Copper Mountain Mining Announces Q4 and Full Year 2018 Financial Results

Copper Mountain Mining Corporation (TSX: CMMC | ASX:C6C) (the “Company” or “Copper Mountain” – http://www.commodity-tv.net/c/search_adv/?v=298826) announces fourth quarter and full year 2018 financial results.  All currency is in Canadian dollars, unless otherwise stated.  All results are reported on a 100% basis.  The Company’s Financial Statements and Management Discussion & Analysis (“MD&A”) are available at www.CuMtn.com and www.sedar.com

FOURTH QUARTER 2018 AND FULL YEAR 2018 HIGHLIGHTS

  • Fourth quarter 2018 production was the strongest quarter of the year, with production increasing 9.7% from the prior year to 24.5 million pounds of copper equivalent (comprised of 20.6 million pounds of copper, 8,124 ounces of gold and 62,711 ounces of silver).
  • Full year 2018 production met guidance, with production increasing 4.6% from the prior year to 4 million pounds of copper equivalent (comprised of 78.8 million pounds of copper, 28,250 ounces of gold and 273,913 ounces of silver).
  • C1 cash costs for the fourth quarter decreased 13% compared to the prior year to US$1.60 per pound of copper produced and full year 2018 C1 cash costs decreased 4% compared to the prior year to US$1.77 per pound of copper produced.
  • Revenue for the fourth quarter was $73.1 million from the sale of 19.4 million pounds of copper, 7,475 ounces of gold and 69,761 ounces of silver and revenue for the full year of 2018 was $296.0 million, from the sale of 79.2 million pounds of copper, 26,799 ounces of gold, and 284,086 ounces of silver, net of pricing adjustments.
  • Adjusted earnings per share was ($0.01) for the fourth quarter and $0.02 for the year.
  • Cash flow from operations for the fourth quarter was $28.8 million and $51.3 million for the full year of 2018.
  • In 2018, Mineral Reserves increased at the Copper Mountain Mine, a preliminary economic assessment (PEA) on New Ingerbelle was completed resulting in an after-tax NPV (8%) of US$390 million and a feasibility study was completed for the Eva Copper Project resulting in an after-tax NPV (8%) of US$256 million.

“In 2018, we focused on building a strong foundation from which to grow our business,” said Copper Mountain’s President and CEO, Gil Clausen.  “The Copper Mountain Mine finished the year achieving guidance across all metrics. We are also completing an integrated mine plan which will combine the New Ingerbelle deposit into the Copper Mountain mine plan and may double the mine life. The New Ingerbelle deposit provides the potential to add significant value through the addition of low risk, low cost production, particularly as we evaluate a mill expansion plan, which could allow for increased production levels in our existing mill within our current operating and environmental permits. We expect to complete this integrated life of mine plan and publish a new Technical Report for our Copper Mountain Mine in the first quarter of 2019.”

Fourth Quarter 2018 Financial Review

The Company reported a gross profit for Q4 2018 of $7.9 million, compared to $20.0 million for Q4 2017, and a net loss of $19.0 million in Q4 2018, compared to a net income of $23.5 million in Q4 2017.  The increase in the net loss from net income was primarily a result of a non-cash unrealized foreign exchange loss of $14.7 million compared to a non-cash unrealized foreign exchange loss of $1.8 million for Q4 2017, a change of approximately $12.9 million, which was primarily related to the Company’s debt that is denominated in U.S. dollars. The increase in net loss was also due to lower revenue and higher cost of sales year over year.

The Company recognized revenue of $73.1 million, net of pricing adjustments and treatment charges, on the sale of 19.4 million pounds of copper, 7,475 ounces of gold, and 69,761 ounces of silver and based on an average realized copper price of US$2.81 per pound.  This is compared to Q4 2017 revenue of $85.7 million, net of pricing adjustments and treatment charges, on the sale of to 18.1 million pounds of copper, 5,622 ounces of gold and 67,359 ounces of silver and based on an average realized copper price of US$3.12 per pound for Q4 2017. Despite higher sales, lower revenue year over year was a result of a 10% lower realized copper price in Q4 2018 compared to Q4 2017 and a Q4 2018 mark-to-market adjustment of negative $2.4 million compared to a positive mark-to-market adjustment of $10.3 million in Q4 2017. 

Cost of sales for Q4 2018 decreased marginally to $65.2 million compared to $65.7 million in Q4 2017, even though more concentrate was sold in Q4 2018 than Q4 2017.   This was because Q4 2017 included a $10.8 million write down to the low-grade stockpile, which was included in cost of sales.

Exploration expenditures in Q4 2018 were $1.2 million, which includes exploration in both Australia and British Columbia. 

Full Year 2018 Financial Review

The Company reported gross profit in 2018 of $25.3 million, compared to $59.1 million in 2017, and a net loss in 2018 of $26.9 million, compared to a net income of $67.3 million in 2017.  The increase in net loss in 2018 from net income in 2017 was primarily a result of a non-cash unrealized foreign exchange loss $23.8 million in 2018, compared to a non-cash unrealized foreign exchange gain of $20.9 million in 2017, a change of approximately $45 million, which was mainly related to the Company’s debt that is denominated in U.S. dollars. The increase in net loss was also due to lower revenue and higher cost of sales year over year.

The Company recognized revenue of $296.0 million in 2018, net of pricing adjustments and treatment charges, on the sale of 79.2 million pounds of copper, 26,799 ounces of gold, and 284,086 ounces of silver based on an average realized copper price of US$2.98 per pound.  This compares to revenue of $304.1 million in 2017, net of pricing adjustments and treatment charges, on the sale of 73.9 million pounds of copper, 23,969 ounces of gold and 260,493 ounces of silver, based on an average realized price of realized copper price of US$2.82 per pound. As required under IFRS, revenue in 2017 included a positive mark to market adjustment of $10.7 million for unsettled shipments outstanding at year end, as compared to a negative mark to market adjustment of $0.9 million for 2018 unsettled shipments at year end.

Cost of sales for 2018 increased by $26 million to $270.7 million compared to $245.0 million in 2017. This increase was due in small part to higher costs for diesel fuel, maintenance and power, but primarily due to the change in ore stockpile inventory with a $13.1 million decrease in 2018 charged to cost of sales as compared to a $14.0 million increase in 2017 charged to ore stockpile inventory.  The drawdown of ore stockpiles in the year is a result of increased development stripping as the Copper Mountain Mine starts to expose higher grade areas of the pit for future years.  As required under IFRS, some of these additional costs of stripping are capitalized when the period stripping ratio exceeds the life of mine stripping ratio of 2:1.

Exploration expenditures for the full year of 2018 were $6.5 million which includes exploration in both Australia and British Columbia.

Fourth Quarter 2018 Operating Results Review

In Q4 2018, the Copper Mountain Mine produced 20.6 million pounds of copper, 8,124 ounces of gold, and 62,711 ounces of silver compared to 19.6 million pounds of copper, 5,206 ounces of gold, and 70,384 ounces of silver in Q4 2017. Increased recoveries for all metals and a 5% increase in tonnes milled resulted in strong production results for Q4 2018 and the strongest quarter for copper and gold production in 2018. Increased gold production can be attributed to the new flash floatation circuit installed in the second half of 2018.

Total operating costs (C1) for Q4 2018 were US$1.60 per pound of copper produced, 13% lower than the C1 costs for Q4 2017 of US$1.85 per pound of copper produced. The improvement in costs, when compared to the prior year, is related to several factors including 5% higher copper production in the quarter, a 5% decrease in total mine operating costs in Q4 2018, and a weakening of the Canadian dollar to the United States dollar used when translating C1 costs to United States dollars. It should be noted that substantially all of the Company’s operating costs are priced in Canadian dollars. The decrease in C1 costs is also affected by the levels of deferred stripping in the period as these excess stripping costs are treated as capital expenditures. Deferred stripping costs are captured in all-in-sustaining costs (AISC) and not included in C1 costs. The total cash value of deferred stripping in Q4 2018 was $4.6 million compared to Nil in Q4 2017.

Full Year 2018 Operating Results Review

In 2018, the Copper Mountain Mine achieved annual copper production guidance, producing 78.8 million pounds of copper, 28,250 ounces of gold, and 273,913 ounces of silver compared to 75.8 million pounds of copper, 23,633 ounces of gold, and 277,094 ounces of silver in 2017. This represents an increase of 4% for copper, 19% for gold and a slight 1% decrease in silver production. Increases for copper and gold production as compared to the prior year is a result of improved recoveries and mill throughput in 2018, offset slightly by lower grades being milled in 2018.  Improved recoveries in the mill can be attributed to the installation of the new flash flotation circuit in the third quarter of 2018. Recoveries contributed to strong annual production results which included an increase of total tonnes milled by 3%.

Total C1 costs for 2018 were US$1.77 per pound of copper produced, 4% lower than the C1 costs for 2017 of US$1.84. The improvement in costs per pound is a result of higher copper production in 2018 and slightly lower total mine operating costs when compared to 2017, after taking into account cost associated with increased low-grade stockpile inventories in 2017, as required under IFRS. The decrease in C1 costs was also affected by the levels of deferred stripping in the year as these mining costs are treated as capital expenditures and deferred as required under IFRS. Deferred stripping costs are captured in AISC and not included in C1 costs. The total cash value of deferred stripping in 2018 was $20.2 million, compared to $1.5 million in 2017.

Q4 2018 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND WEBCAST

The Company will hold a conference call on Friday, February 15, 2019 at 7:30 am (Pacific Standard Time) for management to discuss the Q4 2018 financial and operating results.

Live Dial-in Information

Toronto and international:          1 (647) 427-7450

North America (toll-free):            1 (888) 231-8191

To participate in the webcast live via computer go to:

https://event.on24.com/wcc/r/1912233/DA8D8425873C22105A0E0F317371DD61

Replay Call Information

Toronto and international:          1 (416) 849-0833                              Passcode: 5973748

North America (toll-free):            1 (855) 859-2056                              Passcode: 5973748

The conference call replay will be available from 12:30 pm (PST) on February 15, 2019 until 20:59 pm PST on February 22, 2019. An archive of the audio webcast will also be available on the company’s website at http://www.cumtn.com.

About Copper Mountain Mining Corporation

Copper Mountain’s flagship asset is the 75% owned Copper Mountain mine located in southern British Columbia near the town of Princeton. The Copper Mountain mine produces about 100 million pounds of copper equivalent per year with a large resource that remains open laterally and at depth. Copper Mountain also has the permitted, development stage Eva Copper Project in Queensland, Australia and an extensive 397,000 hectare highly prospective land package in the Mount Isa area.

Additional information is available on the Company’s web page at www.CuMtn.com.

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION

“Gil Clausen”    

Gil Clausen, P.Eng.
Chief Executive Officer

Website: www.CuMtn.com

Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws.  All statements, other than statements of historical facts, are forward-looking statements.  Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”.  Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance and opportunities to differ materially from those implied by such forward-looking statements.  Factors that could cause actual results to differ materially from these forward-looking statements include the successful exploration of the Company’s properties in Canada and Australia, the reliability of the historical data referenced in this press release and risks set out in Copper Mountain’s public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com.  Although Copper Mountain believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.  Except where required by applicable law, Copper Mountain disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox

Zhejiang Huayuan Copper has successfully commissioned the copper-strip cold rolling mill supplied by SMS group

On December 29, 2018, the new cold rolling mill for copper strip supplied by SMS group has successfully started operation at the Chinese producer Zhejiang Huayuan Copper Co., Ltd.. The realization of the mill, beginning with order intake and finishing with commissioning, was performed in record speed.

For Zhejiang Huayuan Copper Co., Ltd., SMS group (www.sms-group.com) realized a cold rolling mill for copper strip within a project duration of only 15 months. The state-of-the-art mill in six-high design featuring CVC®plus technology (Continuously Variable Crown) started operation on December 29, 2018 – this is already 34 days prior to the contracted due date. After the first strip was rolled to 1.2 millimeters final thickness at 1,050 millimeters strip width, further commissioning and the optimization of plant perfor-mance is proceeding efficiently, enabling Zhejiang Huayuan Copper Co., Ltd. to produce the complete product range with strip widths of up to 1,350 millimeters and a minimum final gauge of 0.15 millimeters before long.

Zhejiang Huayuan was very pleased with the performance of SMS group and regards it a confirmation of the decision to select SMS group as single-source supplier. Beside the engineering, the supply of mechanical components and the X-Pact® electrical and automation systems, the scope of supply also includes site services and commissioning. Primarily responsible for order execution is the Chinese SMS Siemag Technology Co., Ltd., a company of SMS group. Core components for the CVC®plus roll shifting technology being responsible for the quality of the products rolled and for the resource-saving rolling of the valuable copper material were supplied by SMS group from Germany.

The Chinese company located in Huayuan ranks among the leading providers of copper strip worldwide. Looking at the available strip width, it even takes the top position worldwide.

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox

Bluestone Announces Positive Feasibility Study at Cerro Blanco Gold Project – 34% After-Tax IRR and AISC of US$579/oz

Bluestone Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the "Company" – http://www.commodity-tv.net/c/search_adv/?v=298745 ) is pleased to announce the results of the Independent Feasibility Study (“Feasibility Study”) prepared in accordance with National Instrument 43-101 (“NI 43-101”) for its 100% owned high-grade Cerro Blanco Gold project (the “Project”). The Feasibility Study demonstrates that the Project represents a robust, rapid pay-back, high-grade underground mining operation.

Darren Klinck, President and CEO commented, “The Feasibility Study outlines a robust development-ready, underground gold mine with a modest capital expenditure demonstrating superior economics.  The mine plan supports the original conviction that the Project can be developed into a small footprint, low impact operation that will provide significant opportunities for local stakeholders and generate attractive returns for investors. Furthermore, over the next six months as we optimize the project and work to establish adequate project financing, we will see significant opportunity to continue with our objective to upgrade Inferred Resource ounces and then update the mine plan to incorporate potential meaningful mine life extension, further enhancing project economics.”

Feasibility Study Highlights

Unless otherwise indicated, all dollar amounts are stated in U.S dollars (“$”). Base case was completed at a gold price of $1,250/oz and a silver price of $18/oz.

  • Average annual production of 146,000 ounces gold over the first three years of production.
  • Average life of mine (“LOM”) all-in sustaining costs (“AISC”) of $579/oz (net credits), which would place the Project in the bottom end of the lowest quartile of the global cost curve.
  • Average annual free cash flow of $91 million (CAD$117 million) per year over the first three years of production.
  • After-tax internal rate of return (“IRR”) of 34%.
  • Net present value (“NPV”) of $241 million after-tax (CAD$309 million).
  • Initial capital of $196 million with an after-tax payback period of 2.1 years.
  • Life of mine production of approximately 902,000 ounces over 8-year mine life.
  • Proven & Probable Mineral Reserves of 940,000 ounces of gold and 3.6 million ounces of silver (3.4 million tonnes at 8.5 g/t Au and 32.2 g/t Ag). The Feasibility Study excludes an additional 357,000 ounces of Inferred Resources (1.4 million tonnes at 8.1 g/t Au and 23.6 g/t Ag).

“The Feasibility Study is a major milestone on the path to development for the Project. In a very short 18 months, we have assembled a terrific team in Guatemala and Canada, completed a significant amount of technical work, and delivered a Feasibility Study that demonstrates a materially de-risked project with attractive economics. Advancing the Cerro Blanco Project represents a tremendous opportunity to our many stakeholder groups including local communities in Guatemala, government partners, and our shareholders,” commented Darren Klinck, President and CEO.

A corporate video presentation discussing the Feasibility Study is available for viewing by clicking this LINK or by visiting the Bluestone website, www.bluestoneresources.ca.

Project Enhancement Opportunities

Although Bluestone considers the Feasibility Study as providing a robust basis for moving forward with attractive returns and payback, opportunities have been identified to further enhance the Project economics and optimize the engineering. The Company intends to focus on the following opportunities over the next six months in parallel with project financing initiatives:

  • Mine life extension through the potential conversion of a portion of the 360,000 ounces of Inferred Resources (per the press release dated September 11, 2018) to Measured and Indicated Resources through infill drilling (currently ongoing), followed by an updated mineral resource and mine plan.
  • Potential resource growth from step-out drilling along existing veins that extend beyond the current resource envelope (currently ongoing).
  • Identification of new high-grade veins during infill drilling program underway as illustrated in the press release dated January 9, 2019.
  • Further optimization of the mine plan and sequencing through basic engineering and trade-off study review.
  • Review opportunities to optimize backfilling assumptions including evaluating alternatives to paste fill which could reduce capital and operating expenditure.
  • Preliminary test work in evaluating the potential of using ore sorting technologies was very successful and highlighted an opportunity as a cost-effective method to help reduce potential dilution and enhance the production profile by allowing new areas of the orebody to be economically mined.

A drilling program is currently underway as announced on November 13, 2018 and ongoing results will be incorporated into an updated resource estimate in Q3 2019 followed by an updated Feasibility Study.

Cerro Blanco Feasibility Study

The Feasibility Study provides a compilation of the geological, engineering, and hydrology work performed by the previous owners between 1997 and 2017, as well as work undertaken by Bluestone. The results of the Feasibility Study incorporate the infrastructure in place, including 3.2 kilometers of underground development decline, fully functional water treatment plant, maintenance shops, warehouse and office facilities, and a total of 580 holes and over 128,000 meters of drilling.

Bluestone engaged a consortium of independent consultants, led by JDS Energy & Mining Inc., an international engineering firm with extensive experience in both the construction and operation of mining projects. The Feasibility Study was supported by additional leading consultants with expertise in various fields, including: Capuano Engineering, Hatch Ltd., Kirkham Geosystems Ltd., and Stantec Inc.

An independent Technical Advisory Committee (“TAC”) was established to act as a peer review over key technical aspects of the Feasibility Study. The TAC is a group of internationally recognized technical experts who have been engaged with management and the Engineering Area Leads throughout the Feasibility Study. Chaired by Alf Hills, the additional TAC members are Scott Donald (Water Management, Hydrogeology, and Groundwater Modelling), Allan Moss (Mining and Geotechnical), Roger Nendick (Processing and Infrastructure), Robert Sim (Resource Estimation), and Dr. Ward Wilson (Water and Tailings Management).

Comparison to the February 2017 Preliminary Economic Assessment (PEA)

The February 2017 PEA presented a scenario at the time of acquisition with the information available from the previous owners. Since Bluestone acquired the Project, a comprehensive review of the geology and structural controls of the deposit has been completed and formed the basis for the new resource estimate (see press release dated September 11, 2018). This included an infill drilling program undertaken as part of the resource estimate update exercise and was successful in refining the resource model thereby confirming the understanding of the deposit. Dewatering, ventilation, and cooling are important aspects of the mine design at the Project and were investigated in detail with the Feasibility Study. A fully calibrated numerical ground water model was developed, allowing for a comprehensive assessment of the hydrogeological regime and optimization of the underground mine dewatering requirements, and development of a site-wide water balance. Precedents from existing mining operations that manage and control similar underground mining environments were benchmarked against and have validated Bluestone’s assumptions and approach.

Key differences between the PEA and Feasibility Study include:

  • Total ounces in the mineral resource remain virtually unchanged; however, slightly fewer ounces converted into the mine plan with the refined resource model. An infill drilling program is currently underway to convert Inferred Resources into Measured and Indicated Resources.
  • Operating costs were affected with a shift in the split of mining methods driven from the new mine plan, resulting in an increase to the amount of cut and fill mining.
  • With a better understanding of the groundwater conditions, operating costs increased to ensure the mine dewatering could be fully and properly managed in parallel with the mine plan. In addition, enhanced ventilation has been included to ensure underground mine air quality and temperature are consistently managed.
  • Additional pre-production and sustaining capital requirements are also necessary for dewatering infrastructure.

FEASIBILTY STUDY DETAILS

Geology and Mineral Resource Estimate

The Project is a classic hot springs-related, low sulphidation epithermal gold-silver deposit comprising a system of moderate to steeply dipping quartz-adularia-calcite veins. The Mineral Resource estimate has a footprint of 800 x 400 meters between elevations of 525 meters and 200 meters above sea level. The bulk of the high-grade veins occur as two upward-flared vein arrays (North and South Zones) that converge at depth into master feeder veins, that appear to define a positive flower structure. Most of the veins are hosted in a gently dipping sequence of siltstones, limestones, conglomerates, and andesitic tuffs (Mita Unit) that are overlain by approximately 100 meters of silicified conglomerates and sinter beds (Salinas Unit) representing an un-eroded paleosurface that forms the low-lying hill at the Project. The Salinas rocks are host to a tabular zone of low-grade disseminated gold and silver mineralization.

The updated Mineral Resource estimate is the result of 128,220 meters of drilling at the project (580 drill holes) by previous operators and Bluestone, including 104 holes (18,033 meters) drilled from underground. The Mineral Resource estimate is based on a new and robust geological and structural model, supported by over 3 kilometers of underground infrastructure.

The Mineral Resource estimate was disclosed in a press release dated September 11, 2018.

Mineral Reserves and Mining

The estimated Mineral Reserves presented by reserve class are shown in the following table. The overall diluted gold grade of the mineralized material going to the mill is estimated at 8.5 g/t.

These Mineral Reserves support an initial 8-year mine life. An infill drill program is currently underway (as per the press release dated November 13, 2018) that is targeting the conversion of Inferred Resources into Measured and Indicated Resources. The Project deposit is expected to be accessed by the existing 3.2 kilometers of underground development. The current decline will serve as the primary access to the mine for personnel, materials, and haulage of mineralized material to the plant site. Annual ore production of up to 460,000 tonnes is planned from a combination of long-hole stoping and cut and fill mining methods.

Dewatering, ventilation, and cooling are important aspects of the mine design at the Project. The water in the immediate mine area will be lowered by a series of surface and underground dewatering wells. Any remaining water underground will be captured and pumped to surface through the collection at underground sumps. Currently, approximately 40% of the Mineral Reserves sit above the water table and are accessible through the 3.2 kilometers of lateral underground development. Precedents from existing mining operations that manage and control similar underground mining environments have validated Bluestone’s approach and assumptions.

In addition to the existing surface dewatering wells, a series of new dewatering wells are planned to draw down the water around the deposit. A portion of the mine water will be treated and discharged, and the balance disposed of through a series of new reinjection wells.

Initial estimates of dewatering rates to meet the needs of the mine plan were estimated from a detailed numerical ground water model, which included steady state and transient state calibration.

The number of wells required to achieve the desired dewatering will comprise five of the existing wells and eight new dewatering wells.

Processing

The Feasibility Study is based on a process plant capable of treating 1,250 tonnes per day of ore. The comminution circuit includes three-stage crushing and two stage ball mill grinding to produce a target grind size of 80% passing 50 microns. Processing will incorporate a rate of 460,000 dry tonnes per year at an average feed grade of 8.5 g/t gold and 32.2 g/t silver.  Based on recent test work, the optimized flowsheet includes pre-oxidation, a 48-hour leach circuit, followed by a 6-hour carbon-in-pulp adsorption circuit with expected recoveries of 96% gold and 85% silver.

Capital & Operating Costs

Initial capital to fund construction and commissioning is estimated at $196 million. The Project benefits from a significant amount of underground development already in place, a water treatment plant, maintenance and warehouse facilities, offices, and communications. The project is located eight kilometres from the Pan American Highway and an under-utilized electrical substation.

Infrastructure

The Project is located approximately 160 kilometers southeast of Guatemala City. The site is accessible via the Pan-American Highway (CA1) through the town of Asunción Mita. Existing infrastructure is in place to provide year-round access, a new 5 kilometer-long access road and 8.2 kilometer power transmission line will be installed as part of the construction of the Project. The topography is flat with rolling hills. Guatemala has 400 kilometers of coastline, with the closest deep-water port (Puerto Quetzal) on the Pacific Ocean, which is connected by good highway access to the Project.

Corporate Social Responsibility and Economic Benefits

Bluestone is a values-based company where environmental and community stewardship are integral to our core values. We live in the communities we operate in and follow best practices to minimize impacts to the environment. The Project and local team have been part of the local community for over a decade and Bluestone is active in engaging with the stakeholders around the Project. 

The development of the Project is expected to provide substantial economic benefits to Guatemala, both locally and at a national level. During the 18 to 24-month construction period, the Project is expected to generate direct employment of 500+ people, and once in operation, direct employment of 400+ people. It is estimated that during production the mine will inject approximately $60 million annually and contribute approximately $500 million to the Guatemalan economy through direct employee wages, consumables, taxes, and royalties. In addition, the project is expected to generate several hundred additional indirect jobs with local suppliers and service providers.

A key priority will be to train and develop skills of the local workforce as the Project advances which is in-line with Bluestone’s philosophy of working with our stakeholders and communities.

In 2018 Bluestone engaged a third -party consultant to lead an updated social baseline assessment as well as an IFC performance gap assessment. Bluestone is committed to following best practices and international standards.

Next Steps

With the Feasibility Study now completed, Bluestone will advance the Project toward development over the next few quarters. Key next steps include:

  • Optimization and trade-off studies to be undertaken.
  • Infill drilling as part of the resource conversion and expansion program currently underway.
  • Commence engineering and design activities.
  • Update resource estimate and mine plan.
  • Advance project financing activities.

Technical Information

The Technical Report summarizing the results of the Feasibility Study is being prepared in accordance with NI 43-101 and will be filed under the Company’s profile on SEDAR within 45 days of this press release. The Qualified Persons have reviewed and verified that the technical information in respect to the Feasibility Study in this press release is accurate and approve the written disclosure of such information.

Other than as set forth above, all scientific and technical information contained in this press release has been reviewed, verified, and approved by David Gunning, P.Eng., a mining engineer, and the Vice President Operations, or David Cass, P.Geo., and the Company’s Vice President Exploration, both Qualified Persons under NI 43-101.

About Bluestone Resources

Bluestone Resources is a mineral exploration and development company that is focused on advancing its 100%-owned Cerro Blanco Gold and Mita Geothermal projects located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a quick pay back. The average annual production is projected to be 146,000 ounces per year over the first three years of production with all-in sustaining costs of $579/oz (as defined per World Gold Council guidelines, less corporate general and administration costs). The Company trades under the symbol “BSR” on the TSX Venture Exchange and “BBSRF” on the OTCQB.

Forward Looking Statements

This press release contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”).  All statements, other than statements of historical fact, that address activities, events or developments that Bluestone Resources Inc. (“Bluestone” or the “Company”) believes, expects or anticipates will or may occur in the future including, without limitation: the conversion of the inferred mineral resources; increasing the amount of measured mineral and indicated mineral resources; the proposed timeline and benefits of further drilling; the proposed timeline and benefits of the Feasibility Study; statements about the Company’s plans for its mineral properties; Bluestone’s business strategy, plans and outlook; the future financial or operating performance of Bluestone; capital expenditures, corporate general and administration expenses and exploration and development expenses; expected working capital requirements; the future financial estimates of the Cerro Blanco Project economics, including estimates of capital costs of constructing mine facilities and bringing a mine into production and of sustaining capital costs, estimates of operating costs and total costs, net present value and economic returns; proposed production timelines and rates; funding availability; resource estimates; and future exploration and operating plans are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to Bluestone and often use words such as “expects”, “plans”, “anticipates”, “estimates”, “intends”, “may” or variations thereof or the negative of any of these terms.

All forward-looking statements are made based on the Company’s current beliefs as well as various assumptions made by them and information currently available to them.  Generally, these assumptions include, among others: the ability of Bluestone to carry on exploration and development activities; the price of gold, silver and other metals; there being no material variations in the current tax and regulatory environment; the exchange rates among the Canadian dollar, Guatemalan quetzal and the United States dollar remaining consistent with current levels; the presence of and continuity of metals at the Cerro Blanco Project at estimated grades; the availability of personnel, machinery and equipment at estimated prices and within estimated delivery times; metals sales prices and exchange rates assumed; appropriate discount rates applied to the cash flows in economic analyses; tax rates and royalty rates applicable to the proposed mining operation; the availability of acceptable financing; anticipated mining losses and dilution; success in realizing proposed operations; anticipated timelines for community consultations and the impact of those consultations on the regulatory approval process.

Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Bluestone. Factors that could cause actual results or events to differ materially from current expectations include, among other things: risks relating to variations in the mineral content within the mineral identified as mineral resources from that predicted; risks and uncertainties related to expected production rates, timing and amount of production and total costs of production; risks and uncertainties related to ability to obtain or maintain necessary licenses, permits, or surface rights; risks associated with technical difficulties in connection with mining development activities; risks and uncertainties related to the accuracy of mineral resource estimates and estimates of future production, future cash flow, total costs of production and diminishing quantities or grades of mineral resources; risks associated with geopolitical uncertainty and political and economic instability in Guatemala; risks and uncertainties related to interruptions in production; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; uncertain political and economic environments and relationships with local communities; variations in rates of recovery and extraction; developments in world metals markets; risks related to fluctuations in currency exchange rates; as well as those factors discussed under “Risk Factors” in the Company’s Amended and Restated Annual Information Form.

Any forward-looking statement speaks only as of the date on which it was made, and except as may be required by applicable securities laws, Bluestone disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although Bluestone believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.  There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Non-IFRS Financial Performance Measures

The Company has included certain non-International Financial Reporting Standards (“IFRS”) measures in this new release. The Company believes that these measures, in addition to measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company and to compare it to information reported by other companies. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to similar measures presented by other issuers.

 

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox

Rise Gold Slowly But Surely Progressing High Grade Idaho-Maryland Project

By the https://www.criticalinvestor.eu/

  1. Introduction

After a year which saw not a lot of enthusiasm in the mining sector to put it mildly, topped off by a resulting brutal tax loss selling season, sentiment for mining and gold in particular seems to be recovering, so in my view it is time to look at one of the more remarkable gold exploration stories around. Rise Gold (RISE:CSE, RYES:OTCQB), a small junior headquartered in Vancouver, is looking to find gold in, around and below the past-producing high grade Idaho-Maryland gold mine in California, US.  This project contains a considerable historic (2002) high grade estimate done by Amec Foster Wheeler of 0.4Moz @ 9.1g/t Au M&I and 0.9Moz @12.7g/t Au Inf, or a more recent one by Pease in 2009, estimating 472koz @10g/t Au M&I, and 1Moz @12g/t Au Inf.

Personally I consider Amec by far the most reputable engineering firm globally, and therefore I mention their estimate, although it is firmly outdated. Of course both estimates aren’t NI43-101 compliant as both are not recent enough, using today’s QA/QC procedures, but it provides a first indication of mineralized potential. These estimates are historic, non-compliant and outdated, but aren’t hot air at all in my opinion, as the Idaho-Maryland Mine had to halt production in 1954 when it was nowhere near depletion.

The company has analyzed all available historic data, constructed all sorts of (3D) models, maps and sections, defined targets, raised cash and has completed their 2018 drill program, and is setting up for their 2019 drill program after raising C$2.5M in the last quarter. As Rise has to drill pretty deep most of the time (600-1800m), progress hasn’t always been easy and quick, but as the company doesn’t seem to have any problem reeling in strategic investors like Yamana and Southern Arc, the quest for gold continues. Let’s see what the potential is for investors.  

 All presented tables are my own material, unless stated otherwise.

All pictures are company material, unless stated otherwise.

All currencies are in US Dollars, unless stated otherwise.  

  1. Company

Rise Gold Corp is a US exploration and development company with Canadian headquarters, focused on creating shareholder value through advancing a gold project in California. The company is developing an exploration strategy for its fully owned Idaho-Maryland gold project, a former past producing mine located in Grass Valley, California, US.

Rise Gold currently has 145.99M shares outstanding (fully diluted 240.709M), 80.06M warrants (the majority is due @C$0.10-0.15),and several option series to the tune of 14.51M options (C$0.18 on average) in total, which gives it a market capitalization of C$10.95M based on a January 17th share price of C$0.075. The company has no trouble raising cash despite its CSE listing, as it raised C$0.35M in September 2018, and C$2.5M in November 2018. As a consequence, their treasury contains about C$3M at the moment, which is enough for this year’s drill program. Waning mining sentiment and few results didn’t go unnoticed for Rise shareholders, as can be seen here:

Although gold has seen significant gains on a dropping US Dollar, and sentiment improved somewhat as usual after tax loss selling season, Rise hasn’t been following suit quite typically. One reason for this could be that the company is still flying very much under the radar, but the share price also seemed to experience support from the November raise, bringing on board intermediate producer Yamana Gold and seeing Southern Arc reinforcing their holdings in Rise. That way the share price was prevented to drop off mid-December as most mining stocks did, but on the other hand wasn’t able to recover lost ground as there wasn’t much lost ground to make up for. In my view at such lows it seems the bottom is in at C$0.05, and any significant drill result could very well support a higher share price soon, as the market cap is still small at around C$10M.

The management team is led by President and CEO Ben Mossman, who knows all about underground gold mines in North America with over 15 years of experience as a mining engineer under his belt (Snap Lake Mine for DeBeers Canada, Bellekeno Mine for Alexco Resource Corp). Since Southern Arc bought into their first strategic position, several positions have been filled by staff related to Southern Arc, not only in the Board of Directors but also management and the advisory team. This could evolve into a nice potential one-two, where maybe Southern Arc gets the benefits of a higher return at a hypothetical Yamana buyout. Key person in all this is John Proust, CEO of Southern Arc. Interesting names are director Bob Gallagher and former director and current advisor Alan Edwards.  

Last but not least is director Thomas Vehrs, who is a huge asset in determining the right exploration strategy. Holding a PhD in geology, Dr. Thomas Vehrs is a highly regarded and experienced exploration geologist with over 40 years of experience in the Americas. For the past ten years, Dr. Vehrs held the position of VP Exploration for C$740M market cap Fortuna Silver Mines.

  1. Idaho-Maryland project

Rise Gold has one project, the Idaho-Maryland Gold project, located in Grass Valley, Nevada Country, in the state of California, US. Grass Valley deposits are classified as a gold quartz vein type deposit, often higher grade and extending at great depths. California didn’t exactly build the best reputation as a mining friendly jurisdiction over the years, caused predominantly by permitting issues. Because of it, the state is ranked #61 out of 91 jurisdictions worldwide on the Policy Perception Index by the latest Fraser Survey at the moment, which basically reflected 2017. However, a lot has changed since Trump took over, as he is pro-mining and anti-permitting. Furthermore, a few mines have been permitted in the last few years in California, also before Trump, Nevada County would be the lead agency and not California State, and in addition to this the project is located on private land, which makes permitting much easier compared to federal (BLM) land, as stated in the technical report:

"The Project area is covered by private land and no permits or consultations with the US Bureau of Land Management (BLM) or the US Forest Service (USFS) would be required."

Because of all this I view permitting risk for Rise Gold as manageable.

The former Idaho-Maryland Mine has a long past behind it. The mine was reportedly the second largest gold mine in the United States in 1941, producing up to 129,000 oz gold per year before being forced to shut down by the US government in 1942 due to World War II, as workforce was needed in war efforts. Significant production after the war-time shutdown never occurred.

As mentioned earlier, there is a historic resource estimate completed in 2002 by Amec, using a cut-off grade of 3g/t Au (for correct and full disclosure see company documents, as one cannot rely on a historic resource estimate):

A few more historic resource estimates have been completed since then, the most recent being the one by Pease in 2009.  They estimated 472koz @10g/t M&I, and 1Moz @12g/t Au Inf, based on a 1.44 Mine Call Factor multiplier (the grade at the mill head was much higher than the sampling grade, so a correction factor was applied). No historic, non NI43-101 compliant resource estimate can ever be relied upon as mentioned, aso keep this in mind.

The underground workings of the former Idaho-Maryland Mine are flooded, and it would cost a lot of time and money to dewater this just for drilling, as the underground workings are extensive. The company had the New Brunswick shaft inspected with a remote operated vehicle to a depth of 701m (full depth over 1,000m), to see if it was intact.

It appeared the shaft was open over the inspected length, and the woodwork appeared to be in good condition. This could be important for future development, being either deep drilling or mine development, as constructing a new shaft is a costly business (for this size and depth easily a US$40-50M).The historic hoisting capacity was 75t/h, so this means a full-time 1,800tpd which would be more than enough for such an operation. Management thinks this can be increased if needed at today’s standards, without the need to widen the shaft. Notwithstanding all this, as underground workings are flooded, exploration needs to take place from surface, demanding deep drilling which is expensive although management elected to buy 2 drill rigs for C$611k in June 2018 to save on ongoing drilling costs, one of them among the most powerful rigs available on the market these days.

Rise Gold also bought quite a bit of land surrounding the Mine for different future mine purposes, as can be seen here:

To get a bit of an impression about the Idaho-Maryland Mine itself, here is a 3D view of the different underground workings, ranging from surface to a depth of -1650ft  (about -550m), with the mined out historic mineralization in red and magenta:

Some of the deepest drill results are reported from below 1800m. Please note that the nearby former Empire-Star Mine had underground workings going as deep as 1,600m, which is almost as deep. This Mine was shut down due to a labour strike, and also contained significant reserves, and is still owned and shelved by Newmont.

  1. Drill Results

As the operators were mining 3 separate, rich veins (Idaho #1 and #3, Brunswick) and ramping up to double the production to 250,000oz before WWII halted everything in the past, it will be understandable that numerous exploration targets in and around the mine workings were already identified during and after operation in those days.

The 2002 Amec report lists the characteristics of typical orogenic gold deposit types, as Idaho-Maryland falls in this category, and here are some very relevant and interesting highlights:

1.Tabular fissure veins in more competent host lithologies, veinlets, and stringers forming stockworks in less competent lithologies. Typically occur as a system of en echelon veins on all scales."

2."Vein systems may be continuous along a vertical extent of 1-2 km with minor change in mineralogy or gold grade; mineral zoning does occur, however, in some deposits."

Orogenic gold deposits can also have their disadvantages, as they can be hard to delineate, also due to possible nugget effects and narrow veins at depth. Fortunately for Rise Gold, Idaho-Maryland is something special in this regard:

3."Past production at the Idaho-Maryland Mine has demonstrated significant vertical and horizontal continuity of the veins. The great vertical extents of veins of similar gold deposits, such as the adjacent Empire Mine, suggests extensions of the #1 Vein, 3 Vein system, and the Brunswick Veins to depth and there exists potential for significant stockwork-style mineralization within the Brunswick Block."

Keep the remarks about stringers, en echelon veins, vertical extent of 1-2 km, and great vertical and horizontal continuity of veins in mind, when actual drill results will be discussed later on.

As the Idaho-Maryland system is probably too deep and complex to drill out completely (to Reserves) from surface, the strategy of Rise Gold will be exploration and in the end delineation to Indicated and Inferred Resources, probably on a grid spacing of 50m. Drill costs are estimated by the company at ~$140/m all-in, now that they own the rigs themselves. Otherwise the costs would have been US$240-300/m all-in. Because of considerable depth, managementmay use directional drilling, with a few widely spaced, deep motherholes first after which multiple branch holes will be drilled.

The currently most significant exploration targets identified at the Idaho-Maryland Gold Project are in untested ground below the historic mine workings. These targets are extensions of the Idaho #1 Vein, Brunswick, 3 Vein System, and the Crackle Zone.

The Crackle Zone, a concept initiated by renowned geologist and Hall of Famer Alan Bateman a long time ago, could prove to be the theory that might propel the Idaho-Maryland project into Tier I territory if correct. It basically envisions a converging feeder structure to all currently know mineralized zones, located below them and continuing at depth.

The size of this wedge could have an average width of 400m, average thickness of 5m and a length of 900m, creating a volume of 31.6M m3. Based on a gravity of 2.75t/m3, the Crackle Zone target could be 5Mt, which is sizeable of course. If this Zone indeed proves to be the converging point of the other zones, I wouldn’t be surprised if the total resource could pan out to be 1-2Moz or even larger.

Let’s see what results the drilling has provided us so far. The first results that came back are shown here:

It was a narrow intercept, but very high grade, in line with historic mineralization, which is in large part narrow vein based. This is how things typically look down below:

According to management, the first deep hole was aimed at the Idaho #1 target, designed to be drilled between the mined stopes (voids) on the Brunswick veins so that the crew wouldn’t have to drill through open voids which can be difficult. Unfortunately they missed as the hole deviated into the other direction than expected, and a new hole was drilled.   

The news release also contained a pretty interesting bit of information:

“Assay data from the Drillhole indicates that the highest gold grades in the composites are located in the wall rocks immediately adjacent to the quartz vein, rather than in the quartz veins themselves.

The Company’s observation that the wall rocks of the quartz veins hosts high grade gold could have major implications to the interpretation of the historic data from the mine. In most cases, the historic operator reported drill core and channel sample assay results for only intersections of quartz and rarely conducted sampling of the adjacent material. If there are important gold values in the adjacent wall rock, the historic sampling would have greatly underreported the gold grades of the mineralized veins.”

If the engineering firms like Amec and Pease also used quartz vein based mineralization for their estimates, things could get fascinating as drilling progresses.

The concept of mineralization being located close to the (mined out) quartz veins appeared to continue with the next set of drill results, especially at the Brunswick East Block target veins:

“Drill hole B-18-04 was the first drill hole to test below the multiple parallel veins mined on the eastern side of B1600 level. This drill hole intersected four veins with significant gold values.

On the B32 Vein, an intercept of 8.0 gpt gold over 4.0 m was intersected east of the historic mine workings, between the B1300 and B1450 levels. In addition to the downdip potential of the B32 Vein, this intercept highlights the potential of significant mineralized material remaining in the levels above B1600 level, in and around the historic mine workings and stopes.

On the B10 Vein, two closely spaced veins assayed 4.0 gpt gold over 2.8 m and 4.4 gpt gold over 3.0 m. The two intercepts are located immediately below the B1600 level. Historic mining (stoping) occurred along the B1600 level, immediately above the intercepts.”

For clarity, the mentioned 1600 number is 1,600 feet below ground level, which is slightly over 500m. The results above are an example of the mentioned en echelon vein sets, and there are many of those, mined and currently being discovered. Because of these results, management expects that former operators have left a lot of mineralization at these levels, which aren’t very deep relatively speaking.

The next drill result also handled the Brunswick vein system, and reported B-18-05, again containing multiple mineralized intercepts, indicating several stacked veins:

Visible gold was also detected in the B40 vein, and management was excited to see wider mineralization as well. The average grade of this vein didn’t surpass economic viability in itself, but it could be an interesting “pathfinder” vein, leading up to better mineralization. This hole returned more mineralization at great depth:

These intercepts are both economic although very narrow. Again, the minimum mining width is 2m, so average grades of 46g/t and 30.5g/t over 2m is very good.

It got CEO Mossman to comment on the results like this:

“These deep drill intercepts demonstrate the large exploration potential of the Idaho-Maryland Gold Project. To be able to hit deep high-grade gold mineralization with a single blind hole speaks to the great strength of this gold system. Rise has intersected multiple zones of important gold mineralization in all five holes completed to date. This deposit is known for hosting exceptionally continuous gold veins and every drill hole reinforces our belief that the Idaho-Maryland is one of the most exciting high-grade gold projects in America.”

Usually with these very short intercepts it is a case of nuggety mineralization, but as Amec mentioned in their reported, the type of mineralization of these deposits tends to be very continuous and extends very deep. This is exactly what we are seeing now, and this gets management excited as well.

To get a bit of a visual on the results so far, here is a section:

It might be that Rise Gold hit the earlier mentioned converging feeder structure at depth, as conceptualized by Bateman many years ago. In a long section also including the latest intercepts, things are shown like this:

This is all very encouraging in my view. Bit by bit the story gets more and more interesting, only reinforced further by the latest set of results, released on December 13, 2018:

For the first time the company intercepted the earlier mentioned stringers with visible gold, and again when recalculating the high grade 0.5m intercept for a minimum 2m mining width the resulting grade is very economic at 547.5g/t. An intercept of 6.8m @ 149.3g/t would have been very good as it implies more continuity (veins have a tendency to pinch and swell a lot), but the beauty of this type of geology is that the continuity is very good. As the shorter intercept (0.5m @2190g/t) contains more gold than the longer intercept (6.8m @149.3g/t) which it is part of, I asked CEO Mossman for an explanation. He stated that they rounded the widths in the news release to one decimal. The work done at site is in feet. So this interval was 1.5 ft which is 0.457 m. Since the assay is so high this couple centimeters causes the rest of the interval to show as a negative grade in a calculator. We will post the results to 2 decimals in the future. I pasted the interval into the doc below so you can see the entire detail.:………..

On a map, the location of the latest drill results of the 52 Vein target can be visualized:

Not all results are that good, but keep in mind that the nearby historic results (6.1m@ 4.1g/t, 13.3m@ 5.4g/t and 9.1m@ 16.5g/t) are certainly economic, providing a vein strike length of at least 100m at this location.

This drilling at depth takes up a lot of time and resources, but if Rise Gold manages to come close to the historic resource estimates, let’s say they prove up 1Moz of high grade mineralization, a re-rating can be expected, as their EV per oz would be in the range of US$10-15/oz, assuming more dilution. The average for this metric for explorers with a resource currently hovers around US$45/oz, according to this Haywood Securities table, part of their most recent Weekly Dig update:

This table contains outliers in both directions, so I believe this figure to be pretty accurate. If the directional drilling of Rise Gold proves to be successful, and a 1Moz is in the cards, then I don’t see a reason why this stock wouldn’t at least double from here. Management is convinced there is much more gold left in the old underground workings and below this, it’s up to them to show the world what the Idaho-Maryland really contains at depth.

  1. Conclusion

After completing  11,610 m of drilling, it appears that Rise Gold is hitting gold everywhere it looks. This in itself is pretty rare, and especially the economic intercepts at depth indicate large mineralized potential. Historic resource estimates point into the direction of 1Moz, but management thinks there could be more. The Rise Gold story with its roots in the fascinating, distant past is coming together nicely now, after hitting lots of veins, acquiring two rigs, raising lots of cash, attracting two strategic parties of which one is well-known producer Yamana Gold, and assembling a very experienced group of people. Because of the deep exploration, things will likely not advance very quickly, but with this type of backing there will be no shortage of financial and technical support, and Rise Gold should be able to advance Idaho-Maryland slowly but surely into a significant deposit in my view.

I hope you will find this article interesting and useful, and will have further interest in my upcoming articles on mining. To never miss a thing, please subscribe to my free newsletter in order to get an email notice of my new articles soon after they are published.

Disclaimer:

The author is not a registered investment advisor. Rise Gold is a sponsoring company. All facts are to be checked by the reader. For more information go to www.risegoldcorp.com and read the company’s profile and official documents on www.sedar.com, also for important risk disclosures. This article is provided for information purposes only, and is not intended to be investment advice of any kind, and all readers are encouraged to do their own due diligence, and talk to their own licensed investment advisors prior to making any investment decisions.

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox

Stahlwerk Thüringen to upgrade section mill with new CCS® universal mill U1 from SMS group

Stahlwerk Thüringen GmbH, a company of Brazilian Grupo CSN, has awarded SMS group (www.sms-group.com) the order to supply a new CCS® (Compact Cartridge Stand) universal stand U1 for its section mill in Unterwellenborn, Germany.

The new CCS® stand is to replace the existing U1 stand in operation since 2002 as breakdown stand for the three-stand CCS® tandem group. This upgrade has become necessary as a result of the continuously growing range of sections produced, especially to include increasingly heavier and larger section sizes.

The new stand will be designed for a nominal rolling force of 6,000 kN horizontal and 4,000 kN vertical (maximal 9,400 kN and 6,800 kN respectively). It will come with stronger roll guides and optimized roll cooling.

The scope of the modernization also comprises the new supply of the Technological Control System (TCS) for the complete CCS® tandem group and adaptation of existing control systems. The TCS will be based on SMS group’s proven X-Pact® automation system. In addition to the upgrade of the hardware and the system software, the I/O level for the U1 will be newly set up. Last but not least, all screwdown systems will be controlled by a newly developed dynamic optimization system, which will directly result in optimized reversing times and higher productivity of the tandem group as a whole.

Commissioning is slated to take place in August 2019.

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox

Nucor-Yamato Steel beauftragt SMS group mit der Modernisierung von Walzstraße Nr. 2

Nucor-Yamato Steel Company (NYS) hat SMS group (www.sms-group.com) damit beauftragt, ihre Schwerprofilstraße in Blytheville, Arkansas, USA, zu modernisieren und neue Walztechnik zu installieren. NYS betreibt insgesamt zwei Walzstraßen, Mill 1 und Mill 2, die über eine jährliche Gesamtkapazität von 2,4 Millionen Tonnen Fertigprodukten verfügt. Der nun an SMS group erteilte Auf-trag betrifft Mill 2, auf der Breitflansch- und Doppel-T-Träger pro-duziert werden. Schwerpunkt der Modernisierung ist der Ersatz der bestehenden UR-E und UF-Gerüste durch eine moderne Tandem-Reversierstraße des Typs CCS 1500.

„Durch diese Modernisierung erhält Nucor-Yamato zusätzliche Produktionsmöglichkeiten, unter anderem für die Verarbeitung neuer hochfester Stahlsorten“, erklärt Thad Solomon, Vice President und General Manager von Nucor-Yamato Steel. „Wir sind entschlossen, unsere führende Marktposition im Baustahlsektor weiter auszubauen, und dieses Modernisierungsprojekt bringt uns diesem Ziel ein gutes Stück näher.“

Thomas Maßmann, Vice President, Profil- und Knüppelwalzwerke, bei SMS group: „Mit diesem Projekt wird die Zusammenarbeit zwischen Nucor-Yamato und SMS group, die sich bei der voran-gegangenen erfolgreichen Modernisierung der Walzstraße Nr. 1 als sehr erfolgreich erwiesen hat, weiter gefestigt“.

SMS group wird die mechanische Ausrüstung und die Steuerungs-automatik für die Walzstraße liefern. Die Inbetriebnahme der neuen Tandem-Reversierstraße ist für die zweite Jahreshälfte 2020 geplant.

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox

Das neue VisualCAD/CAM 2019 & RhinoCAM 2019

Bei der MecSoft Europe GmbH sind ab sofort die neuesten Versionen der leistungsstarken und kostengünstigen Lösungen für die CNC-Bearbeitung von VisualCAD/CAM 2019 & RhinoCAM 2019 erhältlich.

Die Version 2019 von VisualCAM schafft durch umfangreiche Neuerungen und Leistungssteigerungen in der 2½-, 3- und 5-Achs-Bearbeitung einen erheblichen Mehrwert für den Anwender. Das TURN-Modul (Drehen) ist ohne Aufpreis in allen Produktkonfigurationen ab der STD-Version enthalten.

Highlights der Version 2019

In der 2½-Achs-Bearbeitung wurde die featurebasierte Bearbeitungsfunktion erweitert und eine Schleppmesser-Schneidemethode sowie neue Kurvenoptionen in der Profilbearbeitung hinzugefügt. Die 3-Achs-Bearbeitung profitiert von Neuerungen bei der Bearbeitung flacher Bereiche und trochoiden Einfahrbewegungen für die Hochgeschwindigkeitsbearbeitung.

Bei der 5-Achs-Bearbeitung kann das Werkstück durch die Unterstützung von Nutatorköpfen und die lokale Programmierung der Koordinatenebene jetzt in jedem gewünschten Winkel bearbeitet werden. Die Kollisionserkennung des Werkzeugschaftes und eine frühzeitige Fehlererkennung bei der Simulation der Bearbeitung erhöhen die Qualität der generierten NC-Daten. Des Weiteren erlaubt das NEST-Modul nun die Verschachtelung von 3D-Objekten.

VisualCAM ist eigenständig mit VisualCAD oder integriert in Rhinoceros, SolidWorks oder Alibre Design einsetzbar. In den aktuellen Produktkonfigurationen STD, EXP, PRO und PREM sind die Module MILL (Fräsen und Gravieren), TURN (Drehen), NEST (Schachteln) und ART (Modelliertechniken für Schmuckdesign und Modellbau) ohne Aufpreis enthalten.

Eine vollständige Liste aller Neuerungen ist unter www.mecsoft-europe.de erhältlich.

Interessenten können VisualCADCAM und RhinoCAM mit allen Modulen zum Testen herunterladen. Das kostenlose Fräsprogramm FreeMILL ist in der Testversion bereits enthalten.

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox

Nordic Gold Provides Production Update

NORDIC GOLD INC. (TSX-V: NOR) ("Nordic" or the "Company" – http://www.commodity-tv.net/c/search_adv/?v=298724) today announced that it has produced a total of 145.3kg of doré (4,100.22 ounces of gold) since the first pour on 30th November 2018.

38,5kg doré were produced at the 1st pour (1,028.91oz of gold) and 78kg of doré  (1,981.3oz gold) was produced in December 2018, resulting in total 2018 production of 116.5kg of doré (3,010.2 oz of gold). To date, production in 2019 is 39.7kg of doré (1,090oz).

Processing operations were shut down for planned maintenance. Certain parts of the mill liners were unavailable at start up, however it was decided to press ahead and produce gold. This decision was made to improve cash flow and a maintenance shutdown was planned accordingly. Gold sales provided $5,172,323 of additional cash.

The plant shut down ran from Tuesday 8th January 2019 to Monday 14th January 2019. During the shutdown 60,000 tonnes of high-grade ore was stockpiled.

Michael Hepworth, President and CEO of Nordic said: “The team at the mine has done an excellent job of restarting the mine.  We now need to work towards building a profitable business. The next few months will be critical as we ramp up production. As with any mine start up there are many adjustments required to optimise performance and it will be several months before we reach optimal performance.”

Nordic also announced the resignation of David Forest as a director.  Mr Forest resigned so as to avoid potential conflicts with other activities. The company thanks him for his service to the company and wishes him well in future endeavors.

For further information, please contact:

Michael Hepworth
President and Chief Executive Officer
(416) 419 5192
mhepworth@nordic.gold
www.nordic.gold 

For up to the minute news, industry analysis and feedback follow us on Facebook, LinkedIn and Twitter.

In Europe:
Swiss Resource Capital AG
Jochen Staiger
info@resource-capital.ch
www.resource-capital.ch

About the Company
Nordic Gold Inc. is a junior mining company with a producing gold mine in Finland.   The Laiva Gold Mine is fully built, fully permitted and financed via a gold forward sale agreement. The mine recommenced production in November 2018.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Advisory Regarding Forward Looking Statements

This news release contains forward-looking statements. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. While the Company has based these forward-looking statements on its expectations about future events as at the date those statements were prepared, the statements are not a guarantee of the Company’s future performance.  Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. 

The Company’s forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this new release.  Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox

Copper Mountain Mining Achieves 2018 Production Guidance and Announces Three-Year Guidance

Copper Mountain Mining Corporation (TSX:CMMC | ASX:C6C)  (“Copper Mountain” or the “Company” – http://www.commodity-tv.net/c/search_adv/?v=298551) announces Q4 and full year 2018 production results for its Copper Mountain mine, located in southern British Columbia. The Company also announces three-year production guidance for 2019 to 2021.  All results are reported on a 100% basis. 

“We are pleased to finish 2018 strong, achieving guidance across all metrics,” said Copper Mountain’s President and CEO, Gil Clausen. “As we guided, the fourth quarter was our strongest production quarter. The Copper Mountain mine continues to operate predictably and reliably and in line with plan.”

Mr. Clausen added, “We expect production in 2019 to be slightly lower than 2018, but as we move forward, production levels are expected to increase materially. We are also currently advancing our technical work to bring the New Ingerbelle Mineral Resources into Mineral Reserves and integrate those reserves into a new life of mine plan technical report for the Copper Mountain Mine.  We are well advanced on this work and on track to deliver the results in the first quarter of 2019.  The integrated life of mine plan results are not included in our current three-year guidance, and have the potential to add significant production value to Copper Mountain.”

Q4 and 2018 Production Results

The Copper Mountain mine produced 78.85 million pounds of copper for the full year of 2018, achieving production guidance of 76 to 84 million pounds of copper.  Copper equivalent production for 2018 was 92.4 million pounds, which includes 28,250 ounces of gold and 273,910 of silver. Mill throughput averaged approximately 40 ktpd for the year with copper recovery of 80% and average feed grade of 0.31% Cu.  Open pit mining averaged 204 ktpd in 2018.

Copper production for the fourth quarter 2018 was the strongest quarter in 2018, as planned.  Production was 20.63 million pounds of copper, 8,125 ounces of gold and 62,710 ounces of silver for a total of 24.5 million pounds of copper equivalent.  Mill throughput averaged over 42,097 tonnes per day, with copper recovery of 81% and average feed grade of 0.30% copper. Open pit mining averaged 214 ktpd in the fourth quarter of 2018.

2019-2021 Guidance

Production for the Copper Mountain mine for the next three years is planned as follows:

The Company expects production in 2019 to be between 72 and 80 million pounds of copper, with midpoint slightly lower than 2018 as a result of slightly lower grade mined. Mined grade recovers strongly in the later years, with production expected to be between 86 to 95 million pounds in 2020 and 81 to 89 million pounds of copper in 2021. The three year production guidance does not include any production from the New Ingerbelle pit.  The Company intends to deliver a Technical Report for an integrated Copper Mountain mine production plan, including the New Ingerbelle pit, in the first quarter of 2019.

Q4 2018 Financial and Operating Results Conference Call and Webcast

Copper Mountain will release Q4 2018 financial and operating results before the market opens on Friday, February 15, 2019. The Company will hold a conference call on Friday, February 15, 2019 at 7:30 am (Pacific Standard Time) for management to discuss the Q4 2018 financial and operating results.

Live Dial-in Information
Toronto and international:          1 (647) 427-7450
North America (toll-free):            1 (888) 231-8191
To participate in the webcast live via computer go to: https://event.on24.com/wcc/r/1912233/DA8D8425873C22105A0E0F317371DD61

Replay Call Information
Toronto and international:          1 (416) 849-0833                              Passcode: 5973748
North America (toll-free):            1 (855) 859-2056                              Passcode: 5973748

The conference call replay will be available from 12:30 pm (PST) on February 15, 2019 until 20:59 pm PST on February 22, 2019. An archive of the audio webcast will also be available on the company’s website at http://www.cumtn.com.

About Copper Mountain Mining Corporation:

Copper Mountain’s flagship asset is the 75% owned Copper Mountain mine located in southern British Columbia near the town of Princeton. The Copper Mountain mine produces about 90 million pounds of copper equivalent per year with a large resource that remains open laterally and at depth. Copper Mountain also has the permitted, development-stage Eva Copper Project in Queensland, Australia and an extensive 4,000 km2 highly prospective land package in the Mount Isa area. Copper Mountain trades on the Toronto Stock Exchange under the symbol “CMMC” and Australian Stock Exchange under the symbol “C6C”.

Additional information is available on the Company’s web page at www.CuMtn.com.

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION

“Gil Clausen”                                                                                                                                         
Gil Clausen, P.Eng.
Chief Executive Officer

For further information, please contact:
Letitia Wong, Vice President Corporate Development & Investor Relations
604-682-2992 Email: letitia.wong@cumtn.com  or
Dan Gibbons, Investor Relations 604-682-2992 ext. 238 Email: Dan@CuMtn.com

In Europe:
Swiss Resource Capital AG
Jochen Staiger
info@resource-capital.ch
www.resource-cpaital.ch

Website: www.CuMtn.com 

Note:  This release contains forward-looking statements that involve risks and uncertainties.  These statements may differ materially from actual future events or results.  Readers are referred to the documents, filed by the Company on SEDAR at www.sedar.com, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.  The Company undertakes no obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statement.

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox

Nordic Gold Completes 1,234 Ounce First Pour

NORDIC GOLD CORP. (TSX-V: NOR) ("Nordic" or the "Company") today announced the successful completion of the first pour of gold at its wholly owned Laiva Mine near Raahe in Finland.  A total of 1,234 ounces of doré was poured.

On October 11, 2018 Laiva received written approval for startup and mining started on August 5, 2018.

The company acquired Laiva Mine in December 2017 for approximately $25 million in cash and shares. Since that time the company has completed an updated NI-43-101 Resource calculation, completed a PEA, recruited an experienced management team to operate the mine, completed all necessary permitting and approvals to operate. The company has also completed all the necessary plant maintenance and recommissioning.

Michael Hepworth, President and Chief Executive Officer said, “The first pour is a critical but vital step in returning Laiva to commercial production. The last 18 months has been focused on using past production data and learning from this information. Many fixes have been implemented and as we move towards commercial production further improvements will be implemented to ensure appropriate economics and efficiencies. The team at the mine has done an outstanding job of getting back to production in an incredibly short timeframe. From care and maintenance to production in around 11 months is something everyone can be very proud of.”

Nordic’s first pour of gold was livestreamed at 10.20am EST on 30th November 2018. Interested investors can watch video of this first pour at www.nordic.gold

About the Company

Nordic Gold Corp. is a junior mining company with a near production gold mine in Finland.   The Laiva Gold Mine is fully built, fully permitted and financed to production via a gold forward sale agreement.  Production is scheduled to start in the 4th quarter of 2018.  

A recently released PEA was conducted by John T. Boyd Company of Denver, Colorado (“Boyd”).

Other Highlights include:

  • Pre-production capex $7,115,103.
  • 75,981 ounces of average annual gold production at a cash cost of $863 per ounce and AISC of $974 per ounce.
  • Measured mineral resources of 355,000 tonnes at 1.132 g/t Au and Indicated mineral resources of 3,442,000 tonnes at 1.248 g/t Au.
  • Inferred mineral resources of 9,030,000 tonnes at 1.531 g/t Au.
  • Mill grade of 1.45 grams per tonne with a recovery of 90.4%.
  • Life of Mine production of 456,600 ounces gold over a 6-year mine life.

The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that PEA results will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

As previously announced, when Nordic acquired the Laiva Gold Mine, the Company was granted, €131,716,248 in tax loss provisions which may be used to offset future taxes should taxable income be earned in Finland prior to expiration of the tax loss carry forwards.  The tax loss provisions expire between 2020 and 2028 (see the Company’s audited financial statements for the year ended January 31, 2018 for detailed disclosure of the expiration schedule). The recognition of the tax loss carry-forwards has a material impact on the economic assessment of the Laiva Gold Mine project and are contingent upon the Company achieving taxable net income per Finnish tax laws.

Nordic Gold’s management has identified several opportunities outside of the scope of the mine plan studied in the PEA, which could further improve the mine plan and the economics of the project. Most important of these being the three additional 100% owned exploration properties close to the mine. Nordic is currently conducting magnetic surveys on all of the company’s properties. All three properties are fully permitted for exploration.

The report also identifies near mine targets for exploration as potentially 3.2 to 5.1 million tonnes grading at 1.25 to 1.45 grams per tonne. This estimate is based on drilling beneath the south and north pits at depths up to 250 m below surface and is open at depth.  Further infill and step-out drilling is required to test these targets.  Grade estimate is based on assuming the same weighted average grade of the measured, indicated and inferred resources reported in the Boyd report.  The report also identifies a target in the eastern extension as potentially 0.85 to 3.2 million tonnes grading 1.25 to 1.45 grams per tonne.  This estimate is based on three to five mineralized zones of 200 m to 300 m length, 50 m to 75 m vertical extent and 10 m width.  Drilling has identified multiple mineralized zones up to 750 m from the north pit that extend to depths of at least 100 m.  Grade estimate is based on intercepts of reconnaissance drilling and the weighted average grade of the measured, indicated and inferred resources reported in the Boyd report. The exploration targets are conceptual in nature as there has been insufficient exploration work to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.  The economics of the PEA do not include these exploration opportunities. 

Mineral Resources:

Mineral Resources were prepared by JT Boyd (Nordic Press Release August 21, 2017).

  1. The effective date of the estimate is August 9, 2017.
  2. The mineral resources presented here were estimated using a block model with a block size of 9 m by 9 m by 9 m sub-blocked to a minimum of 3 m by 3 m by 3 m using ID3 methods for grade estimation. All mineral resources are reported using an open pit gold cut-off of 0.40 g/t Au.  
  3. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.
  4. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be expected to be upgraded to an Indicated Mineral Resource with continued exploration.
  5. Other than an economic pit shell no attempt has been made to apply a mining dilution or a mining recovery factor.
  6. Mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), CIM Standards on Mineral Resources and Reserves, Definition and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  7. Numbers may not add due to rounding.

Disclosure: Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce the risks and uncertainties associated with a production decision.  The Company has not completed a feasibility study on, nor has the Company completed a mineral reserve estimate at the Laiva Gold Mine and as such the financial and technical viability is higher risk than if this work had been completed.  Based on historical engineering and geological reports, historical production data and current engineering work completed or in process by Nordic Gold, the Company intends to move forward with the development of this asset. The Company further cautions that it is not basing any production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, and therefore there is a much greater risk of failure associated with its production decision. In addition, readers are cautioned that inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves.

Nordic Gold currently has one highly prospective property in British Colombia. The Star Property is currently operated under a Joint Venture agreement between Nordic (49%) and Prosper Gold. (TSX-V: PGX) (51%).

Qualified Person

The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant, P.Geo., a Qualified Person under National Instrument 43-101 and a director of the Company.

About Pandion Mine Finance, LP

Pandion Mine Finance, LP is the general partner of PFL Raahe Holdings LP and is a mining-focused investment firm backed by MKS PAMP Group and Ospraie Management, LLC that provides flexible financing solutions to developing mining companies.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Advisory Regarding Forward Looking Statements

This news release contains forward-looking statements. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. While the Company has based these forward-looking statements on its expectations about future events as at the date those statements were prepared, the statements are not a guarantee of the Company’s future performance.  Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. 

The Company’s forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this new release.  Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.

Originalmeldung direkt auf PresseBox lesen
Mehr von Firma PresseBox