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Message: Requested new hub (CMB) CMC Metals ltd.
http://www.baystreet.ca/users/newswire/viewarticle.aspx?id=68758
Tuesday, August 18, 2009 Silver speaks volumes for quiet Canadian junior miner: CMC Metals Ltd. (V.CMB) One of the wonders of this country is its vast (and to date, untapped)
CMC Metals Ltd., trading on the TSX Venture Exchange under the symbol CMB, is aggressively making tracks in Western Canada, exploring and developing three advanced-stage properties, of which the Yukon-based Silver Hart mine will be first.
CMB is focused on creating maximum value for shareholders through the aggressive development and production of advanced stage properties high-grade silver properties. Its mandate is developing properties with a high potential of becoming profitable mid-sized mines.
Only four years old, CMB's objective was to buy up a medium-size high grade precious metals deposit, well-advanced in exploration, yet still below the hurdle rate for most large corporations, then to bring the project to fruition.
Back to Silver Hart, the excitement the company feels over the property is its enormous potential; the site is wholly-owned by CMB and is set to become a 20,000-tonne-per-year mine. It is a high-grade silver deposit with grades averaging better than 1.93 kilograms (56.5 ounces) per tonne in the TM zone. The company is constructing a prefabricated mill at a facility in Nevada, set for completion sometime this fall. The mill is set to come online in 2010's second-quarter, making CMB Canada's newest long-term debt-free unhedged silver producer.
To date, $8.5 million has been spent into exploration and infrastructure around Silver Hart, so great, the company thinks, is its potential. The company has calculated a breakeven silver cost of $4.45 U.S. per ounce with base metals credited towards operating expenses.
If silver prices rise to only $10 an ounce, work on the Silver Hart mine could potentially average about $8 million in revenues over the next three years, producing an average rate of return of 250%. If prices jump to $14 an ounce, that figure could rise correspondingly, averaging more nearly $11 million over the same period, giving off an rate of return topping 400%.
Elsewhere in the Yukon lies CMB's Logjam property, accessible by an all-weather surface located about 200 kilometres east-southeast of Whitehorse. Nearly 70 years later, the Logjam property is home to at least 10 northeasterly striking mineralized fracture zones, rather than clear-cut massive quartz veins as has been suggested in the past. The eight underground zones average anywhere from 7.5 to nine ounces per tonne (opt) of silver, while two surface mines have yielded as much as 17.7 opt.
A third property, the Wheelbarrow, is located in British Columbia's north-westernmost corner, and has been mined since the early portion of the 20th century. There are seven known mineralized zones that have been identified with high grade silver. CMB, who optioned the property in June of this year, is interested in continuing the drilling and sampling of the zones to define the strike and depth of the mineralized zones to determine just how much of the resource is available, and to conduct a preliminary mine assessment.
The company is hoping to ride the potential of Silver Hart and its other properties into the black. The last quarter for which there is financial information is the company's second of the fiscal year, which ended in March. CMB was then in a loss position around $71,500, less than half the $146,000 figure posted in the similar quarter the year before.
There is a sense the company's fortunes are a lot like the start of a Grand Prix race; speed is low but acceleration is high, and with experts such as David Bond also singing its praises as a solid, fairly solvent, and above all, debt-free, CMB is looking for great things. In mid-August, the cost per share came in around 25 cents, quite a bit higher than its March trough of seven cents, but still cheaper than its 52-week high of 31 cents, recorded in pre-recession September of last year.
Silence may be golden, but here is one silver company that plans to make quite a racket in the next couple of years, one that investors
should heed.
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