CMC Metals Featured on Rockstone Research

- April 15th, 2015

CMC Metals (TSXV:CMB) was featured in an article by Rockstone Research, highlighting that the company has started to mine out rock from the mineralized zone at the Radcliff Mine in California, as well as positive initial assay results from the north wall and muck that indicate high grade gold.

CMC Metals (TSXV:CMB) was featured in an article by Rockstone Research, highlighting that the company has started to mine out rock from the mineralized zone at the Radcliff Mine in California, as well as positive initial assay results from the north wall and muck that indicate high grade gold. The article on Rockstone Research put a spotlight on the assay results, saying that Gold Pod #1 is a higher grade than originally expected, with gold grades of up to 320 g/t. According to CMC’s April 15th press release, “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 article concludes that, “The upcoming newsflow about realized sales revenues from pouring gold should show quite plainly that a gold mine like Radcliff can be operated highly profitable even during seemingly chronic depressed gold prices. However, it should turn out to be a quite daunting task to find a comparable company like CMC Metals, which is publicly listed and has a market capitalization of 6 million CAD.”

As quoted in the article:

On top of that, some initial assay results from the adit’s north wall and muck (between 36-38 m) were disclosed thus indicating how high grade Gold Pod #1 actually is. The lab results speak a clear language:

• Gold Pod #1 is much higher graded as originally expected as 2 historic drill holes into Gold Pod #1 showed grades of 124 g/t and 218 g/t gold over 2-3 m. Both drillings were the reason why CMC and Pruett-Ballarat decided to mine out this portion of the deposit first (with low cost underground mining methods and without having completed a feasibility study or independent economic evaluation).

• Today’s assays showed, however/fortunately, gold grades of up to 320 g/t (9.3 oz/t). Both historic drill holes are located 30 m to the left and right of the current adit, thus the entire area from the adit to both holes may be enriched with gold in a similar fasion. CMC already started mining out areas with horizontal stopes stockpiling such material near the mine.

… Most recently, CMC’s share price on the TSX Venture Exchange rose above the (blue) triangle leg at approximately 0.055 CAD thus starting a classical “breakout”. For such technical reason, the prolonged sideways consolidation within the (blue) triangular price formation is anticipated to be ending and the final movement out of the triangle (“Thrust”) beginning. Per definition: The target of a thrust, which finishes off to the upside, is to transform the resistive high of the triangle (0.09 CAD) into support in order for a new and sustainable upward-trend to start thereafter. A notable decoupling from the HUI mining index with relative outperformance is expected during the upcoming weeks and months.

Click here for the full article on CMC Metals (TSXV:CMB)

Disclaimer:
The report referred to in this post was paid for by the company that is covered in the report, or there is some other monetary relationship between the company and the writer of the report. This may lead to a conflict between the interests of the writer of the report and the interests of investors. Due care should be taken to understand the relationship between the company and the writer of the report and to factor the relationship when making investment decisions.

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