Interview with CMX Gold and Silver Corp.’s CEO Jan M. Alston
CMX Gold & Silver Corp (CSE:CXC) is working to reactivate its 100%-owned Clayton Silver-Lead-Zinc Mine in southeastern Idaho, U.S.A. The Clayton Silver Property is comprised of approximately 276 ha (684 acres) covering 29 patented and 6 unpatented mining claims in Custer County in mining-friendly Idaho, and includes the former producing Clayton silver-lead-zinc-copper mine with over 5,000 m of underground workings and development on eight levels.
Q1: Can you describe about your company’s main project Clayton? What historical work has been done on the project?
We have been working for a long time, at 1920-30s, CMX was a small operation, and the technology was pretty new.
The project was mostly operating from 1950-80s, most of the materials came out in those 30 years, and started underground working. We had operated 5000 – 6000 meters underground, and during that time, the operation wasstill relatively small, but the main thing is it might work for the mining business in future and the mining prices werepretty low comparing to recently prices.
Historical production records with recent price, there are 3 major products in this project:
- 7 million ounces of Silver, today worth around $100 million
- 86 million pounds of Lead, today worth around $78 million
- 28 million pounds of Zinc, today worth is around $26 million
Because of the historical performance was good,we realized that we can do better with a larger mining operation and better technology. Therefore, at the end of 1980, most of the mining companies were doing 150 tonnes per day, and we expended to 300 tonnes per day.
We are really excited about the potential of the project, because we can see a lot of profit base on the history.
Q2: Does the mine produce other by-Products as well besides mainly Silver? In your own estimation, What commodity price level can support such project and become profitable?
In these 30 years, we are trying to reduce the cost by increasing the energy efficiency. We look at the modern and efficient mining technology, which save a lot of cost and energy during the production. Also, we make profit at the current price level. For example, if the silver price is $15-16, CMX makes profit with a healthy operation.
Moreover, we did a lot of sampling from 16 locations, and found that there are lots of potential interest underground, including silver, lead, zinc, gold and copper, which may provide us huge profit in future.
Q3: Who are/is your main key technical person (s) to look after the geology and future mine operation?
CEO background: I am mainly focus on business side, such as managing and financing the project, setting up and achieving the big pictures, and estimate the potential value with probability calculation. Although I’m not a technical person, I analyze the opportunities and decide which projects can provide us more potential value.
Geologist background: We have a consulting geologist, Rick Walker,who has a long career working experience with other junior companies on all kinds of projectsin Western North America. Rick is really important for our project, because he is the one who look at all the data, work through and build the new geological model. He is kind of conservative, who give us lots of positive result.
As a result, I am the business man who helps the dream come true, and Rick is the scientist to provide us knowledge and backups.
Also, we have lots of good people in our industry and we put the right person into the right position, therefore, you won’t see a lot of overhead expenses in CMX.
Q4: Is your company currently in the process of raising capital? If so what will the proceeds are used for?
We are mainly focusing on raising half a million dollar, as you know the whole industry is in the bottom of cycle, but we can really get a lot of work done with great competitive workers.
Last year, the analysis of materials taken from 16 locations found that there are value of silver, lead, zinc and 1.8 gram of gold in the mine dump material. But why there are lots of mines in the mine dump, because it is not economic profitable from the past.Everything with really hide grade was not processed with the old technology and the mining prices were low.
But today, with the better technology and prices, we want to follow up the sampling program that we did last year on the surface material. We notice that there are big prizes underground, which is a lot more than the surface, it could be between half million to a million of tons of material that we never processed before.
For the business perspective, we know that it is a good stuff, and we try to drill it. Moreover, in 1960, the underground drilling was taking 100 days, but now we only drill within 3 to 4 days with modern technology, which is a big different and more cost efficiency.
Q5: What’s your 3 year planning for CMX Gold and Silver if any? What’s the exit strategy for the investors who are looking to invest into your company today?
Bottom of the economy: Since it is the bottom of the economy, it is a good timing and opportunity for investors to buy at the bottom.
Huge prize in the future: Base on the historical data, there is a huge potential underground properties, these may increase shareholder values a lot.
As a result, when the economy cycle turns and products come out, CMX will have lots of good things to get people interested. However, this investment will be a long term, but our goal is to bring the company value to our investor within 5 years.
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