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Coin Auriga Gold AIA.v That is great news. Obviously they must have it figured out but,
what are they doing for the other 8 - 10 million CAP EX to get the mill going?
do we know what certain common share purchase warrants means in terms of numbers?
This should allow then to get the company growing organically and without having to give any of the company away
Checkmate
Can I add my 2 cents
(3) China, Increased energy cost for high energy
demand companies will hurt their efficiency
and make the USA more competitive esp with
Ngas at $2
Rick Rule - The Most Spectacular Opportunity in Ten Years
April 12, 2012
Today King World News interviewed one of the wealthiest and most street-smart pros in the business, Rick Rule. Rule is founder of Global Resource Investments, which is now part of the $10 billion strong Sprott Asset Management. KWN reached out to Rick to find out how investors can position themselves in 2012 to make the big money going forward. Rule laid out exactly what investors need to do to capture huge returns going forward. Here is what he had to say: “This could be an absolutely epic year in private placements, Eric. Our competition for the last ten years has been the small institutions and they have bid absolutely stupid prices for equity.”
“The issuers have loved it. But those guys (small institutions) can’t compete with us anymore because they have no money. We had a situation last year where some issuers didn’t come to market. They didn’t have to because they raised so much money in 2010.
They didn’t raise new money, but they didn’t stop spending. They acted like small governments....
“This year they are going to have to come to market, and they may be coming into a market where their traditional source of funding, the mutual fund and the small hedge fund, have suffered so much in terms of redemptions, that they can’t fund them. So, we’re going to have to fund them.
We’re going to find, in this market, the best market conditions for buyers that we’ve seen since 2002. This will mean the return of things like full warrants, extended warrants, five year warrants and exchange traded warrants.
For speculators that have the courage of their convictions, with regards to the sector, and the understanding that they invest this year, in a soft market, and they harvest their profits in 2013/2014, the probabilities are very high that the entry points we’re going to see this year are the best we have seen in ten years.
We’re in a buying era, not in a selling era. The fact is, Eric, markets don’t care what you want or what you need. Markets are merely a facility for buying and selling assets, and assets are on sale. That means one has to be a buyer, not a seller.”
ennuifiat AUNWCN Yes that is correct. They have a hard time with it there, but they can find it, guaranteed.
Trading high today .33+ was .27 couple days ago.
http://tmx.quotemedia.com/quote.php?qm_symbol=AUN.WT
Brigus Gold BRD.v Looks like they are getting things in order on the production and exploration side. Up 20% since last post
Today Zone 147
Brigus Gold Reports 5.95 Grams Per Tonne Gold over 56.7 Metres from the 147 Zone on the Black Fox Complex
Last week Zone 147
Brigus Reports 26.83 Grams Per Tonne Gold over 15.50 Metres at the Contact Zone on the Black Fox Complex
Zone 147 + 2nd mine potential right down the road from their plant with excess capacity
Large insider buying
1.86 million ounces M & I at Black Fox and Goldfields
Grade Open pit = 2.5 - 3.0 g/t
Underground = 6.0 g/t
Mill capacity 2,000 tpd
Recovery rate 92 – 94%
Cash Costs per ounce LOM = $650-750
2012 guidance: 77,000 – 85,000 oz Cash costs aroun 800/oz guiding to 700/oz Q4
Market cap about 185mil
2011 Cash flow from operations was $19.1 million and $9.2 million for Q4-11.
2012 Should be much better as capital expendatures should be down and tatal ounces up.
Additional for the future is their GoldFields Saskatchewan open pit project with 1mil oz Reserves
Checkmate28
Looking for good entry in LSG.v BRD.t EGZ.v
Lakeshore and Brigus are CHEAP!
Energizer for their huge amount of high end Graphite and Vanadium. Hoping to see .29 in the near future.
Basser AUMN I think they have about 65 - 80 million cash. Do you have the capex on the expansion?
GWA.v In the mean time Gowest director Fraser Elliott bought more shares the same day.
http://canadianinsider.com/node/7?menu_tickersearch=gwa
GORO Could be in position to pay a 5% dividend making it the largest dividend of any gold producer by far, and the first gold producer to pay dividends in real metal.
Currently Gold Fields Ltd GFI pays 2.66% yield being the highest in the industry. GORO would blow that away if they decide not to spend the money on growth.
GORO got ahead of itself in share price, but this news and progress could be what launches it back up past $30 and way beyond after a huge move from $1 to $31. Credit where its due, most know GORO was heavily covered here by the legendary Bobwins and CL001 team :) making many here, many $. I kept some for the future because their costs are so low, grades high and future resources are huge. Coming first NI43-101 should be interesting.
Hopefully we can catch a few more 10bagger+ trains when the metals market gets rolling again.
Checkmate28
Dr Air Aurizon AZK Joined you and took a bite today with the US AZK after doing some DD last night. As you said, low risk, low cost producer with $230 million acretive cash and several projects in various stages for the future. Production might temp dip this Q might be a reason for the soft price. Not many good companies trading lower then the Oct 11 lows.
Also purchased some AUMN Golden Minerals
Great Value and Thanks
Checkmate28
AUN.V Aurcana: I think First Majestics 2011 numbers make a nice comparison for Aurcana's 2013 numbers. Aurcana should match the FM 2011 production in the 6 to 7 million oz silver eq and with the legendary Dr Peter MeGaw on the sniff for new silver resources, they might rival the total resource numbers. Sets up nicely for Aurcana
Trader GWA.v Beats me, just throwing up my hands. There is a seller but nobody on the buy side, do down goes the bid. There is no fundamental reason for this stock to be down so low.
I spoke with corporate the other day. They are calm and don't know who is selling. Could be the guys who put together the last financing dumping their finder shares. Mgt is buying and I suspect we'll see some more buying from them. Everything is going well and they are moving forward on a number of things at the same time.
Soon updated resource of 1.8 to 2 million oz at 6+gpt all for 13 million MC
The value has never been better. Ill look back one day and wish I backed up a second truck at these prices.
Uncle Ben has everyone scared and gold is going to $1200 I suspect.
Checkmate
GWA.v Gowest Gold More insider trades
http://canadianinsider.com/node/7?menu_tickersearch=gwa
Apr 3/12 Elliott, C. Fraser Common Shares 10 - Acquisition in the public m
nsomniyak I sold some common to buy my Aurcana warrants through Ameritrade. AUNWCN is the US equiv symbol. Has to be purchased over the phone, but they give you the internet price. I cant even modify the order without the call. I tried for 2 days to get them at 27 thru 29 with no luck. Had to pay .30 They retraced end of day to .285 from .31
Good luck
AUN.v vs AUN.WT Picked up some of the Aurcana warrants .30 Tried for less last couple days but the PPU keeps walking away up.
Terms : Warrants are exercisable for 1.00 for one share until 11/29/13
Would like to get some more imput.
Roughly speaking - AUN.wt Trading at .30 now, there in the money at $1.30 Figured for the 30 cents you get 3 times the units as the common shares for the same dollars.
I come up with a break even for even dollars investments in the shares vs warrants to be $1.50 commom SP
Assuming a purchase of AUN.V AT .90 -- A 10 k share investment in the common costs $9k & nets you $6k when AUN.v reaches 1.50 -
Assuming a purchase of AUN.WT AT .30 -- A 30 k unit investment in the common costs $9k & nets you $6k when AUN.v reaches 1.50 /share
At 1.90 /share the warrants above have appreciated $18k and the common has appreciated $10k
AUN OS Shares Fully diluted are 558m and at 1.50/share yeilds a MC of $837million
For dreamy comparasins First Majestic is trading at 1.75B in MC
1.75B transulates to 3.13/share price for Aurcana or $55k on the $10k warrant investmant above.
Comments and corrections are appreciated
Checkmate28
Rick Rule's New Strategy for Profiting from Volatility
The whole article
http://www.theaureport.com/pub/na/12951
Rule also predicted a lot of takeovers in the next 18 months. "An unprecedented number of companies, probably 70 or 80 in the gold and energy sectors in particular, have added a lot more value in the past two years than the market has been giving them credit for," he said. "I think it's unlikely that those stocks will rise this year as a consequence of institutional participation because I think institutions will experience disintermediation, meaning that money will leave the institutions and they won't be able to buy it." Instead, Rule speculated that the buyers for these stocks will be other companies in the industry that have the sophistication to understand what they're actually worth and the cash to effect a takeover. "I would be surprised if in the next two years we didn't see 50 or 60 takeovers in the junior space, which would be a 300% increase over the annual level of amalgamation we've been seeing in years past." Investors who get in place before the takeover premium is paid will likely experience a bump both in the shares that get taken over and in the shares of the company that does the takeover, assuming that the acquisitions are attractively price. This is a phenomenon Rule calls "a truly a virtuous circle."
Rule's final conclusion for keeping your portfolio above water: "Expect volatility. Expect political insanity. Expect a better junior market than you think. Expect a junior market where 80% of the stocks go down because they aren't worth anything, and 20% of the stocks do a better job than you think they are going to do. Expect to have opportunities in private placements, of the kind that we haven't seen in two or three years. And expect larger stocks to do relatively better than smaller stocks provided that you handle the volatility by selling puts and calls."
GWA.v Trader GOWEST still have a ways to pull the cart and looks like I could have waited and saved a penny on my buy.
Im only documenting the case that GWA has a great chance to get a high ton, high grade gold mine in place in Timmins ON, great infrastructure and its selling very cheap (15 M market cap).
Many of the producing gold companies were selling via buyouts at 300 - $400 per ounce in the ground a year ago and emerging producers were trading average $90 per oz in the ground. Todays GWA MC supports less then $10 per oz in MC with a much larger tonnage on the way. Lot of distance between those averages and current GWA MC.
No doubt, many good cheap plays out there, but for the more risky part of my portfolio, I like the chances here.
This year, I think they will prove more ounces and find a partner for the project. Their drilling current resource shallow and deep plus new targets as we speak. A new promising resource zone will be a bonus.
Im here because I think a JV is near.
As you said hopefully the market sentiment changes for the juniors.
Checkmate28
Dr Air AUN.v Im waiting on the side to add more AUN as well. Thanks for the tip off the other day.
Trader re GWA.v Im not sure, as the timeline used to be on the presentation but its set up different. Heres the best I can remember. The decision would be made this year. While currently working on their environmental permits, they are doing much extra work that will be required for the mining permit. That should help move things faster when they apply for that permit.
The contract mining option would be a low cost, fast track option and should only take a year. Positive cash flows in less then 2 years from start of construction based on $1200 gold. They would be making the 90gpt concentrate and shipping it. This would help finance the stand alone processing facility that would be scheduled to start in 2014.
Its interesting to note, that if some of these ideas work, under ground xray ore sorting (tested beautifully because of the nature or the ore), the 90gpt concentrate (again tested beautifully because of the nature or the ore) and a boosted overall total resource, with current gold prices, IMO they could well process 150,000+ oz per year with an IRR well above 60%
Interesting to note here. These processing options were developed or supervised by Darrin Konigen GWA VP of technical services who not coincidentally has been buying Gowest shares heavily on the open market for 1 1/2 years as high as .36 Gowest has a leg up on most companies that do not have this level of talent in house.
Then there's Director Larry Phillips original founder IAMGOLD
Darren M. Koningen, PEng, Vice President, Technical Services
Mr. Koningen is currently an independent metallurgical consultant, managing process development projects, test work and metallurgical studies on behalf of clients. Most recently, he was Vice President of Project Development, and before that, VP-Operations and VP-Engineering for Castle Gold Corp. and Aurogin Resources (prior to its merge with Morgain Minerals to form Castle Gold). Before joining Castle Gold, Mr. Koningen was employed as a Senior Process Engineer (mining) with Kvaerner Engineering. Mr. Koningen's broad international experience in metallurgy process design and operations has allowed him to make significant contributions to bringing two operating and profitable gold mines to production for Castle Gold. Mr. Koningen also serves as a director of Virgin Metals Inc.
Ya, I know Im selling this, but I've done my time and I know Im on to something. These guys are going to get it done.
http://tmx.quotemedia.com/article.php?newsid=46101200&qm_symbol=GWA
PEA Details outlined
Gowest Gold Releases Preliminary Economic Assessment for Frankfield East Deposit, North Timmins Gold Project
Robust Economics and Growing Resource Potential
TORONTO, ONTARIO--(Marketwire - Nov. 14, 2011) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) is pleased to announce the results from the Preliminary Economic Assessment ("PEA") completed for its 100% owned Frankfield East Gold deposit, part of the North Timmins Gold Project. The PEA confirms a pre-tax net cash flow ("PNCF") of $265 million and a 3.3 year payback period based on the current resources with annual production rate averaging 95,000 ounces of gold over a 10 year mine life. (All figures in US dollars except where noted.)
Highlights of PEA:
Gold Price $1,200/oz (versus 24 month average of $1348/oz)
Initial Capital Cost $167 million (includes buyout of 2% NSR)
Life-of-Mine (LOM) Sustaining Capital $86 million
LOM Pre-tax Net Cash Flow (PNCF) $265 million (23% internal rate of return - IRR)
Average LOM Cash Costs $660/oz (includes G&A)
Overall Gold Recovery 95%
Average Gold Production (10 years) 95,000 oz/year
Mine Production Rate 1,500 tonnes per day (tpd)
Note: The PEA is preliminary in nature. It includes indicated and inferred mineral resources, which are not mineral reserves and do not have demonstrated economic viability; there is no certainty that the preliminary economic assessment will be realized.
Greg Romain, President and CEO, stated, "This PEA is another important milestone in our commitment to transform the Frankfield East Gold deposit into a significant gold producer in one of the best gold mining jurisdictions in the world. These results demonstrate that even at a gold price of $1,200 per ounce, the current resource levels can generate robust returns with operating costs in line with industry averages. Further, we see significant additional economic upside not only with today's higher gold price – at which the project's IRR is nearly 60% – but also with the pending addition of new resources, the very real potential for increasing the mined gold grades as well as other economic opportunities identified in the PEA. Meanwhile we will continue to explore aggressively other similar and promising targets on our growing 60 square kilometre North Timmins Gold Project land package."
Additional Study Highlights (for further detail, see below):
Substituting Spot Gold Price on November 1, 2011 of $1,720:
Pre-tax Net Cash Flow (PNCF): $763 million, IRR: 58%, Payback: 1.7 years
+50% Increase in Gold Resources ($1,200 / oz gold price, 2,250 tpd production rate):
PNCF: $518 million, IRR: 28%, Payback: 2.2 years
+15% Increase in Resource Gold Grade ($1,200 / oz gold price, 1,550 tpd production rate):
PNCF: $437 million, IRR: 36%, Payback: 2.5 years
(Previous analysis of the Frankfield East resource model – see News Release dated Oct. 6, 2011 – demonstrated that the overall resource grade could be adjusted by changing the mining cut-off grade with only a minor impact on the ounces of contained gold in the resource.)
Short Term Contract Processing – Generate Cash Flows while Constructing Long-term Facility
A cash flow model was developed to examine a short-term development scenario in which existing processing facilities could be used to custom treat the Frankfield East ore before the gold concentrate is shipped to a third party for final processing. Assuming contract terms can be finalized, this would reduce initial capital cost requirements by approximately $100 million to $60 million and could generate cash flows of $28 million annually ($1,200 /oz gold price). Using a more realistic short term gold price target of $1,500 /oz, annual cash flow would rise to approximately $52 million. This option would enable the Company to generate early cash flows and pay off mine development expenditures while the permitting and construction of a long-term processing facility are completed.
Ore Sorting Optimization – Potential to Double Mineable Ore Grade
Preliminary studies have demonstrated the amenability of the Frankfield East mineralization to separation via conventional ore sorting equipment. This added stage early on in the process offers the potential to reject +50% of the waste rock from the crushed material extracted from the mine thereby 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. Further evaluations are underway to quantify the impact that this upgrading could have on the overall operating and capital costs for the project.
Frankfield East Deposit PEA: Base Case
The Frankfield East PEA is based on the current resource estimate announced on June 1, 2011 of 348,000 indicated ounces (1,621,000 tonnes at 6.68 g/t Au) and 838,900 inferred ounces (4,342,000 tonnes at 6.01 g/t Au). The study envisions the construction of a new mine and processing facility with an average annual production of 95,000 ounces of gold at a cash cost of $660 per ounce over a 10-year mine life. Under this scenario and at a gold price of $1,200 /oz, the Frankfield East Gold deposit would be expected to generate $265 million in pre-tax net cash flow, a pre-tax NPV (5% discount) of $159 million and a pre-tax IRR of 23% ($US/$CDN = 1). Additional details of the parameters utilized in the models are described in Table 1.
Table 1: PEA Base Case Economic Parameters
Item Value
Mining / Processing Throughput 1,500 tpd
Mine Life 10 years
Total Mining Costs $69 per tonne
Crushing /Truck Haulage $7 per tonne
Total Processing Costs $39 per tonne
G & A Costs $4.20 per tonne
Gold Price (US$) $1,200 per oz.
Exchange rate US$/CDN$ = 1
Overall Gold Recovery 95%
Initial Capital Costs ($167 million)
Process Plant / Infrastructure / Owner's Costs $130 million
Mine Development $21 million
Mine Site $12 million
Sustaining Capital Costs (LOM - $86 million)
Phase 2 Tailings Expansion $5 million
Mine Shaft Construction $50 million
Sustaining Capital (LOM) $20 million
Mine Closure Costs (less $4 million salvage value) $11 million
Note: See PEA Study Development Methodology at the end of this news release.
The initial capital cost estimate of $167 million includes the construction of a new stand-alone process facility, mine development down to the 200m level, Phase 1 of the tailings storage facilities and all necessary site infrastructure to bring the mine into production. A conservative 30% contingency has been included with the process facility estimate to account for requirements that are not detailed in the current study. The largest single component of the sustaining capital estimate of $86 million is the construction of a mine shaft starting in Year 4 of production. Other items included in this figure are the Phase 2 expansion of the tailings processing facilities and ongoing annual sustaining capital requirements. To conserve capital requirements, a decision was made to utilize contractors for both mining and mine-site crushing activities. Subsequent to the initial mine pre-development activities, all additional mine development is treated as operational development and included in the contractor mining rates, with the exception of the mine shaft installation.
The average LOM unit operating costs for the project are estimated at $119 /tonne of ore resulting in a net cash production cost of $660 /oz of gold (including corporate G&A). It should be noted that the decision to utilize contractors for mining and crushing has added somewhat to this cost. Should the deposit resource continue to grow it may make sense in future evaluations to perform these activities in-house. Of the total $39 /tonne in processing costs, approximately $17 /tonne are related to the additional sulphide oxidation stage, which is required to effectively process the Frankfield East mineralization. This equates to a processing cost of $90-100 /oz of recovered gold beyond that which would be expected from more "conventional" non-refractory gold deposits.
For reference, the Frankfield East deposit operating costs can be compared with the average global gold mining cost of $620 /oz as published in June 2011 by ABN AMRO Bank and VM Haliburton Mineral Services. At current gold prices the operating cost estimated in the PEA for Frankfield East would appear to support the 3 g/t cut-off grade utilized in the current resource estimate.
The results of a sensitivity analysis performed on the Frankfield East Gold deposit base case economic model are shown in Table 2. The sensitivity modeling demonstrates that the project economics are most impacted by variations in gold prices and mined gold grades and least impacted by capital requirements and operating costs.
Table 2: PEA Base Case Sensitivity Analysis
Cash Cost Project NPV: ($millions)
Sensitivity Variances Value US$/oz 0% 5% IRR
Gold Price -15% $1,020 $660 $92 $32 10%
($ / oz gold) Base Case $1,200 $660 $265 $159 23%
+15% $1,380 $660 $437 $285 36%
Gold Grade -15% 5.0 g/t $779 $92 $32 10%
(g/t gold) Base Case 5.9 g/t $660 $265 $159 23%
+15% 6.8 g/t $577 $437 $285 36%
Total LOM Capital -15% $215 $660 $301 $191 30%
($ millions) Base Case $252 $660 $265 $159 23%
+15% $290 $660 $229 $127 18%
Mining Cost -15% $58/tonne $603 $320 $200 27%
(per tonne of ore) Base Case $69/tonne $660 $265 $159 23%
+15% $79/tonne $718 $210 $120 19%
Process Cost -15% $33 tonne $628 $296 $182 26%
(per tonne of ore) Base Case $39/tonne $660 $265 $159 23%
+15% $45/tonne $693 $243 $136 21%
The Company continues to aggressively drill the extents of the Frankfield East Gold Deposit (see Gowest news release dated November 2, 2011) with a view of delivering an updated resource estimate in the first half of 2012. The sensitivity analysis in Table 3 examines the impact of potential increases in gold resources on the base case PEA results. Parameters used to calculate the NPV and IRR remain the same with the following exceptions for the +50% resource case:
Mine production and processing rate increased by 50% to 2,250 tpd
Capital costs are factored from the base case values based on the increased throughput (initial capital requirement of $258 million)
Unit operating costs unchanged with the exception of the labour, which was assumed to be reduced based on the change in throughput (total labour costs unchanged but unit costs reduced)
Table 3: Increase in Gold Resource Results (@ $1,200 per oz gold price.)
Cash Operating Cost Project NPV ($millions)
Sensitivity Total LOM Capital Mine Life US$/oz 0% 5% IRR
Gold Resources +20% $257 12 $660 $367 $214 25%
1500 tpd
Gold Resources +50% $307 10 $626 $518 $327 28%
2250 tpd
Frankfield East Deposit PEA: Contract Processing Option
The Company continues to investigate development alternatives aimed at reducing capital requirements and the time required to get the project into production. One of these scenarios which utilizes existing facilities for metallurgical processing was evaluated conceptually in the PEA. The basic framework of this alternate development scenario is as follows:
Mine development would be as per the base case development.
Ore from the mine would be transported to a nearby existing processing facility where a high grade (80-90 g/t) gold bearing sulphide concentrate would be produced.
The sulphide concentrate would then be transported to rail cars and shipped for final processing at a third-party location.
Discussions are ongoing between Gowest and a number of existing processing facilities that would be suitable for this development scenario. Although no contract terms have been finalized, some reasonable values were incorporated into a financial model for the Frankfield East deposit. Details of these model assumptions are presented in Table 4. A conservative allowance of $12 Million in capital upgrades at the existing processing facilities has been included at this time in order to handle the receiving and processing of the Frankfield East materials. Should this option be pursued further, this amount can be reevaluated based on the final site selections.
Highlights from this alternative development opportunity include:
Initial capital requirement of $60 million
Total cash costs (including G&A) estimated at $891 per ounce at $1,200 / oz gold price
Pre-tax positive cash flows of $28 million annually at $1,200 /oz gold price, which rises to approximately $52 million annually at a short term gold price of $1,500 / oz
Payback of mine development costs in 1-2 years, depending on gold price.
The Company believes that the results from the contract processing scenario are sufficiently positive that this opportunity should be investigated further. If successful, the Company would be able to fast-track mine development activities at Frankfield East thereby enabling positive cash flows to be generated in a period of less than 2 years from start of construction. Concurrently with this development work, the Company would continue the design and permitting of a long-term processing facility. Should discussions indicate that favourable terms can be negotiated with contract treatment facilities, the Company will provide an updated economic assessments on the combination of the short term contract and long term standalone scenarios after the update of the current resource expected in the first half of 2012.
Table 4. Contract Processing Model Economic Parameters
Item Value
Mining / Processing Throughput 1,500 tpd
Mine Life 10 years
Total Mining Costs $70 per tonne
Crushing /Truck Haulage $12 per tonne
Custom Processing Costs (concentrate production only) $30 per tonne
Custom Concentrate Treatment Charges (including transportation) $42 per tonne
G & A Costs $3.00 per tonne
Exchange rate 1 US$/CDN$
Overall Gold Recovery 93 %
Initial Capital Costs
Process Plant Upgrades / Infrastructure / Owner's Costs $21 million
Mine Development $21 million
Mine Site $14 million
Royalty Purchase (2% NSR) $4 million
Frankfield East Deposit PEA: Ore-Sorting Research
The Company has completed a series of preliminary tests to evaluate the amenability of the Frankfield East mineralization to a variety of conventional ore sorting techniques. Ore sorting equipment is utilized in the mining industry to separate crushed rock according to one or more physical characteristics (i.e. colour, density, IR/UV adsorption). Typically, crushed material is transferred at high speeds along a conveyor belt or vibrating chute in front of a sensor that analyzes the signatures of individual rocks. Following the sensor, a series of individually controlled air jets is used to separate the rocks according to physical characteristics.
Due to the correlation between the presence of metal sulphides and gold, DEXRT (x-ray) sorting techniques have proved especially effective at separating the gold-bearing material in the Frankfield East deposit from the waste rock. A recent campaign was completed utilizing a mineralized composite sample crushed to less than three-quarters of an inch and sorted according to DEXRT signatures. The composite consisted of a wide range of Frankfield East drill core intersections ranging in gold content from 0 g/t (waste rock) to over 10 g/t (high grade main zone) and averaged approximately 4 g/t. Despite the relatively low gold content of the composite, results from the testwork confirmed the potential for an extremely efficient separation. Greater than 50% of the rock mass was rejected resulting in a final crushed rock product containing 12-15 g/t gold with only 2-3% gold losses.
The potential impact of incorporating an ore sorting stage into the currently envisioned process for the Frankfield East deposit could be quite significant and will be evaluated in more detail in the coming months.
Mine cut-off grades could be lowered thereby increasing overall resource ounces and also allowing for the use of cheaper bulk mining techniques.
Reductions in hauling and transportation costs between the mine and processing facilities;
Reductions in overall capital and production costs.
Frankfield East Gold Deposit Update
Since the release of the updated resource on June 1, 2011, exploration drilling activities at the Frankfield East deposit have been organized according to two general priorities – shallower in-fill drilling and deeper resource expansion drilling.
In-fill drilling is being performed to depths of approximately 350m in order to convert additional Inferred gold ounces in this zone into the Indicated category status (currently 348,000 ounces / 1,621,000 tonnes at a grade of 6.68 g/t Au) as well as to provide better definition to the upper regions of the deposit, aiding in:
Continuing to test the limits of the deposit strike length.
Providing additional detail for mine planning activities that are currently underway.
Retesting areas where the Company believes "historic" drill holes were not adequately sampled for gold mineralisation and where the potential exists to add more gold resource ounces.
At greater depths, drilling is intended to confirm the continuity of mineralisation in areas that currently are devoid of drill data. The aim of this work is to expand the overall gold resource for the deposit, primarily in the Inferred category (currently 838,900 ounces / 4,342,000 tonnes at a grade of 6.01 g/t Au).
The Company is currently completing its baseline environmental studies and will be in a position to make final applications for the necessary mining permits in 2012.
The Company has also entered into an Exploration Agreement with the Mattagami and Matachewan First Nations whereby a framework for ongoing discussion between the parties has been established. The parties have also agreed to negotiate an Impact Benefits Agreement should the project proceed as planned.
PEA Study Development Methodology
The general methodology utilized for the development of the PEA study was:
A complete metallurgical processing model was completed using the Metsim® software package and utilizing the testwork data completed primarily at SGS Lakefield Research.
Mass and energy flows were taken directly from the process model and then utilized to identify and size all major process equipment items.
Capital costs were estimated for individual equipment then applied to account for additional requirements such as foundations, piping, electrical, buildings and engineering.
A conservative 30% contingency was added to all process plant capital cost estimates to account for items that were not specifically identified at this stage of the study.
Conceptual capital costs were prepared in conjunction with Golder Associates for tailings containment facilities.
Infrastructure and owner's costs were developed based on a conceptual plant site location within 15-20 km of the mine site. Infrastructure requirements included road upgrades, power lines, site preparations and facilities such as a truck shop, drying area, laboratory and administration building. Owner's costs include permitting requirements, insurance, first fill of consumables, temporary construction requirements, land acquisition and a pre-production drilling program. Excluded from owner's costs are corporate overheads and working capital requirements.
Operating costs were developed based on estimated staffing levels, consumables (from testwork and modeling) and expenditures required to support the mine and its associated processing, maintenance and administrative activities. Power requirements were estimated based on equipment motor sizings and assuming a conservative delivered charge of $0.07 /kWh.
Additional operating cost allowances were included for outside contractors, laboratory consumables, vehicle fuel requirements, etc.
Included in the mine operating costs were the estimated average contractor rates, costs for the Company mine services group and an allowance for backfilling and annual ongoing development drilling. Contractor rates were assumed to include ongoing production development.
Utilizing 3D models of the interpreted parallel mineralized zones, a conceptual mine plan was prepared. The mining plan envisions a combination of long-hole bulk mining techniques for wider zones of mineralization and shrinkage mining for narrower zones. Initial estimates for the ratio of bulk mined material to shrinkage material range from 1/1 to 2/1. A pre-development schedule and cost estimate was created down to the 200m level using ramp access. Ramp access would be utilized exclusively down to approximately the 400m level after which a small shaft would be developed to allow for the maintaining of LOM production levels as the mine development continued to greater depths. The construction of this shaft is assumed to take place starting in year four of production and would consist of a combination of raise boring to surface and slashing down to depth.
PEA Preparation / Qualified Person
The PEA has been prepared by the Gowest technical group in conjunction with Peimeng Ling & Associates Limited ("PL&A") in accordance with Canadian Securities Administration National Instrument 43-101 ("NI 43-101") requirements and CIM Standards. Technical information related to the PEA has been reviewed and approved by Peimeng Ling, M.Sc., P. Eng. (President of PL&A), an independent Qualified Person as defined by NI 43-101, with the ability and authority to verify the authenticity and validity of this data. The NI 43-101 Technical Report on the PEA for the Frankfield East Gold Deposit will be filed on SEDAR within 45 days of this news release.
Mr. Darren Koningen, P. Eng., Vice President of Technical Services for Gowest, a Qualified Person under NI 43-101, has prepared or supervised the scientific or technical information for the property and verified the data disclosed in this news release.
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, as well as on the exploration of additional gold targets on North Timmins Gold Project area, part of the prolific Timmins, Ontario gold camp. The Frankfield East deposit has been estimated to contain 348,000 ounces of gold in the Indicated category (1,621,000 tonnes at a grade of 6.68 g/t Au) plus 838,900 ounces of gold in the Inferred category (4,342,000 tonnes at a grade of 6.01 g/t Au. The Company also continues to evaluate acquisition targets in the vicinity of the North Timmins Gold Project area.
GWA.v Typo correction to last post
Thirdly, as part of this metalurgy work, the remaining concentrate was found to have a low sulfer content, (should read low arsenic content) being suitable and disirable as a source of sulphur for a smelter, should they choose an outside contract processing option. The smelters need the sulfer to keep the temperatures up, so my guess is Gowest would be on the preferred list for companies with minimal excess smelter capacity.
GWA.v nsomniyak Just spent some time and put this together on the SH board. Quite interesting if your into the details.
Further the todays press release, the goodies are in the details.
While the gold is refractory and requires an extra pressure oxidation process from the autoclave, the process provides 3 nice bonuses. Frankfield East mineralization, after being ground and flotated (LOL on that word) produces a very high grade gold concentrate (up to +90 g/tonne gold) that comprises less than 10% of the original weight of mined rock. The remaining 90% of the rock can then be removed from the process allowing for the size and cost of the remaining gold recovery equipment to be reduced significantly. Aditionally, metallurgy testing has produced an extremely high 98% recovery of the gold with the process. Thirdly, as part of this metalurgy work, the remaining concentrate was found to have a low sulfer content, being suitable and disirable as a source of sulphur for a smelter should they choose an outside contract processing option. The smelters need the sulfer to keep the temperatures up so my guess is Gowest would be on the preferred list.
Some of the significant advancements made by Gowest with respect to the production of high grade gold flotation concentrates have been published recently in a paper titled "Development of Processing Alternatives for Frankfield East Deposit Using Selective Arsenopyrite-Pyrite Flotation." (See news release dated February 1, 2012.)
http://www.gowestgold.com/downloads/HGGC_report.pdf
"While inserting a pressure oxidation stage to the process at Frankfield East adds an estimated $80 to $100 an ounce of operating costs based on the current resource grades, it sharply increases our production by increasing gold recoveries," said Darren Koningen, Gowest's Vice president, Technical Services. "Probably just as important though, it also allows us to consider a business plan that could include generating future revenue processing similar refractory materials from some of the many other refractory deposits in the region.".
I believe Gowest will have the only autoclave in the Timmons area so leasing the autoclave to other companies could be a positive bonus revenue.
Checkmate28
GWA Great Gold80302 Im trying to finish another quarter million shares. Wasnt fast enough. These guys are going to get it done. Everything has been moving forward nice except the PPS and confidence of the market. There should have a lot more good news on the way.
Catalysis going forward:
New resource update, My guess 1.8 - 2 million oz - summer
from only 1 target
updated PEA, - soon after
deep drill results, my guess even higher grades showing more potential - sooner
Infill drilling results adding to M & I - sooner
With 17 other targets, they could hit another economic target
With todays news of production related progress, there has to be more on the way
IMO, With this much positive progress, Someones going to step in and help them out with the money.
Hard to find more value and potential anywhere. They have high quality management that has built a mine before, former founder of IAMGOLD on BOD, insider buying, very high grades and recoveries, and their infrastructure is in legendary gold producing Timmins ON
Checkmate28
Quiet Guy! GWA.v ............ I think that verifys where there headed, addresses the refractory gold situation, decreases their costs and IRR from the PEA all at the same time.
Incredible opportunity to get an emerging producer at less than a 20 million market cap. Now we know why management who has been buying at the open market for so many months at higher prices has not been on the buy lately.
teomax with AIA their capex is only 18 million as they have existing equipment. Gowest has a much larger capex and resource. They will have to JV to cover either of their 2 production options.
Trader, I think these Juniors have a lot of risk in a sense because, most need cash at a time where the future is unknown. We're one stroke away from a world event that could slow things down to a halt. There would be many that might not survive or who's share structure would balloon.
At least the producers can survive when their share price goes down. The valuations on many of the better ones are crazy good as you said.
Guy Re GWA.v I spent a lot of time at the booth at PDAC speaking with Greg R and Derrin K the buyer of all those open market shares. Also took part in a special off site lunch presentation. They are a solid group with a solid plan to production. They are very confident in the multi million oz resource, their PEA and getting it financed and into production. They are near putting up an updated NI43-101 2 million ounces gold at 6gpt plus 3gpt cut off and then an updated PEA with a high IRR from just 1 zone.
Additional Upside, They have 17 other targets, some holes being drilled now with possibly good results pending.
Your buying that insitu gold at less then $10 per ounce in market cap with those numbers. IMO One of todays best values with quick multi bagger potential.
Cheers Checkmate28
Dirk Steinhoff & Gold. Nice article that got me on a search. Dirk is from Germany and lived through the currency crisis first hand. While he speaks of gold as mainly being purchased by investors, theirfore open to future de leveraging, Dirk clearly advocated staying in gold as bring the best protection.
IMO,these investors are there for the protection and liquidity gold offers and as a hedge against what looks to be a dying fiat system. If gold is left standing, it will not be an overbought class of investments but rather a pure measure of wealth.
A great read by Dirk below
http://mcalvanyweeklycommentary.com/february-17-2012-dirk-steinhoff-eurozone-disaster/
GORO Launches dividends in kind
Gold Resource Corp to launch gold and silver dividend program in April
Mon 8:58 am by Deborah Sterescu
Gold Resource Corp (AMEX:GORO) unveiled Monday the launch of its new gold and silver dividend program - set to start April 10, 2012.
The US-based gold producer, which started production from its El Aguila project in Oaxaca, Mexico in July 2010, has paid 20 straight monthly dividends since declaring commercial production, totaling more than $41 million returned to shareholders.
The default company dividend will continue to be in cash, Gold Resource said, but the gold and silver dividend will allow shareholders the ability to convert their cash dividends into physical gold and/or silver.
Shareholders can establish an “individual bullion account”, whereby cash dividends are converted into Gold Resource Corp “Double Eagle” one ounce .999 fine gold and/or one ounce .999 fine silver rounds, the company said.
"A convenient and simple way of delivering precious metal dividends to shareholders has been a long-term goal of the company,” said president Jason Reid.
Gold Bullion International (GBI), a provider of institutional precious metals to individual investors and the wealth management industry, is facilitating the conversion of the company's cash dividend to physical bullion.
Gold Resource Corp will direct GBI to draw gold and silver Gold Resource Corp Double Eagles from the company’s minted physical treasury and distribute the precious metals as directed by shareholders.
"With innovative assistance from Gold Bullion International, management of Gold Resource Corporation is pleased and excited to announce the launch of the company’s gold and silver dividend program, a dividend program unlike any other known program offered of its kind," continued Reid.
The program will allow shareholders to fully manage their cash dividend conversions into gold, silver, or a desired percentage of each metal. After conversion, investors can choose to store their physical metals within GBI’s fully insured and audited storage facilities, for a nominal fee, take direct delivery of their precious metals, or direct the shipping of the metals to a vault of their choice, the company said.
The conversion date and price will be set at the London PM Fix on the company’s record date of dividend distribution, which is announced with each declaration of distribution.
Shareholders must direct their individual bullion account for desired gold and silver allocation by midnight EST the day before the record date. Once the cash to physical conversion takes place, distribution of the gold and silver occurs on the dividend pay date.
Those choosing not to participate in the program will continue to receive cash dividends as usual, the company said.
For further specifics on the new plans, please refer to this link: http://www.goldresourcecorp.com/gold-silver-dividends.php.pdf
"By offering cash to precious metal conversion at the London PM Fix, without adding a premium above the company’s own minting cost, the company strives to offer its shareholders a competitive and attractive option for direct physical gold and silver ownership," Gold Resource Corp said in Monday's statement.
Reid concluded: "Gold Resource Corporation provides premier precious metal exposure with an aggressive production growth profile of low cost ounces, growing cash and physical precious metal treasury, high-grade exploration prospects, distribution of a monthly dividend and in April 2012 another major milestone for the company is being set as we prepare to launch the option for shareholders to receive gold and silver dividends.”
Earlier this month, Gold Resource Corp reported record annual results, with 2011 marking its first full year of production from its El Aguila operations in Mexico.
The gold company posted net income of $58.37 million, or $1.10 per share in the year to December 31, 2011, versus a loss of $23.07 million, or 46 cents per share in 2010.
El Aguila is located 120 kilometres southeast of the state capital city of Oaxaca, Mexico and has yielded several strong metal samples, including 36.0 grams per tonne (g/t) gold, and 3,100 g/t silver.
Last March, the company announced that it had begun the transition from processing lower grade, open pit ore, to processing underground ore from the high grade La Arista deposit at El Aguila.
Combined open pit and underground operations in 2011 yielded 66,159 ounces of gold equivalent production. This compares to the 10,493 gold equivalent ounces produced from the six months of open pit El Aguila operations in 2010.
As underground development continues, Gold Resource management said on a conference call early this month that it expects to mine more efficiently with greater tonnages and less dilution.
Cash costs in 2011 were $136 per ounce of gold equivalent, excluding royalty expense, 37 percent lower than $217 per ounce in the six month period in 2010.
This led to record annual revenue of more than $105 million in 2011 as the company realized much higher gold and silver prices for its combined operations of $1,596 per gold ounce, and $35 per silver ounce. Revenues in 2010 stood at $14.75 million.
The company's gross profit from the mine came in at $87.2 million, way up from $9.8 million the prior year.
auriga gold aia.v That 125.08g/t over 7.6m number is definitively uncut. That includes the 820g over 1 meter and the 1830g over .5 meters both at about 45meters. They will not put that number in the resource, as it easily may be an anomaly therefore skewing the reality. Their is an industry standard that I can not quote right now that they will use. I was at their booth at PDAC and asked about those results. They were one day from having the sample at the show. Interesting little project out their with the 18 mil capex to refurbish the existing mill. They are very excited about the new area just to the north a few kilometers. Have to stop here as I have to run for awhile
GWA.v Gowest Gold .17 Offering incredible value right now. Updated presentation Link below. Current resource is 1.2 million oz Avg 6+gpt from only one resource zone of 750m strike... Go to slide 8 The 1.2 million oz comes from the second area indicated with the 750 meter strike. The 3rd zone out to 900strike/1000m depth and the 4th zone out to 1350 strike are pending results. Im about positive their much deeper then the 1000m. Looks to me like the area has doubled and if you assume there are 2.1 million ounces, then Gowest will be trading at just $10 per ounce in market cap should the official resource be updated as they say soon.
Also from the presentation
2 additional gold resources identified but partially delineated
17 new targets including targets with Frankfield East deposit style signatures
Robust Preliminary Economic Assessment (released November 14, 2011)
• Pre-Tax Net Cash Flow (Assumes US$1,200 / oz gold): $265 million;
• IRR: 23%; Payback: just over 3 years
While this number is not exciting, it shores up greatly with a reasonable price of gold and using an updated resource amount.
I happen to believe in a very conservative resource number of between 3 and 5 million high grade ounces.
They also have a short term contracting option to ship the ore via train and due to the nature of their ore, were able to have an outside company create and test a metallurgy option that creates a 90gpt concentrate to process. This significantly increases the number of ounces they can get processed. They have another tested and simple ore sorting option, again due to the nature of their material, that creates an ore that has 12 - 15gpt gold. Currently their PEA shows 95000 oz/year production without these options. If they get to the 3 to 5 million ounces and are able to process 150k - 200k ounces this will be a nice little company.
They have a proven mgt team and the head of technical services has loaded up on the open market all year 2011 at as much as .36 per share. Nice when someone has faith in their own work.
They are looking for a good fit JV to move this project.
Hard to beat for a 20million market cap right now.
Looks to me like the company is letting their walkin do the talkin because they sure aren't talking much lately.
They will be presenting at PDAC. Got an invite to their lunchin Presentation so I'll have an update and looks like a 3-d model of the resource coming. Got another 30 booths on my list if I can muster that in 3 days.
If anyone replies to this I might not get back for a few days. Heading to Toronto tomorrow aft.
http://www.gowestgold.com/downloads/GWA_Presentation_March_2012.pdf
Checkmate28
Coin Re AIA.v While those results are encouraging with wider widths near surface and outside of the Puffy L zone, now days explorers aren't getting any extra market cap for their new ounces and longs are tired of waiting.
Not sure where the market takes us going forward with Europe, elections and QE3 but eventually money flow will come to these promising way under valued miners that can hold on to their resources.
Going to PDAC next week. Looks like Allison is not going to be there.
OT Just got the package. Thanks and will contact you soon.
Checkmate28
AUN Aurcana might be breaking out on high volume again.
Curlews re AUN Yes those were some nice words for reverse split. They are watching 2 companies that recently made the move. One has to be USA Silver who did a reverse end of Jan. Hasn't affected the market cap as of yet. The other I do not know.
If the RS is instituted to allow a better market and to get the share price to a certain amount that allows institutions with SP restrictions to purchase the stock, then I like the idea.
The recent financing was for 125 million additional shares. Sounded crazy but it allowed for the guaranteed funding to get shafter done ASAP and probably ahead of schedule. As basserdan pointed out, the IRR on shafter is 148% @ $33.98 Silver so the payback will be around 8 mths or so. Im assuming thats how they justified the deal and also figuring they will shrink them back later.
Lenic said they are looking to acquire a 3rd mine to boost production further and help avoid a take over.
Value re AUN He said as you said, you never know how many are looking to exercise now.
Personally, they are very confident in the early production date in May but not ready to PR yet in the small chance something goes wrong.
I was happiest to hear the roll back plans, as I think investors can recognize the difference in doing this to attain a new market listing vs trying to lower the OS to look better or to allow for further dilution. I think Lenic will do the right thing when the time is right.
From my notes some months back,
The mine life of Shafter now is 12 years at 3.9 million oz and Peter MeGaw states the potential is many times larger.
There are not many companies that can run with Aurcana on 2013 production figures, but many companies have much larger total NI43 compliant resources. I think they will soon remedy this as they have the budget to set Dr Peter Megaw free to prove up the total resource potential and put Aurcana in the heap of major status.
AUN.v Chat with IR
Just spoke with Gary Lindsey and heres what I have to pass on.
Aurcana will be presenting at six conferences in the next couple months and to hundreds of funds.
Sure to get some interest.
warrants purchased at .41 are providing the resistance in the mid .80's
TSX listing will be applied for in 2 months after their audited financial statement
Great chance for early production at Shafter. They are stockpiling ore and at the resource level now. They have to deal with some extra issues here including safety for around a week and a half. After that obstacle, they will have a better handle on when, and will feel comfortable to PR the news.
Once things are moving along, they will seek a US listing with the help of a share rollback.
Going to be the time where all the smart people come out with this great new find in Aurcana LOL!
Checkmate28
Gowest Gold GWA.v Demonstrates Process to Produce 90+ Grams Per Tonne Gold in Concentrate
Gowest is nicely moving forward their plan to produce at Frankfield. Their PEA currently demonstrates 95,000 economically feasible oz yearly production. If this ore sorting process is successful, along with the increased resource update on the way, this will increase the yearly production in a big way. This also allows for contract processing an another location, at reduced processing and shipment costs, due to the dense high grade ore as they develop their processing plant. Gowest Gold market cap less than 25million, 1.2 million NI43-101 oZ AT 6+GPT AND 3 GPT cut off. Deserves a look. CM
http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?docid=0762577001&sourceType=1http://www.ccnmatthews.com/logos/20110713-gwalogoLG.jpg
TORONTO, ONTARIO -- (Marketwire) -- 02/01/12 -- Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) reports that a recent metallurgical and engineering study aimed at evaluating options for ore processing at the Frankfield East gold deposit has produced very promising results. According to the study, adjustments may be made to the processing of the Frankfield ore that could sharply reduce costs by reducing the amount of ore being processed without a significant loss of gold, allowing for the potential to improve the economics of developing the Company's North Timmins Gold Project. A summary of the results has recently been published in a paper entitled, "Development of Processing Alternatives for Frankfield East Deposit Using Selective Arsenopyrite-Pyrite Flotation," which was prepared by R. Jackson of SGS Canada, Lakefield, Ontario and G. Wilcox and Darren Koningen of Gowest.
Details of the study and its results are available on the Company's website (http://www.gowestgold.com/inv_downloads.html) and at (http://media3.marketwire.com/docs/GGlink.pdf).
Greg Romain President & CEO of Gowest noted, "These results provide further confirmation of the positive impact that our engineering efforts continue to have on improving the already robust economics of producing gold at Frankield (news release, from November 14, 2011). We have the opportunity to reduce the amount of material that we need to process by more than 90% while recovering almost the same amount of gold."
Checkmate28
Lone Clone DMM With the Ecuadorian miners being on hold since 2008 waiting for the agreements, and that being reflected in the price, the main speculation would be that agreements come soon and they recapture the lost market cap with a bounce.
I read, that the agreements for the majors, should be near 50%+ after production costs and that includes a 6 -8% Royalty
Also read as you said, that the smaller company's get a favored status because for the most part, they are more in tune with the local economy's and indigenous people. DMM set up to do 300000 tonnes per year. At their grades over 10gpt that's over 100000 0z per year from Zuruma. They would still be junior. They are currently self paying 5% royalties on the small scale productions.
The trade off for the extra costs is the access to the extremely rich virgin property's, looser regulations then North America and the low production costs.
LC, What kind of faith do you have in the current talks from Correa promising soon on the agreements for Kindross and Eco?
MC, seems extremely low if they can get to production and they have most of the heavy work done and paid for.
Dynasty Metals DMM.v Basserdan thanks, up late last night making notes. Obviously the caffeine hadn't kicked in this AM. No time left to edit
Dynasty Metals 6 million oz gold and 27 mil oz silver, building
3 mines and completed a world class processing plant on a 50 million shoe string budget. Grades are very high everywhere and there Dynesty property will be an open pit w/2.5million oz gold eq grading 5gpt.
targeting 300,000 tonnes per annum (100koz+) to start with from Zurma, operating cost only $188/oz. Plan on increasing this and adding from the other 2 mines untill the plant is at capacity
Great managment and share structure 47mil fully diluted
Sprott just bought a quarter million shares
Kindross just signed a contract with the socialist government and have to give up 50% + for royalties and taxes to satisfy the government for their projects in the country. Dynesty has been paying 5% royalties I think because they fall into the smaller miner catagory at reducedextortion rates. I think they are budgeting to keep about 50% of production
So whats the company worth with a 50/50 split?
The processing plant, ramp & mine work, cash on
hand, 4 drills and other company assets have to be
worth near the 95 million MC? Whats the gold and
property worth now and at a later date? Think I'm going to
get my feet wet and find out Monday.
Thanks for the jump start Bobwins
Checkmate28
Northern Dynasty DMM.v 6 million oz gold and 27 mil oz silver, building 3 mines and completed a world class processing plant on a 50 million shoe string budget. Grades are very high everywhere and there Dynesty property will be an open pit w/2.5million oz gold eq grading 5gpt.
targeting 300,000 tonnes per annum (100koz+) to start with from Zurma, operating cost only $188/oz. Plan on increasing this and adding from the other 2 mines untill the plant is at capacity
Great managment and share structure 47mil fully diluted
Sprott just bought a quarter million shares
Kindross just signed a contract with the socialist government and have to give up 50% + for royalties and taxes to satisfy the government for their projects in the country. Dynesty has been paying 5% royalties I think because they fall into the smaller miner catagory at reducedextortion rates. I think they are budgeting to keep about 50% of production
So whats the company worth with a 50/50 split?
The processing plant, ramp & mine work, cash on
hand, 4 drills and other company assets have to be
worth near the 95 million MC? Whats the gold and
property worth now and at a later date? Think I'm going to
get my feet wet and find out Monday.
Thanks for the jump start Bobwins
Checkmate28
EGZ ENZR.ob Energizer Resources' Discovery of Graphite and Vanadium Leads to Agreement with Africa's Leading Mining Project Development Manager, DRA Mineral Projects, to Develop the Green Giant Project
http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?docid=0761066001&sourceType=1http://www.ccnmatthews.com/logos/20100519-energizer20.jpg
TORONTO, ONTARIO -- (Marketwire) -- 01/25/12 -- With confirmation of the discovery of two strategic minerals, vanadium and graphite, Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) ("Energizer" or the "Company") is now well positioned to move forward to mine development. This confirmation of the significant discovery of graphite, coupled with the Company's NI 43-101 compliant resource of vanadium, and their respective roles in Green Energy and new cutting-edge products, has now become the catalyst for development.
Energizer's discoveries place it in a unique position within the industrial minerals arena - the ability to provide two strategic minerals from one source. The Company also believes that its graphite discovery is the first new discovery globally of this important industrial mineral. The significance of graphite is now being recognized as a result of its use in multiple new applications and outside of China, companies have been focused on reopening past-producing graphite projects to meet anticipated demand.
Graphite is well established as an essential industrial mineral. However, it is graphite's new applications in electric vehicles, high-tech consumer electronics and nuclear power, in conjunction with its new label as the wonder substance in its single-layer form, called graphene, that is changing the demand curve for graphite.
While graphite and vanadium are forecasted to have strong growth in their traditional applications (primarily steel related) for the next decade, it is these new applications and developments, and their resulting projected demand, that are the drivers for the development of the Green Giant Project (the "Project").
The other important issue relating to graphite and vanadium is the China factor. Despite traditionally producing 75% of the world's graphite, it would appear China's raw materials supply is both rapidly diminishing and lower in quality. Once the biggest exporter of graphite, China is now the biggest importer. They have imposed a 20% export duty plus a 17% Value Added Tax and have closed state-owned enterprises this year to preserve its graphite resources.
Energizer has been at the forefront of outlining the applications for vanadium, such as its proven role as a battery "supercharger" when combined with lithium and the ongoing advancements in, and the deployment of, Vanadium Redox Flow Batteries (VFBs) by such notable companies as the United States' Ashlawn Energy and Germany's Cellstrom GmbH.
We have witnessed the evolution of VFB's going from a cost of 22 cents per kilowatt-hour (kWh) per-cycle over a year ago to approximately 11 cents per kWh per cycle today with government subsidies.
Ashlawn Energy, who is on target to install North America's largest VFB (at 8 megawatt-hours) in Painesville, Ohio this year, has been a pioneer in the cost reduction of VFBs. Ashlawn Energy expects to be less than 9 cents per kWh per cycle within the next 18 months. Achieving less than a 9-cent cost per kWh would match the current cost of today's legacy backup power systems, shortens the payback period and would be the economic catalyst to commercialize the VFB.
Formal Agreement Signed with Leading Mining Project Development Firm - DRA Mineral Projects
Given this background, Energizer believes that the timing to move forward with its Project is excellent. To this end, the Company is pleased to announce it has signed a formal agreement with South Africa's DRA Mineral Projects, a world-leading process engineering and mining project development management firm, for the development of Industrial Mineral Projects in Madagascar. Specific focus will be on the development of vanadium and graphite minerals on Energizer's Green Giant and Malagasy Minerals JV properties.
From Design to Operational Mine
DRA will be appointed as the technical partner of Energizer. As a provider of full Engineering, Procurement and Construction Management (EPCM) services, DRA offers Energizer the ability to both build and then operate a mining operation, thus providing a complete solution.
With this expertise, key DRA personnel will have direct roles in the development of the Project in Madagascar and will be responsible for facilitating discussions and interfaces with the Madagascar Government and key stakeholders in the Sakoa Coal project regarding infrastructure development and the identification of any synergistic opportunities.
Johann de Bruin, Director of DRA Mineral Projects, stated, "DRA has been following the development of the minerals industry in Madagascar with keen interest over the past six years whilst completing a series of feasibility studies for various potential projects on the island. It is evident that Madagascar has a lot to offer the global minerals industry and the resolution of political uncertainty, commitment to infrastructure development along with the continued global demand for its minerals are expected to mobilize a number of projects. DRA views the presence of these minerals, like graphite, vanadium and future breakaway materials like graphene, as essential in applications for electric vehicles, energy storage, and high-tech as promising and is therefore very excited about the relationship with Energizer Resources."
Kirk McKinnon, CEO of Energizer commented, "This arrangement with DRA is significant as it provides Energizer with experts that have all the skill-sets required to advance our Project to mine development, while interfacing with the Government, and leveraging their knowledge on infrastructure through insight into the Sakoa Coal project. We are also pleased that Energizer's continuing project development will bring employment and substantial expansion of infrastructure to the people of Madagascar in this region. The Company uses well over 100 local people through its exploration programs and have found them to be highly industrious. DRA will be able to leverage this skill-set as the Project grows and continues to add more resources and infrastructure enhancements to the region. Energizer's primary focus will now be the interface with and procurement of, key strategic partners and project financing. Currently the Company is well financed to reach key project milestones, including the completion of the Preliminary Economic Assessment (PEA Study)".
Key Components of Agreement
-- Exclusivity with DRA for the development of vanadium and graphite
mineral projects in the geographical region of Madagascar
-- Manage and monitor the development of required metallurgical testing and
to ascertain the feasibility via Preliminary Economic Assessment (PEA),
Prefeasibility Study (PFS) or Bankable Feasibility Study (BFS) of
potential mine projects
-- Preparation of presentations for the Energizer board, potential
investors and partners to update such stakeholders on project
development progress, either during the study or implementation phases
of the project
Key Appointments to Organizational Structure
Effective February 1, 2012, Energizer's Board of Directors will implement the following appointments to further position the Company as it moves to mine development.
Board Appointment
Johann de Bruin, Pr.Eng - Project Leader
Johann de Bruin, Pr. Eng, will be appointed to the Company's Board of Directors as the Project Leader and key interface for mine development. Mr. de Bruin is a Director of DRA with a 15-year track record of bringing numerous greenfield mining projects throughout Africa to feasibility. He currently leads the initiative of business development into Africa for the DRA Group and has acted as the primary liaison between DRA and Energizer for the past 3 years.
Mr. de Bruin brings considerable insight and skill into evolving the infrastructure components associated with new projects in developing countries and is highly committed to the advancement of Energizer's Project. Mr. de Bruin will be involved in the Project on a day-to-day basis as required.
Special Advisory Committee Appointments
Robin Borley, Pr.Eng - Capital Projects and Mine Development
Robin Borley will be appointed to the Special Company's Advisory Committee in the capacity of Capital Projects and Mine Development. Mr. Borley is a Director of DRA and a Graduate Mining Engineer and Certified Mine Manager with over 25 years of International Mining experience across a range of commodities.
Mr. Borley brings considerable knowledge and experience to the technical and operational aspects of mine development. As the former Chief Operating Officer with Red Island Minerals, one of the property owners of a significant coal resource in the Sakoa Coal Field Project, his experience gained as well as the contacts and interface made with key Government officials will be invaluable to the Company as it looks to develop its projects in Madagascar. Mr. Borley will also be involved in the Project on a day-to-day-basis as required.
Marc Hein - Special Mauritian Counsel to Energizer
Mr. Hein will be appointed to the Special Advisory Committee in the capacity of Energizer Mauritian Counsel to oversee and manage the interface with both the Madagascar and Mauritian Governments.
Mr. Hein is a qualified Mauritian, English and French lawyer, specializing in business law. He is the Head of Practice of Juristconsult Chambers and has practised law in Mauritius and Madagascar since 1980. As a provider of legal services to Energizer for the past 4 years, Mr. Hein has spent considerable time in Madagascar and maintains excellent relations with key government officials in both Mauritius and Madagascar. He is a former Member of Parliament in Mauritius and a former Chairman of the Mauritius Bar Council.
Mr. Hein sits on the board of several multinational companies and is a Fellow of the Mauritius Institute of Directors. The key business and government relationships he has cultivated over the years will be instrumental to Energizer.
Mr. Hein is based in Mauritius, a small island due east of Madagascar that is recognized as the wealthiest, best-governed country in Africa by The World Bank and the Economist Intelligence Unit's Democracy Index.
They will both join Brian Tobin, Peter Harder and Anthony Toldo on the Special Advisory Committee.
Company Appointments
Craig Scherba - P.Geol., Senior Vice President, Madagascar Operations
Craig Scherba will be appointed to Senior Vice President for the Company's Operations in Madagascar. Over the past 5 years, he served as a geological consultant and then as Energizer's Vice President of Exploration and is primarily responsible for the discovery and development of the Project to-date in Madagascar.
Reporting to Senior Management of Energizer, Mr. Scherba will assume the primary responsibility of managing the Madagascar operations, including direct oversight of DRA and all exploration and development activity.
Roland Fok Seung - Chartered Accountant and Country Manager
Mr. Fok Seung is a Chartered Accountant of the Institute of England and Wales and the Association of Chartered Certified Accountants. Employed as Energizer's Madagascar Country Manager for the past 5 years, Mr. Fok Seung is based full time in Madagascar and will continue to act in this capacity with a focus on financial related business activity.
About DRA Mineral Projects
-- DRA is a world leader in process engineering and metallurgy and has been
a provider of full EPCM services (Engineering, Procurement and
Construction Management) since 1984
-- With a primary focus on managing the development of mining projects in
the African Continent
-- Employ over 1,100 people with operating offices in Southern and Central
Africa, Australia, India, China, Canada and the UK.
-- A well-qualified team of over 350 professional engineers and project
management professionals specializing in large capital projects in the
minerals processing fields of coal, vanadium, diamonds, gold, platinum,
ferrous metals, base metals and heavy mineral sands
-- They are a leader and specialist in the field of outsourced operations
and maintenance of minerals processing plants. They currently operate 22
mineral processing facilities in Africa and Indonesia, including:
Project Mineral Status Owner Country
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Republic of South
Kroondal 1 PGM's & Cr Current AQPSA Africa (RSA)
Kroondal 2- PSA PGM's & Cr Current AQPSA RSA
Marikana PGM's & Cr Current AQPSA RSA
Elands PGM's & Cr Current Xstrata RSA
Everest South PGM's Current AQPSA RSA
Vaalkrantz Coal Current Leeuw mining RSA
Letseng Diamonds Current Gem Diamonds Lesotho
Khumani Iron Ore Current Assmang RSA
Nkomati Nickel 2 Nickel Current Norilsk RSA
Pilanesberg Platinum Current Boynton Invest RSA
Blue Ridge Platinum Current AQPSA RSA
Phola Coal Current ACSA / BECSA RSA
Current Platinum
Smokey Hills PGM's Australia RSA
Volclay Chromite Current Amcol RSA
Umthombo Resources Coal Current Umthombo Res RSA
Current Lucara
Mothae Diamonds Diamonds Lesotho
Keaton 5 seam Coal Current Keaton Energy RSA
Keaton 2+4 seam Coal Current Keaton energy RSA
Tongon Gold Current Randgold Res Ghana
Riversdale Coal Current Rio Tinto Mozambique
Current Lucara
AK6 Diamonds Diamonds Botswana
Storm Mountain Diamonds Current Namaq Diamonds Lesotho
About Graphite
Graphite and diamonds are the only two naturally formed polymers of carbon - graphite is a two-dimensional crystal structure, whereas diamonds are a three dimensional structure.
Graphite is an excellent conductor of heat and electricity, and has the highest natural strength and stiffness of any material. It maintains its strength and stability to temperatures in excess of 3,600 degrees C and is very resistant to chemical attack. At the same time it is one of the lightest of all reinforcing agents and has high natural lubricity.
The U.S., who is a 100% importer of graphite, has joined China and the European Union in classifying graphite as a critical strategic material.
Graphite Markets
New & Emerging Uses for Graphite
-- Consumer Electronic Goods:
Millions of flexible graphite "heat spreaders" are used in consumer
electronics such as flat panel displays, notebook computers, laptops,
tablets, LED lighting and smart phones such as Apple's iPhone®. This
provides excellent cooling for the electronic components as it reduces
"hot spot" temperatures while boosting power which results in extended
product life and improved performance
-- Lithium-ion Batteries:
Graphite is an essential component in these batteries, which typically
require 11 to 13 times more graphite than lithium. Since these batteries
are smaller, lighter and more powerful than traditional batteries there
is currently a large shift to Li-ion batteries for consumer electronics
and hand-held tools. This is also the product of choice for both hybrid
electric vehicles (HEVs) and full electric vehicles (EVs) where the
batteries are much larger and the potential demand is substantial
-- Green Energy Storage:
Significantly more graphite is used as a component in fuel cells and
Vanadium Redox Flow Batteries (VRFBs), which are utilized to store
energy, derived from green initiatives such as solar and wind
-- Pebble Bed Nuclear Reactors ("PBNR's"):
Graphite is now being used in PBNR's which are small, modular nuclear
reactors. The fuel is uranium dioxide, which is encapsulated with
graphite and forms pebbles the size of tennis balls. They have
significantly lower capital and operating costs and cool naturally when
shut down thus greatly improving the operating safety factor
-- Graphene:
This new miracle material is beginning to gain worldwide attention and
many in the scientific community speculate that it could revolutionize
the world we live in. It has remarkable optical, mechanical and
electrical properties, which make it substantially stronger than steel
and at the same time is highly elastic. One research report in Science
Daily simply stated that graphene is, "the thinnest and strongest
material ever discovered"
-- Infrared defence and stealth bomber technology
Traditional Uses for Graphite
-- Steel Industry: Primary demand is tied to the steel industry where it is
used as a liner for ladles and crucibles, as a refractory material and
as an additive to the steel making process
-- Automotive Sector: Graphite is used in brake linings, gaskets, and
clutch materials
-- General: Graphite is used in lubricants, fire retardants and as a
reinforcement in plastics
Tight Supply
-- World production of graphite is about 1.1 million tonnes per year
(Mtpy), which is almost as large as the nickel market (1.3 Mtpy), and
more than 50 times the size of the lithium or rare earth markets
-- 60%-70% of the world's graphite supply is amorphous (fine or pow such as
automotive and steel making
-- 30%-40% is flake, which is essential for producing batteries,
specifically lithium-ion, and for use in consumer electronics
-- China currently produces around 75% of the world's graphite or 1.1Mt
produced in calendar 2010
-- This year, the British Geological Survey listed graphite, along with
antimony and rare earths, as most at risk of global supply disruption.
Graphite had a relative supply risk index of 7, compared with 8.5 for
antimony, the highest value on the index
The China Factor
-- Despite producing 75% of the world's graphite, most of its resources are
lower grade amorphous
-- China is now the biggest importer of graphite and has closed state-owned
enterprises this year to preserve its graphite resources
-- It has imposed a 20% export duty plus a 17% VAT, and instituted an
export licensing system to ensure supply to China's domestic economy
Robust Demand
-- Annual graphite demand is expected to increase by over 50% from 1.1
million tonnes to 1.5 million tonnes by 2020 based on the steel market
alone
-- Demand from batteries and high-tech applications are projected to be
dramatic. Lithium-ion batteries are projected to more than double the
demand for graphite to about 2.6 million tonnes by 2020
-- Industry analysts predict the discovery of Graphene will be a major
driver of graphite demand
Pricing
-- Graphite pricing is determined by two factors - flake size and purity -
with the premium product being large flake (+80 mesh), high carbon
(+94%) graphite
-- Like uranium and vanadium, there is a spot price for graphite that
provides an indication of longer-term trends but transactions are
primarily based on a direct and intimate relationship between the buyer
and seller
The Bottom Line
-- China's is creating serious supply concerns for the rest of the world
-- New graphite sources will be needed for both traditional and high-
tech/clean tech applications
About Vanadium
Vanadium is well established as a strategic metal that strengthens and hardens alloys like steel and is positioned to play a significant role in emerging battery technologies such as batteries for electric cars and for large-scale energy storage. While there are some opportunities for substitution in steel production, the same is not true for other markets, including the emerging energy (battery) storage markets, the military and particularly in the aerospace industry, where vanadium is irreplaceable.
The Battery Supercharger
Vanadium has begun to play a pivotal role in the advancement of battery technology, namely in automotive (mobile) applications for electric and hybrid vehicles and in stationary energy storage applications for both renewable and conventional energy. Similar to its contribution to steel, Vanadium acts as a supercharger to batteries and improves the performance of whatever it is added to.
In the case of the car batteries (lithium-ion), vanadium increases the energy density and voltage of the battery. This is important for the performance in electric and hybrid vehicles, as energy density equates to distance/range, while voltage equates to available torque.
In the case of energy storage systems, the VFB is a leading energy storage system given its virtually unlimited storage capacity, long battery life, low maintenance requirements, adaptability and nominal environmental footprint.
Vanadium: The Holy Grail of Energy Storage
The VFB is regarded as a leading energy storage system, which requires large amounts of high purity (greater than 98.4%), battery-grade vanadium. This type of vanadium is not readily available today.
The continual cost reductions and technological advancements being made by VFB manufacturers are providing the catalyst for commercializing applications of vanadium-based battery technologies, thus resulting in an increase in demand and a corresponding shortage in supply of vanadium.
A great opportunity exists for vanadium producers who can provide the necessary high purity (greater than 98.4%), battery-grade vanadium required by the VFBs. Energizer is uniquely positioning itself to meet the new anticipated demand for high purity (greater than 98.4%), battery-grade vanadium with its Green Giant Project.
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada, which is developing its 100%-owned Green Giant Vanadium and Graphite Project in conjunction with its Madagascar-ERG Joint Venture (Mauritius) Ltd ("JV Co") property. Energizer owns 75% of the industrial minerals rights on the Malagasy Minerals (ASX:MGY) property as outlined in the December 15, 2011 press release. The Green Giant Vanadium deposit in addition with the JV grounds, is one of the largest known vanadium deposits in the world.
In addition to the Toronto Stock Exchange (TSX:EGZ), the Company's common shares trade on the U.S. Over-The-Counter Bulletin Board under the symbol, ENZR, and on the Frankfurt Exchange under the symbol, YE5.
For more information, please visit our website at www.energizerresources.com.
We seek Safe Harbour: This press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.
Contacts:
Energizer Resources Inc.
Brent Nykoliation
Vice President of Corporate Development
Toll Free: 800.818.5442 or 416.364.4911
bnykoliation@energizerresources.com
Energizer Resources Inc.
Kirk McKinnon
Chairman and CEO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com
Source: Marketwire (January 25, 2012 - 8:00 AM EST)