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CMC Metals Ltd V.CMB

Alternate Symbol(s):  CMCXF

CMC Metals Ltd. is a Canada-based growth stage exploration company. The Company is focused on opportunities for high grade polymetallic deposits in the Yukon, British Columbia and Newfoundland. Its polymetallic silver-lead-zinc CRD prospects in the Rancheria Silver District include the Silver Hart Deposit and Blue Heaven claims (Yukon), Amy and Silverknife claims (British Columbia). Its polymetallic projects with the potential for copper-silver-gold and other metals include Bridal Veil (central Newfoundland) and Logjam (Yukon). Its flagship property is the Silver Hart property, covering over 116 claims, 2,017 hectares, located in the south-central Yukon. It has an 80 % interest in Blue Heaven Property, which consists of over 121 contiguous mineral claims located in southern Yukon. The Silverknife Property comprises two mineral tenures covering approximately 538.3 hectares. The Amy claims comprising 16 mineral tenures (approximately 908.4 hectares) cover part of the Cassiar Batholith.


TSXV:CMB - Post by User

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Post by hanscazanon Sep 05, 2016 7:17am
264 Views
Post# 25207670

Gold over $1400 year end? Would be good timing

Gold over $1400 year end? Would be good timingOld report Rockstone with calculation $1200 per oz recent NR : 160T added to .... stockpile Clairecamp What would be current stockpile? https://rockstone-research.com/index.php/en/research-reports/46-CMC-Metals-Ltd.-Ready-to-Mine-Bonanza-Gold-Grades-in-California HIGHLIGHTS Radcliff is a high-grade gold deposit at surface amenable for open pit mining. Historic mining records show the removal of around 15,000 tons ore at surface (oxidized) producing a total of 15,000 oz gold (1 oz/t gold) until 1908. Since December 2010, the Radcliff Mine Property and the surrounding World Beater Property (incl. the historic World Beater Mine) is a 50/50 joint venture between CMC and Pruett-Ballarat Inc. (PBI), a Nevada based private company specialized in mining engineering and the current operator of the Radcliff Mine. With around 15,000 meters of drilling completed, Radcliff is considered drilled-off (i.e. no more drilling needed) with the result of well defined gold resources. Radcliffs total resource: ~300,000 oz gold at an average grade of 3 g/t (relatively high-grade for open pits). In order to start large-scale open pit mining, CAPEX of around $30-$40 million must be financed. For such a large investment, a time-consuming and costly feasibility study would be required. To avoid such, CMC is executing the following mission to start mining immediately: Around 84,000 oz gold are located in high-grade sections of the Radcliff Deposit (so-called gold pods/lenses/exhalites) averaging 22 g/t gold. Gold pod #1 contains ~24,000 oz gold (at an average grade of 35 g/t gold). CMC and PBI plan to mine out Gold Pod #1 first (underground). It will take around 1.5 years to mine the ~22,000 tons of rock containing these ~24,000 oz gold (valued $29 million @ $1,200/oz). Currently, CMC and PBI are constructing a 30 m long adit, which goes straight into gold pod #1. It is 2/3 complete and expected to be operational until early March. 3 months ago, CMC started the construction of this 3x3 m adit, which is large enough for mining vehicles to drive through. The adit is already fully approved. The rocks from the construction of this adit are stockpiled and average an estimated 3 g/t gold. This material may be processed at a later stage as CMC and PBI focus first on mining selected high-grade sections, which material is subsequently just crushed and grinded in order to be shipped directly to a processing facility. Thus, no tailings pond required for such high-grade material (in contrast to 3-15 g/t gold material from Radcliff). The other gold pods are near-by (100-150 m from gold pod #1). Around 4-5 years are needed to mine out the 84,000 oz from all the high-grade gold pods (valued $101 million @ $1,200/oz). CMC and PBI plan to produce ~20,000 oz gold per year and thus generating sales of ~$24 million per year (with gold at $1,200/oz). Production costs for the initial 84,000 oz gold are estimated at $700-$800/oz. Milling (crushing and grinding) costs are typically 20-30% of total production costs. The icing on the cake: CMC owns 100% of the Bishop Mill, a 2h truck drive on highway from Radcliff. This mill is ready to process the high-grade material from Radcliff. Altogether, CMC may be credited net 10,000 oz gold per year for 4 years plus the milling costs of around $150/t processed by the Bishop Mill (at 2,000 t/month = $300,000/month or $3.6 million/year). With gold at $1,200/oz, CMC may generate revenues of ~$16 million per year (total: >$60million in 4 years).
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