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Happy New Year to everyone!
Hopefully CMC will get their act together in 2015...
GLTA
some news...
"the pond is almost done"
That is the info I received together with a photo. Well I suppose it does not matter at this stage to wait a few more weeks before production finally starts. Hopefully no significant production problems wil occur...
December should be the month we have been waiting for…
According to the information in the JGR newsletter dated 27 October (http://juniorgoldreport.com/wp-content/uploads/2014/10/JGR-Newsletter-October27.pdf) we can expect the following with a gold price at $1200:
($1200 - $800 costs) x 2000 tons per month x 0.5 opt x 0.5 share = $200.000 profit per month
Projected annual profit = $2.4 million
Plus income from the mill. According to the report “CMC will charge industry rates to process ore. Typically it is $120 to $150 per ton of ore.” The revenue for CMC for the 50% share of partner Pruett Ballarat is then around $1.500.000 per year.
From previous contacts with CMC I believe these are conservative projections. Please read the following post for possible “wildcards”: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104578536
GLTA
Interview with President Jack Bal
http://juniorgoldreport.com/wp-content/uploads/2014/10/JGR-Newsletter-October27.pdf
Bishop Mill Tailings Pond / Radcliff Property Update
Vancouver, B.C.: CMC Metals Ltd. (the "Company") wishes to update the
shareholders on the status of its US operations at the Bishop Mill and
the Radcliff Mine.
At the Bishop Mill, the Company is pleased to announce it has
contracted International Lining Technology of Reno Nevada to install
the pond liner required to commence test milling operations. All
material to install the liner has been delivered and consists of 53,000
square feet of 80 millimeter Geomembrane primary liner and 53,000
square feet of 60 millimeter Geomembrane secondary liner. International
Lining Technology will commence installation of the pond liner in one
week.
Underground development work at Radcliff is continuing. The new adit is
advancing and shotcrete has been applied to the interior of the adit
for increased stability. Pruett Ballarat Inc., the operator of the
Radcliff Mine is working with local regulator MSHA (Mine Safety and
Health Administration) to develop a mine safety plan for the mine. All
employees have been certified and a mine rescue team established.
Jack Bal, CEO of CMC Metals Ltd, states "We are very excited to achieve
the milestone of installing the pond liner and to bring the Company
closer to commencement of production at the Bishop Mill." Technical
data for the targeted high grade zone at Radcliff is currently being
updated and is expected to be available by the end of October.
On behalf of the Board:
"Jack Bal"
Jack Bal, President & CEO
CMC METALS LTD.
Production anticipated in December according to updated website:
"Radcliff Mine will stock pile ore in anticipation of commencement of operations of the Bishop Mill and production of concentrate for sale in December 2014."
Bought some more at 0.045
GLTA
Well, so much for the month September...
"The Company anticipates being operational at the Bishop Mill with stock piled ore prior to year end."
News release - September 24, 2014
Change in Board of Directors / Update on Operations at the Bishop Mill and Radcliff Mine / Grant of New Incentive Stock Options / Issuance of Bonus Shares
Vancouver, B.C.: CMC Metals Ltd. (the "Company") is pleased to announce the addition of two new Directors to its Board, Mr. Robert Wheeler and Mr. Carl Von Einsiedel, who were appointed at the Company's last Annual General Meeting held August 19, 2014. Mr. Wheeler, the former senior officer of a worldwide electronic components distributor, and Mr. Von Einsiedel, an independent consulting geologist and a registered member of the BC Association of Professional Engineers and Geoscientists, bring years of business and mining experience respectively to the Company. The Company's current Board of Directors consists of Messrs. Jatinder (Jack) Bal, Michael C. Scholz, John Bossio, Mark Gunderson, Robert Wheeler and Carl Von Einsiedel.
The Company wishes to update the shareholders on the status of its US operations at the Bishop Mill and the Radcliff Mine.
The construction of the tailings pond at the Bishop Mill started in March 2014. The pond has been excavated and installation of the liner will commence within the next two weeks and will take an additional two weeks to complete. A new assay lab has been installed and upgrades to the Mill are ongoing. The Company anticipates being operational at the Bishop Mill with stock piled ore prior to year end.
Work at the Radcliff Mine is ongoing. A new adit has been constructed and is advancing towards the ore zone. The road to the Radcliff Mine has been upgraded to allow efficient travel from Ballarat elevation 600 feet to the mine site at 5800 feet. A crushing plant is being transported from the Company's operations in the Yukon to the Radcliff Mine. Ore from the mine will be crushed and sampled before being transported to the Bishop Mill for processing. The crushing circuit at the Bishop Mill will be removed over time and additional grinding and flotation capacity will be installed.
To date, the Company has invested in excess of US$3,000,000 in the Bishop Mill and Radcliff Property.
The Company further wishes to announce that it has granted 1,100,000 common shares pursuant to incentive stock options under the Company's Rolling Stock Option Plan, which Plan received shareholder approval at its last Annual General Meeting held August 19, 2014. The options granted will be set for a two year period expiring September 22, 2016 at the exercise price of $0.065 per share. This transaction is subject to TSX Venture Exchange approval.
The Company further wishes to announce that since July 2014, 5,610,000 warrants issued at $0.05 were exercised by shareholders netting the Company $280,500.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
"Jack Bal"
Jack Bal, President & CEO
CMC METALS LTD.
Getting closer to production. September ought to be the month we have been long waiting for, hopefully...
GLTA
Looks like we are one month away from the start of production. Hopefully the current available funds are sufficient to finally get the Bishop Mill up and running...
Everybody cross their fingers!
Besides the further delay some interesting points mentioned in the report:
• Based on resources, we should be able to produce 6-8 years at strong grade.
• Infrastructure around the mill is excellent and includes good 2-4 lane highway access.
• Bal indicated to me that the property is located in the same vein system as the already 1,000,000 ounce low-midgrade open pit Briggs Mine owned by Atna Resources. This means that there potentially could be a lot more gold than what Echo Bay originally estimated at CMC’s Radcliff property.
• The mining costs seem very low. CMC’s joint venture partner estimates that it will cost $150/ton to mine a ton of material. Transportation costs are estimated to be $30 per ton to the Bishop Mill.
• The company currently has $200,000 in the bank and will need that money to put the mill into production.
New report and new timeline
http://juniorgoldreport.com/wp-content/uploads/2014/08/CMC-Metals-Report.pdf
"... production from the Radcliff Mine to commence in late September at the nearby Bishop Mill."
Start of production only a few weeks away...
Hopefully August will be the month we have long been waiting for...
Income calculations revisited and wildcards
Production is going to start soon. Below are the calculations and some additional points which might have a positive impact on the earnings.
"Once in full production in June, we expect to process 3,000 tons a month with an average grade of 0.50 OPT. We expect our cost to be $600 - $800 an ounce. If we produce 1500 ounces a month and our interest is 50% of the Radcliff mine, our profit could be anywhere from $300k to $450k a month with $1200 gold." (see post http://investorshub.advfn.com/boards/read_msg.aspx?message_id=97146208)
Calculation with a gold price of $1300 would result in a profit of $375k to $525k per month. The annual profit is then between $4.5 and $6.3 million.
Wildcards
1. A higher gold price. A $100 higher gold price results in 900k higher income per year. A higher gold price will at one point certainly raise interest in profitable and promising junior mining companies.
2. “If they can locate some of the higher-grade ore, the one-ounce material that they know is there, the numbers get even more attractive." (see the following report: http://www.321gold.com/editorials/moriarty/moriarty033114.html) This would double the income as current calculations are based on 0.50 OPT.
3. "We are transporting a crushing plant to Balarat to allow us to pre-crush ore before shipping it to the Bishop Mill. This will allow us to remove part of the crushing plant at Bishop and install more grinding capacity to the mill." (see post: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104211408) This will raise the daily production of currently 100 tpd and therefore the amount of gold to be recovered. The question will be how much...
4. Silver Hart property. Here, the income from the Radcliff mine and the Bishop Mill can be used to make further progress. In the following is a report from the year 2009. According to the report the extraction costs area at a comfortable $4.45/oz.
http://www.preciousmetalsreview.com/PMRcmbbond.pdf
They are optimising operations. One very interesting point metioned:
"We are transporting a crushing plant to Balarat to allow us to pre-crush ore before shipping it to the Bishop Mill. This will allow us to remove part of the crushing plant at Bishop and install more grinding capacity to the mill."
If I am correct this will raise the daily production of currently 100 tpd and therefore the amount of gold to be recovered. The question will be how much...
Good things to come imo. Looking like a multibagger to me which is soon ready for liftfoff!
Received feedback today from management on the current status. We will be a producer in 4-6 Weeks!
"Here is a brief update:
Radcliff Mine:
- We have spent the last 2 months upgrading the road to the mine. The road is 7 miles long and goes from Balarat at 600 feet elevation to 6000 feet elevation. Our ore has to be transported down the mountain to Balarat each day. The road is very important.
- We are transporting a crushing plant to Balarat to allow us to pre-crush ore before shipping it to the Bishop Mill. This will allow us to remove part of the crushing plant at Bishop and install more grinding capacity to the mill.
- Our main drift is advancing to the ore zone. We will be in ore and stockpiling ore in 7 to 10 days.
Bishop Mill:
- We have completed excavating the pond. We are contouring the sides to a 2 to 1 slope and getting ready for liner install in 2 weeks. The liner will take 2 weeks to install.
- An additional Vadose well will be drilled next week for monitoring purposes. We now have 6 monitoring wells.
- New assay lab has been installed
- Fabrication of guards for mill equipment has started. New safety standard require guards for MSHA certification.
It's very hot down there, It has slowed us down a bit. We should be operational in 4 to 6 weeks."
Bought some more shares today. Hopefully this will be good timing...
GLTA
A higher gold price would not hurt but even with a gold price above $1300 the projected possible income looks very impressing.
"Once in full production in June, we expect to process 3,000 tons a month with an average grade of 0.50 OPT. We expect our cost to be $600 - $800 an ounce. If we produce 1500 ounces a month and our interest is 50% of the Radcliff mine, our profit could be anywhere from $300k to $450k a month with $1200 gold."
Calculation with a gold price of $1300 would make $375k to $525k a month. The annual profit is then between $4.5 and $6.3 million!!
Seven days remaining in the month of June...
I am glad CMC wrote on their website that they expect production in June 2014:
"CMC has commenced construction of the tailings pond at the Bishop Mill and expects the mill to start processing ore and produce a concentrate in June 2014."
"Plans for the Radcliff Mine for 2014, include the continued construction of the 5510 adit towards the high grade drill intersects. Radcliff Mine will stock pile ore in anticipation of commencement of operations of the Bishop Mill and production of concentrate for sale in June 2014."
From past experiences it could very well be June 2015...
GLTA
June, this should be the month we have been waiting for...
Email from Management in February 2014:
"Once in full production in June, we expect to process 3,000 tons a month with an average grade of 0.50 OPT. We expect our cost to be $600 - $800 an ounce. If we produce 1500 ounces a month and our interest is 50% of the Radcliff mine, our profit could be anywhere from $300k to $450k a month with $1200 gold. We will also return a profit on the running of the mill. Remember this is an estimate only from internal projections and not backed up on an 43-101 report. I am confident we will achieve the numbers though."
Full production of the Bishop Mill was expected to be June, we will see...
Nope, no new information. June is around the corner. CMC has undisputable a record of disappointing shareholders. Hopefully this will change next month...
Bigone, the numbers I received on request via email from CEO Jack Bal. It is up to you to decide how trustworthy he is. They did not publish yet these calculations to my knowledge. In their news releases they always state goal is to process 2,000 tons a month. So hopefully there is room for positive surprises and they will be able to process 3,000 tons a month as indicated below.
"Once in full production in June, we expect to process 3,000 tons a month with an average grade of 0.50 OPT. We expect our cost to be $600 - $800 an ounce. If we produce 1500 ounces a month and our interest is 50% of the Radcliff mine, our profit could be anywhere from $300k to $450k a month with $1200 gold. We will also return a profit on the running of the mill. Remember this is an estimate only from internal projections and not backed up on an 43-101 report. I am confident we will achieve the numbers though."
One interesting aspect pointed to in the 321gold Report:
"I will say I think their plans are perfectly feasible. Their mine manager is their 50% partner and he’s highly experienced in mining. They have a highly qualified and experienced mill operator. They can make this work with a minimum of capital and get cash flow going. If they can locate some of the higher-grade ore, the one-ounce material that they know is there, the numbers get even more attractive."
http://www.321gold.com/editorials/moriarty/moriarty033114.html
That would have a nice impact on the numbers
I do not know of any delays. Therefore expecting already real testing operations in May and full production in June.
GLTA
articgold, what does that information mean?
One interesting point in the report
"I will say I think their plans are perfectly feasible. Their mine manager is their 50% partner and he’s highly experienced in mining. They have a highly qualified and experienced mill operator. They can make this work with a minimum of capital and get cash flow going. If they can locate some of the higher-grade ore, the one-ounce material that they know is there, the numbers get even more attractive."
Charlie Manson’s Gold Mine
http://www.321gold.com/editorials/moriarty/moriarty033114.html
With a gold price above $1300 the projected income looks even more impressing.
"Once in full production in June, we expect to process 3,000 tons a month with an average grade of 0.50 OPT. We expect our cost to be $600 - $800 an ounce. If we produce 1500 ounces a month and our interest is 50% of the Radcliff mine, our profit could be anywhere from $300k to $450k a month with $1200 gold."
Calculation with a gold price of $1300 would be $375k to $525k a month. This makes between $4.5 and $6.3 million per year.
We will eventually find out in a few months...
John, you are very unpolite to say the least.
Calling me a liar is unacceptable. Those who follow this board know that I have expressed my critisim on the company in the past. Simply ignore my posts if you are not interested in new developments. Based on the new information (which I for myself intend to believe) my multibagger prediction for CMC remains intact.
GLTA
Confirmed - CMC will be a multibagger
Had email contact with the company:
"Once in full production in June, we expect to process 3,000 tons a month with an average grade of 0.50 OPT. We expect our cost to be $600 - $800 an ounce. If we produce 1500 ounces a month and our interest is 50% of the Radcliff mine, our profit could be anywhere from $300k to $450k a month with $1200 gold. We will also return a profit on the running of the mill. Remember this is an estimate only from internal projections and not backed up on an 43-101 report. I am confident we will achieve the numbers though."
With a current market cap of $5.2m (and a possble increasing gold price) the potential here is obvious
Nice find Johan, good things to come.
Two points from the report:
If things go as planned, the company
expects the Bishop Mill to be operating in
May 2014 as they are currently installing
a new 40,000 ton tailings pond.
The company has $500,000 in cash and
the remaining budget to upgrade the mill
is only $300,000 which leaves them
some room for mining costs and other
expenses before they start cash flowing
from operations.
Timing is everything. Lets hope Gold will move above 1300 $ and even further
For CMC this could be a (very) good time to finally start digging for gold...
Only a few more weeks...
We should be entering the testing phase very soon...
Below is an excerpt from a press release dated July 18, 2013
Bishop Process Facilities Update
Also, the Company would like to announce that it is completing the final transfer of the required Reclamation Bond of $191,269 US to be held by the Bureau of Land Management for the Bishop Mill Site. Once the bond is in place, construction activity will begin. The schedule for construction will entail the earthworks for the tailings impoundment that will take an estimated 4 weeks, installation of the liner system that will take an estimated 1 week, facility upgrades and testing will take an estimated 4 weeks. Current mill capacity is 50 tons per day. As part of the upgrades, we are increasing the capacity to 100 tons per day. Prior to the commissioning, we will have a minimum of 500 tons of Radcliff ore delivered to the site for pre-production testing of the facilities.
As the construction of a tailing pond has commenced prior to year end we will be a producer in around 4 weeks
Commenced construction of a tailing pond
Excerpt below is from the annual report 2013 which was made available yesterday at their website:
20. SUBSEQUENT EVENTS
On November 25, 2013, the Company increased its reclamation bond on the Bishop Mill, California from US$132,663 (CDN$136,747) to US$191,269. As a result of increasing in the reclamation bond and obtaining the required permits, the Company received approval on December 17, 2013 from BLM for its Plan of Operations and Reclamation Plan for Bishop Mill Property and has commenced construction of a tailing pond (Notes 4 and 7)
This play was a lottery ticket from the beginning imo. As we did not win I guess it is time to write off the losses...
Happy new year 2014. Looks like CMC will finally become a producer in 2014.
I like the fact that they hired a Mill Manager for the Bishop Mill who worked at the Bishop Mill in the past and has expert working knowledge of its operation.
Also the recent buying of shares by CFO and Director Michael C. Scholz seems very encouraging.
Hopefully good things to come in 2014!
1,165,000 Unit Flow-Through Private Placement @ $0.05 per Unit
December 23, 2013
Vancouver, B.C.: CMC Metals Ltd. (the "Company") wishes to announce that it has agreed to issue up to 1,165,000 Flow-Through Units at $0.05 per unit, each unit consisting of one flow-through common share and one transferable share purchase warrant. One warrant will be exercisable for one additional (non-flow-through) common share at $0.05 per share during year one, and $0.10 per share during year two. The proceeds derived from the total 1,165,000 Unit placement will be used to further develop the Company's Canadian properties. No finder's fees are payable in relation to this private placement. This transaction is subject to TSX Venture Exchange approval.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
"Jack Bal"
Jack Bal, President & CEO
CMC METALS LTD.
MICHAEL C. SCHOLZ ACQUIRES SECURITIES OF CMC METALS LTD
Vancouver,December 11,2013–Mr. Michael C. Scholz (the “Offeror”), Suite 605, 369 Terminal Avenue,
Vancouver, British Columbia, V6A 4C4, announces that effective
October 30, 2013,he acquired a further5,710,000common shares of CMC Metals Ltd.(the “Reporting Company”) pursuant to his participation in the Reporting Company’s private placement whereby
he participated as to 1,200,000 Units by way of a corporation to
which he is the sole director and officer, named 369 Terminal Holdings Ltd., and 4,510,000 Units in his own name, each Unit consisting of one common share and one Share Purchase Warrant exercisable into one common share of the Reporting Issuer for a two year period at $0. 05 per share if exercised during year one, and $0.10 per share if exercised during year two but before the expiration date of October 30, 2015(the “Acquired Units.
Of the total 4,510,000 Units purchased in his own name, 3,010,000
are flow-through on issuance with the Warrants attached being non-flow-through on issuance.
Thetotal5,710,000common shares represent approximately 16.19%
of the total holdings of the Offeror of the issued and outstanding common shares of the Reporting Issuer.
Immediately prior to the acquisition of thetotal 5,710,000 common shares, the Offer held by way of control both directly and indirectly,6,963,003 common shares in the capital of the Reporting Issuer, representing11% of the then issued and outstanding common shares of the Reporting Issuer. Upon the issuance of the total 5,710,000 common shares pursuant to the Reporting Issuer’s private placement,the Offeror was granted warrants convertible into a total of 5,710,000 common shares of the Reporting Company at $0.05 per share during year one, and $0.10 per share during year two up to the date of expiry of October 30, 2015.These securities together with the 5,710,000
common shares represent an aggregate of 19.70% of the total holdings of the Offeror in the issued and outstanding common shares of the Reporting Issuer calculated assuming exercise of the
all warrants.
The Acquired Units were acquired from treasury in connection with a private placement of the Company completed on October 30, 2013. These transactions were effected for investment purposes and the Offeror could increase or decrease his investments in the Company at any time, or continue to maintain his current investment
position, depending on market conditions or any other relevant factor. The Acquired Units were acquired for a
purchase price of Cdn$0.05 per Acquired Unit for aggregate consideration of $ 285,500.
Additional Information
A copy of the applicable securities report filed in connection with the matters set forth above may be obtained by
contacting:
Mr. Michael C. Scholz
Tel: (604) 605-0166
Looks like we will finally be a producer in 2014
December 04, 2013
CMC Metals Posts Reclamation Bond for Bishop Mill and Hires Mill Manager
Vancouver, B.C.: CMC Metals Ltd. (the "Company") wishes to announce that it has posted the reclamation bond for the Bishop Mill with the Bureau of Land Management in Bishop, California. The reclamation bond posted is US$191,269.00 and enables the Company to commence construction of the tailings pond. Construction of the tailings pond will begin before the end of the year.
The Company further wishes to announce that it has engaged Mr. Jim Mathews as the Mill Manager of the Bishop Mill. Jim has over 30 years experience building and operating floatation plants throughout the Western United States. Jim worked for the Bishop Mill in the past and has expert working knowledge of its operation. Jim will oversee the construction of the tailings pond and operations of the Bishop Mill.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
"Jack Bal"
Jack Bal, CEO
CMC METALS LTD.
The timetable should be as written in a news release some time ago:
"Once the bond is in place, construction activity will begin. The schedule for construction will entail the earthworks for the tailings impoundment that will take an estimated 4 weeks, installation of the liner system that will take an estimated 1 week, facility upgrades and testing will take an estimated 4 weeks. Current mill capacity is 50 tons per day. As part of the upgrades, we are increasing the capacity to 100 tons per day. Prior to the commissioning, we will have a minimum of 500 tons of Radcliff ore delivered to the site for pre-production testing of the facilities."
News Release - Change in President and Chief Executive Officer
Monday, November 25, 2013
Vancouver, B.C.: CMC Metals Ltd. (the "Company") wishes to announce that Director, Jatinder (Jack) Bal, has been appointed as the Company's President and Chief Executive Officer replacing Director, Don Wedman. The Company wishes to thank and acknowledge Mr. Wedman's valuable efforts in his role as President and CEO and looks forward to his continued involvement in the Company as Director.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
"Michael C. Scholz"
Michael C. Scholz
CMC METALS LTD.