Great silver/zinc playXAG is a great junior miner thats ready to go into production. Company has 50 million shares outstanding and shares under 10 cents are a freebie.
From last news release:
Total assets increased to $22,163,000 at Dec. 31, 2008, from$21.33-million at June 30, 2008, primarily as a result of the investment inBilbao and offsetting the deferred transaction costs and share issue costsagainst share capital.
The company had a working capital surplus of $1,556,000 at Dec. 31,2008, compared with $6,204,000 at June 30, 2008. The decrease wasprimarily dueto funds expended on the exploration projects, including Bilbao. Duringthesix-month period ended Dec. 31, 2008, the company invested $2.5-millioninthe purchase of 25 per cent of Bilbao, $1,228,000 in exploration andprojectdevelopment, and $920,000 in administration costs, includingnon-recurringcosts of the reverse takeover and TSX Venture Exchange listing ofXtierra.
Subsequent to Dec. 31, 2008, the company and Pacific Road Group ofFunds entered into an agreement whereby Pacific Road subscribed for$1.25-million in non-interest-bearing notes issued by Orca Minerals Ltd., awholly owned subsidiary of the company. These notes are convertible in variouscircumstances (see news release in Stockwatch dated April 30, 2008).
The proceeds of the financing will primarily be used to initiate thefirst phase of a feasibility study on the Bilbao project. The company isadequately financed to undertake its stated goals for 2009 of initiating thefeasibility study on the Bilbao deposit and advancing the optimization of theLaguna feasibility study, and in making the payment of $500,000 due on theBilbao property in August, 2009. Additional financing may be necessary to furtheradvance and explore the company's exploration properties and to complete abankable feasibility study on the Bilbao project.
Making progress toward production
Xtierra's objective is to become a mid-tier producer of silver and basemetals through the development of its Bilbao and Laguna projects located inthe central Mexican silver belt in the state of Zacatecas, having initiatedthe first phase of a feasibility study at Bilbao in April, 2009.
During 2008, Xtierra conducted infill and step-out drilling its Bilbaosilver-zinc-lead-copper project, and completed an independent National Instrument (NI) 43-101resource estimate. The resource report estimate 3.6 million tonnes indicatedresources at an average grade of 3.53 per cent zinc, 2.75 per cent lead, 0.29 per cent copper and88.23 grams per tonne (g/t) silver, and 2.4 million tonnes inferred resources at an average gradeof 2.52 per cent zinc, 2.79 per cent lead, 0.28 per cent copper and 83.08 g/t silver. The Bilbaodeposit remains open to the northwest and to the southwest.
Preliminary metallurgical studies on the near-surface oxidemineralization using a process of high-intensity magnetic concentration (HIMC)resulted in a marked preconcentration of silver, lead, zinc and copper withno significant loss of any of these metals. Recoveries in the preconcentratewere 86 per cent for silver, 95 per cent for lead, 88 per cent for zinc and 70 per cent for copper.Conventional flotation processing indicates excellent recoveries in theprimary sulphide mineralization.
In August, 2008, Xtierra acquired the remaining 25-per-cent interest in the Bilbaoproperty that it did not already own for a consideration of $5-million,satisfied by payment of $2.5-million on closing, a further payment of$500,000 in August, 2009, and the balance to be paid in four equal annualpayments of $500,000, commencing at the time of mine construction. The firstsuch $500,000 annual payment will be made not less than six years after theclosing date (August, 2014), with the remaining balance to be paid no laterthan 10 years (August, 2018).