I'm Megan Edwards for InvestmentPitch.com
Investment firm StoneCap Securities has initiated
coverage on Castle Mountain Mining, which
trades under the symbol CMM on TSX Venture
Exchange.
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Analyst Ali Khan gives the company an outperform
rating and a 12-month target price of $1.05,
which would give investors a projected return
of 184% from the $0.37 price at the time the
report was issued.
Castle Mountain's sole flagship asset is the
Castle Mountain Project located in San Bernardino
County, California.
It is a past producing open pit, heap leach
operation, which operated for a decade and
produced in excess of 1.2 million ounces of
gold and 400,000 ounces of silver.
Mining operations came to an end in 2001,
due to persistent low gold prices with residual
gold on the pads leaching for another two
years.
The company historically produced an average
of 115,000 ounces of gold per annum at a cash
cost of approximately $233 per ounce.
In 2002, a technical review conducted by AMEC
assessed that a potential resource of 1.23
million ounces of gold grading 1.37 grams
per tonne remained at the mine.
Castle Mountain recently completed a 30-hole
exploration drill program with assay results
showing encouraging results, with average
intercept lengths of 28 metres grading 0.92
grams per tonne gold.
The company has mining permits in place, which
were recently extended and are valid until
the end of 2025.
These permits allow Castle Mountain to quickly
join the ranks of a developer with a clear
path towards production.
Analyst Ali Khan stated, "We believe that
Castle Mountain is an attractive gold exploration
due to the historic resource base in place
as well as decade long production history
and mining permits.
We envision the project has the potential
to produce an average of approximately 97,000
ounces per annum at mine level cash costs
of $613 per ounce."
Robert Buchan, the Chairman of the company,
recently closed a private placement, acquiring
1 million units at $0.35 per unit.
The company is trading at $0.40, and with
54 million shares outstanding, is capitalized
at $21.6 million.
For more information, please visit the company's
website, www.CastleMountainMining.com or contact
Gordon McCreary, President & CEO at 416-572-0152
or email gmccreary@CastleMountainMining.com.
For more information about StoneCap Securities
or to obtain additional research, contact
them at www.StoneCapSecurities.com.
I'm Megan Edwards for InvestmentPitch.com
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