Hallo Leute !
Habe eine nette Liste gefunden. Damit kann man vielleicht was anfangen. Sieht jedoch nach einer Menge Reseacharbeit aus .
Wer Lust hat kann mir ja helfen, die interessanten Minen herauszufinden.
Suche stillgelegte Minen, die bei einem höheren Silberpreis profitabel arbeiten können und noch unentdeckt sind, sprich ein MK von einer oder 2 Mio haben.
Sehr guter Artikel. Ausdrucken und auswendig l ernen.
Vergleichbar mit dem Hommel Werk.
Kopie aus Polen.
@ Lancelot
Würde gerne mal Deine Rechnung sehen.
Grüsse, newtechxl
Silver Outlook Continues to Shines
The outlook for silver continues very strong; however, we are beginning to see announcements of several new silver mines, perhaps the most significant being San Cristobal, which is forecast to produce approximately 22 million ounces of silver per year by early 2007 (note that this assumes bank financing for the project is forthcoming soon).
The Yukon Silver-Zinc Project is forecast to produce more than 7 million ounces annually commencing second half of 2007. As such, Yukon Zinc will also become a significant silver producer.
Selenium Markets Remain Strong
In my last shareholders letter I noted that selenium is no longer an impediment to development of the Wolverine deposit and that the current high prices has lead to strong interest by the smelters to take all of the concentrates from the standalone development of Wolverine.
The above chart illustrates that selenium prices, after consolidating in the U$25 to US$30 range, have now moved higher in response to continuing tight supply. The following is a quotation from Metal Bulletin for December 15, 2004:
“Selenium Continues To March Upwards”
London 15 December 2004
Selenium’s Bull Run through 2005 is gathering more pace as the end of the year approaches, as consumers and traders scramble to pick up what very little spot material remains.
An extremely tight market has pushed the metal to between $30.5 and $34.5 per lb from around $8.5 per lb, with some traders claiming to have seen even higher numbers.
“We are getting about 15 enquiries a day for selenium but we cannot in any way fill them all,” said one London-based trader. “I am fighting to get any scraps of material that I can lay my hands on. We can’t complete as much business we’d like to as the producers are struggling to keep up with demand.”
Others agreed, with many expecting the price to carry on moving up, as there are no scheduled plans for extra material to appear on the market until 2006 at the earliest.
“Selenium is one of the only [minor] metals at the moment with any true strength behind it,” said a second trader. “We could well see $40 very soon if the current factors remain.”
The majority of selenium is tied up in long term contracts, making spot material extremely difficult to obtain.
“If you’ve got spare material, you can more or less name your price at the moment,” said a third market participant.
Given the shortfall in supply, there is a reasonable expectation that when Yukon Zinc concludes its concentrate agreements, that these contracts will include selenium price participation above some selenium level (rather than the penalties that have been part of previous economic studies), resulting in significant additional revenue for Wolverine production.
Evaluation of selenium will resume with commencement of additional metallurgical work in the first quarter.
Outlook
As I indicated in my last letter, zinc consumption in China was up 26.5% during the first six months of 2004; this is very significant given that China makes up 25% of the market. The key to sustained high growth rates in consumption rates is very much dependent on Chinese and American consumption. Industrial output in China for the first 11 months of 2004 grew by 14.8% indicating that the modest slowdown desired by the government has been achieved and that sustainability of growth is more likely to be achievable. Finally, investors in the United States and elsewhere are beginning to accept that China is in the midst of a major long term period of growth, which is very positive for metals consumption. Interestingly, Metal Mining of China is rumoured to be opening an office in Vancouver; presumably to track opportunities for investment and securing of concentrates.
The ISM purchasing manager’s index in United States increased in November after three months of declines. Elsewhere, German business confidence increased in December, the recent purchasing manager’s indexes in the Eurozone fell slightly as did Japan. In summary the other economies, on balance, appear to be maintaining a neutral to small positive growth. This is a very positive backdrop for the continuing growth in China. In summary, the outlook for continued strong metal markets for the first six months of 2005 remains very positive.
With the transition to development, the task at hand for Yukon Zinc Corporation is to attract the attention of the financial community to focus on the Company as a future producer. Although the focus is clearly on development, the Company intends to continue its exploration in the Finlayson District to provide the discovery that provides an expansion scenario for the current production plan.
The past year has been very satisfying:
· Expatriate raised approximately $21 million in 2004 and has the money to take the Wolverine Project to bankable feasibility
· Pacifica Resources Ltd. was created crystallizing the value of the non-Finlayson assets and providing shareholders a third opportunity for growth, and
· StataGold recently completed approximately $22 million in financing and has embarked on a very promising journey with its exploration of the Tassawini property in Guyana and the Dublin Gulch project in Yukon.
Thank you for your support during the past several years, and the outlook remains very positive for increased growth in shareholder value.
Respectfully,
Expatriate Resources Ltd.
Harlan D. Meade
President and CEO
Zinc Now Outperforming Other Base Metals
and Selenium Shines
I started a shareholders letter November 5, 2004 with the caption “Zinc Through $0.55/lb by Christmas??” ... but I didn’t get it finished. At the time, that forecast would have appeared as an outrageous call given that zinc was at about US$0.471 per pound on November 4th. As I write this, the LME price is US$0.55 per pound and additional increases appear to be coming….more on this in a minute.
This is the last Expatriate shareholders letter, as Expatriate will, at market open on Monday, December 20, 2004, change its name to Yukon Zinc Corporation. On December 14, 2004 the shareholders overwhelmingly approved the Plan of Arrangement (99.78% in favor) resulting in the transfer of the non-Finlayson District exploration properties to its subsidiary Pacifica Resources Ltd., and the transformation of Pacifica into a new exploration company on the TSX Venture Exchange.
The formation of Pacifica completes the reorganization of Expatriate that began in spring 2003, which included the formation of StrataGold Corporation in November 2003 as a successful new gold exploration company. With some hard work and ingenuity perhaps Pacifica can grow as quickly as StrataGold has in its first year. In that time, StrataGold has increased its market capitalization from $13 million at the start to approximately $42 million at the time of writing.
The group of companies, including Yukon Zinc Corporation, Pacifica Resources and StrataGold Corporation, will be known as the Expatriate Group of Companies. The group shares considerable technical, legal and financial experience and expertise of the various team members and benefits from operating synergies.
Expatriate will change its name to Yukon Zinc Corporation on December 20 and trade under the symbol YZC on the TSX Venture Exchange. The renaming of Expatriate marks the evolution of Expatriate from an exploration company to a development and mining company.
The Company recently announced Mr. Richard Goodwin as the Vice President of Mining to champion the development of the Wolverine deposit as Canada’s next major zinc-silver mine. His appointment marks a major step forward for the Company. Early in the New Year we will mobilize underground mining equipment to the property and commence the test mining program as the final work required to complete a bankable feasibility study and make a production decision.
Approximately $8.5 million of the $16.6million proceeds of the October financing is earmarked for the Wolverine test mining program and feasibility study; leaving approximately $5 million unallocated for advancing the project. Perhaps the most encouraging recent technical development is the very favourable test results from the heavy media separation (HMS) test work completed at Lakefield.
The test work indicates that application of HMS technology could provide a very effective pre-concentration step through the rejection of waste and therefore production of an ore product that contains considerable waste material. Successful application of HMS technology at Wolverine could reduce mill process costs on a unit of production basis. However, the main benefits will be in mining where it provides a means of removing waste material from ores prior to processing, with only minor metal losses. The effective removal of waste allows mining to maximize recovery of the high-grade ores; particularly where excessive dilution with waste rock occurs due to multiple bands of massive sulphide mineralization, hangingwall failure, contamination with footwall material and in the mining of thin massive sulphide lenses. Importantly, application of HMS to the mining of thinner zones would allow the conversion, with additional drilling, of significant amounts of indicated and inferred resources into mining reserves, thereby increasing the mine life.
Expatriate also recently completed the acquisition of all of Atna’s interest the Wolverine Joint Venture, making the final $1million payment, and the company now owns 100% of the Wolverine Property. The Company continues to pursue opportunities to consolidate the District and has recently staked an additional 430 claims to augment its prior 3,500 claims.
Exploration Update ~ How Long Until the Next Discovery in the District?
In my last shareholder letter I provided this photo of drilling on Thunderstruck.
We completed three holes on the Thunderstruck target that tested a small part of the Thunderstruck discovery before winter conditions and technical difficulties made it difficult to continue. A fourth hole was drilled on the Goal Net property in November to follow-up encouraging drill results from 2001.
On the Fisher Ridge target, the second drill hole is nearing completion. Drilling on the Fisher zone is following-up massive sulphide mineralization that was intersected in two drill holes completed in 1996 and 1997. The mineralization is on the Wolverine horizon approximately 7 kilometers northwest of the Wolverine deposit.
Assays for these holes will be released early in the New Year. Drilling will resume in late January with in-fill drilling on the upper part of the Wolverine deposit before resumption of exploration drilling in April.
Elsewhere in the District, Teck Cominco made a modest discovery of massive sulphide mineralization immediately north of Yukon Zinc’s Goal Net property.
Pacifica should commence trading on the TSX Venture Exchange at market open on Monday December 20, 2004 under the symbol PAX. Management wishes to thank all shareholders for their support in the approval of the Plan of Arrangement. Pacifica provides current Expatriate shareholders a second opportunity for growth in the search for and development of base metals.
Following the investment of $1.2 million by Expatriate, Pacifica will have approximately 19,050,000 shares issued with Yukon Zinc Corporation holding approximately a 25% interest. An additional flowthrough share financing of 3,500,000 shares is in progress to provide an additional $1,050,000 of working capital to Pacifica.
Expatriate’s prime focus in the first part of 2005 will be resumption of drilling on its Islena property in Chile followed by summer programs on its Selwyn and Yava properties. At Islena, drilling is planned for the first quarter to follow-up on an 8 metre intersection in drill hole UN04RC-03A that grades 3.62% copper, 0.43% zinc, 0.16% lead and 288.7g/t silver, and a similar intersection in hole UN04RC-12.
Drilling is also planned for the Yava property in Nunavut to test geophysical anomalies identified in summer 2004 adjacent to the Yava zinc-silver-copper-lead deposit that was last drilled in 1974. Previous drill holes include high grade massive sulphide mineralization grading up to 28.7% zinc and 360 g/t silver over 1.8 metres within broad mineralized sections.
A drilling program is also planned for Pacifica’s wholly owned claims in the Selwyn Project, which is located within the Howard’s Pass District. This district in the eastern Yukon contains one of the largest undeveloped zinc-lead deposits. Pacifica’s claims are well located within the District and are being prepared for stratigraphic drilling of the favourable sedimentary horizon. The claims have potential to host significant tonnages of strata-bound zinc-lead mineralization.
Pacifica also intends to embark on an aggressive acquisition program similar to that successfully followed by StrataGold over this past year, except that the focus will be base metals, not gold properties.
Market Updates
Finally Zinc Inventories in Free Fall!
For several years, Expatriate has been forecasting a very favourable market for zinc, following the consumption of significant concentrate and metal inventories that resulted from the development of several large mines in 1999 through 2002 period. It was simply a matter of time before the supply deficit began to rebalance the market.
The zinc markets remain in supply deficit, with Teck Cominco recently forecasting a deficit of 373,000 tonnes for 2004 with no new production forecast until 2007. As the following graph by the Australian metal forecasting group CRU International illustrates, the world needs approximately 2 million tonnes of new zinc production by 2007 to meet forecast metal demand. At this time there are no new zinc mines in construction; however, in the past two weeks there have been announcements to develop the Duck Pond deposit in Newfoundland (Aur Resources: 34,500 tonnes of zinc per year starting late 2006 and the San Cristobal deposit in Bolivia (Apex Silver; 180,000 tonnes of zinc per year starting 2007). Other projects are under feasibility study; however, it is clear that new planned production will fall well short of the 2 million tonnes required as these are all significantly smaller than San Cristobal.
Chart by CRU International illustrates forecast Global Zinc in concentrate required and current supply from mines and possible additions.
Requirement for new mine production is approximately two million tonnes by 2007.
Zinc inventories on the London Metal Exchange have declined 70,000 tonnes from 710,000 tonnes to 640,000 tonnes since the time of my last newsletter on October 27, 2004, suggesting an annualized supply deficit of over 600,000 tonnes – which is nothing short of remarkable! If this rate of decline were maintained, there would be no zinc inventories left by the end of 2005. This is unlikely to happen as some producers will certainly be able to expand their production, but the amount of increase is likely to be modest for the following reasons:
1. Most zinc mines are underground mines with long lead times for expansion due to requirement for expensive and time consuming development to access additional ore,
2. Other mines are nearing the end of their mine life, and
3. Several producers cut back development in lean years to reduce operation losses.
The rapid decline in metal inventories and the beginning of a significant increase in zinc price is beginning to attract market interest with several groups now calling for zinc to outperform the other metals going forward. Producers and analysts are now in agreement that hidden inventories are gone.
Current Inventories are now about 640,000 tonnes. The following chart illustrates that as zinc inventories reach the 300,000 tonne level, zinc prices have historically risen sharply, particularly if there is no significant new production on the horizon. The zinc price has risen dramatically from US$0.47 to US$0.55 since my October 27th letter. The accompanying long-term Inventory-Price graph illustrates the ability of the zinc price to rise to significantly higher prices. Investors are also reminded that the price of nickel rose from US$3 to US$7 per pound over a 24 month period commencing fall 2001 as inventories declined to historic lows.
The following quotation is repeated, as it was one of the early forecasts that is now being echoed my many:
Merrill Lynch Investment Managers (MLIM) said on Friday (October 22, 2004 ~London, UK): MLIM's natural resources team, which has some $1.8 billion under management, said it was increasingly looking to invest in aluminium and zinc producers -- metals which have become scarcer recently, just as copper, nickel and others did last year. In a briefing to journalists, the head of MLIM's natural resources team Graham Birch said 2005 in general looked like it would be another record year for mining stocks. Fundamentals such as low stocks, little new supply and continued Chinese demand, were still in place he said, despite nerve-racking swings in investor sentiment. "Some of the other metals which China has not been so short of...look like they are going to join the party in 2005," said Evy Hambro, director of MLIM's natural resources team.
Zinc producers also have the potential to shine late in the metals boom Hambro said, because such little money had been put into zinc exploration and production. While zinc inventories in LME warehouses are at roughly the same level they were a year ago, stocks of 712,000 tonnes are almost 10 percent down on April's figure. "We are still at an early stage there, but it is probably one of the last metals to perform. The market will be in deficit next year, and this will help prices to improve," he said. "We would want to buy pure zinc producers."
Zusammenfassung der Zahlen:
Produktion: 2004 700000 Unzen
2005e 1,2 Mio Unzen > Kgv. 3,5
Produktionskosten pro Unze 4,25 Dollar
Wollte eigentlich nur mal mit dem Thread verdeutlichen, dass die meisten hier am Board, unter anderem ich selbst völlig unterinvestiert sind mit physischem Silber.
Die scheinen uns voraus zu sein ! 
5p ET Friday, December 17, 2004
Dear Friend of GATA and Gold:
Hugo Salinas Price -- businessman, philosopher,
and Mexican patriot -- describes in the essay
appended here the great progress being made in
Mexico toward the remonetization of silver. He
argues for what GATA has been arguing for
-- giving people a choice of money and making
money compete for people rather than the
other way round. That will be, as Salinas Price
suggests, the end of imperialism and the
renewal of human liberty and dignity.
If only developing countries, particularly
Mexico and South Africa, realized that their
poverty is half self-inflicted, that they
are actually sitting upon the most enormous
and liberating wealth and need only to
mobilize it against their exploiters. ...
Salinas Price's Internet site on the
remonetization of silver can be found here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Silver's Three Flags
By Hugo Salinas Price
La Jornada, Mexico City
(Translated from Spanish to English by the author)
Saturday, December 11, 2004
Silver as a vehicle for popular savings has turned
out to be a very effective flag that has gathered
support among the principal Mexican political
parties, which in everything else are deeply at
odds with one another.
This November 30 the 31 governors of all the
states that make up the Mexican Republic sent
a communiqué to the Ways and Means Committee
of the Mexican House of Representatives,
expressing their unanimous approval of the
monetization of silver and urging the committee
to approve a bill which aims to achieve precisely
this objective.
Some 176 Mexican newspaper writers put their
signatures to full-page declarations by the
Journalists' Club in the main newspapers of
Mexico City, also in support of the
monetization of the "Libertad" silver ounce.
A permanent organization of ex-legislators
also expressed their support for the
measure in favor of the monetization of
silver.
A poll by national TV Azteca revealed that
96 percent of viewers approved of the
monetization of the silver ounce.
The Bank of Mexico, Mexico's Central Bank,
is adamantly opposed to this measure. The
bank does not want the public to have the
opportunity of saving in monetized silver.
It wants to maintain its monopoly on the
printing of Mexico's money, which has no
intrinsic value and does not want the
public to have any alternative for its
savings, other than bills or bank deposits.
The Bank of Mexico sent a group of 12 men
to the meeting of the Ways and Means
Committee on November 30 to confuse and
cow the committee members and forestall
a favorable vote on the bill to monetize
silver.
We do not know how the committee members
will cast their decisive vote when the
time comes. But even if their vote is
negative, we can predict, from the
support given to this reasonable and
salutary measure in the interest of
Mexico, that the idea of monetizing
silver will not die.
The idea of using silver as money that
cannot be devalued, for savings by
the people, is now firmly rooted in
the Mexican consciousness. An idea on
the march is a force that does not die
easily. Suppressed, it will only
gather strength. Such is the history
of all ideas.
But silver flies another and more
important flag.
In the mid-19th century, when modern
Italy had not yet taken shape and
Italians were still under the
domination of Austria-Hungary, there
was sown the idea that Italy should
be reborn as a united and self-governed
state and that the domination by
Austria-Hungary should be ended.
Garibaldi came forward as a leader of
this resurgence of the Italian
fatherland.
A young composer, Giuseppe Verdi,
composed an opera to symbolize Italy
under the heel of Austria-Hungary:
"Nabuco" was its name. The Hebrews
captured by Nabuco, the Babylonian
king, symbolized the Italians under
the rule of Austria-Hungary.
One hymn of this opera was so moving
that it spread like wildfire among
the population. It became impossible
to frustrate the resurgence of Italy.
Verdi's hymn is, to this day, Italy's
national anthem.
This is silver's second flag: national
union, with a consciousness of our own
worth, our own culture, and our
independence. A national consolidation
will take place when we once again take
up silver, our ancestral money.
But there is another and still greater
flag for silver: Silver turned into
Mexican money, circulating in parallel
with paper money, no matter how small
the amount of silver in the nation's
economy, means that Mexicans will
always remember that silver can
actually be used as real, honest money
-- and that as the years pass it will
always be there, inviting us to use it
in the most dangerous and dark times
that may come.
Silver in circulation will remind us
that it is possible for a society to
use silver and benefit from the use of
real money, honest money.
Otherwise, it is possible that we may
forget this, as has happened to many
nations.
When Mexico monetizes silver, it will
become a lighthouse of hope for the
world, a light that shows the way out
of the swamp of slavery and perpetual
impoverishment that comes with paper
money.
Paper money, which is today the only
kind of money in the world, ensures
economic and therefore political
control over the populations that use
it. The planet's banking caste that
issues paper money and virtual,
electronic money, threatens to become
the sovereign power through the
fictitious money it issues, and
aspires to dominate humanity.
The result of paper money is the
dehumanization of the human race.
So this is silver's third and most
important flag: the cause of humanity.
Silver's flags, therefore, are three:
* The flag of people's savings.
* The flag of national union.
* The flag of the preservation of men
against dehumanization.
The silver coin as money: an idea that
has come alive and will not be suppressed.
Research Report: Genco Resources
Friday, July 2, 2004.
I believe that Genco Resources represents an exceptional opportunity for precious metals investors to participate in the sector with current production, unhedged and fully leveraged to the possible rising prices for gold and silver, and robust exploration potential on their 100% controlled property in Mexico. Shares in this company can be acquired at an attractive price currently, due to the extended correction that has influenced the entire sector, and the lack of ongoing promotion. Very little information has been made available to the public regarding the exploration and development work underway at the company’s area of operations in Central Mexico, or of the potentially highly profitable operations. The key factor to successful equity investment in the precious metals sector is the ability to discover undervalued, fundamentally sound companies and acquire them late in the development stage when the risks are lowest, yet while they remain valued in the markets at levels befitting an early stage exploration project. Genco Resources fits the profile of such a company, and a sector recovery along with successful development of new resources will rapidly increase the market value of this company. I own shares of Genco Resources. – Mike Kachanovsky
Overview:
Office Address: 550-999 West Hastings, Vancouver, BC
Telephone: (604) 682-2205
Exchange Listing Symbol (TSX-V): GGC
Website: http://www.gencoresources.com/
Share Structure: Issued and Outstanding: 20,357,268
Fully Diluted: 24,240,268
Market Capitalization: $17.3 Million
Management:
At this early growth stage of development for the company, Genco appears to have the right mix of management personnel to both direct and exploit new exploration initiatives, and to provide experienced operational guidance for the mining operations. Board member Eduardo Luna has management experience with other Mexican precious metals producers Industrias Penoles and Luisman Mining. President Jim McDonald was a founding member of the management team of other junior exploration companies including White Knight Resources and National Gold Corp. Geologist Bruno Barde has been part of the discovery and development of several mines worldwide, including Mexico. It should be noted that the mine is well staffed with experienced and trained personnel.
Development Project:
On August 1, 2003 Genco acquired a Mexican mining company, La Guitarra Compania Minera for the issuance of share capital and cash. The principal asset of this company that came with the acquisition is the operating La Guitarra Mine, and the surrounding lands that comprise the Temescaltepec District. Located in the Sierra Madre Occidental Mineral Belt, considered by many to be the prime address for gold and silver development in Mexico, the property spans approximately 12,373 hectares. As is common with many other epithermal deposits, numerous gold-silver veins have been traced over a wide strike length across the property, with some of them running for several kilometers in length. These narrow veins commonly feature enriched zones of higher-grade material, and intermittent super-enriched “bonanza-grade” zones occur periodically. Although the property has seen continuous mining operations stretching back over 500 years, it is estimated that only 5% of the vein systems have been systematically explored using modern techniques.
Genco employed some modern exploration methods recently when they completed a follow up program of 3D IP surveying after a round of drilling at the San Raphael zone, southwest of the La Guitarra Mine. The drilling results were exceptional, indicating a new high-grade zone discovery, with assay results up to 33.01 g/t gold and 834 g/t silver intercepted over 8.2m. The results of the induced polarization program confirmed that the La Guitarra vein extends below a younger rock formation and could run for a length of over 7 km. Additional anomalies were discovered near the new San Raphael discovery zone, and to the northwest of the La Guitarra Mine. Encouraged by the close association of these anomalies with the mineralized areas of the La Guitarra vein, Genco announced another 2500m diamond-drilling program to test the potential for new mineralized zones and the results again featured narrow intersections of high-grade ore.
Vein swarms have been traced and mapped throughout the property and additional surveying and sampling is scheduled to continue to build the database for future drilling program targets. To the northwest of the La Guitarra mine, an abandoned mining shaft has yielded some very high-grade drill core intersections, and this area will be another priority target for future exploration activity.
Operations:
Production in 2002 consisted of 425,274 ounces of silver and 7,052 ounces of gold, from approximately 80,000 tons of ore. Recovery rates were relatively low, averaging about 82% for silver and 80% of the contained gold, recovered through a floatation circuit. Due to the prolific nature of the mineralization only limited exploration work was carried out throughout the life of the mine, to establish ore bearing zones to feed the mill. When the decision to sell the property was made by the former operators, no further funds were allocated to exploration, and the depletion of known ore bodies reduced the throughput at the mine to levels well below capacity. After Genco acquired the mine, operations resumed but only 20,338 tons of ore were processed up to January 31, 2004, well below the 330-ton per day capacity. Reported production of 140,703 ounces of silver and 1,370 ounces of gold (3535 gold equivalent ounces at 65:1 ratio) was achieved for net production costs of $1,578,071.00. With production costs averaging US $340 per ounce, La Guitarra can be considered a risky operation due to fluctuating ore grades and a low gross profit margin.
Despite the lower mine throughput since Genco acquired the mine, the company has achieved profitable operating results. The success of the project will depend on the ability of management to increase the throughput closer to the capacity of about 330 tons per day, and reduce the production costs on a per ounce basis, providing Genco with a greater margin to survive periods of low commodity pricing, while remaining fully leveraged to potential rising precious metals prices in the years ahead.
Genco believes that due to efficiencies that can be achieved through the upgrade of processes and technology at the mine, profitable operations can be maintained even with lower grade ore. Much of the historical production in the area was limited to the higher-grade portions of the deposits, and the remaining lower grade ore remains to be exploited. The potential for ongoing additions to reserves along the 15 km trend on their property holdings, like the newly discovered San Raphael zone, will result in substantially increased production levels and extend the mine life, while contributing higher-grade ore to the operation. It should be noted that La Guitarra is primarily a silver mine, and the most recent production figures show the ore processed averaged about 7 ounces silver per ton, far below the historical average grade of the ore which exceeded 9 ounces per ton. New discoveries of high-grade ore will thus yield an immediate improvement at the bottom line.
New development is focused towards completing a 4-meter by 4-meter decline at San Raphael to access the ore body discovered during the 2003 drilling program. It is estimated that by the fall 2004 mining in this zone will commence. Management is optimistic that throughput at the mill will increase to near capacity levels by the end of the 2004, while exploration activity is ongoing to identify additional ore bodies for future exploitation. The company is committed to proving up a 2-year reserve life.
The combined effects of increased efficiency in operations, additional ore production to near-capacity levels, and the processing of ore with overall higher grades, should result in substantially higher profitability for Genco during future quarters, and production costs that are more in line with the industry average.
Outlook:
Prior to the acquisition by Genco Resources, Luisman, a subsidiary of Wheaton River Minerals, operated the La Guitarra Mine. Due to the relatively low production levels and high operating costs, Wheaton River considered the mine expendable and thus Genco was able to acquire the La Guitarra Mine very cheaply. For the low acquisition cost of $5,000,000 payable in share capital they were handed the keys to a functioning mining operation and gained control of an appealing district to explore and attempt to identify new ore resources. The attractive terms of the deal, without the high capital cost outlay that would be required to establish a new mining facility, has resulted in Genco achieving the rare status of a precious metals producer with a market capitalization well below $25 million. Management’s ability to increase the efficiency of the current operations while discovering new high-grade zones of mineralization will define the success of the company in an uncertain commodity price regime.
The tightly held share structure and low market capitalization for a producing mining operation are a testament to the value in this play. With proven and probable reserves of 60,000 oz. Au and 784,000 oz. Ag, and inferred and indicated resources of 151,000 oz. Au and 36.7 million oz. Ag, the combined gold equivalent resource (65:1 ratio) approaches 800,000 ozs. Based on an exchange rate of 74 cents Canadian to the US dollar, this equates to a low market cap to resource ounce of only $16, with the potential to add significant resources as further exploration activity is completed.
Capital resources are adequate to fund the operational and exploration requirements for several quarters. The company recently completed an equity offering to raise $1,146,000 in cash and additional funds will be added to the treasury as outstanding options and warrants are exercised. The only long-term debt obligations are the remainder of the acquisition costs which are payable in annual installments of US$ 500,000 and may be settled with the issuance of shares. The company holds marketable securities in the form of shares of Getty Copper Inc. which were received as payment for a property transaction in 2003. A $1.5 million line of credit is also available as required through a major Canadian bank.
While the current operations are profitable, the potential for increased profit is achievable and realistic. Cash flow from operations will fund increased exploration activity across the large system that could lead to major new discoveries of ore deposits. While the mine facilities cannot be expanded without significant capital expenditures to increase capacity, if the company is able to generate production levels to match the 2002 production of 13,600 gold equivalent ounces, still well below full capacity, and lower overall production costs, then the operations for Genco could generate as much as C$ 2 million in gross profits even at current gold and silver prices. The cash generated internally from operations should also contribute to fewer equity offerings to raise capital, and with a low share float, will result in higher upside potential capital gains for shareholders.
A final comment is appropriate regarding the future expectations for the performance of the precious metals sector. Many analysts have commented that the market is in the early stages of a long-term secular bull run for precious metals. During previous bull market episodes, the market value of junior gold and silver producers increased exponentially. Spot pricing for precious metals is notoriously volatile. Because Genco is has not entered into any hedging agreements for the forward sale of production at a fixed price, the company remains fully leveraged to any increases in spot prices. Various sector analysts have predicted substantially higher market pricing for precious metals in the years ahead, and if this should come to pass, shareholders of junior producers such as Genco Resources will be richly rewarded. The profitable operations, combined with a speculative frenzy in the sector, would position Genco as a very attractive holding for investors.
As are all such companies within the sector, Genco Resources must be considered a very speculative investment. A high degree of risk exists due to the volatility of commodity pricing, and the uncertainty that Genco will be successful in achieving their stated objectives to increase production and reserves. This company is suitable only for risk-tolerant, sophisticated investors able to accept extreme volatility and the possible outcome of a total loss of their investment value. The objective of investors in this sector is to identify those companies that offer higher potential rewards to offset the high levels of risk. Relative to the peer group of companies in the sector, Genco Resources can be considered attractive on the basis of a superior risk/reward profile, and the potential to create exceptional shareholder value in the years ahead. Investors who believe that 2004 represents the early stages of a secular bull market for precious metals should give consideration to acquiring shares in focused and profitable producing companies like Genco Resources.
Sieht recht vielversprechend aus.
Genco produziert schon fleißig und hat ein sehr niedriges Marketcap. ca.16 Mio
Eine mögliche Strategie könnte es sein, Unternehmen aus dem Index zu kaufen, da die Liquidität vielleicht verstärkt in die Indexwerte fließt.
Meinungen ???
Hier findet ihr beide Indizes: Für Explorer und Produzenten
SCORPIO ENGAGES UNION SECURITIES AS TORONTO STOCK EXCHANGE (TSX) LISTING SPONSOR Vancouver BC, December 15 - Scorpio Mining (TSXV:SPM) is pleased to announce that it has signed a Letter of Intent (LOI) with Union Securities Ltd. (“Union”), whereas Union has agreed to act as the sponsor for Scorpio in the application for a TSX listing. Union will provide the necessary services and guidance as well as a Sponsor Report pursuant to TSX Company Manual. The terms of the engagement include a fee of $25,000 plus reimbursement of any reasonable expenses incurred and warrants to acquire 50,000 shares of Scorpio, exercisable for a 2-year period at the market price at time of listing. Peter J. Hawley, President & CEO reports, “Engaging Union is the first step in Scorpio’s anticipated graduation to the senior board. A TSX listing would place Scorpio amongst its industry peers of growth-oriented companies with strong track records and strong management. A listing on Canada’s premier stock exchange would also increase Scorpio’s profile with both retail and institutional investors at a key time in the advancement of the Company’s 100%-owned Nuestra Senora silver project.” Scorpio also announces the resignation of Mr. Lee Graber from the Board of Directors, and is grateful for his valuable contributions to the Company during his tenure. Scorpio Mining Corporation is a Tier-1 listed resource company on the TSX Venture Exchange. Details of the Company and its flagship Nuestra Senora silver project are available on the Company’s website at http://www.scorpiomining.com. ON BEHALF OF SCORPIO MINING CORPORATION Peter J. Hawley President & CEO
Mon Dec 13, 2004
Nevada Pacific Announces Management Change
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Nevada Pacific Gold Ltd. (TSX - NPG) reports that Mr. Joe Kajszo has resigned as President of the Company in order to pursue other business interests. Mr. Kajszo is currently a director of the Company and will remain on the Board of Directors as an independent director. Mr. Richard Barclay, the Chief Executive Officer of the Company will assume the responsibilities of President.
Mr. W.R. (Bill) Franklin, currently Controller of the Company has assumed the position of Chief Financial Officer, which has been held by Mr. Richard Barclay. Mr. Franklin, a Certified General Accountant, has over twenty years experience in the mining/resource industry. Prior to joining Nevada Pacific Mr. Franklin was employed by a major North American mining company as Manager, Accounting. In this capacity he was responsible for the accounting cycle of the corporate office and all Canadian corporate entities. In addition, as part of his responsibilities Mr. Franklin assisted with the integration of several companies into his former employer and the implementation of a new corporate accounting software/consolidation program. Prior to this position, Mr. Franklin was the Manager, North American Operations, Accounting, with responsibility for overseeing the accounting process of ten gold mines.
Nevada Pacific Gold Ltd. was founded in March 1997. The Company owns the operating Magistral Gold Mine in Mexico and an exploration property portfolio covering approximately 75 square miles of mineral rights including portions of two significant gold producing belts in the State of Nevada. The Company's BMX, Keystone and Limousine Butte projects are optioned to Placer Dome. A description of these projects, including maps and photographs can be viewed on the Company's website at: http://www.nevadapacificgold.com.
ON BEHALF OF NEVADA PACIFIC GOLD LTD.
"David Hottman"
Chairman and Director
