Bonanza Grades and 41,900 g/tonne Silver Intersection on CMC Metals Silver Hart

Share Article

Valuation Advisory: CMC Metals Ltd. (TSX-V: CMB) appears undervalued with only ~30M shares outstanding and trading under CDN$0.25. The current market cap of CMB.V relative to the inherent value of their advanced stage high grade properties seems disproportionate. CMC Metals Ltd. silver mill is now 75% complete and CMB.V will soon begin silver production. Ore from open pit mining of high grade veins is set to be processed through the new on site mill at their 100% owned Silver Hart Yukon Property where silver grades average over 1.93 kg/tonne (56.5 oz/ton). An estimated initial 1,000,000+ ounces silver production per annum is expected at USD$4.45/oz breakeven.

Precious Metals Review of CMC Metals Ltd. (TSX-V: CMB) provides insight into the opportunity afforded investors as the Company gears up to become Canada's newest silver producer in Q2 2010 utilizing their 100% owned Silver Hart silver mine and expands on their 9+ million oz of silver resource. In preparation for excavation plans when the pre-production phase of the mine starts CMC Metals has conducted sampling tests and the results announced in the last week are indicative of the high silver grades, including news of "41,900 Grams per Tonne intersection in the TM Pit" (over 0.15m).

The full Precious Metals Review / Valuation Analysis Commentary with chart may be seen at online.

Excerpts: "CMC Metals Ltd. is a Canadian-based advance stage development mining company and will be Canada's newest silver producer in Q2 2010 utilizing their 100% owned Silver Hart silver mine.

Silver Hart, Yukon Territory, Canada: Silver Hart is a high grade silver property averaging over 56.5 ounces silver per ton (1930g/t). The current resource at Silver Hart is 9 million oz of silver, 17.6 million lb's lead and 58.6 million lb's of zinc in the three zones and CMC Metals is now in the advanced permitting stage on the project. By early October 2009 the Yukon Environmental and Socio-economic Assessment Board (YESAB) is expected to give CMB.V their development permits. CMB.V has already performed improvements in support of development side including mill pads, pressure area pads, the pit is completely stripped open, and about 1500 tonnes of ore containing over an estimated USD$1,000,000 of metal is stockpiled. An eight module prefabricated 80-tonne-per-day (TPD) mill is being constructed in Nevada with a delivery date expected this fall and there is the potential to increase the mill rate to 300 TPD with additional permitting and nominal capex.

The first zone to be surface mined will be the 'TM', which contains an estimated high grade silver resource of 6.5 million ounces, 11.5 pounds of lead and 19.9 million pounds of zinc. During the first two years 50,000 tons of ore will be mined by open pit methods prior to beginning operations below ground. The mill runs all year long however the actual mining season is ~150 days/year, sufficient ore is stockpiled in that period. The above ground component is expected to yield on average 1100gpt of silver and 7.5% lead and zinc. The company has calculated a breakeven silver cost of USD$4.45 per ounce with base metals credited towards operating expenses ($4.45/oz cash cost of silver produced is net of smelter costs, labour, materials, and supplies).

Strong Resource Expansion Potential: Strong resource expansion potential exists as only 6.5% of Silver Hart property claims have been explored and there are over 20 known mineralized trench showings with visible massive galena, with only three of the twenty zones having been drill developed so far. Even the TM zone is open for resource expansion as CMB.V does not know the depth of what the veins go. CMB.V also has two other properties of significance in close proximity to develop and bring to production status including the Wheelbarrow Property, an advanced stage high grade silver project approaching pipeline ready status..."

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell and of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL.


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Greg Thompson
Visit website