I’m able to provide my forecasts and recommendations free of charge on this blog because my livelihood is derived by assisting publicly-held companies on matters of corporate development, strategic planning and financing. One of these companies is Timmins Gold Corp. (TMM-TSX.V $.40 )
Because of the potential conflicts of interest, I don’t include them in my model portfolio. However, this doesn’t mean they aren’t worthy of your interest. In fact, Timmins Gold is especially interesting at this point of corporate development. I want to urge every reader who is in position to speculate to contact the company ASAP to get a first-hand update as I believe the company is on the threshold of moving to a new level as an emerging producer.
Timmins Gold Corp. (TSX-V: TMM) is putting the San Francisco Mine in Sonora, Mexico back into production.
Since Timmins Gold went public in 2006 it has completed the purchase of the Mine, and the Mine property and raised $19 million for the purchase of new equipment. The new crushers, conveyors and screens have now been delivered to the Mine and are under construction.
The new crushers have been designed and calibrated for the rock type and capacity of the Mine to maximize throughput and minimize down time. They have the capacity to meet the planned production of 80,000 ounces of gold per year at a projected cash cost of $412 per ounce. The crushers are scheduled to be fully operational within 60 days.
The current probable gold reserve is 611,000 ounces (22.6 million tons at 0.84 g/t Au) and the current Mine life is 5 and a half years. Drilling around the current pit has provided an indication that the Mine life can be increased.
The refurbishing of the primary crusher has been completed. The gold plant has also been refurbished and the earthworks for the new heap leach pads are nearing completion. All infrastructure and permitting is in place. Under the current construction plan, the first gold pour at the Mine is scheduled to take place in late 2009.
Timmins Gold also has 3 other major exploration properties in Mexico which display excellent potential. The company’s goal is to utilize future cash flow to expand the resource at the Mine, advance its exploration projects and make further acquisitions.
