Die großen Regenfälle in Australien führten dazu, dass Ranger Uranium Mine Pit 3 geflutet wurde.
Der drittgrößte Uraniumproduzent ist nun unter Wasser und man spekuliert, ob dies zu einem Produktionsausfall von bis zu 4 Mio. Pfund U308 in 2007 führen könnte.
Bericht (inkl. Bilder):
Slam drills 0.45 m of 22% Zn, 141 g/t Ag at Nepisiguit
2007-02-20 10:56 ET - News Release
Mr. Mike Taylor reports
SLAM EXPLORATION REPORTS BASE METAL RESULTS
Slam Exploration Ltd. has intersected zinc-lead-copper-silver mineralization associated with massive sulphides in three holes recently drilled at the Nepisiguit base-metal deposit. Slam's wholly owned Nepisiguit property is located 20 kilometres west of the Brunswick No. 12 mine in the Bathurst mining camp of New Brunswick.
All three holes returned base-metal values ranging up to 6.49 per cent zinc, 2.04 per cent lead, 0.16 per cent copper and 48.43 grams per tonne silver over 3.85 metres in hole NP06-03. This includes a 0.45-metre interval at 22.4 per cent zinc, 7.28 per cent lead and 141 grams per tonne silver. The following table summarizes the drilling results.
From To Interval Zn Pb Cu Ag
Hole ID (m) (m) (m) (%) (%) (%) (g/t)
NP06-01 80.15 82.15 2.00 5.69 2.47 0.77 117.50
NP06-02 117.56 119.36 1.80 5.35 1.71 0.37 62.89
NP06-03 143.97 147.82 3.85 6.49 2.04 0.16 48.43
includes 143.97 144.42 0.45 22.40 7.28 0.15 141.00
The mineralized interval in hole NP06-01 occurs at a vertical depth of 60 metres. Hole NP06-02 intersected the zone approximately 25 metres below the NP06-01 interval and on the same section. The NP06-03 intercept is approximately 200 metres west of hole NP06-01 at a vertical depth of 125 metres.
Hole ID UTM east UTM north Elevation Length Dip Az
NP06-01 724229m 5251683m 279 112m -50 154
NP06-02 724213m 5251718m 284 160m -50 154
NP06-03 724037m 5251652m 293 205m -60 154
UTM NAD 83 Zone 19
The Nepisiguit property comprises 67 claims covering 1,072 hectares of favourable volcanic stratigraphy in the Bathurst mining camp in New Brunswick. In addition to the A zone, the property also hosts the Nepisiguit B zinc-lead-silver deposit and the Swamp Lake base-metal occurrence. This initial exploration program at Nepisiguit was funded in part by a $30,000 grant from the New Brunswick Junior Mining Assistance Program.
Slam management is encouraged that these drill results indicate significant potential within the Nepisiguit massive sulphide deposits to add tonnage of base-metal resources in a reasonably short period of time. The Nepisiguit A massive sulphide deposit has been tested over a strike length of 550 metres, and remains open at depth and along strike to the west.
The success of the drilling at Nepisiguit demonstrates Slam's strategy to quickly increase its base-metal resource in New Brunswick by drill testing additional deposits in its portfolio. The cornerstone of this strategy remains the 3.4-million-tonne resource averaging 5.01 per cent zinc, 0.89 per cent lead and 30.95 grams per tonne silver (National Instrument 43-101 report September, 2005) at Nash Creek. Slam plans to total sufficient critical tonnage to create a sustainable, mining operation in this world-class base-metal-producing area.
Further drilling is planned for the Nepisiguit A, Nepisiguit B and Nash Creek deposits. To complete its proposed drilling programs over the next six months, Slam has engaged Les Forages La Virole to complete 10,000 metres of diamond drilling.
Derek F. Brown, PGeo, exploration manager of Slam is the qualified person, as defined under National Instrument 43-101, responsible for management of the Nepisiguit project and the drilling results reported in this news release.
We seek Safe Harbor.
Das sind sehr gute Neuigkeiten. Sie wollen ja bis November eine Rampe zu einer Zinklagerstätte errichten und könnten dann produzieren.
Acadian Gold meldet, dass sie mit den Arbeiten bzgl. ihrer Mühle Ende Februar / Anfang März fertig sind:
http://www.acadiangold.ca/Port…20February%208%202007.pdf
Sie stehen sehr kurz vor der Produktion bei ihrer Zinkmine. Eine sehr gute Nachricht !
Sie werden jährlich ca. 30 Tsd. to Zinkkonzentrat und 10 Tsd. to Bleikonzentrat produzieren. Dies sind ca. 39,8 Mio. lb Zink und 16,5 Mio. lb Blei.
Sehr wichtig ist, dass die projektierten open-pit-Produktionskosten bei ca. 0,34/0,36 $ je lb. Zinkäquivalent liegen, d.h. beim aktuellen Zinkpreis von 1,4 $ liegen sie noch sehr, sehr gut in der Gewinnzone !
Mexiko, Afrika und Kanada - eine gute Mischung für Cream
Sven Olsson
05.02.2007 Sven Olsson - GOLDINVEST.de Daily - http://www.goldinvest.de
Cream Minerals (WKN: 866036), ein Explorationsunternehmen aus Vancouver, das nach Gold, Silber und Diamanten sucht, hat sich für 2007 viel vorgenommen. In den vergangenen Wochen kamen immer wieder positive Neuigkeiten über die jüngsten Bohrergebnisse vom Gold-/Silberprojekt aus Mexiko. Weitere Projekte der Gesellschaft befinden sich in Afrika und Kanada. Auch bei der Diamantensuche in Sierra Leone lässt das Unternehmen, nach dem Rückschlag im November vergangenen Jahres, nicht locker.
In Mexiko besitzt Cream eine sich vollständig in Unternehmensbesitz befindliche Tochtergesellschaft, nämlich Cream Minerals de Mexiko S.A. De C.V. Wie die Gesellschaft am 16. Januar meldete, bestätigten die Bohrungen auf Dos Hornos, auf der Nuevo-Milenio-Gold-Silber-Liegenschaft die Kontinuität der Gold- und Silbergehalte. Die Vererzung in der Tiefe, in der Breite und in der Streichrichtung setzen sich fort. Signifikante Gold- und Silbergehalte liegen dort vor. Es wird nun vermutet, dass sich die Vererzung zur Tiefe hin noch ausdehnt. Da die Bohrergebnisse insgesamt hervorragend waren, wird Cream die Bohrungen um 2000 Meter Länge erweitern.
Eine weitere gute Nachricht konnte Cream bezüglich seiner Goldsmith-Liegenschaft in der kanadischen Provinz British Columbia vermelden. Die Bodenproben verbesserten die Definition der ursprünglich zwei Kilometer langen Gold-Kupfer-Arsen-Anomalie. Es wurde dort eine drei Kilometer lange elektromagnetische Anomalie gefunden. In der Vergangenheit lieferten Gesteinsproben zum Teil sehr hohe Goldgehalte. Es wurden Proben von Quarzadern gefunden mit Goldgehalten von zum Beispiel 197, 65 und 11 Gramm Goldgehalt pro Tonne. Folge war die Akquisition von weiterem Land durch Cream. Die Gesellschaft plant für 2007 weitere Untersuchungen auf der gesamten Liegenschaft, sowie geochemische Bodenproben auf den bekannten elektromagnetischen Anomalien. Darüber hinaus sollen Bohrungen auf den Gebieten, wo sich geophysikalische und geochemische Anomalien decken, unternommen werden. Geologin Linda Dandy, die seit drei Jahren an diesem Projekt arbeitet, sagte sie habe noch nie in ihrem 25-jährigen Berufsleben solch hohe Goldgehalte gesehen.
Cream Minerals ist auch in Sierra Leone, Westafrika auf Diamantensuche. Es gibt die Sewa-River-Lizenz, wo für 2007 eine Großprobe geplant ist. Im Herbst scheiterte ein Versuch mit einem Spezialschiff das mit Diamanten durchsetzte Material vom Meeresboden zu holen, doch mit geeigneter Ausrüstung dürfte der nächste Versuch gelingen. Das Diamantenvorkommen wird hier auf 1,8 Millionen Karat geschätzt. Dieses Lizenzgebiet der Gesellschaft an der Küste umfasst 88 Quadratkilometer. Hier könnten bis zu 50 Millionen Karat vorliegen. Die schwierige Geschichte der Diamanten aus Schwarzafrika, Stichwort "Blutdiamanten" ist bekannt. Fünf Jahre nach dem Ende des Bürgerkriegs, könnte das Diamantenprojekt die Gesellschaft zusätzlich voranbringen. Zum Glück sind die blutigen Auseinandersetzungen vorbei, die die Kulisse zum aktuellen Hollywood Film "Blood Diamond" mit Leonardo DiCaprio lieferten.
CEO und Präsident von Cream Minerals (ISIN: CA2252635081, WKN: 866036) ist Frank Lang, ein Bergbauveteran, der seit 1966 im Minenwesen tätig ist und einen hohen Bekanntheitsgrad hat.
Wie schaut nun die Bewertung aus. Alleine das Mexikoprojekt beherbergt bisher 875.000 Unzen Gold- und Silber- (umgerechnet in Goldäquivalent) Ressourcen. Dies gibt Cream eine Bewertung von 15 bis 16 Euro je Unze. Das ist auch für noch im Explorationsstadium steckende Gesellschaften wenig. Zwischen 20 und 30 Euro sind durchaus vertretbar. Vor allem, wenn weiterhin gute Bohrergebnisse kommen und die Ressourcenbasis damit weiter ausgebaut werden kann. Bei Cream bekommt der Anleger die kanadischen Lagerstätten und vor allem die Diamanten, die in Afrika möglicherweise gefördert werden umsonst dazu.
ABI hat ja schon vor einiger Zeit bekanntgegeben, dass die feasibility Studie jetzt kommt - auch wenn sie sich nun um 2 Wochen verzögert. Von daher waren / sind gewisse Entwicklungen bekannt.
Ich würde Abcourt nicht als Silberschwergewicht bezeichnen - dafür ist der Zinkanteil einfach zu groß.
Die spannende Frage bei der Studie wird sein wie die Wirtschaftlichkeit ist - zumal der Zinkpreis in den letzten Wochen gesunken ist.
Die zweite Frage ist, wann sie mit der Produktion starten.
Viele Grüße
Silbertaler
Es gibt ein paar Gründe für den Kursanstieg:
- Die feasibility-Studie erscheint in den nächsten 2 Wochen.
- Es erfolgt danach eine Promotion-Tour des Managements, um Abcourt bei Investoren noch bekannter zu machen.
- Seitens des Management wurde die Aldermac-Option noch mal bestätigt. Dies dürfte wahrscheinlich die Wirtschaftlichkeit verbessern.
Mit dem Kauf der Anlage gehen sie nun den nächsten Schritt in Richtung Produktion.
Metanor ist auf dem Weg und geht den nächsten Schritt.
sehr positiv
Mit dem Cash flow werden sie ihre Mine wiederherstellen und es für ihr Explorationsprogramm nutzen.
Sollte sie einmal soweit sein, dürfte als nächster Schritt dann der Upgrade ihrer Mühle anstehen.
Interview mit Keith Neumeyer (First Majestic Silver):
11 seitiger Research Report (vom 25.1.) über Cream Minerals bei Yahoo (Kosten: 20 $):
Cream Minerals arranges $1-million private placement
2007-01-26 18:23 ET - News Release
Mr. Frank Lang reports
CREAM MINERALS ANNOUNCES $1 MILLION NON-BROKERED PRIVATE PLACEMENT
Cream Minerals Ltd., subject to regulatory approval, will carry out a non-brokered private placement of up to 2.5 million units at a price of 40 cents per unit, for gross proceeds of up to $1-million. Each unit comprises one common share in the capital of Cream and one-half of one non-transferable share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one additional common share of Cream for a period of 24 months from closing at an exercise price of 50 cents per share. Insiders of Cream are subscribing for a total of 100 per cent of the private placement.
All shares, warrants and any shares issued upon exercise of the warrants with respect to the above private placement are subject to a hold period and may not be traded for four months plus one day from the date of issuance. No finders' fees are due or payable for this private placement offering.
Proceeds from the non-brokered private placement will be used to continue silver-gold exploration at Cream's Nuevo Milenio project in Mexico, to continue bulk sampling for diamonds at its Casierra project in Sierra Leone and for general working capital.
Hallo Juesteu,
schau Dir mal Energy Fuels an:
Die Erträge vom Vanadium dürften für die Kosten ausreichen.
Unternehmenspräsentation:
http://www.energyfuels.com/inv…anuary%20Presentation.pdf
Die Strategie, die Energy Fuels verfolgt, gefällt mir sehr gut, dass sie als near-term Produzent voll am steigenden Uranpreis partizipieren werden.
Viele Grüße
Silbertaler
neue Unternehmenspräsentation, die einige offene Fragen beantwortet:
http://www.numeriquetechnologies.com/met...resentation.pdf
Hier sind einige sehr interessante Dinge bzgl. der weiteren Strategie / Vorgehensweise enthalten.
In diesem Zusammenhang sind auch die Bohrergebnisse von 2005 mit durchschnittlich über 10 gr/to interessant.
Metanor will in den nächsten Jahren ihre Produktion deutlich steigern.
Bei Cream Minerals gibt es heute in Toronto mit 2,5 Mio. gehandelten Aktien ein außerordentlich hohes Volumen.
Es sieht ganz so aus als ob igrendetwas im Busch ist.
NGG hat seit Dezember eine Goldmine - auch wenn es so recht noch keiner wahrgenommen hat.
Damit ist - ähnlich wie bei Vangold, die ihren Cash Flow aus Öl erhalten - auch der Cash Flow (und damit die weiteren ehrgeizigen Bohrungen) bei NGG gesichert.
Cream Minerals samples up to 197.16 g/t Au at Goldsmith
2007-01-18 10:15 ET - News Release
Mr. Frank Lang reports
CREAM MINERALS DEFINES 3KM LONG AIRBORNE EM CONDUCTOR AT GOLDSMITH PROPERTY, BC
Cream Minerals Ltd. has released the results of the 2006 exploration program conducted on its Goldsmith property, located north of Kaslo, southeastern British Columbia.
This program consisted of infill soil sampling within parts of the previously identified gold geochemical anomalous zone (see news in Stockwatch Feb. 14, April 7 and Oct. 11, 2005), detailed mapping and rock sampling in previously unmapped areas, and helicopter-borne magnetic and electromagnetic (EM) surveying over the southern portion of the property which encompassed the anomalous gold zone.
The infill soil sampling better defined the original two-kilometre-long gold-copper-arsenic anomaly as well as extending it along its previous periphery. The surface rock sampling produced several high-grade gold assays including grab samples from quartz veins that ran 197.16 grams per tonne, 65.2 g/t and 11.15 g/t gold.
The AeroTEM II time domain electromagnetic airborne survey pinpointed a three-kilometre-long EM conductor that is coincident with the above-mentioned polymetallic geochemical anomaly, and that is associated with elevated magnetics on the southern flank of a linear magnetic high that strikes northwestward across the property.
In addition, another as-yet undefined EM conductor on the northeastern portion coverage resulted in the acquisition of more ground by Cream.
Plans for the 2007 program include extension of the airborne work to cover the whole property in the spring, to be followed by detail geochemistry over the presently known and any additionally located EM conductors, and last, but certainly not least, drill testing of the large coincident geophysical-geochemical target for polymetallic mineralization after recession of the snow cover.
Linda Dandy, PGeo, and Peter E. Walcott, PEng, who have reviewed and verified the contents of this news release, are the project supervisors and qualified persons for National Instrument 43-101.
For more information, including video presentations, about Cream and its minerals property interests please visit Cream's website. Please visit the company at booth 322 at the Vancouver Resource Investment conference, at the Vancouver Convention & Exhibition Centre, 999 Canada Place, Vancouver, B.C., on Jan. 21 and 22, 2007.
Interview mit Keith Neumeyer (28.12.2006) mit Smartstox:
http://www.smartstox.com/index.php?speed=broadband
Es dürfte demnächst ein neues Ressourcen-Update geben.
Sie planen die Resourcen schon Ende 2007 auf 200 Mio. Uz. Silber zu erhöhen !
Das (interne) Management-Ziel für 2008 ist eine Produktion von 10 Mio. Uz. Silber !
Rochester starts Mina Real milling, appoints Parra CEO
2007-01-09 09:43 ET - News Release
Dr. Alfredo Parra reports
ROCHESTER COMMENCES MILLING OPERATIONS AT ITS MINA REAL MINE
Rochester Resources Ltd. commenced milling operations at its high-grade gold/silver mine in Nayarit, Mexico, last week. The crushing and grinding section of the mill is now operating at its initial design capacity and feeding the cyanide plant at the rate of 200 tonnes per day. The mill is expected to remain at this level until mid-2007, when an increase in capacity to 300 tonnes per day is contemplated. The modular design of the mill should allow for the planned increase in capacity to be implemented at a cost of under $300,000 (U.S.).
Based on independent metallurgical test results, mill recovery rates for gold are anticipated to average approximately 95 per cent. Silver recovery is expected to reach 90 per cent once a small additional sulphidation circuit is added to deal with the occurrence of elevated levels of manganese. Milling costs are not expected to exceed $25.00 (U.S.) per tonne of processed material. Delivery of the first production of gold and silver precipitate to the refinery for smeltering is expected to take place during the last week of January.
Independent assay results on an additional 272 metres of development mining at Mina Real have produced results that are consistent with the higher gold and silver grades reported over 503 metres in news in Stockwatch on Oct. 30, 2006. Assay results from 116 channel samples taken in Levels 240, 215 and 115 averaged 11.17 grams per tonne of gold and 156 g/t of silver and a width of 1.06 metres. Mining costs per tonne of mill feed will vary depending on the percentage of development mining that is represented by drift development versus stoping. The company currently uses the services of two contract mining companies and expects to add one additional mining contractor in the near future. Based on an anticipated drift development/stoping ratio of 60 to 40 and current contracts in place, it is anticipated that mining and trucking costs will be under $50 (U.S.) per tonne. Dr. Alfredo Parra, the company's in-house qualified person and QP member of the Mining and Metallurgical Society of America with special expertise in mining, has reviewed the technical and operational information contained herein. Channel samples reported were assayed by a certified and independent laboratory, SGS of Lakefield, Ont.
The board is also pleased to announce the appointment of Dr. Parra, the founder of the Mina Real project, as president and chief executive officer of Rochester Resources, effective immediately. He replaces Douglas Good who moves to chairman of the board. In addition to retaining his position as chief financial officer, Mr. Good will continue to be responsible for corporate development and public market-related activities. Dr. Parra has an extensive background in mining exploration and operations, including senior management level positions with major Mexican-based corporations such as CIA Minera Penoles and Kennecott. As part of this corporate restructuring, 1,325,000 stock options have been issued for a term of three years to directors and officers at a price of $1.85 per share.
The longer-term strategy of Rochester is to continue to acquire gold/silver properties located in Mexico with the indicated potential for near-term production in the range of 200 to 500 tonnes per day and good exploration potential for the generation of a significant resource base. Management believes that its Mina Real property has the potential to produce a long-term revenue stream which would set the stage for the acquisition and development of a series of similar-size mining and milling operations in the region.
We seek Safe Harbor.
Cream Minerals cheers Nuevo Milenio work in 2006
2007-01-11 10:27 ET - News Release
Mr. Frank Lang reports
CREAM MINERALS-2006 ANNUAL REVIEW
Cream Minerals Ltd. is releasing information on its 2006 activities, which was a year of success, tempered by periods of delays and frustration.
Nuevo Milenio silver-gold property (Mexico)
Most important was the renaissance of the Nuevo Milenio silver-gold property, 150 kilometres northeast of Puerto Vallarta, Mexico. Discovery of the 200-year-old Spanish workings, coupled with previous diamond drilling, led to the discovery of significant inferred mineral resources. In February a National Instrument 43-101 report, prepared by Ferdinand (Fred) Holcapek, PEng, outlined an inferred mineral resource on the project's Dos Hornos and Once Bocas zones as shown:
Zone Au (oz) Ag (oz)
Dos Hornos 139,000 8,760,000
Once Bocas 129,000 21,580,000
------- ----------
Total 268,000 30,340,000
More recently, after waiting four months for the drill equipment to arrive, eight diamond drill holes were completed to test the Dos Hornos North zone along strike and to a depth of 200 metres. Work is continuing here and on the Chacuaco zone into the new year.
Casierra diamond properties (Sierra Leone)
Bulk sampling was planned to commence on the offshore mineral licence in late spring, but was delayed due to lack of adequate equipment. With the final arrival of the dredge and other equipment, bulk sampling was finally started in late fall. However, unexpectedly strong and variable ocean currents overcame the charter vessel's ability to hold position at sea, which prevented the dredge from penetrating the gravels sufficiently to recover diamonds. This problem can be overcome by the use of a more stable anchor configuration or another form of fixed platform.
A bulk sampling program is planned for the Sewa River licence in 2007 where the geological survey of Sierra Leone estimated up to 1.8 million carats of diamonds may be present (this is a historical estimate and non-compliant with National Instrument 43-101). The licence covers up to 10.5 kilometres of a wide and slow-flowing river bed and terraces located below diamondiferous river sediments in a steeper-gradient section of the river channel. The area has been set aside by the Sierra Leone government for commercial mining. Earlier test pits by the National Diamond Mining Corp. on the terraces (river banks) confirmed the presence of gem-quality diamonds.
Current prices reported for Sierra Leone rough diamond exports are in the order of $280 (U.S.) per carat. These are sold under the terms of the Kimberley Process, requiring a certificate of origin from the government of Sierra Leone and full payment of royalties.
The savage cruelty of the prevailing anarchy and gang enforcement of slave labour for the illegal exploitation of diamonds in the mid-1990s in Sierra Leone is quite accurately portrayed in the movie "Blood Diamonds." As indicated in the closing moments of this movie, Sierra Leone is now at peace and the Kimberley Process is functioning well. Conflict diamonds are a historical matter in this country and the British government, as well as those of other European countries, have indicated a strong desire to maintain a stable framework for Sierra Leone since the re-establishment of peace and a democratically elected government. New production of diamonds from the Cream Minerals' licences, with planned reclamation of mined areas, could give assistance to sustaining the peace while leaving infrastructure and sustainable agricultural lands for the people of the area.
Necessary bridge construction has been completed on the Sewa exploration licence and heavy equipment access to the river site has been facilitated. The bulk sampling can now proceed using equipment already located in Sierra Leone.
Goldsmith and Kaslo silver properties (British Columbia)
Aeromagnetic and helicopter electromagnetic surveys were completed last summer and preliminary reports are encouraging. Additional ground has been staked.
Nickel-copper claims (Manitoba)
Work on these properties may be deferred due to budget restraints.
Financing
Approximately $2-million was raised last spring for the financing of the work programs for 2006. Additional financing is being sought for additional work on the above projects.
For the purpose of National Instrument 43-101, Benjamin Ainsworth, PEng (British Columbia), is Cream's qualified person and project supervisor in Sierra Leone. Mr. Holcapek, PEng, is Cream's qualified person, supervising the drill program in Mexico.
We seek Safe Harbor
First Majestic's Scott resigns as CFO
2007-01-08 15:41 ET - News Release
Mr. Keith Neumeyer reports
First Majestic Silver Corp.'s Douglas R. Scott, CA, has tendered his resignation as the company's chief financial officer, effective Jan. 31, 2007. Mr. Scott has decided to pursue other business opportunities.
Mr. Scott was appointed to this position in April, 2006, and, since that time, the company has experienced tremendous growth. First Majestic has successfully acquired two additional operating silver mines in Mexico and has grown from around 100 employees to over 850 employees today. Mr. Scott has led a team of 18 accounting staff who have worked diligently in assisting the company to meet its aggressive growth strategy.
Many new procedures over the past months have needed to be implemented corporate wide and several processes, including real-time up-to-date accounting information using advanced computer and communication systems are in the final stages of being implemented. Mr. Scott has been at the forefront of these internal efforts and management and the board of directors would like to thank Mr. Scott for the long hours and dedication he has shown to the company.
First Majestic Silver Corp.: Acquisition of La Encantada Silver Mine
Thursday December 21, 9:55 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 21, 2006 -- FIRST MAJESTIC SILVER CORP. (TSX VENTURE:FR.V - News)(Other OTC:FRMSF.PK - News)(FWB: FMV) (WKN: A0LHKJ) (the "Company") is pleased to announce that further to its news release dated October 4, 2006 the Company has now signed a Letter Agreement to acquire 100% of the issued and outstanding shares of Minera La Encantada S.A. de C. V. ("La Encantada"), a Mexican mining company owned by Minas Penoles SA de CV and Industrias Penoles SA de CV (collectively "Penoles").
La Encantada's primary asset is the La Encantada Silver Mine located in northern part of Mexico in the Coahuila State. This mine has at least 50 years of mining history and has been operated by Penoles from the early 1970's to 2003 when Desmin S.A. de C. V. ("Desmin") took over operations.
The La Encantada Silver Mine is presently producing 800,000 ounces of silver per year. The mill, which has a total capacity of 800 tpd, is processing 250 tpd of oxide ore grading 500 gpt Ag, which represents less then 40% capacity of the mill. The Company anticipates that these production numbers can be improved significantly over the coming months. In addition, the surrounding ground of 700 hectares represents excellent exploration and development potential with several areas of immediate interest already defined. The company has recently acquired through staking additional mining claims of 3,100 hectares surrounding the property and covering areas of geological interest.
The Letter Agreement dated December 18, 2006 allows the Company the right to purchase 100% of the issued and outstanding shares of Minera La Encantada S.A. de C.V. for total purchase price of US$3,250,000 and a NSR royalty of 4%. An initial payment of US$1,000,000.00 was paid on signing of the Letter Agreement. The balance of US$2,250,000 will be paid on closing which is anticipated on or before March 15, 2007.
As part of the Letter Agreement, the Company has also agreed to buy-out the 4% royalty to zero at an additional cost of US$1,500,000 in common shares and warrants. The shares and warrants were priced on the date of signing, thus, the agreement calls for the issuance of 382,582 shares and 191,291 warrants. Each warrant entitles Penoles to purchase one additional share at a price of $6.81 for a period of two years. The agreement remains subject to regulatory approval.
The Company's wholly owned subsidiary, ("Desmin") which was acquired on November 1, 2006, has an exploitation contract with La Encantada paying an ongoing scaling royalty to operate the mine. As a result of this purchase all royalties will be cancelled at closing on or before March 15th, 2007.
In the event that the Company is unable to obtain regulatory approval to the payment of shares and warrants, the Company will pay a 4% NSR royalty on all metals produced at the La Encantada.
With the acquisition of Desmin previously announced on October 4th, 2006 and with the signing of this Letter Agreement, the Company now has full control of the La Encantada Silver Mine, which is the Company's third producing silver mine.
First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through development of its existing assets and the pursuit through acquisition of additional assets that make sense to achieving its corporate objective.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President
