New High Grade Gold Assays
LONDON, ENGLAND / ACCESSWIRE / June 25, 2015 / Today, CMC Metals Ltd. (TSX.V: CMB) has provided an update on the progress of its 50% owned Radcliff Mine and 100% owned Bishop Mill in California, USA. As has been shown with an initiating coverage and update #1, the company already started to mine out a high-grade portion of the deposit.
As per today’s press release, a total of 20 new assay results were disclosed. These channel samples were collected systematically from the north and south side of the 5510 level drift within the mineralized zone. Each sample had a horizontal distance of 0.60 meters along the drift wall. Within the mineralized zone, a 2.40 meter interval returned 21 g/t gold.
Table of gold assays: http://rockstone-research.com/images/5/tab1ENG.png.
The above quoted grades are only preliminary. Additional assays to test for presence of “coarse metallic gold” are in progress. If found, the above quoted grades may turn out much higher.
As per today’s news:
“Material from the mineralized zone is currently being stockpiled adjacent to the Radcliff Mine workings pending final approval of the operating permit for the Company’s Bishop Mill. The Company’s current business plan is to selectively mine portions of the high grade indicated resource (reference Ristorcelli, 2015) by underground mining methods and process this material at its wholly owned mill located near the town of Bishop approximately 150 kilometers North of the mine. Pruett, the current operator of the Radcliff project, continues to work with a local smelter within trucking distance to secure a contract to direct ship mineralized material from the current underground workings.“
CMC’s CEO, Jack Bal, commented:
“Systematic channel sampling at Radcliff has confirmed the presence of high grade material at Radcliff and management is actively reviewing processing options, including shipping directly to a smelter. Final permitting is progressing at the Bishop Mill and the Company expects completion shortly.”
Either way, when CMC receives full approval for Bishop Mill and/or when negotiations with the nearby smelter are successful, such news should be the starting shot for regular cash-flow generation.
Currently, CMC has a market capitalization of $7 million CAD. Technically, the share price is in an upward trend since early 2015. In April, the upper (blue) triangle leg was broken and a “breakout” occurred. The subsequent pullbacks to the formerly resistive (blue) triangle leg were completed successfully (in order to test and confirm this trendline as new and sustainable support). As the price has started to rise after reaching the triangle’s apex, a “thrust” to the upside is anticipated.
The full article can be read via the following links:
English:
German:
Disclaimer: The author, Stephan Bogner (Dipl. Kfm., FH), owns shares of CMC Metals Ltd. and thus would profit from a share price appreciation, whereas the author may sell those any time without notice. Neither Rockstone Research nor the author was remunerated or instructed by CMC Metals Ltd. to produce or publish this content. However, please read the full disclaimer on http://rockstone-research.com/index.php/en/disclaimer as a conflict of interest exists with Zimtu Capital Corp. and none of this content is to be construed as a “financial analysis” or “investment advice.”
SOURCE: Rockstone Research Ltd.
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