore, I spend a good amount of time staying on top of progress. First let me point out that management just took down nearly the entire Private placement for $800k and VP Technical services has been buying heavily on the open market last 2 years and at prices triple todays bid. Shows me they're forthright in their belief in its successful future. My belief is they have a major, high quality, multi target, several million oz company in the makings and have every intention on building the mine as its very important to Greg to make his mark in helping his home town Timmins ON.
1) Is 2016 assuming this the "full production" at 100k+ year run rate per their first PEA?
The current PEA is based on 1.2 million oz. w low M&I ,no ore sorting. New PEA will be based on at least 2 M oz IMO, with large increase in M&I. If Ore sorting is successful in the plan, they feed twice the gold per ton with the same processing setup. It seems to me that you could double the current 95k to 190 k ounces per year and costs would come down substantially.
2) Are plans still for staged production with ore sorting to double grade from 6g/t to 12-15 g/t and then shipping of ore by rail car to refinery? How long till this could start in your opinion?
The ore sorting works to enhance either plan. Its the unique nature of their ore, to have the rock with the gold have a unique signiture, theirfore allowing a rejection of the empty ore and leaving 95% of the gold in the remaining ore. They will try to set this up underground if they can, its only an x-ray machine and Im sure its easily movable. This would allow them to haul up a 10 - 15gpt ore.
On the refractory situation, remember, they already have the MOI and the down pmt on the pressure oxidation unit, plus other equip from the Con mine. This unit is in great shape and is more then adequate to handle all the Gowest ore and even some contract work from other local companies. As to the contractor experience, they have spoken with the original builder.
IMO the 2016 plan is the all out plan, and company direction unless something turns up better. They are looking at some browns fields, for suitability to the 90gpt contract option that will be much faster to production, with much lower CAPEX to help provide cash for the full production option.
Remember, this is a previously under explored & undiscovered area that has allowed for them to find the high grades that are so hard to find in safe jurisdictions today. I believe it is the quality of the project, management, and on payroll (been there done it) technical team, that will bring them the money they need, when the time is right. They are working on options but not going to give anything away. They don't need to.
Not near production, but a high quality, high ounce project that will multiply the current 10 - 15 million market cap.
Checkmate28
Gowest gold GWA.V CAD model link below of the Frankfield East resource. Way under reported at 1.2 million. The fall updade will easily be over 2 million oz at over 6 grams per ton with 3 gram cut off. Still open on strike and at depth. Frankfield represents only about 1 percent of their land package
http://www.gowestgold.com/
Gowest Gold Ltd. Updates North Timmins Gold Project
TORONTO, ONTARIO--(Marketwire - July 19, 2012) -Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) is pleased to provide an update on current activities at the North Timmins Gold Project ("NTGP"), including the development of the Frankfield East deposit:
Gowest recently added to its land position in the NTGP land package, which now encompasses over 90 square kilometres along the Pipestone Fault (see news release of June 19, 2012.) The Company is currently updating the mineral resource and initiating mine development studies at its wholly-owned Frankfield East deposit. The results of the updated studies are expected to be announced starting in the fall and the initial mine development plans are expected late in the year. (See "Planned Timeline" below.) This data will be included in an updated Preliminary Economic Assessment ("PEA") (see news release of November 14, 2011.) planned for Q1 2013. The Company recently completed a full-scale ore sorting optimization test in Germany using a one-ton bulk sample taken from the Frankfield East deposit. Preliminary studies demonstrated the amenability of the Frankfield East mineralization to separation using conventional ore sorting equipment. The potential of adding an ore sorting stage early in the process offers the potential to reject more than 50% of the waste rock from the crushed material extracted from the mine, increasing the overall gold content of the mined rock from approximately 6 g/t to the 12-15 g/t range, with only a minor impact on the ounces of contained gold produced. The sorted samples from this latest test are at SGS Lakefield for assay and test work and a final report is expected in the fall. The Company also plans to include these results in the PEA update noted above. The Company is continuing a site location review in preparation for an environmental baseline review as part of the permitting process for the construction of an ore processing facility related to the Frankfield East deposit. The Company is reviewing the results from recent drilling on the Pipestone Main property as well as examining a number of newly identified faults, including the North Pipestone Break structure, another prospective area recently defined by the Company's ongoing exploration program (see news release of June 19, 2012.) The Company continues to review potential opportunities that would be accretive in the advancement of NTGP, including the Frankfield East Deposit. Gowest continues to update its website ( www.gowestgold.com ) and communications strategies. For example, the Company is planning to initiate a "Q&A" exchange, which will include a discussion of Gowest's activities particularly related to the development of the Frankfield East deposit.
Greg Romain, President and CEO of Gowest, said, "We are very pleased with the numerous technical and strategic advances we are making at the North Timmins Gold Project, where we are planning to build the next new gold mine in the Timmins area in about three years. We are confident that we have an excellent deposit with a great deal of additional upside, as well as the core team and commitment that will bring this mine to profitable fruition."
To view the Planned Timeline, please visit the following link: http://media3.marketwire.com/docs/Planned_Timeline.pdf
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit, part of the Company's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on the 90-square-kilometre NTGP land package and continuing to evaluate area, which is part of the prolific Timmins, Ontario gold camp.
Coin Auriga, Be easier on yourself. AIA is not producing and had to keep the lights on. Looks like their doing a fine job keeping the shareholder value. Most explorers have been taken out back to the shed. Auriga has been making forward progress in a terrible market. When the market turns, they'll positioned well and praised for a job well done.
GPS.V Golden Preditor Phase one of their production is ready to go. See the link from another poster on Stockhouse . Mining permit is attached. I have been in contact with the company and was assured that they have multiple options for financing and are just working out some of the details. It should be very non dilutive as CEO Bill Sherif in the largest shareholder,I think. Anouncment shound be by month end. IMO they are waiting for the end of summer to bring out the news. Flow. The CAPEX is very low as they have an in place brownsfield like Arugia. Brent Cook has spoken very highly of the company saying it will be one of the few Yukon plays that can put it all together sucessfully. They are one of the few Yukon plays with acess to infrastructure now 12,months out of the year. Currently they are blessed with an increasing stream of royalty revenue to help things along. Probably will be able to leverage that to gain a good financing deal. I think it would be worth your while to have a good look at the company.
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=GPD&t=LIST&m=31276738&l=0&pd=1&r=0
Gowest gold animated CAD model.
http://www.gowestgold.com/
GWA.v GWSAF Gowest Gold. Time for an update. Someone is accumulating now. The insiders CEO CFO DIRECTORS all just took on the financing them, LOLselves. Frasier Elliot put up a quarter million of his own money. The post below from June is loaded with all the DD one would need. Since this post, they' raised some cash, added 30 km of new land in the same area, a 50% increase. Best of all, you gave to check out the animated CAD model from the website. I want to go get my shovel and bucket LOL. Typing from my phone so have to be brief . Can answer questions later. Will post GWA CAD model seperate. This is my favorite value for the riskier side of my portfolio.
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=31164757&l=0&r=0&s=GW A&t=LIST
Aun.wt Aurcana warrants Might be a chance to pick some up on the cheap today.
Coin Aurigua, congratulations on having the faith in the right junior and the courage to give the company a lesson on the dos and donts of financing. Good luck from here.. At least they Arnt stuck in the mud and can move on with the rehab. Was really nice having the brownsfield in place for cost saving and permitting time.
Riverrock, While simple, that was brilliant.
Since I understand the gold talk more - First off any gold project at 3 grams per ton is going to be underground mine and much more complex then EGZ's scoop and crush operation. Open pit gold mines are going to avg around 1gpt for a good one.
The 50 to 100 million tonnes gold deposit @.1 OPT would be 5 to 10 million oz gold. Costs to mine said gold are averaging $700/oz, $70/ ton, and the operations are much more complex and then you have corporate G & A costs on top of that. CAP EX for for the Gold processing and underground would be multiples more expensive than just the graphite crusher. Also the lead time would be a few years for the gold project minimum.
Energizer needs the PEA to effectively get that message out. For now Ill be happy with our back of the napkin calculations.
Nice analogy to put things into perspective
Checkmate
GPD.to/GPRXF Thanks db7 Looks like their looking to add to that ever growing passive income stream with that deal.
Im Looking forward to getting the decision on which financing source to choose for Phase 1 production, out of the way. Probably causing a drag on the share price. I called the other day to ask why the delay in the announcement, and was told for non business reasons from a board member they delayed a meeting but to ease my fears, he assured me, they have company with terms they like. Most companies cant get financing. I think they had 6 different offers.
ENZR EGZ.to Must read for graphite bugs. Lots of comparable's. Graphite is still in the first inning and Energizer is my top pick for future graphite and Vanadium
Link for better formatting and pictures.
http://us2.campaign-archive1.com/?u=6aec09ee2c6c558d6b5867e62&id=638b186447&e=c39b6d64b8
Energizer Resources: Graphite Discovery of 2012
Share Price… $0.265
Shares Out… 157M
Market Cap… $40 Million
Fully diluted… 224M
Cash position… $4.5M
Warrant value… 43.2M @ $0.59 = $25.5M
Option value… 23.6M @ $0.29 = $7M
Ever since Energizer Resources announced they made a major discovery of a flake graphite camp in Madagascar, Green Giant has been an intriguing grassroots graphite discovery to watch develop. The company has drill-tested four discoveries, all which have the ‘right stuff’ to start a graphite mine. The company recently announced results of Molo, so good, no results from any graphite company to date compare. When Energizer invited me Madagascar to take a peek at ‘THE GRAPHITE DISCOVERY OF 2012’… I had to take a look for myself at what is getting a lot of people excited in the graphite industry about Energizer Resources’ Green Giant and their emerging graphite camp in South Madagascar.
The Molo Deposit is a massive high grading bulk tonnage graphite discovery grading 7% to 11%C where the company is targeting a 50Mt to 100Mt near surface graphite resource. Molo was recently announced as the site of DRA’s fast-track graphite mine development plans. Plans could see initial production from Green Giant within 18 to 24 months which would be unprecedented in the mining community with fast track projects taking at least 3 to 5 years from acquisition to completion. It certainly makes the Green Giant graphite discovery exciting to watch develop over the next few years as demand for graphite grows. These are very aggressive development plans for Green Giant by Energizer and DRA, but the project has early indications of being one of the top graphite projects anywhere in the world.
It has the grade (7%-8%C)
It has the product (jumbo flake and purity ~93%)
It has the simplest processing in the industry - product be liberated in crushing
It has multiple bulk tonnage targets
Not only is Green Giant an emerging graphite discovery, the property already holds an NI43-101 complaint vanadium resource, rated among the top 3 Vanadium projects in the world with 49.5Mt @ 0.693% vanadium indicated and another 9.7Mt @ 0.632% vanadium inferred, over $10B of insitu vanadium at current depressed vanadium prices of $26/kg. It is easy to see why Energizer has chosen to put vanadium on the backburner while prices are depressed and focus on fast-tracking the recent graphite discoveries at Green Giant. Graphite prices are high and Green Giant has more graphite mineralization than anything else. Demand growth is seen to be very strong for the next 20 to 30 years and has the potential to go exponential with new technological applications like graphene. Vanadium is also a critical metal for the 21st century, but the economics of mining graphite are just too good to pass up.
Energizer’s Green Giant is an emerging GRAPHITE CAMP
The land package EGZ is exploring and developing includes the 100% owned original Green Giant claims and a 75% joint venture with Aussie listed Malagasy Minerals. Green Giant holds an entire graphite camp, not just one deposit, the land package is massive and the graphite is everywhere. Green Giant really is something special, once in production this site will produce graphite for the next 100 years and will put Madagascar on the map as far future potential production goes and could mean to Madagascar the country what the iron ore discoveries in the mid-20th century meant for developing the Australia’s mineral wealth. Green Giant covers 1,052 square kilometers claiming along a 122 kilometer mineralized trend. The project includes 17 distinct graphite bearing zones with an aggregate 320km total strike length. 7 zones have been drill tested/trenched to date. Green Giant’s cumulative exploration strike length is 10 times that of any new entrants in the field. The largest discovery to date, Molo measures over 300 meters at its widest point. The graphite in the area is clearly prolific with some of the biggest and highest grading graphite deposits anywhere in the world.
Within the 100% owned Green Giant Property Energizer has identified 5 graphitic zones; Fondrana, Fotsy, Jaky, Manga, and Mainty. On the 75% joint venture claims EGZ has identified several more including 3 additional graphite zones of interest; Molo, Seta, and Besavoa. One thing I noticed when touring the property is the termite mounds in the area were also prolific. Normally these mounds were rusty a color indicating the regional soil, but whenever a graphite zone was near surface the termite mounds changed from a rusty color to a distinct steely dark grey. These dark termite mounds littered the property go from a dark grey to rusty brown color was we drove around the Green Giant property.
Within the 4 zones discussed briefly below, there is the potential to define 100Mt to 200Mt graphite camp.
The Molo Zone
When the drill results came back from Molo, it was clear that Energizer’s quest for the perfect graphite deposit was over. EGZ recently announced that Molo would be the site of initial mine development and fast-tracking graphite production from. Molo is by far the biggest, most continuous, and high grading of the graphite discoveries drilled to date by Energizer. It has all the metrics of a world class deposit and the site of a future world class graphite mine with the best combination of mining width, grade, and metallurgy. Add the fact that Molo has turned in the highest grades to date of any of the deposits drill tested makes it an even more appealing site to start mining operations at. The tonnage potential from the one site at Molo is so immense it easily dwarfs anything else on the property and is double or even triple the tonnage of Bisset Creek at 3 to 5 times the grade.
The heart of the Molo deposit is truly massive. It is a near vertical structure that extends on strike for 850 meters and is close to 300 meters in width which occurs in a much wider 2km long anomaly. 5 holes have been drilled along a 1.2k strike across the heart of this massive zone. Molo drill results consistently average greater than 100 meter intervals and all ended in mineralization not having tested the true width of the zone. The average aggregate intercept of the 5 intersections that have tested the main orebody is 82 meters. The average grade is 7.5%. The initial drill results do not reveal the true size of Molo. The trenches dug across the surface show the true width which is well over 300 meters at its widest point.
The deposit so big, that a mine will have a zero strip ratio for at least the first 100 to 150 meters of depth and 10 or 20 years of mining. The near zero strip ratio at Molo for the early years will have a huge impact on keeping mining costs low. The only rock the company will ever move is ore. That is a lot of fuel savings when compared to accompany with a 4:1 or 5:1 strip ratio. There is no other graphite deposit in the world currently being explored today with the dimensions and grade of Energizer’s Molo deposit.
Undeniably Molo has best metrics of any graphite deposit in the world.
The Molo resource delineation program is now underway (May ’12) with the first drill hole of the resource delineation program now complete. The first hole was designed to intersect the entire width of the orebody which could mean an intersection much greater than the 100 meter intersection the company has previously reported. The drill hole will also capture a much greater depth profile. The heart of Molo is one of the most impressive graphite discoveries around. It clearly has the best combination of size, grade, and potentially among the simplest processing in the industry making Energizer’s Molo deposit World Class as far as graphite deposits go. Look no further ladies and gentlemen, Energizer’s Green Giant is the graphite discovery of 2012.
Target: 50Mt to 100Mt @ 7.5%C
Average aggregate intercept: 82 meters @ 7.5%(holes ended in mineralization)
Average trench width: 250 meters to 325 meters
Dimensions: Drilled 1.2km strike / >100 meter depth
EM anomaly: 5 graphite horizons up to 2km strike
Mesh size: +80 mesh to +20 mesh
Purity: >90% purity
Molo Drill Results Include…
MOLO-01… 108m @ 8.80%C
MOLO-02… 20m @ 6.94%C (drilled in the opposite direction of 01)
MOLO-03… 87m @ 7.4%C
MOLO-04… 72m @ 7.62%C
MOLO-05… 88m @ 7.92%C
MOLO-07…. 106 meters 8.44%C
*MOLO-06… 27 meters 7.25% (parallel trend 1km west of Molo)*
Molo Graphite Deposit - YouTube
The Fondrana Zone…
Fondrana is easily Energizer’s second largest target drill tested to date. Fondrana has two distinct 1km parallel trends within a 1,000 by 800 meter block. FOND-01 through 05 were drilled along an 800 meter strike length with impressive results and grades ranging between 6% to 7%C. The results were impressive by any graphite deposit standards, but lack the width and continuity and grade of Molo, the site of initial mine development by Energizer and DRA.
Target: 25Mt to 50Mt @ ~6%C
Average aggregate intercept: 73 meters @ 6.14%C
Average aggregate trench: 82 meters @ 6.73%C
Dimensions: Drilled: 800 meter strike / 120 meter depth
EM anomaly: 3 graphite horizons / 1km strike
Mesh: +80 mesh to +50 mesh
Purity: >90%
Fondrana Drill Results Include…
FOND-01… 61.4m @ 7.46%C
FOND-02… 12m @ 4.73%C and41.5m @ 7.01%C and5.9m @ 5.88%C
FOND-03… 118.6m @ 6.24%C
FOND-04… 25.5m @ 5.27%C and66m @ 5.63%C
FOND-05… 24m @ 5.63%C and18m @ 5.18%C
FOND-06… 5.95m @ 6.2%C
The Seta Zone…
The Seta deposit is one of the few deposits that are flat lying making it unique to most of Green Giant geology. This is generally the ideal geometry you want when dealing with 20 meter to 30 meter wide zones simply because you can scope more tonnage within a shallow open pit and have less of a strip ratio than a vertical deposit. Molo is vertical, but is so wide (300m vs. 30m) that how it lies does not matter. EGZ can only focus on developing one site, so developing these discoveries outside of Molo for more than geotechnical information is pointless. Molo is the priority now that the resource delineation program is underway, but describing a couple of these deposits gives you an idea of the size, scale and grade of these deposits in this emerging graphite camp in Madagascar.
Target: 10Mt to 20Mt @ ~5.5%
Average intercept: 34 meters @ 5.59%C
Average trench width:
Dimensions: Trenched along 1.2km strike
EM anomaly: 1.6km strike / 2 graphite horizons
Seta Drill Results Include…
SETA-02… 41m @ 5.42%C
SETA-03… 28.6m @ 5.77%C
The Fotsy Zone…
Fotsy was the company’s initial graphite discovery. It is situated right outside the town where Energizer’s camp is located. It is a large zone with 4 graphite horizons within a 6km strike. It is the smallest of the graphite deposits as far as mining widths. If you could call it small… it certainly wouldn’t be considered small in Canada with aggregate width of all drilling almost 21 meters. The zone pinches and swells between 50 meters and 20 meters. It could be a potential site of specialty ore, large zones have been identified at surface and has abundant +20 mesh superjumbo flake.
Target: 10Mt to 15Mt @ ~5.5%C
Average aggregate intercept: 20.8 meters @ 5.62%C.
Average trench width: 10.9 meters @ 6.33%C.
Dimensions: Drilled: 115 meter depth along an 800 meter strike
EM anomaly: 4 graphite horizons within a 6km strike
Mesh Size: +80 mesh to +20 mesh confirmed
Purity: >90% purity achieved from crushing alone
Fotsy Drill Results Include…
FOTSY-01… 2.5m @ 8.10%C and10.2m @ 4.41%C and6.7m @ 4.3%C
FOTSY-02… 4.3m @ 6.22%C and10.77m @ 6.19%C
FOTSY-03… 9.5m @ 5.27%C
FOTSY-04… 1.6m @ 5.37%C and3.0m @ 7.91%C
FOTSY-05… 9.8m @ 12.02%C and5.0m @ 4.28%C and9.0m @ 6.73%C and7.0m @ 6.8%C
FOTSY-06… 26.0m @ 4.12%C
FOTSY-07… 14.37m @ 5.27%C and12.26m @ 6.34%C
FOTSY-10… 11m @ 4.39%C and15m @ 5.00%C and5m @ 5.18%C and8m @ 4.64%C
FOTSY-11… 5.5m @2 5.74% and12.0m @ 6.91%C
FOTSY-12… 5.07m @ 12.16%C and14.75m @ 5.49%C and6.65m @ 5.19%C
FOTSY-13… 34m @ 5.19%C
Fotsy video clip.MOV - YouTube
The Green Giant graphite discoveries have the potential to supply all ranges of graphite from amorphous to high purity jumbo flake. It is an emerging graphite camp with several multimillion tonne deposits capable of sustaining production. It is clear Molo is the discovery of all discoveries within this graphite camp. It has all the qualities a graphite mine needs, it is high grade for low cost production, it is high purity which is essential for premium pricing and it is HUGE which is important for scalability. A resource delineation program has now started on Molo that will demonstrate that the heart of this very large graphite trend is the biggest discovery in graphite mining since they pencil invented.
Molo is a MONSTER!
The potential at Green Giant is unlimited. At a minimum, 50Mt to 100Mt at Molo and another 100Mt with just a few of the satellite deposits at Green Giant; all at excellent grades between 5%-11%. There is enough graphite and the scalability to be a reliable source of supply for all ranges of graphite for years. It is also big enough to be scalable to the 500,000tonne per year producer that the industry will eventually need. These targets are just scratching the surface at Green Giant where the steep dipping rocks hint that graphite mineralization persists to greater than 400 meter depth.
Molo: Fast-tracking a World Class Deposit
The Molo deposit has all the qualities of a mine on the fast-track lane with some of the best metrics of any graphite deposit. Of these metrics, the biggest fast tracking advantage Molo has is processing.
Energizer’s secret weapon… Inexpensive Processing
Many of Green Giant’s graphite deposits display similar characteristics the high grade Canadian Shield deposits, especially when it comes to flake size and purity. One huge exception in the South Madagascar area is that the surface has been exposed to a lot more weathering resulting in a host rock that is extremely friable. The near surface deposits in the Canadian Shield have been exposed to a recent ice age which means the rocks are much more competent and less oxidized at surface. Mining graphite in South Madagascar may be extremely lucrative simply because grinding the ore turns the rock into dust while maintaining the integrity of the graphite.
Simple and inexpensive processing hands down is the reason DRA has made an investment in Energizer and subsequently laying the ground work to fast-track Molo. EGZ can theoretically be in small scale production of 5,000 to 7,000 tonnes of graphite in months by just simply setting up a crusher on site. The fact that Energizer is yielding the majority of the graphite in the form of large flake with purities averaging 93% with only crushing opens up the door to countless opportunities and scenarios when going into production. They have a saleable product with what most would consider only half of a mining operation. Considering all graphite mines use some sort of floatation process, Energizer has the option to by-pass this process resulting in a large reduction of capital costs, operating costs and a reduction in time to production.
Studies will be undertaken if floatation will maximize the product or if some sort of air process can be used which has been suggested by some people. What is key to the whole plan is that Energizer can have a product to the market with a relatively small capital investment and an inexpensive process. While others are still looking for money to build a mine, Energizer will be in production self-funding a much larger expansion. Inexpensive processing is the biggest factor to why this project is on the fast-track lane. Energizer has an abundance of large flake within the ore and it is already demonstrated a high purity with simple crushing alone which is essential for Energizer in fast –tracking low cost operations. When looking at the core from Green Giant, it is all the same, friable and turns to dust in your hand. I couldn’t pick up a piece without it breaking in my hand.
I picked up a high grading sample and ground out 2.8 grams of +80 mesh large flake from a 27.5 gram sample.
It is just that easy.
Graphite Processing Demo - YouTube
Shipping?!??! Il n'est problème pas mon amie
There are already Labrodorite operations shipping five 20 tonne trucks to the coast in Toliara. Simply doubling the size of those operations to ten 20 tonne trucks gives Energizer the capacity to ship approximately 7,000 tonne per year; the same amount of graphite Flinders plans to initially produce at Kringel in 2013 at similar grades. Cost to ship by truck for a 7,000 tonne operation would not exceed much more than $100/tonne making Green Giant independent of any infrastructure requirements. Flinder’s market cap is double that of Energizer. If Energizer can demonstrate a similar production date and output comparable to Flinder’s Kringel. Production of 5,000 to 7,000 tonnes of large flake graphite with limited initial cap-ex investment and cheap processing should help eliminate any pricing disparity between Energizer Resources and Flinders Resources.
Grade is King
One of the biggest factors any mine can have to contributing to being a low cost producer is grade. Grade is and will always be king in mining. Some deposits don’t need grade because they are concentrating on producing a value added product such as spherical graphite like Northern Graphite’s Bisset Creek, but generally grade is king and is number one on the checklist that a well-rounded graphite mine should possess. Molo has a grade of a minimum of 7% and substantial intervals of 11%. Again the grade is similar to Flinders Resource’s Kringel Mine @ 8.8% in Sweden and Mega Graphite’s Uley Mine a ~7% in Australia. Both those fast track graphite mines have the advantage of pre-existing infrastructure, but Molo has elements that neither Kringel nor Uley have… primarily the scalability to be the top producing graphite mine in the world. Uley lacks large flake and is challenged with purity while Kringel has a good product, but does not have the tonnage of scale in size of a deposit to easily ramp up mining operations. Neither mine have the potential that Green Giant has, especially if you have plans to produce more than 100,000 tonnes of graphite per year.
Scalable
One thing that is a must for a new industry demanding a new product is that there has to be enough of it to reasonably supply a large market at a reasonable price. This is why flake graphite is attractive for lithium ion batteries; it will replace a product that is 3 to 5 times more expensive. There are plenty of available resources in the ground throughout the world to do this, but few deposits provide the scale that Molo provides. The whole industry can rest at ease knowing that Energizer’s Green Giant graphite camp has the capacity to supply a large portion of the future lithium ion battery market. In fact a 25,000tpd mill at Green Giant would produce 1.5 times the current flake graphite market. What is vitally important for a critical element is security of supply, with a deposit that could easily be scaled up to a 300,000 to 500,000 tonne per year producer like Energizer’s Molo deposit; it provides that security of supply. Green Giant will be a go to source for the industry for a large portion of their natural flake graphite over the next 30 to 40 years. If EV demand takes off into the 2020’s and goes parabolic, having a source that can easily ramp up supply in a timely and cost –efficient manner like Energizer’s Molo is essential for cost assurance in the industry. The industry will need this type of mine supply if graphite demand does indeed go to 2.5Mt by 2020.
Product
As vital as grade is to be a low cost producer, processing and scalability combine to keep costs low as well. We have all heard of ‘economies of scale’, but processing gives you a product and can be quite intensive like in the rare earth industry. What is important in graphite is processing is tied to purity which will affect the price of the product. Unlike rare earths, it is not the cost of processing in the industry that is prohibitive, it is the pricing received for your product. Getting a premium product for as little cost as possible is the goal with graphite. In graphite, prices range from $800/tonne for amorphous/fine flake to $6,000/tonne for 99.9% jumbo flake. Having the right product will ensure a highly profitable mine with such variable pricing. With the current information provided by Energizer, it is estimated that at minimum, 93% large flake would give Energizer a $2,200 to $2,400 per tonne product. A great base to work of off for only half a mining operation. By no means will EGZ stop there, but for time to production and capital costs, it makes sense to start production with just the simplest process to at least attain positive cash flows.
More importantly than theoretically having a saleable product, is having real interest for your product from the graphite guys. Stephen Riddle of Asbury Carbons in an interview with The Critical Metals Report states…
“From experience, I know the quality of graphite that comes out of Madagascar has been extremely good, so I’d like a company that can mine it cost –effectively and set up a production plant there. Energizer Resources has found some good deposits in Madagascar. It’s not an easy place to operate in, but that could be one good area for graphite in the future. “
Stephen Riddle is the 4th generation Riddle to run the 118 year old company that bills itself as “the world’s carbon and graphite solution”.
Comparable preproduction graphite companies…
Company Project Tonnage* Grade* Insitu graphite Insitu Value Market Cap* Est. cash flow per year*
Northern Graphite Bisset Creek 60Mt to 80Mt 2% 1.5Mt $4B $80M $30 to $40M
Flinders Resources Kringel 10Mt to 20Mt 7% to 10% 1Mt $2.5B $80M $40M to $50M
Focus Metals Lac Knife 8Mt to 15Mt 15% 1.5Mt $4B $72M $50M to $60M
Energizer Resources Green Giant 100Mt to 200Mt 6% to 8% 8Mt* $20B $40M $100M to $150M
*When stating tonnage and grades it is all relative considering cut-offs, estimates and probabilities. The above are just approximates and are meant as a rough guide. Market caps do not consider fully diluted valuation. Rightly or wrongly, these are the assumptions I used to arrive at my figures. Northern Graphite is at 2,500tpd per tonne @ $6,000, Flinders is at 750tpd @ $2500, Focus is at 750tpd @ $2000, and Energizer is at 2,500tpd @ $2500. Cost assumptions are $40 to $45 for FMS, EGZ, FDR while NGC assumes $80 per tonne to get $6,000 product.
High NPV / Cash Flow Potential / Low Cap-EX Mine
250tpd or 25,000tpd… Green Giant is a high value graphite project
Below is a simple flow sheet of hypothetical graphite mines and different theoretical options for Energizer Resources. Each option; 250tpd, 2,500tpd or 25,000tpd would be practical at Molo under a certain demand scenarios over the next 10 to 15 years. Below are projections for costs and pricing under these different scenarios and can only be considered rough estimates at best. They are only used as guidelines for making investment decisions. The Molo discovery and surrounding satellite deposits are capable of supporting all three types of operations. A 250tpd operation would help satisfy growing demand over the next 3 years while a full floatation processing facility it being built for production to satisfy demand past 2015. A 25,000tpd operation might be considered in the mid 2020’s if graphite demand does indeed take off and mass produced applications from the graphene market start to materialize.
Revenues from starting small and building big could also help self-fund capital expenses and decrease the impact of dilution to the share price. What is important to note is that once in production with a crusher, Green Giant could be an entirely self-funding operation, although strategic capital injections could speed up and increase production targets. EGZ could theoretically generate $30M to $50M in revenue towards the full capital cost of a 2,000 to 2,500 tonne per day floatation set-up similar and size to Bisset Creek. The fast-track option will help increase financing options with near term cash flow coming in. It also helps demonstrate that Molo is a profitable operation with such a simple setup at a small scale. With payback promising less than 1 year for a $100M capex project and smaller of 1 year and less, Energizer could heavily weight towards debt which is a tough sell for most mining projects where paybacks of 3 to 5 years are common. What it does mean, if Energizer starts out of 250tpd to 500tpd small scale production is that there will be minimal equity dilution with Energizer Resources going forward.
EGZ is well funded with $4.5M in the bank for the resource delineation program on Molo. The company also has $32M in warrants and options giving Energizer a nice cushion of equity financing when the company needs it. $32M will go a long way to develop full scale 2,000tpd production facilities at Green Giant. Ideally Energizer Resources could start out as a 250tpd operation and move up to a 25,000tpd operation over the next 15 years self-financing a lot of the costs. Building the world’s biggest graphite mine all depends on the demand curve for graphite, but if 2.5Mtpa demand plays out… the industry will need a 500,000 tonne per year producer like Molo.
Molo is just that good, at 250tpd or 25,000tpd… Energizer’s Green Giant is the graphite camp holding ‘the graphite deposit’ that capable of supplying the majority of the world’s need for natural flake graphite for years to come.
Operation Type Fast-track (crushing only) Typical Full Floatation Mill World’s Biggest Graphite Mine
Grade 10% 8% 7%
Recovery 80% 90% 95%
Mill size (tpd) 250tpd 2,500tpd 25,000tpd
Days in operation/yr 350 350 350
Annual graphite production (tonnes per year) 7,000tpa 63,000tpa 580,000tpa
Assumed large flake purity 94% 97% Broad range
Assumed Revenue $2,500 $3,000 $1,500
Operating Costs $25 $45 $30
Capital Costs ($20M) ($100M) ($1B)
Annual Net Cash Flow $15M $150M $610M
Payback 1.3 years 8 months <2 years
10 year NPV @ 10% $70M $750M $3.3B
20 year NPV @ 10% $100M $1.1B $3.8B
EGZ if plays their cards right could fully finance themselves to 2,500tpd production with less than 300M shares outstanding which leaves the potential for $2 to $3 dollar share price once in full production and receiving cash flows in excess of $100M per year. Of note is that the biggest factor that makes the numbers in this cash flow statement change more than anything is price. You could mine graphite ate $100 per tonne price and it wouldn’t matter for most graphite mines. If the price drops in half, the potential cash flows diminish as opposed to cost doubling at current graphite prices.
Molo is the Graphite discovery of 2012
Green Giant is…
Fast-trackable
Easily scalable - >100,000 tonnes of graphite per year
Low capital cost – High NPV/High IRR/Fast Payback
Low cost mining operations
Wide range of product - large flake to fines
Simple processing
High purity product – simple crushing averages 93%C
From getting on the ground, interviewing the project geologists, DRA, and seeing the process myself… It is clear that Energizer Resources undeniably is on top of the graphite discovery of 2012.
The discovery of a potential economic graphite resource at Green Giant with the qualities to mine within 18 to 24 months and take advantage of high graphite prices has made EGZ a very unique investment opportunity. The lucrative potential near term cash flows that a low cost graphite mine brings will make Energizer into the star of the industry. Mining graphite from Molo is easy money and profitable industry sustaining prices. Something you need from a potential source of a large portion of the graphite that the Lithium Ion battery industry needs. Prices which consumers can afford to buy electric vehicle. Right now the biggest barrier is the price in the battery.
Just as the internal combustion engine revolutionized the 20th century and changed the way humans lived. The Lithium Ion battery is as revolutionary in changing the way we power those vehicles. A revolution that will eventually lead huge cost savings to the consumer. High purity natural graphite will be essential in the mass production of ‘Lithium Ion Batteries’ in electric vehicles virtually because it is a product that that makes these batteries more affordable. It will be essential in the production of graphene which could see exponential demand over the next 25 years. Energizer Resource’s Green Giant Graphite Project is undeniably the graphite discovery of 2012. You look at Green Giant and say, yup, here is an area in the world that can and probably will supply a lot of the world’s cheap graphite.
Throw on top of that the 3rd rated vanadium project in the world… that is one big insurance card for EGZ controlling a large area holding two strategic elements that are critical for the future. You have near term low capex/low cost cash flows that a graphite mine will bring and Africa’s leading mine builder in DRA heading up the mining operations at Green Giant. DRA liked the project so much they bought into the company which the rarely do and have an option to buy another 3.4%. Energizer Resources is positioned as an emerging leading critical metals company with clearly enough mineralization of both minerals to be a secure supply source for the next century.
Christopher Skidmore
Beat the Market Stock Picks
AUN.V Aurcana 4 yr high and my warrants are trading up 100%
ARZ.TO/AZK Dr Air Bummer on the Joanna development delay to persue more exploration. The NPV & IRR numbers arn't so good this round but they'll get better.
I know your not a fan of refractory ore, but hi grade free milling deposits are nearly extinct in the Timmins area. The refractory deposits are going to be a big part of the Timmins gold mining future. Its well proven and high grades make the IRR numbers work.
Since the CAPEX includes the Autoclave, they will be able to process the hi grade refractory they have just begun to find with the drill.
The company is very excited about the newly found Hi grade/Hi recovery Heva refractory potential and are spending $4.2 million drilling that area.
Quote
"The opportunity at Heva lies in the fact that our early drilling is indicating higher grade ore potential than at Hosco and initial metallurgy has returned very good gold recoveries using conventional cyanidation," continued George Paspalas. "The Hosco West Extension area has identified refractory mineralization that is significantly higher grade than the average grade in the conceptual Hosco pit. The Company intends to spend an additional $4.2 million to continue the drilling in these areas. We remain committed to growing the Company by pursuing opportunities that would be accretive to shareholder value."
They speak on this high grade refractory in their April Denver presentation as well
Fortuneatly Casa Berardi is printing cash flow over 120 million a year, 200+ million in the bank and will be drilling 160k meters in 2012
Thanks for the initial heads up on this one in the spring. Im holding. Just going to take a little longer
Checkmate28
Brigus & Lakeshore Gold both Timmins Juniors who suffered from operational start up failures but are getting operations in order this year, both up nice ( 20% last 5 days and 25% since last post) Expect these 2 to perform nice should money start flowing into the juniors.
Both guiding to produce 100k rate beginning of 2013 at 700/oz costs. Brigus is cheaper now, but Lakeshore has bigger numbers coming on the projected bump to 5500tpd and more in the ground.
Lakeshore has CAP EX to pay back this year but Brigus has to sell 12% of their gold back for $500/oz
AUN.v Aurcana keeps getting better. Shafter first pour Dore bars contaminated with 11% Gold making them worth 7 times more than pure silver bars. Latest drill result average silver grade of 23.37 ounces per ton all include some gold
http://www.dailyfinance.com/2012/06/04/aurcanas-silver-triumph-and-golden-surprise/
Aurcana's Silver Triumph and Golden Surprise
By Christopher Barker, The Motley Fool
Posted 3:57PM 06/04/12
Deep in the heart of Texas, molten silver is pouring once more. Following a 70-year hiatus, the legendary Presidio silver mine is enjoying a new lease on life as Aurcana's (OTC: AUNFF) newly commissioned Shafter silver mine.
I was on hand last Friday for the mine's official inauguration, and held in my hands one of the first silver dore bars produced from this deposit since 1942. These early pours are yielding a highly encouraging surprise, which we'll discuss after I relate a few poignant highlights from my visit to the mine.
A growing miner's nimble sweet spot
Aurcana has just executed a bold and convincing leap into the realm of mid-tier silver producers, bucking the industry's cost-escalation trend by completing construction of the Shafter mine ahead of schedule and under budget. With anticipated production of 3.8 million ounces of silver from Shafter over the next 12 months, Aurcana will now target 5.5 million silver-equivalent ounces and rival Endeavour Silver's (NYS: EXK) enviable production scale (excluding Endeavour's recent acquisition). And that's just the baseline outlook based upon the project's 2010 feasibility study! After meeting with CEO Lenic Rodriguez in January, I dubbed Aurcana "The Greatest Growth Story in Silver Today." Readers will recall that Rodriguez already has his sights set on blasting into the elite club of senior producers in similarly unabashed fashion.
Less than 18 months after construction began in January 2011, the bustling Shafter silver mine is already producing dore bars and scoping out some exciting potential for resource expansion.
Combining a nimble operating framework with exciting upside potential from ongoing exploration, I believe Aurcana now finds itself in the sweet spot of a quality miner's development that we've seen produce substantial shareholder gains in noteworthy silver success stories like Endeavour Silver and First Majestic Silver (NYS: AG) . Endeavour grasped shareholder value from the well of opportunity by responding quickly to new discoveries at Guanajuato with accelerated underground development and aggressive mill expansion. First Majestic CEO Keith Neumeyer hailed those super-spry days from earlier in his company's growth cycle as "an exciting time."
Today, I find Aurcana similarly adept at responding efficiently to opportunity, as epitomized by the seamless integration of a previously unplanned open-pit operation at Shafter. At the inaugural celebration Friday, Rodriguez described how he was approached by Shafter General Manager Jason Cyr with the proposal to mine the surface component of the orebody as an open pit. All within the span of a few short months, the plan progressed from opportunistic brainstorm to timely execution, and as a result the plant is already flush with an ample stockpile of crushed ore of impressive grade even as the underground mine awaits completion of a secondary escape shaft later this month before commercial underground production kicks into high gear.
From this precious stockpile of crushed ore, sourced primarily from the open pit operation, Aurcana is enjoying a very pleasant surprise (see below for details). The steel balls in the foreground are inserted into the plant's 2,500 tpd-capacity ball mill to thoroughly pulverize the crushed ore.
The Megaw factor
He may not be hounded by paparazzi like a Kardashian, but within the universe of mineral geology, Peter Megaw is something of a celebrity. Inside the galaxy of epithermal vein and carbonate replacement mineralization, moreover, one might even say he's a superstar. He co-founded MAG Silver (NYS: MVG) and played a key role in the discovery of several major deposits in that developer's impressive project portfolio. As a technical consultant to Aurcana, and alongside vice president for exploration Nils von Fersen, Megaw is hot on the trail of the sort of resource expansion that could transform Shafter with a far longer mine life than the modest five-year stint envisioned by the 2010 feasibility study.
I had the pleasure of listening to Megaw speak at length about his interpretation of the mineralized trend at Shafter as we drove out to the mine site Friday morning. His obvious excitement regarding the potential to expand the resource is downright infectious. Naturally, much of the company's current exploration effort targets areas nearest to the existing mine infrastructure to guide near-term planning and production, but Megaw reads the broader structure like an encoded roadmap that he hopes will lead to a "feeder zone" that could potentially yield a sizable high-grade deposit. While it is hard to quantify the likelihood of such a game-changing discovery, I am excited as a shareholder to know that Megaw is on the prowl.
Shafter's golden surprise
Rodriguez is a warm and affable guy with a quick wit. When I asked him about the surprisingly high gold content within the first couple of dore bars poured at Shafter, he joked about his supposedly pure silver deposit being "contaminated" with gold. You see, the Shafter mine plan does not call for any appreciable gold by-product, so the project's robust economics are solely a reflection of the deposit's solid average silver grade of 8.6 ounces per ton (in measured and indicated resources).
Aurcana CEO Lenic Rodriguez demonstrates one of the very first dore bars produced at Shafter since the Presidio mine closed in 1942. Rodriguez has two reasons to smile, as he celebrates not only the project's timely completion under budget, but also the encouraging gold content of these early realized results.
Shafter produced 35 million ounces of silver between 1883 and 1942 at an average grade of 15 ounces per ton (467 grams per ton). Former property owner Gold Fields (NYS: GFI) conducted $20 million worth of exploration and development work between 1977 and 1982. Nowhere within that deep well of history was the project thought to contain significant quantities of gold. And yet, gold accounts for roughly 11% by weight of the first dore bars poured at Shafter! While there can be no guarantee that these surprising gold values will continue, at 11% of the dore content, gold accounts for roughly 88% of the anticipated revenue from these first dore bars. Expressed another way, the market value of a dore bar containing 11% gold is roughly seven times that of its silver-only counterpart.
While I don't expect gold values to remain that elevated throughout the orebody, any appreciable gold by-product could significantly enhance the mine's economics. Alongside an average silver grade of 23.37 ounces per ton in Aurcana's latest drill result, representing the "highest grade intersection encountered to date," it's worth nothing that gold grades at or above 0.01 ounces per ton were detected in nearly every segment of the 30-foot intercept. Perhaps more importantly, these unexpected gold values from two distinct portions of the orebody are music to the ears of Megaw, as this gold could potentially help point the way toward the "feeder zone" that could truly provide a game changer for Aurcana and its shareholders.
Db7 Re AUMN WOW I stepped away for a bit. Nice to see them move back to reality. Not often these days you see a quality company make such a solid move up. I actually had to adjust the numbers up, as they moved up from the time I started the post. Then to come back and see another 15% They were over $10 this year. I expect to see them back their this year again.