If they were to one day move forward with work on Sigma II, it will depend on how aggressive they go at it and what shape it's in. it's already a pit so they wouldn't have to strip it from scratch. That's a big benefit. However, they would have to clean it up to make it mining ready. I'm not sure if it's currently dry pit or a fish bowl. If it has water then they will have to dewater it. The good part is that open pits are cheaper and faster to develop than u/g mines, for obvious reasons.

Depending on permit status, they may need to apply for an operating permit and perhaps other permits.

Time wise, it helps that no u/g infrastructure and no buildings and no processing operations will need to be built. It would be a straight forward o/p mining operation only. The trucks and other equipment can be stored at Lamaque every night, if it's not a 24/7 operation - there shouldn't be a need to build any storage facilities at Sigma II.

If the company were to head in that direction, and aggressively approach it (with having success along the way), I can see the possibility of a first gold pour within the timeframe of 1.0 - 1.5 years. Things would have to flow very smoothly though.


2) Rhump,

For ounce in the ground value, I typically use the following (I'm likely be a bit conservative with the inferred ounces - some companies only have inferred ounces yet they have huge market caps (i.e. until the last year or so Osisko only had Inferred ounces yet they had a $1 billion market cap - they now have Reserves and now their cap is $2 billion or more):

* $100 per Reserve oz
* $50 per M&I oz
* $10 per Inferred oz

Century's 43-101 ounces (Lamaque and San Juan):

*1.321M P&P Reserves
*1.300M Other M&I
*3.006 Inferred

Century's 43-101 oz in the ground value = $230.2M

Century's infrastructure value = $175M ($150M Lamaque and let's say $25M SJ)

Producer premium (50%, once Lamaque demonstrates profitable production delivery) = $202.6M

Century's premium for extremely high potential for future exploration (potentially of another 3M + ounces, including at least 2M bulk mining ounces, within the Lamaque Complex and strong blue sky potential outside of the Complex), 15% = $91.2M

Reasonable market cap for Century if it was treated on an even playing field with other companies in the space (once it demonstrates profitable production at Lamaque) = $700M

Cash, after financing = $55M

Debt, after financing = $50M (Prepaid gold sales + IQ)


Century's Enterprise Value (EV) = $695M (market cap - cash + debt)


Also, that EV goes up as the 1.3M Other M&I and the 3.005M Inferred ounces are moved into higher categories.

In addition, EV could increase further by recalculating 43-101 ounces from US$800 to US$900 gold price (with lowering of cutoff grade). This could increase 43-101 ounces by anywhere between 500,000 - 800,000 ounces.