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7:16 am
April 4, 2011
White Tiger Gold Announces 2011 Production Results and Provides Outlook for 2012
Highlights:
- All three operations achieved improvements in production over 2010;
- Savkino increased production to 18,500 ounces of gold, and reported a 287% increase in proven and probable mineral reserves, which supports the Company's plan to double production in 2013;
- Lamaque increased ore production by 76%, and long-hole dyke stoping operations have re-commenced to reach higher tonnage rates and grade; and
- San Juan increased ore production by 28%, and an increase to 30,000 ounces of gold production is projected for 2012.
"Since the completion of the business combination with Century Mining Corporation, significant progress has been made by the Company, particularly in relation to the re-commencement of long-hole dyke stoping operations at Lamaque, and we believe 2012 will be a defining year for White Tiger and its portfolio of assets," said Daniel Major, President and CEO of White Tiger. "White Tiger is forecasting marked improvement in production 2012 for both the Lamaque and San Juan Mines with increased mill throughput and increased grades. In addition, the Company has already reported an increase in proven and probable reserves at Savkino and has started a program intended to expand production at Savkino in 2013, and in 2012 we are planning on completing updated technical reports for Lamaque and Nasedkino, that, based on current data, are expected to provide an increase in mineral reserve and resource estimates which will allow us to maximize our asset base."
Savkino
The Savkino heap leach operation achieved improved year-over-year production performance in 2011, despite unseasonable weather in the third quarter that negatively impacted heap kinetics for an extended period. In addition, on January 4, 2012, the Company announced that its exploration drilling campaign had resulted in proven and probable mineral reserves of approximately 13 million tonnes (proven: 1,292 kt; probable: 11,760 kt) grading at 1.05 g/t Au (proven: 0.98 g/t Au; probable: 1.05 g/t Au), containing 439,000 ounces of gold (proven: 41 koz; probable: 398 koz), which represented a 287% increase in the mineral reserve estimate contained in the Company's previous technical report. These estimates are supported by a National Instrument 43-101 technical report, dated December 13, 2011, entitled "Mineral Reserve and Resource Estimates of the Savkino Deposit, Zabaikalsky Territory, Russian Federation", a copy of which is available under the Company's SEDAR profile at http://www.sedar.com. As a result of the updated mineral reserve estimates, White Tiger intends in 2012 to focus on the expansion of the Savkino Gold Mine in order to double annual production starting in 2013.
| Savkino | 2010 | 2011 | 2012 |
| Processed Ore Tonnes | 447,000 | 605,443 | - |
| Average grade (g/t Au) | 1.33 | 1.30 | - |
| Gold produced (oz) | 15,157 | 18,508 | - |
| Forecast production (Au oz) | - | - | 20,000 |
Lamaque
The Company's Lamaque underground operation had a difficult year in 2011. Although ore production showed marked improvement year-over-year, it remained below management's expectations. In addition, production at Lamaque was negatively impacted by lower than expected ore grade in 2011. In 2011, the Lamaque Mine focused on capital development in the North Wall in order to access the dyke stopes, while operations in the Lamaque flats focused on stope development and improving operational performance, especially dilution control, the benefits of which were noted in the fourth quarter. Century Mining's financial constraints through much of 2011 negatively impacted production, as it was forced to halt operations on the North Wall for a period, thereby delaying the start of long-hole stoping.
In February 2012 the Company re-commenced long-hole ore stoping at the Lamaque Project, in an effort to provide a substantial increase in ore feed. Accordingly, the Company is forecasting an improved average production rate of 1,750 ore tonnes per day in 2012, with further improvement planned in 2013. In addition, the Company has expanded the senior mining team at Lamaque to provide improved technical and operational supervision. These improvements have positively impacted the Lamaque Mine with noted improvements in mining operations in the Lamaque flat stopes and in improved ore grades. The Company is forecasting gold production of 56,000 ounces in 2012, as ore tonnage from the North Wall increases.
| Lamaque | 2010 | 2011 | 2012 |
| Processed Ore Tonnes | 157,561 | 276,356 | - |
| Average grade (g/t Au) | 2.87 | 1.79 | - |
| Gold produced (oz) | 14,419 | 14,627 | - |
| Forecast production (Au oz) | - | - | 56,000 |
San Juan
The Company's San Juan Gold Mine had year-over-year increases in ore production and total gold production in 2011. However, due to permitting delays, production results did not meet management's expectations for higher grade ore zones. The Company is planning on increasing the milled throughput to an average of approximately 510 tonnes per day in 2012, from 352 tonnes in 2011. This is to be achieved through modifications to the existing process plant, and the opening up of three new mining areas. In addition, the mine is now able to access the higher-grade ore zones that it was not able to mine in 2011. The impact of these changes is expected to result in gold production increasing to 30,000 ounces in 2012.
| San Juan | 2010 | 2011 | 2012 |
| Processed Ore Tonnes | 113,439 | 125,229 | - |
| Average grade (g/t Au) | 6.28 | 5.42 | - |
| Gold produced (oz) | 19,224 | 19,779 | - |
| Forecast production (Au oz) | - | - | 30,000 |
In addition, the Company reported positive results from its exploration programs at its Nasedkino and Pridneprov (Drevniy Prospect) Projects in Russia.
Nasedkino
On September 27, 2011, the Company announced the first update on its 40,000 meter drilling program at Nasedkino, which contained the assay results for 80 drill holes comprising 8,866 meters.
In-fill drilling on Gora 5 and Zhelanny, designed (in part) to increase the conversion of historical Russian approved C1 + C2 gold resources into National Instrument 43-101-compliant mineral resources, has shown that excellent continuity exists between the wide spaced historical drilling results and the new assay results reported in the Company's September 27, 2011 news release entitled "White Tiger Gold Announces Positive Drilling Results on Its Nasedkino Gold Project". As previously reported, drilling at the Gluharinny prospect discovered a new zone of gold mineralization, with the best intersection including 8.2 meters averaging 2.22 g/t Au and 18.56 g/t Ag in drill hole 659. Further details regarding results of such in-fill drilling are set out in the September 27, 2011 press release that can be found under the Company's SEDAR profile at http://www.sedar.com.
Pridneprov
As reported in the Company's November 28, 2011, press release entitled "White Tiger Reports Wide Gold Mineralised Zones at Devniy Prospect", three drill holes drilled at the Drevniy Prospect encountered a wide zone of gold mineralization ranging from 68 to 119 meters in width, with grades ranging from 0.79 to 1.05 g/t Au. The width and grade of the gold mineralization appears to increase with depth. Further details regarding results of the Company's diamond drilling at Drevniy are set out in the November 28, 2011 press release that can be found under the Company's SEDAR profile at http://www.sedar.com.
Qualified Persons
Michael Page, B.Sc, M.Sc., FAusIMM, a geological consultant to the Company, is a Qualified Person as defined by National Instrument 43-101, and has reviewed and approved those sections of the press release related to Lamaque and San Juan and has verified the associated data disclosed in this press release.
Mr. Stanley C. Bartlett, PGeo., Managing Director for Micon International Co Limited, is independent of the Company and a qualified person within the meaning of National Instrument NI 43-101 and has reviewed and approved those sections of the press release related to Nasedkino, and Pridneprov and has verified the associated data disclosed in this press release.
Dr. Alexander Sobolev, Ph.D, MAIG, Director, Geological Audit and Consulting Department JSC TOMS Engineering (St. Petersburg) and a qualified person within the meaning of National Instrument NI 43-101 and has reviewed and approved those sections of the press release related to Savkino and has verified the associated data disclosed in this press release.
About White Tiger
The Company is a TSX-listed mining and exploration company, focused on mine expansion and the development of mineral resources in Canada, the Russian Federation, and Peru. The Company currently operates the Lamaque Mine in Val D' Or, Quebec; Savkino heap leach gold operation located in southeastern Siberia; and the San Juan Gold Mine in San Juan Valley, Peru. Plans are underway to expand gold production at each of Lamaque, San Juan and Savkino and to develop a gold-copper mine at the Company's Nasedkino property situated in Chita Region in southeast Siberia with the goal of becoming a mid-tier gold producer. The Company also holds three additional early-stage gold exploration licenses in prospective geological environments located in central and northeast Siberia.
Caution Concerning Forward-Looking Information
This news release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws (collectively, "forward‐looking statements") relating, but not limited to, White Tiger's expectations, intentions and beliefs (including, without limitation, statements regarding White Tiger's projects and licence areas, exploration, development and production plans and targets, projected production, mineral resource and mineral reserve estimates, exploration results, future plans and objectives, including the expansion of the Savkino Gold Mine, plans to increase gold production at the Savkino, Lamaque and San Juan gold mines, the potential for increasing and/or upgrading the Company's mineral resources, plans regarding the preparation of new technical reports for the Company's Nasedkino and Lamaque projects, anticipated improvements in ore grades and the planned level of output at the Lamaque Mine, anticipated improvements in ore grades and the planned level of throughput at the San Juan Mine, plans regarding modifications to the San Juan processing plant and the opening up of new mining areas and plans to convert historical Russian approved C1 + C2 gold resources into National Instrument 43-101-compliant mineral resources).
Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements. Such statements are based on assumptions, estimates, opinions and analysis made by the management of White Tiger in light of their experience, current conditions and their expectations of future developments as well as other factors which they believe to be reasonable and relevant. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that may cause actual results to vary include but are not limited to: changes in equity and debt markets; inflation; uncertainties relating to the availability and costs of financing needed to continue development, production and exploration activities; development, production and exploration costs varying significantly from estimates; gold production varying significantly from estimates; delays in the development of, and/or production from, the Company's projects and licence areas; failure to establish increased mill throughput and increased grades for both Lamaque and San Juan Mines; that planned modifications to the San Juan processing plant and/or the establishment of three new mining areas at San Juan fail to result in the anticipated increase in mine throughput; unexpected geological or hydrological conditions; the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties, including the failure of major mining and/or milling equipment; the availability to White Tiger of suitable financing alternatives; the ability of White Tiger to service its existing debt facilities; fluctuations in gold and other commodity prices; success of future exploration and development initiatives; competition; operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability in, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws; political, economic and other risks arising from White Tiger's activities in Russia; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in White Tiger's Annual Information Form dated March 30, 2011 and its annual and quarterly Management's Discussion and Analysis and in other filings made by White Tiger with Canadian securities regulatory authorities and available at http://www.sedar.com.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, White Tiger 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 White Tiger 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 the inherent uncertainty therein.
-
White Tiger Gold Ltd.
Daniel Major
Chief Executive Officer
info@whitetigergold.com
http://www.whitetigergold.comTerre Partners
Joanna Longo
Investor Relations
(416) 238 1414 (ext 233)
jlongo@terrepartners.com
10:45 am
April 4, 2011
Quick comment. Pretty ugly numbers from Lamaque for 2011, but if you believe the guidance for 2012, the stock is a steal at this price.
How many companies can you name that will produce over 100,000 in 2012 that have a market cap of less than $500 million? At 77 cents, ours is $235 million.
With 30,000 oz from San Juan alone this year, cash costs should drop to the $600 – $700 range, meaning that it will produce over $30 million in cash flow alone. We are trading at 8 times San Juan cash flow.
I used to say we aren't getting any value for San Juan. Now we are not getting any value for Lamaque.
11:20 am
April 4, 2011
Looks like they are still predicting head grade issues…
Lamaque 2010 2011 2012
—————————————————————————-
Processed Ore Tonnes 157,561 276,356 -
Average grade (g/t Au) 2.87 1.79 -
Gold produced (oz) 14,419 14,627 -
Forecast production (Au oz) - - 56,000
—————————————————————————-
Their forecast for 2012 is based on 1750 tonnes per day. If you back calculate:
56K ounces forecast (1 troy ounce = 31.1034807 grams)
1,741,795grams
1750*365days = 638,750 tonnes.
1,741,795/638,750 = 2.72gpt realised. (2.86gpt at 95% recovery)
So, they're targeting the head grade they obtained in 2010.
12:38 pm
April 4, 2011
Doc, I don't know if targetting is the right word. Century had a history of over promising and under delivering; I hope the new management is under promising with the intent to over deliver.
If their forecast for 2012 production was based on 2,000 tpd and a grade of 4+ g/tonne, then many might scoff at those forecasts based on 2011 results.
I also think you have to base your calculation on something like 330 days as it seems that production didn't (re)start until February which coincidentally corresponded to the signing of a new collective agreement.
12:49 pm
April 4, 2011
Thanks Carib…bad choice…"expecting at least" is probably the better choice of words. It is definitely my hope that they will under promise…everything seems to be pointing to that.
The definitely are going low with their guidance…they've been talking about 2000tpd in the near future..yet they are going with 1750 as guidance. I suspect we'll see an upside surprise…at least with throughput- – whether they can get the dilution control optimised is another matter…but they're closing out the positions they had advertised with staff to help (presumable in some part) optimize dilution control.
I think 56K is a bare minimum. More likely 1900tpd at 3-3.5 gpt. So…65K to 75K on the upside.
I'm not sure where you found that Lamaque wasn't mining the first 35 days of the year. I didn't see that anywhere. The miners ratified the contract in Nov 2011…presumably they signed sometime closely after that…I can see why 2011 was terrible at Lamaque with contracts in flux…as per your previous suggestion. It looks to me that the miners should be fairly happy with the latest contract – they've been treated much more fairly it seems. We should be stable in this regard until at least 2016.
2:24 pm
April 4, 2011
> I'm not sure where you found that Lamaque wasn't mining the first 35 days of the year.
I wouldn't say they didn't do any mining, but if as per their Feb. 3 news release they are only now starting to extract ore from the Noth Wall, then based on 2011 results, I wouldn't expect much from January.
Feb. 3 NR:
The Company is pleased to announce that sufficient development has been completed in the North Wall now to allow the operation there to start ore mining, while development continues to expand the available resources.
" We are therefore happy to announce that we have reached the point that Long Hole stoping can start at the Lamaque and that we can now start to push the mine to its planned production rate of 2000 tonnes per day."
So it is reasonable to assume that it will take a few months to get to 2,000 tpd and until they get a solid quarter or two of production results, it is hard to estimate the average grade for the year. Therefore an average of 1,750 tpd and a grade of around 3 g/tonne is a resaonable basis for the estimated 56,000 oz. I expect them to do better.
Disclosure: I bought more shares today.
2:44 pm
April 4, 2011
well with that release we can now start the new year with a clean slate. They will have to take full responceability for what happens in production this year. I still wonder about the ore at Benard Dyke will it make a come back to bring up the overall grade at the mine?
7:49 pm
April 4, 2011
Lamarque's 2011 figures were indeed horrible. Going forward, all eyes will be on Lamarque this year. Seeing the positive chain of events that came out of Lamarque.. 1st) funding somewhat elevated(the US$150 million laon not included) 2nd) all bugs in the mill removed 3rd)more key personnels employed 4th)major worker issue resolved n a new miners contract signed…yet, with all these improvments and mine fronts development advances, the guidance is a cautious 56,000oz for 2012! My quick gut feel is that management is trying to make a break from past perception per PK's era (over promising n underdelivering. Judging from all these events, I am still at a lost as to why PK could have promised so much without doing all these or there are more to it that are not visible!?). My expectation is this 56,000oz is the bare minimum with confidence and with potential upside surprices to the tune of 75,000oz. No doubt Lamarque had lost 1 solid year. I would also like to see some news from the Bedard Dyke n the coming NI43-101 too.
5:12 pm
April 4, 2011
The reason i was thinking about the bedard dyke was a statment in the FEB 3 NR ," while development continues to expand the available resources". Now which available resources was he talking about? Just a reminder of what was at the bedard dyke and why it was lost last year and why it it will make a come back this year, and make this year a definning year for WGT.
this is all JMHO
7/12/2011
==============
Production has been impacted by delayed development and the low volume of ore from the Bedard Dyke.
http://finance.yahoo.com/news/…..&.v=1
.
==============
11/16/2010
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During the months of September and October 2010, the Company was successful in opening up the Bedard Dyke, hiring the senior operations staff, and receiving the necessary underground mine equipment to accelerate development and increase production to approximately 1,000 TPD by November 2010. The Company anticipates reaching 1,500 TPD by the first quarter of 2011 and reaching a steady state production rate in excess of 2,100 TPD by the fourth quarter of 2011.
.
Mine infrastructure facilities, including the upgrade to the crusher facility, offices, warehouse, mine dry, core
logging and sample preparation areas are completed and fully-operational. The current underground workforce
includes 170 full time Century Mining employees, along with 25 contract miners. Century's workforce will continue
to grow, and will displace the majority of the contract workforce by 2012.
Recent underground definition drilling at the Bedard Dyke continues to confirm the zone of mineralization in the
mine plan that will form part of the initial underground production in this second area of the mine development
plan. Ongoing underground definition drilling continues and results will be released when modeling and resource
confirmation is complete.
http://www.azomining.com/News……ewsID=1407
.
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9/27/2010
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CENTURY MINING’S UNDERGROUND DRILL PROGRAM AT BEDARD DYKE CONTINUES TO INTERSECT HIGH GRADE GOLD VALUES Century Mining Corporation (“Century” or the “Company”) (TSX-V: CMM) is pleased to announce the following results from its first seven diamond drill holes from the first underground drill station in the Bedard Dyke at the Lamaque
.
Gold Mine in Val D’Or, Québec.
.
Significant results include (see below for full drillhole detail):
.
• Hole 10-2760-1: 9.88 to 11.22 m; 1.34 m grading 67.5 g/t Au (uncut), 31.10g/t Au (cut to 1oz/t)
• Hole 10-2760-2: 36.03 to 37.70 m; 1.68 m grading 5.69 g/t Au (uncut and cut)
• Hole 10-2760-3: 26.70 to 28.32 m; 1.62 m grading 25.57 g/t Au (uncut), 20.74 g/t Au (cut to 1oz/t) and 41.15 to
44.20 m; 3.05 m grading 5.65 g/t Au (uncut and cut)
.
• Hole 10-2760-4: 15.09 to 17.50 m; 2.41 m grading 27.66 g/t Au (uncut), 25.36 g/t Au (cut to 1oz/t)
• Hole 10-2760-5: 8.23 to 11.89 m; 3.66 m grading 17.97 g/t Au (uncut), 12.78 g/t Au (cut to 1oz/t)
• Hole 10-2760-6: 13.23 to 14.57 m; 1.34 m grading 7.09 g/t Au (cut and uncut)
• Hole 10-2760-7: 27.13 to 29.99 m; 2.87 m grading 22.36 g/t Au (uncut); 17.03 g/t Au (cut to 1oz/t)
.
This first drill station was designed to test the extent of both the Bedard Dyke contacts and the internal
structure of the mineralization in areas where no previous drilling has been done. These results, along with the
continued drilling campaigns in the Bedard Dyke, will be used to complete a new 3D wireframe model to assist in
mine planning and resource estimation.
http://www.24hgold.com/english…..s-to-inter
sect-high-grade-gold-values.aspx?articleid=639051
.
==============
7/28/2010
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The Bedard Dyke will be a very welcome addition to the mill, as it will be a long-hole, open-stope complex, and is
expected to grade higher than the flats. The face of the Bedard Dyke portal, prior to its first blast, graded 37
grams per ton gold (g/t Au), and recent drilling showed intersections close to 100 g/t Au. The daily tonnage
expected from the Bedard Dyke will be significantly higher than the flats, as it is the meat and gravy of the
operation's future. The Goldex Mine (Agnico-Eagle Mines Ltd. (NYSE:AEM; TSX:AEM), down the road a few kilometers, is mining below 5,500 feet with a head grade of only 2.8 g/t Au, but is moving a lot of ore via their long-hole stopes, and at a low mining cost. I can see the Bedard Dyke lowering their operating costs at Lamaque going
forward.
.
An interesting point is that the development work required to access the Bedard Dyke will be right through this
high-grade vein before they access the underground to extract their 20,000 ton bulk sample. Obviously, this
material will be crushed and sent to the mill, as it has plenty of visible gold, as well as massive chalcopyrite
widely disseminated all through the veins. Once the sample is removed and tested, the company will look to
receiving its next permit to mine the zone
.
==============
July 6, 2010
==============
At the Bedard Dyke, the Company has completed the required engineering, portal
stabilization and construction which included significant cabling, wire mesh, rock-bolting
and shotcrete. Development into the Bedard Dyke has commenced, and the initial
mineralized development graded approximately 37 g/t Au across the face of the first
blast zone.
.
The Company expects to be developed down into the Bedard Dyke in July,
at which point the 20,000 tonne bulk sample will be extracted and tested. Concurrently,
the exploration team will also be initiating the underground drill program to fully explore
this newly discovered mineralized zone.
.
The Bedard Dyke is the second zone which
the Company anticipates to develop in 2010, and production is expected to significantly
increase upon commencement of mining. All underground access portals are collared
via the historical Sigma pit, which is located only a few hundred meters from the 3,000+
tonne per day milling facility. Century’s exploration team continues with its 150,000 foot
(45,000+ meter) exploration and definition drill program that commenced in May 2010 at
Lamaque and is expected to continue over a three-year period.
http://www.infomine.com/index/…..904367.PDF
.
==============
May 5, 2010
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BLAINE, WASHINGTON–(Marketwire – May 5, 2010) – Century Mining Corporation ("Century" or the "Company") (TSX
VENTURE:CMM) is pleased to announce that the Company has received the permit to access the Bedard Dyke at the Lamaque Gold Mine in Val d'Or, Quebec, and will collar the portal access drift, ahead of schedule, the week of May 10th.
http://www.marketwire.com/pres…..159296.htm
.
==============
Mar 18, 2010
==============
From the March 15`10 Century NR: ``The Bedard Dyke outcrops in the open pit and will be an important ore source
during the startup of the Lamaque Mine.``
Definition of ``outcrop`` (from Rob McEwen`s US Gold website): ``An exposure of rock or mineral deposit that can be
seen on surface, that is, not covered by soil or water.``
.
Picture no. 15 in the Lamaque gallery is what a gold outcrop would look like:
http://www.centurymining.com/s…..Photos.asp
.
Now, it is not clear if that picture is a recent picture of the Bedard Dyke outcropping into the open pit or if
it`s an old picture of gold mineralization in the open pit during the period when the pit was being mined. It
really doesn`t matter. The fact of the matter is that they are saying that the Bedard Dyke outcrops in the pit.
.
This means that the mineralization flows all the way up to the pit. It also likely means that the gold is exposed
for viewing/access as it outcrops in the pit.
I think we can use this picture to get a visual appreciation of what the outcrop would look like on the pit surface
or pit wall. It bodes well for early stage start up mining of the Bedard Dyke.
http://www.stockigloo.com/disc…..-open-pit/
.
==============
Jan 18, 2010
==============
Retransmission: Century Intersects 35 g/t Au Over 7.4 Feet at Bedard Dyke at Lamaque Gold Project, Val-D'Or, Quebec
.
* Reuters is not responsible for the content in this press release.
Mon Jan 18, 2010 1:30pm GMT
.
BLAINE, WASHINGTON, Jan 18 (MARKET WIRE) –
Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:
CMM) is pleased to announce results of surface diamond drilling at the
Bedard Dyke within the Lamaque gold project. The current drill program is
designed to test the extent of the dyke, as well as the grade.
A total of 21 holes (10,765 ft) were planned but only 13 (6,748 ft) have been
completed to-date due to an interruption in the drill program. The
Company is currently reviewing tenders for the completion of the drill
program and plans to commence drilling of the remaining 8 holes
(approximately 4,000 ft) in the first quarter of 2010.
.
Hole From Downhole Grade
Number Azimuth Dip Length (ft) (ft) To (ft) Intersect (ft) g/t Au
—————————————————————————
2610-1 0 -75 305.1 110.7 112.0 1.3 8.59
2610-1 117.3 121.2 4.0 14.35
2610-1 243.5 249.3 5.8 13.74
—————————————————————————
2610-2 180 -89 462.6 207.4 217.4 10.1 11.19
2610-2 229.0 238.0 9.1 3.19
2610-2 321.9 347.5 25.6 2.73
—————————————————————————
2610-3 285 -45 310 "Negligible"
—————————————————————————
5:27 pm
April 4, 2011
Oh yeh it seemed like an important zone to the success of the mine and with the high grades how can you loose, oh yeh just do not mine it leave it for later. Now how can you open this zone up without to much notice. TIJMHO but redrill it and rename it and presto we have a old/new high grade zone reworked so it can supply high grade feed to the mine. Its all good for us at this time i say "bring on the high grade"
5:45 pm
April 4, 2011
Paliman, wonderful recaps on this Bedard Dyke front. Very interesting read. will print n file in my hand-held folder for reference . Much appreciated, Cheers!
10:32 pm
April 4, 2011
Thanks for your hard work & analysis, Paliman. This is the kind of stuff that our "old" friend, Production05, used to provide for the rest of us.
I think you are right about the "new" high-grade ore becoming available "suddenly". Consequently, the 1st quarter results for 2012 will probably be very impressive.
9:56 am
April 4, 2011
Carib said:
Doc, I don't know if targetting is the right word. Century had a history of over promising and under delivering; I hope the new management is under promising with the intent to over deliver.
If their forecast for 2012 production was based on 2,000 tpd and a grade of 4+ g/tonne, then many might scoff at those forecasts based on 2011 results.
I also think you have to base your calculation on something like 330 days as it seems that production didn't (re)start until February which coincidentally corresponded to the signing of a new collective agreement.
I really hope this is true "underpromising". IMO, the lack of buying at present is related to the "company who cried wolf" story. Too many unkept promises and now the markets do not pay attention when "chicken little" runs into town saying the "sky is falling".
I try and put myself in the position of a fund manager sitting in my bosses office after an SP drop trying to explain why I had bought WTG. The Boss saying " 10 times over the last 2 years this company has failed to make good on their promises .. what were you thinking?"
On the other side of the fence I have noticed that since the merger every promise has been kept. Savkino production was right on the money, Nasedkino looks to be a good property, and so on.
Even the claims Finskiy made prior to the merger seem to be accurate. Lamaque required a large investment to get up to speed and the cash just was not there. He claimed access to capital – 15 million to Lamaque and now 150 Million with no share dilution.
I was impressed with the recent agreement with the miners and replacement of top mining management.
The recent NR looks promising but the market is not convinced.
What will start to convince the market is if lamaque can show production numbers that mirror the forcast for a quarter or two.
What would really be attractive is if WTG, once profitable, started paying a dividend. If they can pull of 5 or 6 months of profitable operation from March, and announce a dividend for Q1 2013 in October. Even a small one would go a long way.
Forcast for 2012 is over 100,000 oz. If they can hit this and make a profit of 300/oz that is 30 M. 10% for a dividend is 1 cent per share.
With interest rates this low dividend paying companies are increasingly attractive.
It seems like so far Finskiy's opening moves on the chessboard have been solid. 3 months from now I hope we have a clearer picture of what the middle game will look like ( production meeting expectations, commercial production at lamaque, and a profitable quarter for the company).
Then perhaps investers will then return having visions of a profitable endgame.
10:11 am
April 4, 2011
thanks guys but really did not do much this info was on the net just brought it over to point out the high grades at BD and a new NI43-101 that was promised by the old guard went and how it may reapear. I really hope that the new guard puts the money where their mouths are and act like pro's and produce the gold we all what to see.
5:08 pm
April 4, 2011
Mike H said: "Forcast for 2012 is over 100,000oz. If they can hit this and make a profit of 300/oz that is 30M…"
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Just for discussion, with POG at US$1700/oz, I am hopeful a potential profit of $600 to $700/oz (60M-70M) might be possible. Is it too optimistic? Would like to know more on this production cost/profits matter.
8:17 pm
April 4, 2011
Wingfong, I think some of us have been conditioned by the likes of Payday and others, including the steady stream of negative news from WTG pre-merger that the operating costs of the CMM/WTG mines are extremely high. We won't know the cash costs at Lamaque until after they declare commercial production.
Before WTG made the takeover bid for CMM, San Juan's cash costs were in the order of $600 – $700/oz and with a 50% increase in production for 2012, those costs will come down.
Savkino's cash costs for the 9 months ending September 30 were $904/oz and with a doubling of production in 2013, those cash costs will be substantially reduced.
It's hard to say yet what Lamaque's cash costs will be until they get to 2,000 tpd, but I'd expect a number much lower than $1,000/oz.
This is from the March 2009 Corporate presentation:
•
In January 2009 a Due Diligence Report was prepared by an independent consultant for the purpose of financing the restart of mining operations at Lamaque.
•
The report includes detailed mine plans, cash flow models and financial analysis for the first 11 years after restart of mining operations.
Lamaque Financial Model Highlights for First 11 Years of Mining
(US$ 1,000 except where noted)
Gold production (oz) 1,028,900
Hedged gold avg. (US$/oz) 905
Spot gold sales avg. (US$/oz) 664
Revenue 730,265
Cash costs 427,138
Operating cash flow 297,590
Operating costs (US$/oz) 421
Cash flow after taxes 168,267
Total capital expenditures 138,326
Total loan amount 55,000
(balance funded from operating cash flow)
Net cash flow after capital 113,267
NPV @ 10%88,248
In 2009 the estimated cash costs were $421/oz. Have they doubled since then? It all depends on the grades I guess, but if they have doubled, the price of gold has more than doubled.
If I thought that White Tiger couldn't produce gold for an average of less than $1,400/oz or even $1,000/oz , I'd be long gone.
8:20 pm
April 4, 2011
Carib, I share your views totally. To add a little, the following might be of use:-
Scott Wright Of Zeal LLC wrote (a news letter service dedicated to precious metals)
dated FEB 03 2012
"..in 2011, average cash operating cost for juniors was $723/oz compared to $574/oz for the larger mines…"… considering these researched figures and pog at $1700, hopefully one can arrive at a more realistic cash flow figure for WTG in 2012 based on 100,000oz production. Cheers!
11:17 am
April 4, 2011
back in at 67 cents, trading range is nice on WTG/CMM, always a lot of nice volatility, especially in march/april months.
News should be coming out shortly with PDAC around the corner. And I really can't see WTG going much into the $100 million market cap range. Even for a completely mismanaged company like this, they would have to really screw up in order to bring the SP down there.
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