by Greg Klein | February 10, 2016
A private placement of up to $1 million would help CMC Metals TSXV:CMB put a California mill back in operation to process stockpiled material. The offer will follow a 1:7 share rollback that received TSXV approval on February 10.
CMC holds a 50% stake in the Radcliff gold mine and 100% of the Bishop mill, both near the Nevada border in southeastern California. The company plans to make Bishop operational within 90 days and begin processing Radcliff material. Already complete at the mill is an upgrade to U.S. Mine Safety and Health Administration standards, as well as installation of an assay lab and a new lined tailings pond, CMC stated. Further work will include installing bird netting and drilling a vadose zone well to monitor for contaminants.
Part of the 670-hectare World Beater property, the fully permitted Radcliff has stockpiled material ready for processing. Last year project operator and 50% mine owner Pruett-Ballarat Inc reported it had connected an adit to a high-grade mineralized zone.
A 2012 resource estimate used a cutoff of 0.685 grams per short ton to show:
- indicated: 2.13 million tons averaging 3.22 grams per ton for 200,900 ounces gold
- inferred: 263,000 tons averaging 3.53 grams per ton for 27,100 ounces gold
A 5% NSR applies to the mine.
CMC’s private placement will consist of up to 10 units at $0.10, with each unit consisting of one share and one warrant. Two warrants will get one share at $0.12 for two years. Insiders will subscribe to over half the placement, the company added.
CMC also holds two silver properties in south-central Yukon, Silver Hart and Logjam.