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Message: Lamaque Deposit-original post by Production05 on SH
I think this might be somewhat telling about the scale of our deposit at Lamaque. Below are some quotes that were taken from an article on "metalnews.com". I believe I originally read it late last year (before the Lamaque 43-101 update was released) so I don't think it was as obvious to me at the time. The quotes are from David Rigg, the President of Alexis Minerals. Alexis is located in the Val d'Or area and has a market cap that far exceeds Century Mining. Their President is someone that appears to be hugely respected in the mining community (and outside of mining as well - I think).
As mentioned previously, Alexis has about 615,000 in total 43-101 ounces. Century Mining has 4,600,000, with more than 1,100,000 ounces (alone) being in the reserve categories.
Here is what is really interesting. Mr Rigg mentions how rare it is for firms to develop 10 or 15 years of proven reserves. Well, I would suggest that Century might end up being one of those rare companies, especially since we already have over 1,100,000 ounces in reserves (150,000 annual production planned) and over 600,000 in M&I (and aggressive resource upgrade efforts currently occuring - inferred to M&I, then later to reserves).
Furthermore, Mr. Rigg talks about it being suicidal to develop a large reserve base due to the mine development requirements. I think this puts Lamaque in a very unique position also. Century already has the majority of mine infrastructure in place. All it needs to do is invest about $7M in 2008 for additional development and about $2M in mining equipment (which will be done through a capital lease agreement - no need to pay up front). If all goes well then Lamaque will be home free, with no more funding will need to be required. Additional mine development in future years will be done through Lamaque's cash flow (self funding - we should see serious cash even if things go only semi well).
Here are the quotes from Mr Riggs:
"Historically, firms have found that they have to keep development of these deposits about two years ahead of production. By the time a high quality reserve has been proven, it is time to mine it. Firms are rarely able to develop 10 or 15 years of proven reserves."
"Said Rigg, 'Economically it’s suicide to try to develop a large proven reserve due to the cost of significant mine development required to do so. Our target should be to keep exploration two years ahead of development."
Production05
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