Chester Mining (CHMN)

[sanbrunobaby]

Interesting discussion. To me CHMN and RVN two plays on silver but different plays. Probably a place for both in a portfolio.

In response : I see no reason to doubt 3 NI43-101 reports quote of 50 million ounces at Chester. Plus keep in mind neither Sunshine Mining or Sterling made any big effort to increase underground resources. At the Sunshine according to the NI43-101 reports and Sunshine Mining reports grades on Chester ground increased at depth. So resource could very well be much higher. Second, key target areas at Sunshine on Chester ground, i.e. bodes well for increasing Chester reserves.

Second, 20% of profits + 4% NSR is quite expensive for Sunshine, will be much more economical to buyout Chester. Remember both Sunshine and Sterling controlled Chester so wasn't such a big issue. De Motte in one of his first moves made sure of this - after he left new management lost control of Chester.

Third, no doubt RVM has leverage to silver and with narrower spread, and easier valuation, my opinion is in early stages of silver boom will go up- however they have larger float and certainly will take advantage of silver boom to raise money and issue more shares. Chester is opposite- they will benefit more in later stages of silver boom, or when Sunshine buys them out. Chester traditionally doesn't issue shares. Just my opinion CHMN will in long run on a percentage basis outperform.

As far as Rock Creek and Montanore the permitting effort has gone on for decades.

Anyway both plays on silver going up !