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In hindsight, it was pretty obvious that it was over bought. The stock had gone parabolic, and they have not even gone into production yet. The new shares available to sell in July could keep the price capped for a while.
Now we have to wait for production and profits. If delays are kept to a minimum, costs are kept in control, and production levels equal what has been promised, profits should be excellent. We just may need to wait until the end of the year before they are earned and reported.
sorta, I am still here and loving it. I am going to try to keep my enthusiasm to a minimum, however, so I do not jinx it.
Sorta, this is GREAT NEWS! I cannot believe this mine is starting up so quickly.
If this company can earn $.60 per share in operating profit, it is still grossly under priced. However, as you mentioned, the shares coming off restriction could depress the price.
Are these the shares you are talking about coming off restriction?
http://www.northamericantungsten.com/news.html
July 27, 2004
NORTH AMERICAN TUNGSTEN CORPORATION LTD.
Announces Financing
To Fund Restructuring
$5 million to $7.5 million Financing
North American Tungsten Corporation Ltd. (the “Company”) has accepted an offer from the
Vancouver office of Union Securities Ltd. (“Union”) to complete a private placement for gross
proceeds of a minimum of $5 million and a maximum of $7.5 million. The offering is for up to
37,500,000 units. The offering is available to residents of B.C., Alberta, offshore locations and
accredited Ontario residents. Each unit will be sold at $0.20 per unit and consists of one common
share and one-half warrant; each whole warrant will be exercisable in to one common share at
$0.35 for 12 months.
Union will receive 8% of the offering proceeds and 10% of the units sold in the form of broker’s
warrants on the same terms as the warrants attached to the offering. The Company has also
agreed to pay to Union a corporate finance fee of $40,000 plus 250,000 shares and expenses.
The corporate finance fee is payable on closing of the offering.
The offering is subject to Board and TSX Venture Exchange approval, and to due diligence to be
performed by Union.
photoguy, out of respect to sorta and the rest of the posters on this board, I am keeping all my negative comments on the Raging Bull board. I made a few bucks trading this stock, so I really do not have much to complain about anyway. My bigger concern is that non-reporting pink sheet stocks in general cannot be trusted. They can print all the shares they want without letting anyone know. If they were honest, they could at least keep updated shareholder information on their web site.
RNC Gold Announces Sale of Picachos Silver/Gold Property for CDN $20 million
May 26, 2005
TORONTO, Ontario (May 26, 2005) -- RNC Gold Inc. (TSX: RNC) today announced that it has signed a Letter of Intent with its joint venture partner at the Picachos silver-gold project in Mexico, Northwestern Mineral Ventures Inc. (TSX-V: NWT; OTCBB: NWTMF), to amend an existing option. The Letter of Intent grants Northwestern the right to acquire a 100% interest in the Picachos for total consideration of CDN $20 million. Currently NWT has the right to acquire 50% of the project upon the expenditure of CDN $1.5 million and the completion of a feasibility study prior to July 2007.
“This agreement allows us to monetize a non-core asset for the benefit of our shareholders,” said Thomas W. Lough, President and Chief Financial Officer, RNC Gold Inc. “Although Picachos is a very promising property, RNC is focused on maximizing the value of its existing producing gold mines in Nicaragua and its Cerro Quema gold development project in Panama.”
Under the terms of the Letter of Intent, Northwestern will be granted the right, once it has completed a feasibility study, to acquire RNC’s 100% stake in the Picachos Project. The purchase price of CDN $20 million is payable as: CDN $3 million at feasibility, CDN $9 million at the commencement of commercial production, and CDN $2 million on each of the first through fourth anniversaries of the commencement of commercial production. Upon execution of a Formal Agreement, incorporating the terms of the Letter of Intent, Northwestern will issue 100,000 common shares from its treasury to RNC as consideration for the agreement.
The completion of this Agreement will be subject to any applicable Board and regulatory approvals.
The 2005 exploration program at Picachos is continuing, and consists of airborne magnetometer surveys, soil geochemistry and trenching. Work is expected to be complete in the third quarter of 2005. On the Tango gold claims, all the characteristics reported from an initial exploration program suggest that the property may overlie a significant high-sulfidation epithermal gold system with both bulk tonnage and high-grade vein potential.
About RNC Gold
RNC Gold Inc. is a gold mining company focused on projects in the Caribbeanbasin. From its current production base of 100,000 ounces of gold, RNC is positioned for growth through operational efficiencies, exploration potential on property around its present mines, through construction of new mines and the acquisition of new projects. The Company’s main assets include the La Libertad and Bonanza mines in Nicaragua, the Cerro Quema development project in Panamaand the Picachos exploration property in Mexicoas well as the option to acquire 25% of the San Andres mine in Honduras. The Company has 40,243,451 common shares outstanding and on a fully diluted basis there are 63,522,736 securities outstanding.
sorta, thanks for the tip on Cassidy. It looks interesting, but I have decided to focus on mining companies that at least have plans to go into production. There are just too many of these small companies that have what seems like a good reserve, but they have no plans or ability to actually mine it.
sorta, thanks for the info. The fundamentals seem to be amazing.
sortagreen, I am sure you have noticed that NATUF is taking off again. That was a great recommendation. I need to decide soon if I am going to sell half on a double. Go tungsten!
http://finance.yahoo.com/q/bc?s=NTC.V&t=3m&l=on&z=m&q=b
Hecla Complaint
I finally got around to reading the Hecla complaint, and the issue seems pretty minor to me. Great Basin is possibly guilty of causing a 4 month delay. This should be resolved easily.
I saved a copy of the complaint on my web site if anyone else wants to read it.
http://home.earthlink.net/~intelligentbear/heclacomplaint2005hollister.pdf
Logickle, Ameritrade charges $10.99 for pink sheet trades just like any other trade. You have to use a limit order, and the order will usually not be executed until the end of the day, if at all. Selling presents the same dilemma. You have to put in a limit order and hope that there is a buyer around to take it. Since the thinly traded pink sheet stocks do not have a bid and ask, the price you choose on your limit order is a guess. If you are patient, you can usually wait for someone on the other side who is in a rush, and you can get a favorably priced order filled.
Remember, most pink sheet stocks are TOTAL SCAMS. Your risk/reward is MUCH BETTER in Las Vegas. In fact, most penny stocks cannot even be considered "gambles" because they are guaranteed to lose. You will tend to only hear about a penny stock while it is being pumped so that you can buy in time for the dump. When it does dump, the message board idiots will always blame the "paid bashers" and the "naked shorts". Penny stocks always have a great story that never quite pans out. You will hear about a big winner once in a while, but they are one in a thousand. The chance of YOU picking the big winner before it happens is close to zero.
sirotka, the volume was huge yesterday, and I could not find any news. These small stocks sometimes get these kinds of spikes only to drop back down the next day.
You might be better off if Scottrade will not let you buy pink sheet stocks. Most pink sheet stocks are scams. The pink sheets do come in handy, however, for buying Canadian issues if they have not yet listed on a U.S. exchange. Usually, you have to put in a limit order and wait until the end of the day to see if it fills. I use Ameritrade.
OT: Did anyone else buy NATUF? I usually ignore advice on message boards, but I thought sortagreen might be on to something with this one, so I bought in on the last dip. Now the thing is taking off like a rocket! If this continues, sorta is going to be very happy when he gets back from vacation.
http://finance.yahoo.com/q/bc?s=NTC.V&t=6m&l=on&z=m&q=b&c=
Very funny, and deserved! nm
Maybe the disagreement is not so bad...
http://www.resourceinvestor.com/pebble.asp?relid=9297
Great Basin and Hecla Wrangle Over Hollister Project
By Michael J. DesLauriers
19 Apr 2005 at 08:08 AM EDT
TORONTO (ResourceInvestor.com) -- A quarrel has erupted between Great Basin Gold [TSX:GBG/AMEX:GBN] and Hecla Mining [HL] over the interpretation of their 2002 Earn-In Agreement for the Hollister gold project, located on Nevada’s Carlin Trend. Both companies issued a statement Friday indicating that they have been unable to resolve their differing understanding of the deal and as such Hecla has filed a request for clarification of the agreement with the Nevada district court for Elko County.
The Hollister Development Block comprises roughly 5% of Great Basin’s Ivanhoe Property, which is located between Newmont’s Midas gold mine to the north and Barrick’s famous Goldstrike property to the south. GBG acquired Ivanhoe from Newmont in 1997 and outlined three high-grade gold vein systems, which remain open at depth. In 2001, Behre Dolbear completed an estimate on the project which outlined an inferred resource of just over a million ounces. A preliminary assessment of the costs to develop a 600-ton per day underground operation was conducted shortly thereafter and forecast a rate of return of 136% and a net present value of $127 million, assuming per ounce prices of $300 gold and $4.40 silver.
In 2002, Great Basin and Hecla entered into an agreement giving Hecla the option to earn a 50% working interest in the Hollister Development Block by funding an estimated $21.8 million, two-stage advanced exploration and development program or achieving commercial production. The deal also called for Hecla to become the operator upon Earn-in and pay GBG a sliding scale royalty from their share of production based on the cash operating profit per equivalent ounce of gold.
As of the end of 2004, Hecla has spent about $6.1 million with an additional $8 to $10 million budgeted for this year and a feasibility study expected in July of 2006. Indeed, early work at the site seems to have progressed quite nicely and by all appearances should continue to do so despite Friday’s releases. An examination of GBG’s recent AIF filing would indicate that they believe Hecla is attempting to “commingle” the earn-in requirements of Stages 1 and 2, resulting in a longer option period for Hecla to complete “a larger and different Stage 1 program”, and creating uncertainty as to “the size and timing of Stage 2”. The AIF also indicates that Hecla advised Great Basin that, “Newmont would not provide adequate rights to allow Hecla to enter onto the Reclaim Lands and consequently Hecla would not start on the Stage 1 Program.” Hence, the subject of contention would appear to revolve around timeframes.
Hecla, however, has stated that they do not expect that the dispute will affect their commitment. Both companies actually seem quite upbeat.
Commenting on the situation Hecla President Phillips S. Baker, Jr. said, “We're merely looking for a third-party decision on a few parts of the agreement. . . We are continuing full speed ahead on this project and are excited about its upside potential.”
GBG’s reaction to the Hecla news was fairly positive as well. In the company’s release which appeared on the wire about an hour after close, President Ron Thiessen stated, “Great Basin has been insistent on preserving its rights under the Earn-In Agreement. We have had the Agreement reviewed and are confident in our interpretation. I certainly concur with Mr. Baker's excitement about the upside potential of this project and we hope that this action will not prove to be a significant distraction to project operations.”
At close on Friday both stocks printed a new 52-week low. The impact of the news however probably has little to do with the dwindling share prices, as these two companies are taking their lumps like every other listed miner these days. Either way the project seems far too profitable to allow either party the pyrrhic victory of a drawn out day in court.
heidi, do you have a link to the 17 page complaint? I would like to read it.
Can you elaborate on what GBN management did wrong? Is GBN somehow responsible for the excessive delays?
The bickering does not change the fact that the gold is in the ground, and someone is going to make a lot of money when they finally dig it out. I have been in this stock for a few years, and I do not mind waiting a few more as long as someone is working to get the gold out of the ground. Hecla seems more interested in delaying the project than advancing it. That I why I think we should get rid of them as soon as legally possible. If Hecla cannot do the job in a reasonable amount of time, we should find someone who can.
Hecla: You're Fired!
Hecla has been a disaster from the beginning. They were supposed to be an experienced mining company, but they took forever to get permits. I doubt all the blame falls on the BLM. When they finally did get the permits, there was delay after delay. They have obviously not held up their end of the contract, and now they are trying to get a judge to bail them out. Unless they come up with one heck of a bribe, they do not have a chance. All Hecla needed to do was dig a hole in the ground. This was not rocket science.
If Great Basin fires Hecla, they will be starting near square one, however, they will have permits, the startof a tunnel to their gold, and a much higher gold price than 2 years ago. I am sure they would have no trouble finding a new partner who would love to get their hands on that gold. When works begins with a new partner, this stock should easily return to what it is really worth. On this project alone, the share price should be $2 to $3. Add another $2 to $3 for Burnstone, and this is easily a $5 stock.
I am not buying any more yet, but the second they get rid of Hecla, I am definitely buying more shares.
Hecla expects the feasibility study to be completed in July 2006. This means we could have actual production by the end of 2006. This stock is a great value at around $1. I will be buying a few more shares at these prices.
http://www.hecla-mining.com/propExploration.html#Hollister
"Plans for 2005 include excavating approximately 6,000 feet of decline, crosscuts, drill stations and miscellaneous openings. For 2005, approximately 35,000 feet of diamond drilling is planned from underground platforms. Hecla expects to spend between $8 million and $10 million in 2005 on exploration activities. The feasibility study is expected to be completed in July 2006."
Rio Narcea Reports 2004 Financial Results
Tuesday March 29, 8:28 pm ET
TORONTO--(BUSINESS WIRE)--March 29, 2005--Rio Narcea Gold Mines, Ltd. (TSX:RNG - News; AMEX:RNO - News) -
(All figures are reported in U.S. dollars except otherwise indicated)
- Rio Narcea Gold Mines, Ltd. ("Rio Narcea" or the "Company") announces the financial results of the Company for the year ended December 31, 2004.
2004 Highlights
- Write-down of $28.4 million of the carrying value of the El Valle and Carles assets.
- Net loss of $44.4 million ($0.36 per share), due to the write-down, lower production from own operations combined with increased mining costs and the unfavourable U.S. dollar/Euro exchange rate.
- 2004 operating cash flow of $8.9 million.
- $81.9 million held in cash and cash equivalents at year end.
- Gold production from own operations of 118,580 ounces at a cash operating cost of $215 per ounce.
- Aguablanca construction completed with commissioning started in mid-December.
- Acquisition of Defiance Mining Corporation completed. Development of the Tasiast gold mine underway.
- Acquisition of the Salave gold deposit, containing 1.5 million ounces of measured and indicated resources. Feasibility study in progress.
- Equity issue raised gross proceeds of $61.0 million (CDN$74.6 million) in October 2004.
- Listing on the American Stock Exchange.
- Establishment of new Corporate office in Toronto.
In 2004, the Company's gold operations delivered lower production and cash flow. The operating loss, before a write-down of $28.4 million, amounted to $17.9 million. In addition to the write-down, the main factors that contributed to the operating loss were: lower production from own operations, the increased mining costs because of the transition to underground operations and the unfavourable effect of the U.S. dollar/Euro exchange rate. The Company achieved key milestones in its nickel business by advancing the development of the Aguablanca nickel project towards production with the commencement of commissioning in December 2004. With the acquisition of Defiance in September 2004, the Company obtained the Tasiast gold project in Mauritania, a permitted open pit gold project with estimated proven and probable reserves of 9,008,000 tonnes averaging 3.06 g/t or 885,000 contained ounces of gold, and estimated measured and indicated resources (inclusive of reserves) of 12,069,000 tonnes averaging 3.06 g/t gold or 1,185,000 contained ounces of gold. In addition, the Tasiast project has estimated inferred resources of 12,428,000 tonnes averaging 2.25 g/t gold or 899,000 contained ounces of gold.
Fourth Quarter Highlights
In the fourth quarter, Rio Narcea reported a net loss of $31,366,000 ($0.21 per share), compared to earnings of $2,759,000 ($0.02 per share) in the same period in 2003. The loss includes a write-down of $28.4 million of the carrying value of the El Valle and Carles assets. Revenues were $15,816,000 compared to $15,565,000 in the fourth quarter of 2002. Cash flow from operations for the quarter was negative $3,354,000 compared to $6,843,700 in the same period last year. This decrease for the fourth quarter of 2004 is attributable to making the transition from open pit to underground mining at both the El Valle and Carles mines as well as a 10% appreciation of the Euro versus the U.S. dollar.
2004 Financial Results
For the fiscal year ended December 31, 2004, Rio Narcea generated net loss of $44,444,900 ($0.36 per share) compared to net earnings of $3,206,800 ($0.03 per share) in 2003. The following factors have affected the results for 2004:
- Gold sales amounted to $67.8 million in 2004, of which approximately $47.3 million came from gold production at El Valle and Carles and $20.5 million came from gold produced from treatment of the Nalunaq ore. As such, sales from Carles and El Valle in 2004 were $13.5 million less than sales in 2003. Furthermore, mine costs were $30.1 million in 2004, slightly higher than the $28.2 million incurred in 2003 due to the increased underground mining costs and despite the lower production.
- Variations in the U.S. dollar/Euro exchange ratio had a negative impact on operating expenses. Most operating expenses are denominated in Euros (EUR), and average exchange rates for 2004 and 2003 were $1.24/EUR and $1.13/EUR, respectively, representing an increase of approximately 10% during 2004. By way of example, had the exchange rate in 2004 been the same as in 2003, the operating expenses would have been $6.2 million lower in 2004.
- As a result of the lower existing reserves and revised mine plans for El Valle and Carles, which were implemented in December 2004, and are currently under optimization, a $28.4 million write-down of those assets was recorded in the Consolidated Statement of Operations for the year ended December 31, 2004.
While the Company's 2004 total consolidated gold revenues, inclusive of the gold produced from the Nalunaq ore, increased to $67,787,600 in 2004 compared to $60,818,100 in 2003, revenues from the El Valle and Carles operations were $47.3 million in 2004 as compared to $60.8 million in 2003. In 2003, all gold revenues were from the El Valle and Carles operations of the Company. In 2004, gold sales were from the El Valle and Carles operations ($47.3 million) and from treatment of Nalunaq ore (approximately $20.5 million).
The average realized gold price, including the effects of gold and foreign exchange hedging, was $408 per ounce in 2004, up from $356 per ounce in 2003. The effect of the higher gold price on sales from the El Valle and Carles operations amounted to approximately $6.2 million. The average spot gold price in 2004 was $410 per ounce versus $363 per ounce in 2003.
Cash flow generated from operating activities was $8,877,600 in 2004 compared to $21,117,700 in 2003. Reduction in operating cash flow was primarily due to increased underground mining costs, the effect of the exchange rate and lower head grades, compared to 2003, and was partially offset by higher than expected gold prices and gold production from the Company's own operations. Before changes in working capital items, operating cash flow amounted to $10,139,300 in 2004 compared to $22,829,700 in 2003.
The Company's liquidity improved markedly during 2004. Even though the investing activities consumed larger amounts of cash than the past few years, mainly for the construction and development of its Aguablanca nickel mine; cash generated by operations and new equity more than compensated these expenditures leaving the Company with a cash balance of $81,888,800 at year end 2004, up from $32,861,600 in 2003.
The following table sets forth the Company's capital expenditures on mineral properties, excluding the acquisition of EMC ($5,000,000) and Defiance (positive effect on cash of $2,648,000):
(in millions) 2004 2003 2002
---------------------------------------------------------------------
El Valle mine development $ 8.4 $ 7.1 $ 4.6
Carles mine development 0.3 2.9 -
Aguablanca project and purchase of
equipment 41.5 28.8 1.2
Tasiast 2.0 - -
---------------------------------------------------------------------
Total $ 52.2 $ 38.8 $ 5.8
---------------------------------------------------------------------
---------------------------------------------------------------------
The Company's working capital increased at the end of 2004 to $82.6 million compared to $29.7 million at the end of 2003, due mainly to the increase in cash, largely the result of the equity raising in October 2004, and government grants receivable, offset by a significant increase in accounts payable, which were mostly related to the construction of the Aguablanca mine.
Long-term debt was $31,109,000 at December 31, 2004, compared to $6,706,000 at the end of 2003. The increase is almost entirely related to the draw down of $30.0 million under the credit facility granted by Investec and Macquarie to finance the Aguablanca project and the EUR 5.0 million (approximately $6.8 million) subsidized loan also drawn down in respect of the Aguablanca project, partially offset by repayments of the facilities granted by Deutsche Bank for the El Valle project.
Financial Highlights
Three Months Twelve Months
Ended Dec. 31 Ended Dec. 31
($000 except where stated) 2004 2003 2004 2003
---------------------------------------------------------------------
Financial Results
Revenue 15,816 15,565 67,788 60,818
Net income (loss) (31,366) 2,759 (44,445) 3,207
Cash flow from operations (3,354) 6,844 8,878 21,118
Net income (loss) per share (0.21) 0.02 (0.36) 0.03
Weighted average shares outstanding -
basic (million) 150.6 99.4 124.3 98.7
December 31, September 30, December 31,
2004 2004 2003
Financial Position
Cash and cash equivalents 81,889 30,003 32,862
Working capital 82,575 38,062 29,702
Total assets 281,910 240,212 162,390
Shareholders' equity 191,320 156,056 121,358
Long-term debt 31,109 31,960 6,706
---------------------------------------------------------------------
Production Highlights
Gold production from the Company's own operations in 2004 was 118,580 ounces compared to 174,175 ounces in 2003. In addition, the Company treated 93,780 tonnes of Nalunaq ore (13% of plant capacity). Tonnage from the Nalunaq mine was less than anticipated under the terms of the existing treatment agreement with Nalunaq Gold Mine A/S ("Nalunaq"). The lower year-over-year production from Carles and El Valle was due to a 16% reduction in head grade (from 7.6 grams per tonne in 2003 to 6.4 grams per tonne in 2004), combined with 20% less tonnes of ore processed from own ore, basically as a result of the processing of Nalunaq ore under the Nalunaq agreement. Cash operating cost for the Carles and El Valle operations was $215 per ounce, compared to $146 in 2003. The increase was primarily due to the transition from open pit to underground operations at both the El Valle and Carles mines, together with an appreciation of the Euro versus the U.S. dollar of approximately 10%, which negatively affected operating costs.
2004 2003
Rio Rio
Narcea's Nalunaq Narcea's
operations ore (a) Total operations
---------------------------------------------------------------------
Operating Data
---------------------------------------------------------------------
Gold production (oz) 118,580 50,297 168,877 174,175
Plant throughput (tonnes) 606,713 93,780 700,493 761,631
Head grade (g/t) 6.4 17.1 7.8 7.6
Recovery (%) 95.0% 97.3% 95.6% 94.1%
Gold Production Costs ($/oz)
Cash operating cost ($/oz)(b) 215 397 269 146
(a) There was no processing of Nalunaq ore in 2003.
(b) Cash operating costs include deferred stripping and other mining expenses, plant expenses, smelting, refining and transportation and sale of by-products.
Mining Operations and Development Projects Review
El Valle Mine
The El Valle mine is the Company's main operating gold mine situated in northern Spain. At year end 2004, proven and probable gold reserves declined to 149,000 ounces of gold from 219,000 as at December 31, 2003. In addition, the mineral reserves as at December 31, 2004 contain 17.6 million pounds of copper. All mineral reserves are within the underground operations, except for the estimated 47,000 ounces of gold included in the 193,000 tonnes of stockpiled ore.
In 2004, the mine made the transition from an open pit to an underground operation. Open pit mining was completed in August 2004, and the Company is now implementing a plan for the pit to be used as the future tailings containment area. Underground mine production reached 8,000 tonnes per month during the fourth quarter of 2004, with 20,000 tonnes per month expected for 2005.
In December 2004, revised mine plans for the El Valle and Carles mines were developed, and are currently being optimized. A significant increase in mining costs is expected, due to the lower mining rate because of the difficult ground conditions at Boinas East zone of the El Valle mine, coupled with the ore being lower grade. The Company evaluated for impairment the book value of the El Valle mine, the Carles mine and the El Valle plant, which processes ore from both the El Valle and Carles mines, and based on the current reserves and operating costs, determined that a write-down of $28.4 million was appropriate. The gold production at the El Valle and Carles mines for 2005 is expected to be approximately 70,000 ounces at a cash operating cost of $385 per ounce.
Underground infill drilling at El Valle concentrated on the Monica zone, northeast of and below the Boinas East pit, and within two zones of mineralization between the El Valle and Boinas East pits. Drilling has extended the known mineralization to the east. Additional drilling was completed to evaluate the North Black Skarn zone south of the El Valle pit and the high-grade Charnela South zone. Additional underground infill drilling at El Valle is planned for 2005.
Carles Mine
The Carles mine accounted for approximately 12% of the total production in 2004. The Company started underground mining at Carles East in mid-2003. Open pit production at Carles was completed in May 2004. Underground mine production reached 11,000 tonnes per month during the fourth quarter of 2004, and is planned to increase to 16,000 tonnes per month during 2005. Proven and probable underground reserves at year end 2004 amounted to 75,000 ounces of gold and 7.3 million pounds of copper (103,700 ounces of gold and 9.4 million pounds of copper as at December 31, 2003). During 2005, an underground infill drilling is planned for the Carles North and East zones.
Milling Agreement
In December 2003, Rio Narcea signed a milling agreement with Nalunaq Gold Mine A/S ("Nalunaq"), a subsidiary of Crew Gold Corporation, for the purchase and processing of high-grade ore from the Nalunaq gold mine in south Greenland. Under the terms of the agreement, Nalunaq was to sell to Rio Narcea four to five batches per year of high-grade ore for the selling price of the recovered gold less a milling fee, essentially a "tolling fee" arrangement. The agreement also provides for an efficiency fee to Rio Narcea for improved plant recoveries. Either party may terminate the agreement on three months notice.
In 2004, the El Valle plant processed 93,780 tonnes of ore grading 17.1 g/t gold to produce 50,297 ounces of gold. For 2005, Nalunaq is projecting four to five shipments of approximately 40,000 tonnes each for the year, the Company is currently conservatively planning for three shipments, but will process further shipments as received.
Aguablanca Mine Project
In mid-December 2004, the construction of the Aguablanca open pit Ni-Cu-PGM mine and its on-site processing facilities was finalized, with commissioning commencing immediately thereafter. Certain design modifications that affect the SAG mill and flotation circuit have been identified and are being implemented at the contractor's cost under the existing lump-sum turn key contract for he construction of the plant. Performance tests to be completed by the contractor, Fluor Corporation, are required prior to handing over the plant facilities to the Company. The mine plan and process facilities have been designed for annual production of 18 million pounds of nickel, 11 million pounds of copper and 20,000 ounces of PGM. Estimaed proven and probable reserves at year end were unchanged at 15.7 million tonnes grading 0.66% nickel, 0.46% copper and 0.47 g/t PGM.
In conjunction with commencement of construction of the mine, construction of a 3 km decline to access the higher grade mineralization below the Aguablanca open pit also commenced. The decline is designed to allow early mining of the known higher grade material below the pit and will also facilitate further exploration at depth. It is advancing at the scheduled rate. The decline had advanced approximately 1,150 metres from the portal as at December 31, 2004 and is expected to reach the higher grade nickel mineralization in the second quarter of 2005 when infill drilling will commence. It is anticipated that underground mining of this area will commence in the first half of 2006 at a rate of approximately 285,000 tonnes per year. The Aguablanca plant has been designed and constructed to accommodate this additional annual tonnage with minor variations and without displacing open pit ore.
The capital and other operating expenditures during construction to construct the Aguablanca mine are EUR 62 million (approximately $85 million). As at December 31, 2004, EUR 55 million (approximately $74 million) of the planned expenditures had been spent. In addition, working capital and value added tax ("VAT") during construction amounted to EUR 10 million (approximately $14 million), of which EUR 5 million has been paid (approximately $6 million).
Development Project Review
Tasiast Gold Project
Rio Narcea announced on June 30, 2004 that it had signed a definitive agreement with Defiance whereby Rio Narcea, pursuant to a plan of arrangement, would acquire all of the shares of Defiance. The plan of arrangement was approved by the shareholders of Defiance and by the court resulting in the transaction closing on September 3, 2004.
As a result of the Defiance transaction, Rio Narcea now owns 100% of the Tasiast gold project located in Mauritania, West Africa. The project is already permitted and a bankable feasibility study was completed in late April 2004 by SNC-Lavalin Inc. The project contains total measured and indicated mineral resources of 1,185,000 ounces of gold contained in 12,069,000 tonnes grading 3.06 g/t, which includes 885,000 ounces of proven and probable mineral reserves contained in 9,008,000 tonnes grading 3.06 g/t. In addition, the deposit contains an inferred mineral resource of 12,428,000 tonnes at 2.25 g/t gold for a total of 899,000 ounces, based upon a cut-off grade of 1.0 g/t gold.
In mid-September 2004, Rio Narcea started a 5,000-metre drill program to test the depth extension of the high-grade zone beneath the main pit (Piment Central deposit). The drilling was completed in late October 2004 and the high-grade zone was traced to a depth of 300 metres below surface. While the drill results show continuity and good grades in places, the width of the mineralization appears to decrease. However, when combined with the deep holes drilled by Defiance earlier in 2004, the results suggest there is strong potential to add high grade mineral resources amenable to underground mining, which would further enhance project economics. The drill results are being evaluated and detailed work on the deep mineralization will be undertaken as open pit mining progresses.
In early January 2005, Rio Narcea awarded the basic engineering for the Tasiast project to SENET, an international engineering, design and project management company based in South Africa. This work is expected to be completed in early April and the Company will finalize the overall engineering and construction contracts for the project thereafter. Meanwhile, other infrastructure work, including surveying for the access road and process water pipeline, is continuing.
Construction of the project will be financed by the use of a combination of project debt financing and the Company's projected future operating cash flow.
Pre-development Project Review
Salave Gold Project
On October 28, 2003, the Company acquired 85% of the shares of Exploraciones Mineras del Cantabrico, S.L. ("EMC"), a Spanish exploration company which owns the mineral rights to the Salave gold deposit located in Asturias, Spain. At the time of the transaction, the mineral rights were leased to a third party. On March 9, 2004, that existing lease agreement was terminated, giving the Company, through EMC, the sole right to develop the deposit. Later in 2004, the Company's interest in EMC was increased to 93.7% as a result of EMC completing two equity financings in which the minority shareholders did not participate.
In May 2004, the Company started the work required for a full feasibility study, including the compilation of previous exploration and drilling information into a single database and the initiation of a 15,500-metre infill drilling program. The Company also started the permitting process for the project.
The infill drilling program was approximately two-thirds complete at the end of December, results from which were released in September and January. A total of 10,300 metres have been drilled in 48 holes to close the drill hole spacing to 25 metres. A review of the deposit indicates that four of the principal zones of mineralization remain open for possible additions to the current mineral resources. In addition, the drilling campaign has extended the high-grade Mirayos zone to the northwest and increased the average grade of the Lagos zone in the south central sector of the deposit. Completion of the analysis of the drilling data from all of the holes of the program is anticipated early in the second quarter of 2005.
During 2004, a technical resource report compliant with National Instrument 43-101 for the Salave deposit was filed. The report was based on all available information and drill data from previous work on the project and included the first 15 holes from the current infill drill program. The study estimates the Salave project contains a measured and indicated mineral resource of 1.5 million ounces of gold in 15,195,000 tonnes grading 3.0 g/t gold using a cut-off grade of 1.0 g/t gold. An additional 0.2 million ounces of gold is estimated to be contained in 2,813,000 tonnes grading 2.5 g/t gold is in the inferred mineral resource category. The mineral resource estimate is summarized in the table below:
Salave Project - Mineral Resources (@1 g/t gold cut-off)
Tonnes Grade Contained Ounces
(000's) (g/t) Gold
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Measured resources 354 2.70 30,730
Indicated resources 14,841 3.00 1,431,446
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Total 15,195 2.99 1,462,176
Inferred resources 2,813 2.47 223,387
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The mineralization at Salave is refractory in nature. Metallurgical testwork has been done by Ausenco Ltd. of Australia to confirm the good flotation characteristics of the ore. Feasibility study plant design will also be done by Ausenco using pressure oxidation treatment ("POX") of a flotation concentrate as part of the process. The requisite permit applications, metallurgical and hydrological work, and other activities in addition to the infill drilling required for a bankable feasibility study are continuing.
Review of Exploration Properties
Ossa Morena Regional Exploration
Rio Narcea continued a regional exploration program on its 4,600 km2 Ossa Morena Belt properties in 2004 to identify exploration targets for drilling. The program identified numerous, mafic-ultramafic intrusives with potential for nickel sulphide mineralization. In addition, exploration was initiated to assess the region's potential for iron oxide copper-gold ("IOCG") mineralization.
Nickel-PGM Exploration
The nickel sulphide exploration program included geological mapping, soil geochemical surveys and surface geophysical surveys to define targets for drilling. In Spain, several targets with coincident geochemical and geophysical anomalies were drilled; while in Portugal drilling was completed to test nickel and PGM targets in the southern Beja block and in the northern Campo Mayor area. A deep hole at Cabeco de Vide was in progress at year-end to test a large, highly conductive geophysical anomaly.
Although the 2004 drilling generated encouraging results, the nickel mineralization identified thus far has been sub-economic. Further evaluation of these results is underway to gain better understanding of the mineralizing processes and rock types to direct future exploration in the region.
IOGC Exploration
The Ossa Morena region was once considered an important iron-producing district in the Iberian Peninsula but the copper and gold content of these occurrences has never been systematically investigated. As part of Rio Narcea's regional reconnaissance program, many old iron mines and occurrences were investigated for copper and gold mineralization and many samples taken contained highly anomalous copper and gold values. Follow-up soil geochemical surveys defined large areas of anomalous mineralization and alteration that forms a 100 km-long belt of copper and gold occurrences, with a significant IOCG potential.
Mineral Reserves and Resources
At year-end the Company had proven and probable reserves of 1,109,000 ounces of gold based on a gold price of $400 per ounce at El Valle and Carles and $370 at Tasiast. The exchange rate used at El Valle and Carles was $1.23/EUR in 2004, thus resulting in a gold price of EUR 325 per ounce in 2004. The above mineral reserves contain significant copper, amounting to 24.9 million pounds, which will contribute significantly to the revenue stream through copper concentrate sales.
In addition to proven and probable reserves, measured and indicated resources for the Company's gold operations and projects amounted to 3,546,000 ounces of gold. Inferred resources totaled 1,931,000 ounces of gold.
On the nickel business side, proven and probable reserves were unchanged at 15.7 million tonnes grading 0.66% nickel, 0.46% copper and 0.47 g/t PGM.
Mineral reserves and resources are summarized in the table appended to this press release.
2005 Outlook
For Rio Narcea, 2005 is expected to be a key year. With the commencement of commercial production at its Aguablanca Ni-Cu-PGM mine in Spain, commencement of construction of its Tasiast gold project in Mauritania, the scheduled completion of a bankable feasibility study on the Salave gold project in Spain, Rio Narcea is well positioned to benefit from a resurgent metals market. Over the last decade, the Company has proven its ability to permit and develop mines within the European Union, while adhering to the highest standards of environmental and social practice. Based on this valuable experience, Rio Narcea will continue to seek out and evaluate acquisition and growth opportunities in acceptable geographic and political locations, both within and outside the Iberian Peninsula.
In 2005, gold production from its existing operations is expected to decrease to approximately 70,000 ounces at a cash cost of $385 per ounce as these operations are now entirely underground mines, with lower tonnages and lower grades. Rio Narcea is planning to continue to treat ore from the Nalunaq gold mine as received, which will assist in keeping the plant at El Valle running at or near full capacity, thus defraying some of its operating costs. There are no major capital expenditures budgeted at the existing gold operations during 2005, other than the continuation of the underground development at both the El Valle and Carles mines; however, the development of the Tasiast open pit gold mine, which is underway, is expected to require capital expenditures in the order of $36 million during 2005.
In 2005, the Company plans to complete a bankable feasibility study and pursue the permitting process for the Salave gold project in Spain, which will include the completion of a 15,500-metre infill drilling program on the Salave deposit and metallurgical testwork.
The completion of the commissioning of the Aguablanca nickel project is expected in the second quarter of 2005. Currently, the plant has achieved 72% of the design throughput and 55% of the design nickel grade in concentrate, 100% of the design copper grade in concentrate, 70% of the design nickel recovery and 100% of the design copper recovery. Aguablanca is projected to generate significant free cash flow over its mine life, and the opportunity exists to increase returns through the successful development of an underground mine below the open pit portion of the deposit. The construction of a 3,000 metre production decline is progressing on schedule, with approximately 1,500 metres completed as at February 28, 2005. This decline will be used for detailed infill drilling at depth, which should commence in the second quarter of 2005, and future underground production of higher grade material.
Rio Narcea is looking forward to unlocking the nickel sulphide and IOCG potential of its large landholdings in the Ossa Morena region by continuing to investigate the numerous targets identified by the recent geophysical and geochemical regional programs. Rio Narcea will also seek suitable joint venture partners to advance the exploration of and share the exploration risk on a large part of its 4,600 km2 concession.
More at: http://biz.yahoo.com/bw/050329/296038.html?.v=1
Obviously, this company is failing miserably in meeting its goals. The losses are a big disappointment. And the cheap private placement shows even the big money is losing patience.
There is a new fact sheet available on their web site that I had not seen until now. It shows that expectations for 2005 have been greatly reduced (133,000 ounces), but 2006 is expected to be a banner year (236,000 ounces). Why is it that "next year" is always going to be the great year?
http://www.rncgold.com/downloads/factSheet.pdf
billg, thank you for the update. First April, then May, and now June. This reminds me of the permit approval. I really do not mind waiting, but I hate that fact that we are constantly being given over optimistic, unrealistic time tables. When will these guys figure out that the market likes it when expectations are beaten, not missed?
amarksp, please share your current opinion on Glencairn. I know you have been positive on the stock in the past. They just listed on the Amex as GLE. This might make the stock more attractive to U.S. investors. The stock seems to be trading at an attractive valuation.
sortagreen, I love America, and I think what Bush is doing will ultimately be very beneficial to this country and the world. You are free to disagree.
As for this company, I have been watching it for a long time. I decided it was probably a scam after that diamond find made national news and the rally could not be maintained. It looked to me like some was selling large amounts of shares into that rally, probably insiders or the company itself. Since then, I think they have been able to come up with any new press releases because they are not actually doing anything. The financing fiasco has been an ongoing joke.
I wish the longs luck, though. Maybe they will get some money, dig some holes, find some diamonds, and develop an economic mine. Unlikely though.
sortagreen, the election is over. You lost. Get over it.
BTW, this company is probably a scam.
I said that I thought this was a scam 2 months ago, and it looks like I have been proven right. Of course, figuring out that a pink sheet stock is a scam is not all that difficult. Sure, they still might get some money, do some digging, and find an economic diamond deposit. If that happens, I will be the first to congratulate the longs. I just think it is extremely unlikely.
Posted by: OriginalFred
Date: 12/4/2004 2:24:36 PM
This stock is a dilution machine scam in my opinion.
It is extremely unlikely that they will ever mine diamonds profitably, but even if they do, there would be so many shares at that point that the shares owned today would only share in a miniscule portion of the profit.
The share printing here has been astounding. In the last year, the share count has gone up something like 10 TIMES. That news about the diamond find SHOULD HAVE added significant value to the stock. It was OBVIOUS that the company sold millions of shares into that news.
Why do you think they remain on the pink sheets? It is so they can print huge quantities of shares without having to report it. Uninformed share holders are their best customers. Mining suckers’ pockets is much more profitable for insiders than mining diamonds.
Keep in mind that 90% of stocks on the OTC BB are scams, and about 98% of pink sheet stocks are scams. Your odds are TERRIBLE in the pennies. Professionals will not trade penny stocks because they know they are the sure way to the poor house.
Why do I bother to post this when I know I will be labeled a "basher" or a "naked short"? Because I have been reading this board for a while, and it obviously needs a dose of reality. I apologize for shattering the fantasy, but a dilution machine pink sheet stock is not going to make you rich!
Hecla says 2 year wait on Hollister
Listen to the Hecla interview on this site. It may require a quick registration. The President/CEO of Hecla, Mr. Baker, was quick to talk about Hollister, but he said that it would take 2 years to finish exploration. After that, they will make a decision on going forward with the operation of the property.
http://www.wallst.net/
2 years is a long time to wait, but on the bright side, gold may be $600 an ounce by then.
shepper, you seem like an honest guy, and I hope you make money here. In fact, I hope everyone does, even those who call me names. And I am not saying it is impossible. Who knows what they will find and how profitable it might be? I am just saying odds are aginst it.
I follow stocks like this because I am fascinated by small stocks that are possibly scams. Following these stocks and the people that pump them is like watching a soap opera.
I will shut up now. I wish everyone luck.
Tek, the difference between this pink sheet scam and APLL is that APLL is not printing millions of shares. Other than that, they may prove to be similar in the long run. We shall see.
With all the attacks on me, no one was smart enough to answer a simple question. I will restate it for the delusional on this board.
After the wonderful diamond find news that was even picked up by the national media, why did this stock quickly dive after the original pop? There is only ONE explanation! Dumping! Why is that so difficult to understand?
And the "financing" that the pumpers have been talking about for months will be another trick on the suckers, if it ever comes, that is. No one is going to loan this scam money. Any "financing" will be money in exchange for a massive amount of shares at a greatly discounted price. Those shares will be subsequently dumped on the market. The real reason the "financing" has not come through is because no "financing" company can be found that thinks they can dump the shares fast enough before the price of the stock drops below their discounted price.
I am sorry that I have disrupted the fantasy world on this board. Hey, but it is a free country and it is YOUR money. You are free to throw it away any way you would like.
Outstanding Shares: 50,000,000 as of 2003-08-06
How many shares are there now? At least 600,000,000 last I heard. Probably a lot more after the massive dumping during the diamond find announcement. If you think this company is honest, why do they not report? If they wanted to be honest with their share holders, they would list on the OTC BB and file financial reports. The only reason they would not do this is if they think it would hinder their ability to print infinite quantities of stock.
As for pink sheet stocks, look how many were listed last week. And that was a light week.
http://www.pinksheets.com/marketactivity/getstats?action=daily_listing_venue_change4&fromdate=yd...
Now look how many stocks made it on to a real exchange.
http://www.pinksheets.com/marketactivity/getstats?action=daily_listing_venue_change2&fromdate=yd...
If you think the pink sheets are going to make you money, you are dreaming.
This stock is a dilution machine scam in my opinion.
It is extremely unlikely that they will ever mine diamonds profitably, but even if they do, there would be so many shares at that point that the shares owned today would only share in a miniscule portion of the profit.
The share printing here has been astounding. In the last year, the share count has gone up something like 10 TIMES. That news about the diamond find SHOULD HAVE added significant value to the stock. It was OBVIOUS that the company sold millions of shares into that news.
Why do you think they remain on the pink sheets? It is so they can print huge quantities of shares without having to report it. Uninformed share holders are their best customers. Mining suckers’ pockets is much more profitable for insiders than mining diamonds.
Keep in mind that 90% of stocks on the OTC BB are scams, and about 98% of pink sheet stocks are scams. Your odds are TERRIBLE in the pennies. Professionals will not trade penny stocks because they know they are the sure way to the poor house.
Why do I bother to post this when I know I will be labeled a "basher" or a "naked short"? Because I have been reading this board for a while, and it obviously needs a dose of reality. I apologize for shattering the fantasy, but a dilution machine pink sheet stock is not going to make you rich!
amarksp, I would be very interested to hear your opinion on the 3Q results. Were they as you expected?
billg, you did mention Golden Cloud. I guess I forgot reading your post...
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Posted by: billg711
Date:7/24/2004 12:34:44 PM
Post #217 of 241
GBN: Talked With the Company Yesterday
As was the probability, the Gold Cloud mining operation, which is adjacent to the main GBN property, in Nevada, did not turn up any added reserves. It was not expected to, but there was some hope that it might.
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I have no problem holding this stock as a significant percentage of my portfolio. I think it is as close to a guaranteed winner as you can get as long as you are willing to wait a few years. I was actually pleased with the drop below $1.25 because I thought it was the first great buying opportunity in a long time.
Amarksp's "market cap per resource ounce" table also got me interested in NovaGold. I bought in the $5s. After a brief trip to $4, it is doing well now. I think it offers good value even at the current price. I also own some Alamos. Amarksp, can you post an updated table?
Thanks, amarksp. I was not implying that Great Basin was hiding anything; I just did not remember a press release. I think Great Basin's proven properties are PLENTY exciting, and Golden Cloud was a nice try, but it was not important. Actually, I am pleased that they were willing to give it up quickly when nothing good was found.
I own large quantities of this stock, and I even added more recently at the fire sale prices in the low $1.20s. The delays were frustrating, but everything seems to be on track now.
No silver lining for Golden Cloud
I did not realize that Great Basin had given up on Golden Cloud. This project was started with an enthusiastic press release.
http://www.greatbasingold.com/gbg/NewsReleases.asp?ReportID=75900&_Type=News-Releases&_Title...
But Golden Cloud floated away without a mention.
http://www.atna.com/s/Nevada.asp?ReportID=65333
"Great Basin Gold completed approximately 1,600 meters of drilling before handing the property back to Atna. Atna will evaluate the data and look for another partner to advance the property further."
Hecla Defers October 1, 2004, Preferred Dividend
Thursday August 5, 6:29 pm ET
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Aug. 5, 2004--Hecla Mining Company today announced that to conserve cash for exploration, development and acquisition opportunities, Hecla's board of directors has elected to continue to defer preferred dividends by deferring the October 1, 2004, quarterly payment of dividends to the holders of Hecla Series B Cumulative Convertible Preferred Stock.
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It looks like Hecla may be saving some money to FINALLY develop Hollister.