@nordesmic
Here is a quick updated comparison of SMC and CMM
SMC
Shares on Issue : 69 million
MC : $24.17 million
Share Price: 35cents
Cash: $2 million at 30th may 2017
JORC 2012 Mineral Resources Big vein South (BVS)
18.4Mt @ 2.0g/t for 1,173 million ozs (ore density 2.7t/m3, 0.75g/t cut-off)
~0.9% Measured Category, 27.6% Indicated, 71.5% Inferred
Metallurgical Recoveries of 96%
No refractory ore characteristics
Suitable for standard CIL plan
Moderate consumption reagents
Assessing BVS resources as an open cut operation based on CIL/heap leach
Mining Depth: Unknown
Resource depth/drilling depth Max: Approximately 300m ?
Ore expansion opportunities down dip (although constrained by economics of UG mining) and targets around BVS
Additionally SMC has
older 2004 JORC resources at Woolgar of 25.4 M Tonnes at 1.09 g/t gold for 795,400oz. of gold for a range of cut-offs between 0.4 and 1.0 g/t gold. These are additional to the resource quoted above at BVS and plans are afoot to revisit the potential of these resources.
CMM
Shares on Issue : 487 million (excluding 18.8 million unlisted options)
MC : $41.4 million
Share Price: 8.5cents
Cash: $11.7 million at 30 June 2017
JORC 2012 Mineral Resources (Bibra deposit)
31.3Mt @ 1.10g/t for 1,114 million ozs (ore density t/m3, 0.5 g/t cut-off)
0% Measured Category, 92.5% Indicated, 7.5% Inferred
Simple "free milling" metallurgy
Conventional CIL/CIP processing
Preliminary results: 91-94% recoveries
Gravity recovery 25% oxide 45% fresh
Relatively coarse grind size (106-150 micron)
Leach times improving: 33 hours residence time to 24 hours
Assessing open cut operation based on standard CIP/CIL processing
Strip Ratio: Not disclosed (footwall slope 25degrees, hanging wall slope 47 degrees from Scoping Study)
Mining Depth: Stage ~120m, Stage 2 ~220m
Resource depth/drilling depth Max: ~ 300m ?
Scoping study/PS: Yes DFS: No
Ore expansion opportunities down dip and outside of known resource. Stacked loads offer potential. Limited exploration outside of Bibra deposit.
Summary:
CMM is closer to mining, with ~ 3x more ore in an indicated category and a DFS underway. Both companies have approximately the same size JORC 2012 Resource although SMC are using a higher, 0.75g/t, bottom cut-off grade verses CMM's 0.5 g/t. SMC's BVS deposit is of higher grade than Bibra and SMC also have ~795,400oz additional ozs of gold in JORC 2004 resources throughout their Woolgar tenements.
The quantity of oxide verses fresh ore in resource, digging/blast characteristics of oxide verses fresh ore and strip ratios plus metallurgical characteristics are hard to compare as both deposits are at different stages of development. CMM looks like it will have a much more favourable strip ratio than SMC.
Bibra looks like it is moving faster towards development which is a telling sign however the agenda of the largest shareholder of SMC (QGold) to takeover the company by stealth might be holding the development of BVS back. The free float of SMC must be > 15%. QGold only needs ~19.5% more of the company for compulsory acquisition.
CMM is trading with a MC of $41.4 million (EV of ~$29.7 million) verses a MC of $24.2 million (EV of ~$22.2 million) for SMC. Probably fair under the current circumstances. If a few smaller punters wanted to take the risk and jumped ahead of QGold Pty Ltd on the bid it would make life harder for Mr Wallin. Be prepared for a long hold and to potentially have some harsh treatment meted out should he try and delist (privatise) the company or if the last remaining substantial holders decide to sell out cheap. Esh
