Analyst - comments on RocmecThis week Ronald J. Wortel, MBA, P.Eng., E.V.P. of mining investments for MineralFields Group, highlighted Rocmec Mining in a recent interview with Streetwise Reports. An enviable finance vehicle available only in Canada allows junior miners to "flow-through" their exploration expenses to their Canadian investors. In return, investors enjoy significant tax breaks and ownership in resource stocks. In this exclusive interview, Ron explains the prospects and profits borne of these mutually beneficial financing arrangements.
Mr. Wortel was one of the first mining analysts to focus exclusively on the large and underserviced Canadian junior mining market. His coverage of this sector includes over 60 names in the past 9 years. This period includes work with Levesque Beaubien Geoffrion (now National Bank Financial), Dundee Securities, eResearch and Northern Securities. The coverage list includes companies involved in almost all the mining sectors: gold; PGMs; base metals; and diamonds, with both explorers and producers.
Mr. Wortel's Comments:
TGR: Can you share with us some junior mining companies that you feel represent a compelling investment for resource investors today? What makes these companies compelling?
RW: …. Rocmec Mining Inc. (TSX.V:RMI) (PK SHEETS:RCCMF) is a junior gold producer operating in Quebec. Their Rocmec 1 project is located along the Cadillac Break, host to the Kirkland Lake and Abitibi gold camps with over 55 million ounces in historic and continuing gold production. The project covers over 1.5km of strike length along the favorable geology and contains a compliant resource of over 550,000 ounces of gold. The company recently announced that the onsite mill is producing at its capacity of 75 tons per day. This production rate could see 15,000 ounces of gold from this project annually. At current gold prices of C$1,150 per ounce and cash costs less than C$400 per ounce, the mine should generate substantial revenues for the company.
Rocmec is also generating cash flow from the use of its narrow vein mining technology. The company is using this technology at its Rocmec 1 project. It is also providing mining services to Great Basin Gold Ltd. (TSX:GBG) (NYSE.AMEX:GBG) at its Hollister project in Nevada. Here Rocmec provides the equipment, men and training to access gold contained in veins that are too narrow to be mined economically using conventional methods. The success of the operations at Rocmec 1 and Hollister are encouraging many other mining companies to look at the company’s mining technology. The company recently announced a new services contract with Fresnillo PLC (LSE:FRES), part of the Penoles Group (MX:PE&OLES). Fresnillo is the world’s largest primary silver producer and Mexico’s second largest gold producer. Rocmec Mining will provide its thermal fragmentation mining method to develop numerous precious metal bearing veins located within the La Ciénega mine located in the state of Durango, Mexico. We expect Rocmec to announce additional mining service contracts as they continue to show successful and economic extraction of narrow vein deposits. A good resource base, gold production and cash flow from contracts all make Rocmec look like a good investment in the junior gold market.
To see the entire interview click here:
www.TheAuReport.com/cs/user/print/na/2446
Jason Mallin
Publishing Assistant
Streetwise Reports
707-282-5593
jmallin@streetwisereports.com