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Timmins Gold Corp. (TSX:TMM): New Recommendation
By : Peter Zihlmann |
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SCHEDULED TO PRODUCE 80,000 OUNCES OF GOLD PER YEAR IN SONORA, MEXICO
Business Summary
Timmins Gold Corp is strategically positioned to become a gold production and development company.
Focused solely in Mexico, Timmins Gold has formulated an aggressive development and acquisition plan which is designed to take the Company into production on its "flagship" project the San Francisco gold mine in Sonora Mexico.
A preliminary feasibility report received this year confirms the "economic viability of the mine" which is scheduled to produce 80,000 oz of gold per year.
The gold plant is on site and has been recently refurbished and tested and the new crushers are being installed. With all permits now complete and in place Timmins anticipates being in production in 2009.
On the exploration front, Timmins has assembled 6 additional gold properties currently under development and or exploration. The most recent is the TIM Claims, a 40,000 hectare gold property located contiguous to Goldcorp's 13,000,000 oz Penasquito Gold Deposit in Zacatecas.
The Company's goal is to utilize future cash flow to expand reserves of the San Francisco Mine, advance its exploration projects and make strategic acquisitions. The commencement of production combined with exploration potential, positions Timmins Gold for exceptional growth and increased shareholder value. Timmins trades on the TSX.V under the symbol TMM.
Projects
SAN FRANCISCO GOLD PROJECT, Sonora, Mexico
A gold plant with a capacity in excess of 100,000 ounces per year is on site and has been completely refurbished and tested.
Timmins Gold has refurbished the primary crusher, the new secondary and tertiary crushers are being installed and the heap leach pads are being constructed.
With the entire permitting
process now complete, Timmins Gold is nearing the completion of its
construction activities as it prepares for gold production this year.
Preliminary Feasibility Study
Management also believes there is significant opportunity to expand the resource both in the immediate area of the current resource and in other satellite deposits and targets on the 43,000 hectare property.
Therefore, in the first quarter of fiscal 2008 the Company commenced a surface exploration, geochemical survey, both ground and airborne geophysical surveys and a third drill program with the objective of identifying additional targets.
TIM Claims
The claims are contiguous to the
Peňasquito Gold Deposit (Goldcorp) and are approximately 20 km to the northwest of the Camino Rojo project (Canplats Resources). As of June 2007, Goldcorp
reported proven and probable gold reserves at Peňasquito of 13.0 million
ounces. Canplats Resources has reported drill intercepts of up to 224 metres averaging 1.50 grams of gold and 24.45 grams of silver per tonne from its Camino Rojo
project (3.44 million ounces gold and 60.7 million ounces silver).
Recent News: Timmins Gold intersects 1.30 g/t gold and 13 g/t silver across 37.5 meters from surface at Cocula Project, Mexico
Timmins Gold announces the assay results of a 26 hole, 1,974 meter reverse circulation drill program at its Cocula Project in the state of Jalisco, Mexico.
Highlights of the program include Hole RCC-01 which intersected 1.30 g/t gold and 13 g/t silver across 37.5 meters from surface, including 9.40 g/t gold and 22 g/t silver across 4.5 meters.
Other important intercepts include Hole RCC-02, which intersected 1.22 g/t gold and 34 g/t silver across 4.5 meters, Hole RCC-03 which intersected 0.77 g/t gold and 10 g/t silver across 13.50 meters, Hole RCC-09 which intersected 0.72 g/t gold and 8.7 g/t silver across 54 meters, Hole RCC-10 which intersected 1.20 g/t gold and 13 g/t silver across 37.50 meters from surface, Hole RCC-17 which intersected 1.41 g/t gold across 10.50 meters and Hole RCC-19 which intersected 1.10 g/t gold and 17 g/t silver across 9 meters. All widths are estimated to be true widths.
Fundamental Considerations
2009 OBJECTIVES
SAN FRANCISCO MINE
EXPLORATION
STRATEGIC ACQUSITIONS
A comparison with a company already in production in the same Mexican state (Sonora) emphasizes the undervaluation of Timmins Gold. While the market cap of Capital Gold is 2,000 the annual production, Timmins Gold stands at 300 times.
Technical Considerations
Peter Zihlmann The Timeless Precious Metal Fund
Peter Zihlman is an independant Swiss asset manager, who manages the Timeless Precious Metal Fund and the Sierra Madre Gold and Silver Venture Fund.
Disclaimer: P. ZIHLMANN INVESTMENT MANAGEMENT AG does not accept any liability for any loss or damage whatsoever, that may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in the trading recommendations or in any accompanying chart analyses, whether communicated by word, or message, typed or spoken by any of its employees.
Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. The opinions expressed herein are those of the author and are subject to change without notice. The information herein may become outdated and there is no obligation to update any such information. The author, 24hGold, entities in which they have an interest, family and associates may from time to time have positions in the securities or commodities discussed. No part of this publication can be reproduced without the written consent of the author.
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