Da mußt Du in Antwerpen schauen. Falls Du kein Profi im Diamantengeschäft bist, Finger weg!
Sehr schwer die Steinchen zu bewerten .
newtechxl
Beiträge von newtechxl
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May 19, 2005 Symbol: KRE: TSX – V
NEWS RELEASEDrilling Starts on its “Corey-Eskay Property”
Vancouver, BC – KENRICH-ESKAY MINING CORPORATION (the “Company”) is pleased to announce that further to its news release of April 14, 2005, work crews are on site and drilling on its 100% owned Eskay Creek, Corey property has started.
To begin, there will be 4 to 6 holes drilled on the “Smitty zone”, which contains all of the signatures of a first-priority exploration target for Eskay-type high-grade Au-Ag massive sulphides. Present are felsic and mafic, Salmon River volcanic rocks, massive sulphides with precious metals, bedded barite, mineralized mudstones and chloritic alteration.
The company is also pleased to announce that to accommodate requests from the European investment community it has started a listing on the Frankfurt Stock Exchange. (Frankfurt WKN 878985)
The Kenrich-Eskay Corey property is a large land package consisting of over 26,000 acres, which is located on strike, just south of the world-class rich, low-production-cost, Eskay Creek mine.
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haben schon einen Thread angelegt.
unter Suche findest Du die Infos.
newtechxl
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nee, keine guten Infos übers netz und auch keine Hilfe von Hommel.
Aber nächste Woche sollte das Buch "Silver Pennies" von David Bond eintreffen, dann kann ich Euch vielleicht mehr Infos geben. -
Kennst Du Silver Buckle und American silver mining ?
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@ Eldo
Bei Tumi hat das Management and den Basispreisen der Optionen rumgeschraubt ( so weit ich informiert bin. Quelle: Stockhouse.com). Tumi ist jetzt aber sehr günstig. Ich würde halten. Steinige mich aber nicht, falls die noch weiter fallen.
Eldo, sag mir was zu New jersey, warum hast Du gekauft? Habe Sie auch auf dem Radar. Scheinen solide zu sein. Was ist die Story? Welches Potential ?
Newtechxl
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@ Eldo
Wenn Du im Silver Valley investieren willst, dann solltest Du Dir mal die verschiedenen Leasegeschäfte anschauen. Meiner Meinung sollte dort das Geld liegen.
Blanketpower erklärt das sehr treffend in seiner Analyse überAmerican Silever Mines.
Newtechxl
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North America’s Newest (and Last) Comstock
The Wallace Street Journal
By David Bond, Editor
The Silver Valley Mining Journal
Wallace, Idaho – It lies beneath the Bitterroot and the Cabinet Mountain ranges, where Idaho and Montana collide along the Idaho Panhandle. The rock-rabbits call it the Montana Copper Sulfide Belt. Better to regard it as the Comstock Lode on steroids.
Hecla, U.S. Borax, Kennecott, Noranda, Asarco, all have plumbed its depths. Through no fault of its own, the Montana Copper Sulfide Belt resides mostly beneath the Peoples Republic of Montana, a once-proud Western state now inhabited mostly by I’ve-got-mine-so-get-lost Hollyweed types. Redford and Turner and Sam Peckinpah aren’t content with their own monstrous estates there and will not rest until they can control the entire state by legislative or judicial fiat. Which makes mining in Montana a bit dicey because unlike making movies about teenagers having deviant sex, mining is unwholesome and a threat to future generations.
To describe the Montana Copper Sulfide Belt is to describe a reef of silver so huge as to boggle the imagination. The grades won’t make your socks roll up and down, although there are pockets on the Idaho side on the Snowstorm worthy of a Sunshine Mine. It’s the sheer enormity of the thing. Its accessibility. Its uncomplicated metallurgy. The sumbitch comprises some 1,600 square miles! All silver. Still open at strike and depth, which means we really don’t know exactly where it begins or ends after that. It just means it goes as far as we’ve looked.
The Montana Copper Sulfide Belt is part of the even larger Pre-Cambrian Belt Basin that reaches from North Idaho’s famed Silver Valley all the way up to Teck-Cominco’s legendary Sullivan Mine in Kimberley, British Columbia. Nearly every hard-rock metal known to man, from copper, zinc and lead to silver and gold, can be and have been fished out of this super-group.
Unlike the convoluted and near-vertical dipping high-grade veins of the Coeur d’Alene District proper, the paydirt in the Montana Belt lays more-or-less flat, thick, and evenly disseminated in the Revett Formations. When the late Fred Owsley of Asarco took me through their operations at the Troy Mine back in the mid-1980s, he referred to this deposit as “stratabound.” Asarco was using room-and-pillar mine construction there, a bulk rubber-tired operation relying on the competence of ground you don’t find in the Coeur d’Alenes proper. Silver in the Belt ranges from about 2 to 20 ounces per ton, but you can get away with underground mining the lower end of that range because you can get so much of the stuff out, and the copper values at today’s prices nearly pay the bills. The silver resides with copper in a sulfide deposit that probably was the bed of a massive inland sea, or the bottom of Lake Missoula . The water got super-hot and melted the metal into faults that turned into veins, or the metal got hot and boiled the water – who knows? The important thing is, all this silver landed there. We are talking, if you work the math, billions of ounces.
Three companies are working this area right now. Here is a brief discussion of each:
Mines Management (MGN): MGN controls the Montanore deposit originally discovered by Borax in the early 1960s and abandoned by Noranda in 2002, who burned out dealing with the Montana greenies for 16 years. Early exploration found significant bedded mineralization within an area measuring more than 12,000 feet in length and averaging about 3,000 feet in width. The drilling did not limit the deposit in its long dimension, and the geologic model suggests the possibility of a significant extension to the deposit. Over much of its extent, the mineralization is contained within two parallel, slightly dipping beds, separated by up to 200 feet of un-mineralized quartzite. The thickness of each silver/copper bearing bed averages about 30 feet. Mineralization lies in two parallel beds with the thickness of each silver/copper bearing bed ranging from 10 to 54 feet. A high-grade ore zone is estimated to contain 30 to 50 million tons grading about 3.0 ounces of silver per ton. Overall the deposit contains approximately 135 million tons averaging 1.92 ounces silver per ton and 0.75% copper.
MGN’s property lies beneath a federal Montana wilderness area but can be accessed from outside the wilderness. Mines Management recently resumed a mine-permitting process at Montanore.
Revett Minerals (RVM): RVM took over Asarco’s holdings at Troy and Rock Creek, Montana, in 1999. The Rock Creek endeavour has become a poster child of the Montana greenie movement, attracting rock stars like Jackson Browne and Bonnie Raitt to perform in nearby Sandpoint, Idaho, to raise funds for legal challenges to the proposed mine, where reside an estimated 229 million ounces of silver and 2 billion pounds of copper in inferred resources. Despite all the wailing and gnashing of teeth, state and federal regulators’ permitting decisions generally have gone Revett’s way on this sensitive property, and RVM envisions a 10,000 ton-per-day underground operation there, with an estimated annual production of 7 million ounces of silver, and 59 million pounds of copper during the first 9 years of production.
Meantime, RVM reactivated Asarco’s old room-and-pillar Troy Mine and mill – closed after a 12-year run in 1993 – in December 2004. Full production at Troy is expected during the second quarter of 2005, with total 2005 production estimated to be 2.8 million ounces of silver and 23 million pounds of copper. At full capacity, the Troy Mine is expected to average 3.2 million ounces of silver and 26.4 million pounds of copper production per year.
Timberline Resources (TBLC): Timberline is the new kid on the block, and the only play on the Idaho side of the Montana Copper Sulfide Belt. Last year TLBC signed an earn-in deal with Hecla for a 49 percent interest in the Snowstorm Copper-Silver project, featuring the historic Snowstorm Mine, a small but highly profitable operation from the early-1900s that produced 800,000 tons of ore averaging 4-percent copper and 6 ounces per ton silver. While maps would lead one to believe the Snowstorm area to be within the Coeur d’Alene Mining District proper, mineralization at the Snowstorm occurs as disseminated copper and silver found in the same Revett quartzites that host the Troy, Rock Creek and Montanore deposits, but of a significantly higher grade. The Snowstorm property lies in the southwest corner of the Montana Copper Sulfide Belt where it overlaps the northeast corner of the Coeur d'Alene Mining District. The project area includes unpatented claims recently staked by Timberline along with patented mineral rights owned by Hecla and will be unitized, subject to Timberline's completion of earn-in requirements.
TLBC’s agreement with Hecla calls for Timberline to expend $250,000 on first-phase exploration efforts no later than October 2006. If TLBC keeps its end of the deal (the company raised $312,000 net through a private placement and offering last year, and another $195,000 through the exercise of warrants earlier this year) Hecla can elect to remain in as a 51 percent holder, or opt out and retain a 4 percent net smelter return from the property.
That’s the Montana Copper-Sulfide Belt in a nutshell. We’ll be taking in-depth looks at each of these three players in this space in the months to come. Welcome to Comstock, 21st Century.
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The Silver Pennies, by David Bond
Review by Bill Hoyt
Since I began investing in Silver Valley mining stocks ten years ago, the only information available has been incomplete, outdated, and widely-scattered.
Now David Bond, award-winning former Editor of the Wallace (Idaho) Miner, has gathered and compiled quotes, charts, contacts, and stories on many of the companies formerly listed on the Spokane Stock Exchange - along with a few newcomers and a few NYSE-listed stocks - so those interested in the resource stocks of the Pacific Northwest have the information they need in one place. It's called "Silver Pennies", and it contains all the data that I spent 10 years collecting and more.
The "Silver Pennies" are a strange group of companies: miners and mining claim holders in the Pacific Northwest. Most of them gather around the Coeur d'Alene Mining District of northern Idaho - from which more than a billion ounces of silver has been mined - though a few of them, like the NYSE-listed Hecla Mining and Coeur d'Alene Mines, have grown from those humble beginnings into world-wide mineral development corporations.
The fortunes of the Silver Pennies rise and fall with the price of silver, and in the silver booms of the 1960s and 1970s, the value of their claims, projects, and companies rose to astronomical heights. Fortunes fall as well, and during the lows of the 1980s, as many as two-thirds of the pennies disappeared, either morphing into internet technology companies or closing their doors altogether.
But many survived the hard years in various stages of exploration and production. For each of these, David Bond gives a thorough overview of their projects, capitalization, and land positions.
The forward is written by David Morgan, well-known conference speaker and investment advisor. Morgan explains why silver is a "sleeping opportunity" that resource investors should investigate.
The book also contains chapters on "Geology for Dummies" and "How to Investigate a Silver Stock", as well as a list of inactive Pacific Northwest companies that will serve as a valuable resource for those trying to find information on defunct and inactive mining companies.
This is doubtless a book for a very specific group of investors, those who seek the rewards (and are willing to undertake the risks) of American natural resource mining companies. But for that market, this book is the only one of its kind and should prove an invaluable guide.
Publisher: Silver Valley Mining Journal, 2005
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Sterling Mining Begins Second-Stage Underground Rehabilitation at Sunshine Silver Mine
Wednesday April 27, 1:01 pm ETWALLACE, Idaho--(BUSINESS WIRE)--April 27, 2005--Sterling Mining Company (OTC:SRLM - News) announced today that it is commencing the second stage of underground mine rehabilitation at its Sunshine Mine in Idaho. The first stage initiated in December and completed in February this year, focused on the Silver Summit Tunnel, that provides primary access to the eastern part of the Sunshine. New work will be directed at the Silver Dollar Tunnel and connecting raise to the Silver Summit Tunnel level. This work, to be performed by Atlas Fausett Contracting of Osburn, Idaho, will complete the eastern portion of the mine's primary and secondary escapeway system and allow new underground exploration activities and renovation of the Silver Summit hoist as part of the work plan designed to return the Sunshine Mine to sustained production.
Sterling's Sunshine Mine Manager Mike McLean stated: "Our renovation plan and timetable are right on track. In addition to the rehabilitation work we are in the process of re-establishing 13,000 volt power to the Silver Summit in preparation for hoist renovation and access to the 3,000 level of the mine. An internationally recognized expert on hoists, Mr. Peter Tiley, will be on site in the first week of May to review our progress. At the same time we have completed Phase II of our Mine Plan, and commencing Phase III."On-going maintenance essential to keep the mine plan moving on schedule continues uninterrupted. Recently, site personnel completed a variety of tasks including electrical grounding checks and equipment repairs. The mine's compressed air receiver tanks have been inspected and certified. Federally required annual training of personnel was completed as was a successful mine inspection of all active work areas by the Mine Safety and Health Administration (MSHA).
Sterling President Ray De Motte said: "Completion of the Mine Plan Phase II and the beginning of the second stage of mine rehabilitation is a significant milestone in our progress at the Sunshine Mine and as a company. As we move towards our Phase III goals, we will continue to develop and, in fact, accelerate our strategic and organizational infrastructure necessary to build upon the progress to date."
Sterling initiated a three-phase mine planning process with Phase 1 completed in spring, 2004. Phase 2, completed in late March this year, projected that the Sunshine Mine would be profitable with silver prices above $5.75 per ounce. Phase 3 of the study including ongoing maintenance, development and exploration plans have already begun.
The primary goal of the Silver Dollar rehabilitation work is to re-establish Sunshine Mine's secondary ventilation and escapeway route in order to prepare for mining utilizing the Jewell shaft. Concurrently, Sterling is finalizing plans for the 2005 exploration program which will expand its geophysical database and double the diamond drilling footage of 2004 with the goal of increasing mineable silver-bearing zones while keeping projected cash costs at or under $4.50 per ounce. The mine plan projects full annualized production capability building towards the 5 to 6 million ounce range. The 2005 exploration program will include underground drilling, the first underground drilling since 2001.
Sterling Mining Company controls the legendary Sunshine Mine, the richest silver mine in American history with more than 360 million ounces of production over the past century. Sterling offers investors superior leverage to silver price increases through its extensive portfolio of "Silver Valley" landholdings in Idaho and through strategic alliances and equity stakes in neighboring companies. The Company also holds several advanced properties in Mexico, including the Baroness Tailings Project in the Zacatecas silver district, which is currently processing silver-bearing tailings material. Sterling stock trades on the OTC Market Exchange under the symbol "SRLM". Please visit the Sterling website at http://www.sterlingmining.com for more information.
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@ Peter
Hier die Anleitung:
1. Unternehmen heraussuchen
2. Unternehmen anrufen
3. Pros und Kontras aufzeigen
4. Fundamentals wie Marketcap. , Shares Outstanding, Cash etc. sammeln
5. Investmentstory verstehen. ( Warum sollte man das Teil kaufen ? )
6. Properties analysieren
7. ....Hier ein paar interessante Unternehmen:
Timberline, Silver Buckle, American Silver Mining, Independence Lead Mines. Nun raus aus dem Sessel und ans Telefon.
Nächste Woche habe ich wahrscheinlich mehr Infos über die Unternehmen, könnte aber Hilfe gebrauchen.
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TIMBERLINE RESOURCES CORP. (OTC: TBLC) (9/23/04) 1
WALL STREET REPORTER®
(Interview of September 23, 2004)
Timberline Resources Corp.
OTC:TBLC
Stephen Goss
President and Director
Timberline Resources Corporation is a Spokane-based junior
mineral exploration company focused on the cost-effective
acquisition, exploration, and development of promising
mineral properties in the western United States.
http://www.timberline-resources.com Phone: 509-747-5225
Stephen Goss, President and Director, spoke with Wall
Street Reporter Magazine on September 23, 2004.
WSR: Could you start with an overview of the company?
TBLC: We began operations as Timberline only about
nine months ago, after the reverse takeover of another
small inactive mining company. We intend to be an
exploration group. That is our focus.
Since we’ve taken over management of the company,
we’ve updated the corporate accounting and shareholder
records and raised some initial seed capital. Our business
model will focus on acquiring undervalued exploration
properties and conducting preliminary geologic work to
identify drill targets. At that point, we may look for
joint venture partners to help fund further exploration.
TIMBERLINE RESOURCES CORP. (OTC: TBLC) (9/23/04) 2
WALL STREET REPORTER®
WSR: Tell us about the projects and properties, and
where you are in terms of exploration, studies, sampling,
drilling, etc?
TBLC: Thus far we’ve acquired an interest in 11
mineral prospects located in three states. The most
exciting one to us is our recently-announced Snowstorm
Trend project. We’ve signed a Letter of Intent with Hecla
Mining Company to explore an area around the Snowstorm mine
in northern Idaho. The project area includes patented
mineral rights held by Hecla and unpatented mining claims
staked by Timberline.
The agreement calls for an earn-in arrangement where
Timberline will agree to spend $250,000 in exploration
expenditures prior to October 2006 to earn a 49% interest
in the project. At that time, Timberline will propose a
second phase exploration program. Hecla will review the
data we have collected and our proposed exploration plan,
and can either elect to participate with their 51% interest
or withdraw from the venture and retain a royalty interest.
The Snowstorm is located northeast of Mullen and the
Lucky Friday mine in what’s known as the Copper Belt of the
Coeur d’Alene district. The mine operated in the early
1900’s. It was a small ore body consisting of disseminated
copper and silver mineralization in quartzites of the
TIMBERLINE RESOURCES CORP. (OTC: TBLC) (9/23/04) 3
WALL STREET REPORTER®
Revett Formation. This deposit is similar to some of the
large ones in Montana -- Rock Lake, now called Montanore,
Troy, and Rock Creek. However, the grades at the Snowstorm
were much higher, around 4% copper and 6 ounces of silver
per ton -- about five times the grade of the other
disseminated Revett deposits that are now known.
So far, the Snowstorm is the only disseminated deposit
that has been found with these high grades of copper and
silver. We feel the project area is definitely elephant
country. There are multiple targets both for another
Snowstorm-type, and for a larger, massive tonnage, lowergrade
deposit. So we are very excited about this project.
It’s also great to have a partner like Hecla, a 100-yearold
mining company.
Moving on, in southeastern Idaho, our Spencer Gold
property is located near Idaho Falls. Spencer lies within a
northeast-trending belt of volcanic rocks that extend into
West Yellowstone. Our property is about six miles southwest
of the existing Kilgore deposit.
At Kilgore, a near surface low-grade resource of about
0.5 million ounces has been defined. Kilgore Minerals has
also recently announced some deep high-grade gold
intercepts away from their known resource area.
TIMBERLINE RESOURCES CORP. (OTC: TBLC) (9/23/04) 4
WALL STREET REPORTER®
We see several analogies between our Spencer property
and the Kilgore property. The surface geochemistry on both
is similar, and we believe this mineralization represents
the upper levels of an epithermal gold system. In other
words, we’re just seeing the very top of this system. Our
Spencer property has never been drilled, so we feel a
couple of drill holes could turn this into a very exciting
situation.
In Nevada, we’ve acquired an interest in five
properties. These are located south of Gabbs and the
Paradise Peak mine. The main prospect there is the Olympic
mine, which produced gold from a one-ounce gold vein in the
1920’s. There are also several disseminated targets on the
Olympic claim group, around a series of old, hand-dug pits
and shafts. So we see multiple targets for both a highgrade
and a disseminated lower-grade gold system.
East of the Olympic property in the Cedar Mountains,
we have four additional gold properties. Fieldwork this
summer has shown that there is at least one drill target on
each of these satellite properties. Together, the five
claim groups represent a lot of valuable and scarce real
estate on a defined mineral trend in Nevada, where millions
of dollars of exploration funds are being spent every year.
TIMBERLINE RESOURCES CORP. (OTC: TBLC) (9/23/04) 5
WALL STREET REPORTER®
We feel that this will be an attractive property package to
joint venture.
Finally, earlier this year we acquired data on a
number of early stage Revett Formation copper/silver
properties in western Montana. We staked unpatented mining
claims on four of those target areas. Since these prospects
are valuable, but a little bit more than our small company
could comfortably handle, we looked for a partner for this
project. We approached Sterling Mining Company, a Coeur
d’Alene, Idaho-based exploration company, and they have
agreed to lease the four properties from us. The deal gives
us some needed cash and lets Timberline retain an interest
in the prospects.
We feel that in only nine months we have accumulated
an impressive group of properties.
WSR: In addition to these joint ventures and strategic
alliances, will the company look to additional acquisitions
as a catalyst towards continued growth?
TBLC: Yes. We are actually in the process of trying to
finalize the acquisition of two more silver properties in
Nevada. We hope to do that before the end of the year.
WSR: What can you tell us about the key players on
board at the company, your management team?
TIMBERLINE RESOURCES CORP. (OTC: TBLC) (9/23/04) 6
WALL STREET REPORTER®
TBLC: I was a landman with Kennecott Exploration
Company and U.S. Borax for many years. I worked with the
Borax group that discovered the Montanore deposit in
western Montana, which is one of the large Revett-hosted,
copper-silver deposits.
The exploration targets have been put together by our
geologists. Randy Anderson is a retired geologist who
worked for Hecla for many years, at their Republic property
and at the Lucky Friday mine, where he was involved in
underground exploration and grade control.
Vance Thornsberry has been a consulting geologist
since 1982. He has worked all over the world and is
responsible for our Nevada properties. Vance is an
excellent geologist with many contacts throughout the
industry.
Our secretary/treasurer is Tom Gurkowski. He is
president of Inland Empire Tax Service and holds an MBA
from Gonzaga University.
WSR: Do you think the investment community understands
this company, its direction and the potential here, given
the current stock price?
TBLC: We are so new that no, we don’t think we are
well understood. We have focused on getting the company
going over the last nine months and acquiring properties.
TIMBERLINE RESOURCES CORP. (OTC: TBLC) (9/23/04) 7
WALL STREET REPORTER®
We felt that was the key thing; if we got good assets then
the story would develop around that, and so we are just
starting now to get the story out about what we have.
WSR: In closing, let’s just recap a bit here. Why
should investors consider Timberline Resources as a longterm
investment opportunity?
TBLC: We have a very tight share structure, only 5.7
million shares outstanding. We have excellent assets in our
mineral properties, all of which have the potential for a
significant discovery, so the company is highly-leveraged
to both mineral discovery and to a rise in the price of
gold, silver or copper. We think Timberline Resources
Corporation is an excellent investment for the long term. -
TBLC.PK (TIMBERLINE RES)
http://www.timberline-resources.com
Company contact: Bill Hoyt, director. 785-383-9246 bill@hoytstation.com
6 million shares outstanding.
@ $.60/share
$4 mil MC
The Company has acquired seven mineral prospects to explore. These prospects are located in Nevada, Idaho and Montana.
Timberline to Lease Montana Properties to Sterling Mining Thu, Aug 26 - Business Wire
The Montana property is near the property owned by Mines Management.
Silver Property: Minton Pass project: 20 claims containing Revett formation silver/copper project in Northern Montana. At least 5 drill holes were drilled on or near the claim group in the 1970s and 1980s. A 1971 geologic report indicates that mineralized outcrops of Revett quartzite containing bornite and other copper minerals could be traced for about 1 mile along strike of the outcrop.A short adit was driven to expose the mineralization.Sampling results showed a stratographic thickness of 16.7 feet that averaged .7% copper and 1.78 opt silver.
Detailed work plans are under development, pending acquisition and study of prior exploration data.
--Feb, 2005, finalized and signed an agreement with Hecla to earn 49% of their Snowstorm Project/Mine:
The Snowstorm Mine-- a small but highly profitable operation from the early-1900s that produced 800,000 tons of ore averaging 4-percent copper and 6 ounces per ton silver. -
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Scorpio hits 263.3 g/t silver in 22.3 metres at Nuestra
2005-04-07 22:44 ET - News Release
Mr. Peter Hawley reports
Scorpio Mining Corp. has released the assay results for surface drill holes NSS-14 to 24 from the company's continuing resource delineation program on the Nuestra Senora deposit.
The 2005 development plan, as outlined in the company's news in Stockwatch of March 4, 2005, is continuing on schedule and within budget. Drill results continue to support management's potential production scenario of blending mineralization from both the Nuestra Senora and the Candelaria deposits. As stated previously, a new bulk sample that combined representative material from both deposits is undergoing metallurgical testwork at Rocky Mountain States Laboratories in Tucson, Ariz.
The company is very pleased and encouraged by the latest results from drill hole NSS-24, which typifies the new bulk-tonnage potential recently identified and being modelled at Nuestra Senora. In particular, a 22.3-metre intersection returned 269.3 grams per tonne (g/t) (8.66 ounces per ton) silver, 1.12 per cent copper, 2.33 per cent lead and 5.19 per cent zinc.
(Conversion ratio: 1 per cent equals 22 pounds)
Surface holes NSS-20 to 23 targeted and tentatively define the narrower, outer edges of the lens-shaped mineralized manto bodies of the Nuestra Senora deposit. Significant assay results are as follows:
At this time, all zones identified at Nuestra Senora remain open at depth. Multiple intersections of silver-copper-lead-zinc mineralization continue to resemble the numerous horizons that were historically mined by Asarco. A cross-sectional view illustrating the zones outlined to date at the Nuestra Senora and Candelaria deposits is presented on Scorpio's website.
Drill hole data from the surface drilling presented herein represent downhole core lengths and actual (uncut) grades. True widths cannot be reliably estimated at this time. Condemnation drill holes NSS-14 to 19 and 22 did not intersect any significant mineralization, and the proposed ramp advancement can now been planned for this area.
A total of 6,543 metres of surface drilling at Nuestra Senora have been completed to date. Underground development work in the Nuestra Senora mine now totals 184 metres of five-metre-by-3.5-metre portal and ramp advance, 12 metres of remuck bays and 26.4 metres in crosscuts, including an underground mechanics shop.
Investor/analyst meetings
Scorpio's management team met with analysts and investors in Toronto during March and meetings are planned for Vancouver the week of April 11, and London, England, the week of April 18. At these meetings, Scorpio is presenting the newly developed three-dimensional Nuestra Senora deposit model, designed to help illustrate the promising potential of the project, as well as the narrated video presentation of the project and the underground development. The company's annual general meeting will be held May 18 in Vancouver. Later in May, various financial institutions, mining analysts and letter writers will be invited to the Nuestra Senora project for due diligence prior to the anticipated release of an updated NI 43-101 resource estimate.
Vice-president, exploration and development, D. Roger Scammell, PGeo, is the company's qualified person for the Nuestra Senora project. Mr. Scammell is responsible for the current exploration and development program and the preparation of all technical information provided in this release. All technical information for the Nuestra Senora property is obtained and reported under a formal quality assurance and quality-control (QA/QC) program. Samples are shipped to the ALS Chemex preparation laboratory in Hermosillo, Mexico, for drying, crushing and pulverizing. ALS Chemex, Hermosillo, then sends the pulps by air freight to ALS Chemex, Vancouver, for assaying. Systematic assaying of standards and blanks are performed for precision and accuracy; check assays are regularly conducted by SGS Lakefield Research. Details of the QA/QC program are available on the company's website.
We seek Safe Harbor.
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American Silver Mining Company
This is a private webpage and has no affiliation with the American Silver Mining Company
Last update: March 19, 2004
For those of you who have tried to find out information about ASLM, you have probably found out that info is virtually nonexistent on the web. I am an ASLM investor, and am posting my own info (the best that I have) for the benefit of those of you who have made frustrated attempts to find something out.
Happy investing... I own the stock, and obviously want to see it go up in price. Consequently, I make no claim to be objective. While this info is the best that I have been able to obtain for my own purposes, I do not guarantee its accuracy. (Even the two maps I am including differ a little, but that is the info that I have... cannot be helped). A lot of what I have written here is my own opinion or interpretation. I offer it freely, but ask the reader to do their own due diligence and NOT to construe this information as a stock recommendation. You are responsible for your own investment decisions. I have also included these resources for your convenience:
Home
Claims map of the Silver Valley
Silver Valley companies and links
Location and Information:
American Silver Mining (Idaho Corporation, est. 1924)
2503 E 17th Ave., Spokane, WA 99223-5124
President: Wafford Conrad
American Silver Mining is sitting on 21 unpatented lode mining claims (about 320 acres) on a key piece of strategic property that now lies directly between two operations - Sterling Mining (Sunshine Mine) to the Northwest and Coeur D'Alene Inc (Galena and Coeur Mines) to the Southeast. The map shows the location of the property.
In the Silver Valley there is a NW-SE trending vein system, roughly following the direction of faulting and shearing in the area. Major faults are shown on the map as red lines. Historical underground mines are shown on the map as red dots. The two red dots north and east of the American Silver property correspond to the Coeur Mine, owned by Coeur D'Alene Mining.
The main silver occurrences in the valley are found at ~3000-5500 feet depth in a geological unit called the Revett formation. The silver-bearing vein system is actually quite predictable and continuous throughout the valley. It does not take a genius to see that the dots corresponding to the historical mines form a line that passes right through the American Silver Mining property. American Silver has held the property since 1924 (!!) without doing anything with the claims, making this block one of the most unusual and strategically located pieces of "virgin" ground in the whole valley.
I have no idea how much silver has been quantitatively defined so far on the ASLM property. Most of the historical exploration has been done by the Silver Valley Resources consortium (now owned by Coeur D'Alene mining). They spent about $3 million on the property in the form of ore definition, and confirmed that the vein system in actual fact does pass through the ASLM ground. The exploration investment alone is worth almost the entire market capitalization of ASLM (~2.7M shares @ $1.70 at the time of writing). One might expect a LOT of silver. The Sunshine mine (Sterling Mining, to the Northwest) has produced 350 million oz. in its lifetime, has current ore reserves of 27 million oz., and indicated (?) ore of 160 million oz. The Coeur D'Alene properties have current reserves of only 22 million oz., but this is more due to a lack of exploration drilling than anything else. The Coeur and Galena mines, when operational, had a combined production of about 11 million oz/year, and have produced for decades. American Silver is the same type of property, on the same strike, and may be anticipated to have the same magnitude of resources.
In 1997 Coeur D'Alene and ASLM signed a production sharing agreement, valid for 20 years. In fact, CDE has a drift going right into the ASLM property from the Coeur mine at the 3400 foot level, making this cheap ground to access (see second map). Another interesting feature of the claim block (see first map) is that Coeur D'Alene needs to go through the ASLM property to access the southern portion of their own property.
The production sharing contract between ASLM and CDE gives CDE sole and exclusive possession and control of the ASLM property. As part of the agreement CDE is obliged to spend $100K on the property each five years. If CDE goes into the ASLM property there is a 20% net profit royalty (NPR) up to a price of $11.00/oz of silver. Beyond this, the royalty increases linearly to 40% over the price range $11-16 per oz. Coeur also has agreed to pay ASLM an 11% NPR on Coeur's own claims south of ASLM if CDE goes through ASLM's property to access their own southern claim block.
Possible Scenarios:
The current bull market in silver presents unique strategic opportunities. Unlike the "blip" of the 80's that came and went before companies could fully profit from it, it looks now that we are going into a long-term structural bull market for silver. Thus, it is likely that we will see production options exercised, and buyout offers suddenly materializing. I can see two possible end-game scenarios for ASLM:
1. CDE exercises production rights, thereby generating royalties for ASLM.
2. CDE moves to acquire ASLM outright by means of a stock-swap deal. This could involve a possible counter-offer by Sterling Mining (SRLM).
Reopening the Coeur Mine
Coeur has publicly stated their intention to re-open the Coeur mine contingent upon their ability to add enough reserves to the mine by exploration drilling. I see this re-opening as a foregone conclusion in a significant silver bull market. The limiting factor in underground production is almost always the capacity to lift ore through the shaft; therefore, one cannot simply increase production from the existing Galena mine. Any production increase in the area will need to be accomplished by putting new shafts in service. Developing a new mine shaft is VASTLY capital intensive. To replace one of the existing shafts you would need to invest about $80 million, and that is before you install services, develop drifts (horizontal access tunnels), and the like. What this means is that you ALWAYS use existing shafts, even if you have to drift quite a horizontal distance to get at the ore you want.
Coeur D'Alene mining is committed to reducing per-ounce production costs from the Silver Valley area. There are a number of ways in which this can be done. Since the lion's share of the cost is the mining cost, mine productivity (ounces per day or ounces per man shift) is the critical factor in determining overall production cost. This, in turn, is affected to a large extent by the head grade (ounces of silver per ton of ore) and the cycle time (how long it takes to complete one blast - extract - lift cycle). This is why I believe that the use of leased ore reserves is inevitable. First of all, one can book reserves much more quickly if one has access to a 360 degree radius around the mine shaft, rather than just exploring toward the CDE claims. Secondly, cycle times are shorter if you mine closer to the shaft and/or closer to the surface, rather than chasing deeper and less accessible ore from the already-worked Coeur property. Thirdly, head grades will be higher in virgin property than from property that has already been the subject of intense exploration and mining activity.
The benefits of entering ASLM property are, of course, offset in part by the royalty payment accrued to ASLM. However, (and this is critical from an accounting point of view) the royalty is structured on a percentage-of-profit basis, meaning that it comes off the top of the balance sheet (as a revenue deduction) rather than being added to the bottom of the balance sheet (as a cost). In other words, the royalty does not constitute a part of the operating cost. Going into leased ore reduces the operating cost, irrespective of the royalty payment.
ASLM Valuation (based on CDE smelter royalty):
Some typical numbers for adjacent mines - the Coeur mine in 1996 was recovering about 18 oz. of silver per ton mined. The Sunshine Mine (Sterling Mining, to the west) was recovering about 21 oz per ton. Let's say then, for the sake of argument, that ASLM ore produces about 20 oz/ton. This would be low for virgin territory. The head grades at Sunshine and Coeur are both lower at present due to decades of mine depletion.
If CDE did decide to reopen Coeur and move into the ASLM property, it would probably soon account for more than 50% of the ore coming out of the Coeur mine. This mine was historically operating at ~780 tons per day. Consequently one can approximate (780 tpd * 50% * 20 oz/t = 7,800 oz/d) from ASLM territory, or 2.9 million oz Ag per year, or 1.07 oz Ag per ASLM share.
The royalty payable to ASLM depends upon CDE's cost of production. At a cash cost of production of $4/oz (that which CDE is advertising as their target for the Silver Valley area) an approximate calculation of the royalty payable to ASLM is presented in the following Figure. (This assumes royalties paid on 1.07 oz Ag per share at a cash cost of production of $4/oz). The royalties would be higher if CDE were to increase production rates from Coeur, or if they chased high-grade silver wire resources from the ASLM property (> 20 oz/t), or if they obtained more than 50% of their ore from the ASLM claims.
The share price supported by the royalty is a function of the price-to-earnings ratio of the stock. In the precious metals sector the P/E ratios tend to be quite high, averaging about 25-30. If we were to calculate the share price based upon an extremely modest P/E of 15, one obtains the following:
Disclaimer: The above calculations are presented for illustrative purposes only, and should not be construed as a performance guarantee. Many factors can influence royalty revenues and share price. These are order-of-magnitude expectations based upon the assumptions stated above.
Summary:
Seeing how the ASLM property is right next to the Coeur mine shafts, it is a reasonable bet that it will represent for CDE some of the cheapest and fastest silver in the Silver Valley. In a recent webcast CDE's chief operating officer stated that there were "no specific plans" to enter the ASLM property but that an "agreement was in place" and that the ASLM property was viewed as "prospective ground". The fact that the Chief Operating Officer recited this instantly in response to a completely impromptu question suggests to me that the ASLM property is already under active scrutiny by CDE.
So.... a virgin property, with two CDE mine shafts right on the borders, confirmed mineralization, and a drift already going into the property. Virtually no capital cost to get at the ore, a royalty agreement already signed, a bull market for silver, and CDE now sitting on 250 million cash with commitments to keep operating in the Silver Valley; and if CDE does go into the ASLM claims, which it seems almost impossible for them NOT to do, the smelter royalty for ASLM will support a share price many multiples of the current trading price. This is why I am so bullish on this particular stock.