I put together a few notes the other day and thought I'd update them with the new information from today's announcements and pop them here for the benefit of anyone wanting an easy summary of Convergent.
ASX: CVG Convergent Minerals
62.5 Million Shares
(Tight capital structure)
9c Share Price
$5.6M Market Cap
Global Resource: 872,000oz @ 1.62g/t (including 236,000 @ 3.69g/t)
Target: 1Moz @ 2g/t Au open cut ounces
$1.52M Cash (as of 31st December)
- Increase of 169,000ozs from previous resource estimate (April 8th, 2010)
- New tenements acquired in the vicinity of the Bounty project (April 8th, 2010)
- Evaluating production options (optimisation study commissioned on resources)
- Drilling to continue on Violet prospect, new geophysical targets, and prospects in newly acquired license package.
- Experienced management team
Bounty Project
Bounty Resource: 748,000oz @ 1.72g/t
The Bounty project comprises an underground mine and 10 former open pits which produced 1.3 Moz Au between 1988-2001 at a head grade of 5.21 g/t. 12 year production history as a profitable mine, historically profitable at $500/Oz gold price.
Situated in Forrestania region of Eastern Goldfields, WA. Project area contains haul roads, tailings dams, and basic infrastructure for a 1 Mt carbon in leach processing plant (sunk project costs to date over $250m).
Convergent has also acquired the nickel rights throughout the tenement package
Recent Highlights:
- Gold recovery program commenced (recovery of coarse gold from sweepings, surface soil and remnant material from the vicinity of the original plant at the Bounty gold mine and processing facility, potential to produce $1m)
- Scaled up plant to be constructed in 4 6 weeks
- New accommodation established for increasing workforce
From new discovery Violet (discovered Q3 2009):
7m @ 7.40g/t Au from 6m
10m @ 2.51g/t Au from 15m
5m @ 8.44g/t Au from 9m
3m @ 4.10g/t Au from 43m
Van Uden Project (**New**)
Van Uden Resource: 124,000oz @ 1.19g/t
An agreement was reached with St Barbara Ltd (SBM) over 184km2 of licenses around the Bounty project. The package contains 4 mining licenses, 2 exploration licenses, 1 prospecting licenses and 3 exploration license applications.
Convergent will have an 80% interest in consideration for carrying St Barbara to decision to mine with both parties obliged to contribute from that point. Convergent will be responsible for expenditure.
The 4 mining leases are located approximately 10km to the west of the Bounty project and include the Van Uden group of prospects which contain some Gold resources and some existing open cut excavations.
Steam Engine Project
Situated 300 km west of Charters Towers. Historical mining during 1880s produced 15 koz Au from high grade ore ranging up to 64 g/t. Project under review with one option being divestment.
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