By Hassan
Malik
Stephan
Bognar, CEO of Maddox Jolie-Pitt Foundation, recently issued a 15-page report
covering why he thinks Vancouver-based CMC
Metals Ltd. (TSXV: CMB)
should be among the top gold stock picks for investors. In his report, Bognar
recommended CMC to those looking for “highly profitable, near-term production
stories of high-grade gold deposits with fully financed capital expenditures
(CAPEX) and low operating expenditures (OPEX) in favorable mining
jurisdictions.” Accordingly, here are three reasons why investors may want to
look at CMC Metals:
Notable Properties: CMC
Metals currently owns 50% of the Radcliff Mine in southwestern California. CMC is
aiming to start mining at the Radcliff Deposit immediately. The deposit
currently contains approximately 300,000 ounces of gold at an average
mineralization of 3 g/t. About 84,000 ounces of that gold is located within
high-grade sections called gold pods. One of these gold pods (Gold Pod 1)
contains approximately 24,000 oz. gold (at an average grade of 35 g/t gold). CMC
will start mining at Gold Pod 1. The high-grade portion of Gold Pod 1 is
enriched with 124 g/t and 218 g/t gold.
The other resource
CMC has to its advantage is its 100% owned Bishop Mill, which is conveniently
located within a two-hour drive from Radcliff. Over the past five years, CMC
metals has significantly upgraded the mill. Once mining at Gold Pod 1 has
commenced, the high-grade material yielded will be processed at the mill. Once possessing
is completed, it will then be shipped to a facility in order to be sold.
Delivery: The company plans
to produce approximately 20,000 ounces of gold annually, generating revenues of
about $24.0 million per year with estimated production costs for the 84,000
ounces of gold ranging between $700-800/oz.
Production Plan: Bognar suggests
that CMC is only mere weeks away from selling its first gold bar and emerging
as a highly “profitable gold producer.”
On February
24, 2015, CMC successfully completed a private placement for proceeds of
$523,500, hence being fully financed to commence mining and producing saleable gold
doré bars. Bognar is confident that high-grade mining at Radcliff will begin in
early March of this year. “The mined material will then be transported to the
Bishop Mill on a daily basis (transportation costs of around $30/t). As the
process of crushing and grinding is already permitted, the Bishop Mill will be
operational immediately. CMC will be mining the high-grade (+1 oz/t gold) zones
first, thus I am positive that around 20,000 oz gold can be produced in 2015 if
the mill runs at 2,000 tons/month beginning in March.”
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