Desert Sun Mining

Ärgerlich: Ausgerechnet jetzt , wenn die Aktie nach langer Zeit wieder steigt, gibt DSM eine Kapitalerhöhung bekannt mit massiver Aktienverwässerung.
Mindestens 10 Mill. neue Aktien bei ausstehenden 60 Mill. Aktien.

Folge : Der Aktienkurs fällt, trotz des starken Goldpreisanstiegs.[Blockierte Grafik: http://www.goldseiten-forum.de/images/smilies/mad.gif]

Desert Sun Mining Corp. announced today that it has entered into an agreement with a syndicate of underwriters led by Sprott Securities Inc. and including CIBC World Markets Inc, GMP Securities Ltd, Salman Partners Inc., pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 10,000,000 units at a price of $1.45 per unit for aggregate gross proceeds of $14,500,000. The underwriters have the option to purchase an additional 3,793,103 units at the issue price for additional gross proceeds to Desert Sun of $5,500,000 at any time prior to the closing of the offering. Each unit will consist of one common share and one-half of one common share purchase warrant of Desert Sun. Each whole warrant will be exercisable at a price of $2.50 until November 20, 2008. Proceeds from the offering will be used to fund the development of the Jacobina project in Brazil and for working capital purposes.

Desert Sun resurrects Jacobina
By: Dorothy Kosich
Posted: '29-NOV-04 06:00' GMT © Mineweb 1997-2004

SAN FRANCISCO--(Mineweb.com) If all goes according to schedule, Desert Sun Mining (DSM) will bring Brazil's Jacobina mine back to life early next year.

In an interview with Mineweb Monday, Desert Sun President and CEO Bruce Murphy said the former Anglo American operation will achieve full production of by the second quarter of 2005.

For a $5 million purchase price and an additional $30 million investment, Desert Sun got a former 700,000 ounces gold producer with $100 million in infrastructure. It is expected to produce 100,000 ounces annually at a cash cost of $200 per ounce.

Located near the city of Jacobina in the Bahia State, Murphy said the project has employed local geologists and engineers. Jacobina is 100% owned by Desert Sun, and is located on along the 155 kilometer Bahia Gold Belt in northeastern Brazil.

Murphy said the operation has a particular advantage by the 3-to-1 exchange rate for the Brazilian real. Because operations are tied to the real, he added, actual production costs will be a third of what they would be if they were U.S. dollar-based. The company will also pay a 1% royalty to the government. As of June 30, 2004, Desert Sun Mining had cash and cash equivalents of $23,791,077.

Murphy said the property has no historic environmental liability and will process free gold that will generate few environmental impacts. He added that both the community of Jacobina and the Brazilian government have been "very supportive" of the project.

Resource estimates include 1.4 million measured and indicated ounces of gold, according to Murphy. The 2004 $4 million exploration program includes 28,000 meters of drilling including 80 new drill holes. Programs are underway at the Joao Belo Zone and Morro Do Vento. As of November 17, resources at Joao Belo increased to 970,000 ounces in the measured and indicated category. A final updated mineral reserve and resource statement by SRK Consulting is anticipated at the end of this year. It is hoped the statement will extend mine life from seven to 10 years at Jacobina. Another potential resource is the Canavierias Mine, located three kilometers from the Jacobina processing facilities.

Analyst Rodney Stevens of Salman Partners said Desert Sun Mining was valued at US$27 per ounce of resource. Salman rated Desert Sun a "BUY" and set a target price of Cdn$3/oz as of November 18th. Toronto-based Desert Sun is listed on AMEX and TSX.
http://www.mineweb.net/events/…sco_gold_forum/393869.htm

Wenn alles plangemäß verläuft, wird DSM Brasilien´s Jacobina Mine im frühen 2005 wieder zum Leben bringen. Volle Produktion im zweiten Quartal.
100.000 Unzen sollen jährlich zu Cashkosten von 200 Dollar produziert werden. Ressourcenschätzung 1,4 Mill measured and indicated. Abschießende Ressourcenschätzung soll Lebensdauer von 7 auf 10 Jahre erhöhen. Analyst Stevens von Salman Partners meint, DSM wäre mit 27USD pro Ressourcenunze bewertet. Salman gibt Kaufempfehlung mit Kursziel von 3 Kanadadollar.

Unternehmenspräsentation auf der Homepage ist aktualisiert worden:

http://www.desertsunmining.com/CorpPresentation/slide1.htm

Ferdinand Lips im Beratergremium von DSM

Renowned Gold Expert Ferdinand Lips Joins Desert Sun Advisory Committee
1/11/05
TORONTO, ONTARIO, Jan 11, 2005 (CCNMatthews via COMTEX) --

The Board of Directors of Desert Sun Mining Corp (TSX:DSM)(AMEX:DEZ) is pleased to announce that Ferdinand Lips has joined the Company's Advisory Board. Mr. Lips is a well-known fund manager and is one of the world's foremost authorities on the gold market.

Stan Bharti, P.Eng., Chairman of Desert Sun commented: "We are very pleased that Ferdinand Lips has joined the Advisory Board of Desert Sun Mining. His vast knowledge and experience will be an invaluable addition to the strong group of Advisors we have assembled."

Born in Switzerland, Ferdinand Lips has over 50 years experience in banking and finance. Over his career he has been Managing Director of Rothschild Bank AG, Zurich and Chief Executive Officer of his own Private Bank, in addition to a top-performing precious metals fund manager. With 30 years direct experience in the gold industry, Mr. Lips has served as a Director of Randgold & Exploration (JSE:RNG), Randgold Resources (LSE:RRS.L), and Durban Roodeport Deep (Nasdaq:DROOY). He is currently Chairman and manager of the Top-Gold Fund, based in the Principality of Liechtenstein.

Mr. Lips was a founding member of the Swiss Association of Security Analysts and is a trustee of FAME, Foundation for the Advancement of Monetary Education, based in New York. He has widely lectured on monetary history, bonds and stock markets.

In addition to Ferdinand Lips, the Desert Sun Advisory Board includes William Clarke, former Canadian Ambassador to Brazil, David Williamson, a mining and commodity analyst in London, UK, Dr. Rick Garnett, a geologist with over 40 years experience worldwide, and Dr. Chuck Thorman, a recognized expert in the geology of Brazil. .......

Jetzt werden Übernahmespekulationen auch über DSM kolportiert :
Desert Sun poised as emerging gold producer
http://www.theglobeandmail.com…ESE29/TPBusiness/Canadian

Die Geier sollen gefälligst ihre Pfoten von DSM und Bolivar Gold lassen!

Aus dem Artikel:
"One of the things that makes Desert Sun stand out is the resource growth potential," says Rodney Stevens, an analyst with Salman Partners Inc. in Vancouver. "They have 100-per-cent ownership of a large gold belt that could potentially be a multimillion-dollar asset. And in 2005, they are going to have a significant drill program to try and demonstrate that."

>DSM ist 100%iger Eigentümer eines großen Goldgürtels, der möglicherweise ein Vermögen von mehreren Millionen Dollar sein könnte. Und in 2005 werden sie mit einem bedeutenden Bohrprogramm versuchen, dies zu demonstrieren.<

Statt multimillion-dollar asset ist doch hoffentlich Multimillionen Unzen gemeint. Schon 2500 Unzen ergeben 1 Million Dollar ( zumindest brutto)

Sprott : Nettovermögenswert pro Aktie 3,23
Kursziel 3,5 Can$ (zuvor: 3,05)

Sprott Updated their report this month:

Catalyst – Successful Start-up of Jacobina Gold Mine We expect the start-up of the Jacobina mine could be a tremendously positive catalyst for Desert Sun. In most cases we believe that the commencement of a Company's first mine can add value, however with Desert Sun there is an additional element of scepticism about the Jacobina mine because of its checkered past. For most of its fifteen year history (1983-1998) Jacobina was a high-cost mine run by Anglo American and William Resources. With the mine shut down, Desert Sun has been able to modernize and expand the mine, now it is expected to produce 100,000 oz/yr at a cash cost of approximately $200/oz.
Desert Sun has recently improved its management team by adding Peter Tagliamonte, COO (formerly Eldorado Gold), who lives in Brazil and is directing the redevelopment of the mine, and Bruce Humphrey, President and CEO (formerly Goldcorp), who is now in charge of directing the production growth from the head office in Toronto.

Under The Radar – Growth Potential In Bahia Gold Belt

Desert Sun's original feasibility study pegged 750,000 oz inreserves, but with almost 4 million oz in measured, indicated and inferred resources the potential to grow those reserves is excellent. Already in 2004, the Company has grown measured and indicated resources to more than 2 million oz (an increase of 42% in one year). All of the total
four-million-ounce resource is within a few kilometres of the Jacobina mill site, which suggests that Jacobina could be a very long-lived mine. Desert Sun has already performed a scoping study on an expansion to 150,000oz/yr, we think that expansion will take place in 2006. The new Morro Do Vento zone is lower grade but could be
mined as an open pit if the ore is metallurgically amenable to heap leaching then Desert Sun could expand there later. The Company is now exploring Canavieiras (an older highgrade mine) and Joao Belo Sul (new zone), which may provide additional feed, or justify future expansions. Meanwhile, the Company is conducting early exploration on other targets on the 155-km Bahia Belt.

Valuation and Target – Top
Pick, C$3.50

We have been valuing Desert Sun on a P/NAV for some time, and in our view Desert Sun has been reasonably successful at maintaining its NAVPS with through exploration and development despite significant equity dilution. But looking ahead in 2006, Desert Sun should have two full years (Q3, Q4 2005) under its belt and looking to grow again in
2007. We are moving to a P/CF multiple to recognize this production, but are awarding it only an 8x multiple, which reflects the higher risks as the Company moves into production. We are raising our NAVPS estimate to C$3.23, and so our new target of
C$3.50 (was C$3.05) implies a 1.1x P/NAV multiple, which is appropriate at the Company’s present early stage.

Desert Sun Slakes Thirst for New Gold Production

By Ben Abelson
06 Mar 2005 at 04:29 PM EST

NEW YORK (ResourceInvestor.com) -- Less than three years after acquiring Brazil's Jacobina mine for a song, interlisted-Canadian gold miner Desert Sun Mining [AMEX:DEZ | TSX:DSM] is nearing production at the property.

Desert Sun's first gold pour is scheduled for April, with production expected to ramp up to the 100,000 ounce per year level by the third quarter of this year. Cash costs are set to come in at a respectable $200 per ounce.
Absol Banners Delivery

The company has also proven adept at uncovering new resources at Jacobina, earlier this week upping its total reserves to nearly 1 million ounces. Total measured and indicated resources now stand at over 2 million ounces.

Investors have been quick to take note of the company's success.

Since listing on the American Stock Exchange in August 2004 at $0.89, the company's stock has shot as high as $2.12. It closed March 4 at $1.86.

In revitalizing Jacobina - located in an historic Brazilian mining region with roots dating back to the 17th century - Desert Sun has made a name for itself as a junior with a large-scale ambitions.

In the process, it's also made its way to the short-list of potential acquisition targets for the majors.

Desert Sun acquired a 50% interest in Jacobina from William Multi-Tech in May 2002 after spending US$2 million in exploration on the property. The company later ponied up just C$5 million for the remaining stake in the mine.

At the moment, Jacobina is set for a 7-year life, with total production in the 750,000 ounce neighborhood. With $400-plus gold, the internal rate of return to the company is expected to tip the scales at over 50%.

Given its recent success and massive Brazilian land holidngs - Desert Sun holds the deed to a 155 km long tract near Jacobina - the company has also ramped up its exploration plans. And like most other juniors, Desert Sun has made liberal use of its stock-printers to fund these plans.

Last week, Desert Sun entered into an agreement to raise C$20 million through the sale of 8.6 million stock warrant units through Sprott Securities - which if fully diluted would increase the company's total float by nearly 11 million shares. It's not a small figure when one considers that only 73 million shares are currently outstanding.

More equity financing is likely to be forthcoming. The company has listed its 2005 & 2006 capital needs at US$70 million - or more than three times the amount of cash on its books prior to last week's financing.

And of course, there is endless speculation about Desert Sun becoming fish food for a bigger stock, or amalgamating with the likes of Alamos Gold [AGT] to form a new fast-growing gold play focused on the Americas.
http://www.resourceinvestor.com/pebble.asp?relid=8545

>Erstes Gold für April geplant, bis zum dritten Quartal wird Produktion auf jährliches Level von 100.000 Unzen hochgefahren sein, bei beachtlichen Cash Cost von 200 USD. Reserven ca 1 Mio Uz, M&I Ressourcen über 2 Mio. Aktie von 0,89 im August bis auf 2,12 Dollar gestiegen.
DSM steht ebenfalls auf der kurzen Liste von möglichen Übernahmekandidaten.
Derzeit Lebensdauer ca 7 Jahre mit ungefähr 750.000 Uz. Große Landstriche für Exploration.
Letzte Woche angekündigte Warrantsausgabe ( 20 Mio CAD ), die die Aktienanzahl von 73 Mio um immerhin 11 Mio verwässern könnten. Weitere Finanzierungen wahrscheinlich, für 2005+6 will DSM 70 Mio USD. <

Desert Sun, keeping the Brazilian gold flag flying
Rhona O'Connell
'27-OCT-05 15:54'

LONDON (Mineweb.com) -- At a luncheon seminar in London last week by LM Associates, one of the presenting companies was Desert Sun Mining, which describes itself as "a different kind of emerging gold producer”.

Desert Sun, which is listed on Toronto, AMEX and in Frankfurt, is capitalised at US$165 million and started its first mine on the Bahia Gold Belt, which extends for 155 km in eastern Brazil. This belt has proven mineralisation along its length, testament to which is provided by the activity of garimpeiros – local individual miners who pan for gold on surface and who have been procuring gold in Brazil for a lot longer than most of the commercial companies, of which much used to be smuggled out of the country through Uruguay. The Belt has attractive geology, comprising large quartz pebble conglomerates and has excellent exploration potential.

The Jacobina mine had a production history prior to its acquisition by Desert Sun in 2002. Anglo American developed the property while William Resources operated it during the 1980s and 1990s, during which time it produced 700,000 ounces of gold prior to the suspension of operations in 1999 due to low gold prices.

Desert Sun has implemented an aggressive growth plan and after modernising the operations, brought the mine back on stream within one year, bringing in large-scale mining equipment and is operating with 400 personnel (which compares favourably with the 1,500 that ere employed there previously). The mine is located in an area with good infrastructure, on a power grid. The company’s managing director (Bruce Humphrey) noted that the governor of the Bahia State is a geologist, which makes the state particularly mining-friendly.

Mineral Resources (excluding the results of the 2005 programme, which will be released at the end of the year) amount to 22.2 million tonnes of indicated resource at 2.49g/t, and 2.62 million tonnes grading 2.83 g/t, giving gold content of 1.81 million ounces and 240,000 ounces respectively. There is an inferred resource of 22.2 million tonnes at 2.61 g/t, giving contained gold of 1.9 million ounces. Proven and probable reserves stood at 1.2 million ounces in August 2005.

The mine was brought on stream on schedule and on budget; the first gold pour was in March this year and commercial production started in July. The company is on target to achieve the initial output rate of 100,000 ounces per annum, and should raise this to 130,000 ounces in 2006, while targeted exploration is increasing reserves and resources.
The low ore grade is compensated for by the fact that the mine is shallow allowing for ramp mining with no shafts or hosting and that the rock is competent, requiring little support and no backfill. The operation is on a reasonably large- scale, crushing 4,200 tonnes of ore daily and the liberation process is simple, via crushing, grinding, leaching (carbon-in-pulp) and electrowinning.

The company’s business model is geared towards expanding production, leveraging infrastructure and reducing costs, combined with exploration over the 15 km length of the belt with a view to growing revenues and cash flow. The areas under exploration at present are Canavieiras, three km to the north of the processing plant, the Morro do Vento extension area immediately to the north of the processing plant and also Pindobacu-Fuma, “the northern area” 50km north of Jacobina.

Recent drill results have thrown up, inter alia, a 2.6 metre section at Canavieiras grading 21.62g/t, within a 9.9 metre section grading 7.04g/t, along with a four metre section at 15.28g/t within a 17.8 metre section grading 4.67g/t. These and other results are extensions of reefs previously mined, while reefs below the old workings (past production was 458,000 tonnes of ore at 8.65g/t) are showing grades of up to 4.26g/t and some 8-gramme intersections have been identified.. Higher-grade mineralisation now extends 400 metres along strike and at least 200 metres across strike with the zones open to the east and the south.

At Morro do Vento, 7,985 metres have been drilled, largely on the southern extension of the Basal and Main reefs, and are showing grades of up to 5.94g/t and an underground programme has commenced. Production is scheduled for 50,000 ounces per annum, starting in 2007and a pre-feasibility study is planned for 2006.

In the northern area, 5,991 metres have been drilled to date and are showing similar grades and the company believes that the most prospective area extends for 700 metres along strike.

Desert Sun is on track to produce 250,000 ounces per annum in 2009 from Jacobina, Morro do Vento and Canavieiras, with significant upside potential from the northern belt and the company expects to maintain production at or above this level for many years. Initial costs of production are estimated at $250/ounce all-in, but a portion of revenues have been hedged at three reals to the dollar; the current rate is 2.23 and this will ensure that overall costs come down in dollar terms. Metal output is not hedged, and Desert Sun is debt-free. Peru may have taken over as the largest gold producer in Latin America, but Desert Sun is one company that will keep Brazil’s output rate competitive.
http://www.mineweb.net/sections/gold_silver/510232.htm