Gold Investment Strategy

Century Mining is rapidly expanding production of gold

Century Mining Inc.
TSX. V – CMM

Many investors goldrums foot and packing suitcases for the holidays, he observed that the summer is scratching their heads to look for promising stocks rebounding recent rectification of gold.

Possibly the right approach is currently looking to buy, to investors who are currently in Cuba Libres hugging the cool sticky paper umbrellas and question if they return to their summer holiday option.

Century Mining (CMM. V – TSX) has all the prerequisites for a major buy, not just today but every penny way back to the gold requirements of $ 600 per small amount. The two mines produced a total of more than 5 million ounces of gold inferred from the ground – with several other promising plays in the pipeline – it could be argued a century, started to trust his own way a very rosy picture.

In 2004, bought the Sigma-Lamaque Century mine in Quebec McWatters Mining Inc., which was when the attack hit a bankruptcy blues. McWatters was more than C $ 150,000,000 invested in the project, including $ 20,000,000 to expand the capacity to mill 5,000 tonnes per day. With an estimated resource of 4 million ounces of land in an open pit deposit has brilliant opportunities for the mining tunnel (on the Lamaque). And here’s the kicker Century selected up the assets of $ 25. 8 million. Century, when the transfer is less than U.S. $ 325 per small amount, if they have the ROE has been remarkable, to say the least.

By all accounts, is a preventive purpose century. At its last meeting of the shareholders of the company addressed the obstacles to improve productivity Simga-Lamaque. Most critical were lorry outdated facility, chronic mechanical breakdowns, resulting in a slowed pace of removal of the back. Century recently bought four new trucks, 100 tons, of which two are plotted to reach 8th July followed by two more later this summer.

At Sigma, Century 19 000 ounces of gold produced in the first quarter of 2006 and the estimated production of 90,000 per year. Tom Thomsen, Century’s Investor Relations Detective, said: “In the first quarter, our car there was 33% when it is 80% of the case. Now we have four 100-ton lorry, so that we will soon increase of 15% of the vehicle, plus 10 % saving in operating costs. ”

If you look at other ways to increase the output of the century looked south of the Equator and Peru was ready to deal with the production of another promising. Last week the company announced that the San Juan Gold Mines NV, Peru is a subsidiary of Century’s 50-year mining leases, and all of San Juan claims totaling 16,300 hectares.

Although approximately 35 mineralized structures have been identified adjacent to each other, structures for the benefits that this buy includes only two (the Mercedes and San Juan in the veins) is extracted. At the time of buy, the existing plant in San Juan is a production of 150 tonnes per day on average, about 8 g / t gold.

Rate this transaction was no less remarkable than a century to buy the Sigma Lamaque involved in a project off the edge of bankruptcy. In this case, the manufacturing equipment was not terrible, but poor security and management, the owners of the mine to its knees.

Thomsen clarified that the previous owner had small or no financial security. “The end we reached was that the informal miners went to property in this valley and the mining of principle alone. We believe – and these are conservative estimates – that somewhere 20-25000000 dollars a year from the property.”

Century local security company hired to stop a blatant theft of ore from the property, but also informal teams were invited to continue the century the ore, and negotiated a competitive price for their work.

There is small saving in the work, to be held in San Juan. Mill site has a capacity of 700 tons per day and only a fraction of that in the recent past has been scratched. Century plans to bring gold production of 5,000 ounces to 80,000 ounces this year, two years from now.

2000 crash commissioned by the previous owners and audited by an independent consultant evaluating the source of the fourth 4 million tons of 8th grade 68 g / t gold and 1 23000000 ounces. It is clear that the promising observations has not yet unmined Golden Champune with historical estimates of historical treasures 185000000 classification of 1-3 grams per tonne per tonne, but still does not comply with 43-101.

So, I was not ready for the production of historical sources first 23000000 ounces to go to these days? Well, if you Peggy Kent (Mrs. Kent about one minute), about $ 7 U.S. dollars per small amount in the ground. Bought U.S. dollars in the 9th Century 9 million in debt (Banco Wiese Sudameris) U.S. $ 2. € 5000000, 1000000 U.S. dollars shall be paid to the previous owner and the local miners’ earnings are paid in exchange for 60% of my property. The final price tag was $ 5. 1000000 1000000 run of the mill shares in issue plus the century.

A century at the helm is none other than Peggy Kent, who in 1990 founded the Royal Oak in mining and later named “Woman of the Year” by the chatelaine magazine “Newsmaker of the Year” by the Canadian National Post newspaper. Acute negotiator, Kent frenzy when they need to have Barrick was $ 2. 4000000000 tender War Lac Minerals Ltd., a company that is overshadowed by Royal Oak Mines.

Ms. Kent genealogy as clever negotiator, has landed a generous deal with a century in San Juan early as 2004. We reached an agreement with the previous owner of property – the widow of a businesswoman in Peru – Mr. Kent’s creditors immediately approached me and place it in essence to deal with, Century 60% of my property.

Recent negotiations with San Juan Gold Mines NV shareholders – mainly to local residents on or near the mine – this percentage increased to 90%. And one last battle against business acumen, Kent, the team will pay attention to investment and capital costs, reduced SJGM home for up to 4%.

Now, what I call negotiation.


Article Source:How To Invest In Gold And Silver

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