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Kimber
Resources, Inc. (KBR) |
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CEOCFO Current
Issue |
Kimber’s Carmen deposit looks promising at
$300 gold. Initial scoping study suggests robust economics
Mining
Robert Longe
Kimber Resources, Inc. (KBR-TSX Venture) was formed in 1995, and remained
private until July 2002 when it became public. Kimber’s principal asset is
the Monterde gold-silver property in Chihuahua state, Mexico. The Monterde
mineral property, which Kimber holds through an option to acquire 100% free
of royalties, covers a low-sulphidation, epithermal, oxide, gold-silver
deposit. Kimber’s objective is to develop this property to the point at
which it can be taken to profitable production.
“When this property came to our attention, we took it very seriously
because of its main attribute: its grade,” states Mr. Robert Longe,
President and CEO of Kimber Resources, Inc. “There
are many gold/silver properties that look as though they should be minable
at perhaps one-and-a-half grams of gold per ton. On a gold-equivalent
basis, this property is closer to three grams per ton and it looks as though
it should be profitable, and that is the basis for our enthusiasm.”
Looking to the future, Mr. Longe tells us,
“There are three possible goals; one is being taken
over by a larger company on a share transfer. Another possible outcome is a
joint venture, and the final possibility is that we take the deposit to
production ourselves. That would require starting on a smaller scale,
minimizing dilution and getting cash flow as soon as possible. Our policy
has been to keep open those three possibilities and keeping in mind that our
obligation is to ensure the shareholders do well. We expect narrow down our
choices during the next year or so according to the market, the prices of
gold and silver, and our progress on the property.” To our query
about why potential investors should be interested,
Mr. Longe comments,
“I think the key fact is that we have an emerging
resource, which does not depend on an increase in the price of gold or
silver. There are risks remaining of course, but we have been looking for
the fatal flaw in this deposit for two-and-a-half years now, and we have not
found it. When one invests in a mining or exploration company, one should
look at what it has and determine if mining would be profitable at the
present prices. Often times one can buy shares in a mining exploration
company with a promising property, but when you look into it, you realize
that it would be profitable only if the price of gold or silver were to
increase. It is a valid business strategy to buy shares as an option on a
future price increase, but that is not the best reason for investing in
Kimber. Based on our current understanding, Kimber’s Carmen deposit does not
need price increases. At three hundred dollar gold and four-and-a-half
dollar silver, these grades should be profitable. That, I think, is the main
attribute of the Monterde deposit.” The reason for focusing on this
property is the emerging grade of the Carmen deposit. Because of its grade
in gold and silver, Kimber believes there is an excellent chance that an
orebody can be developed. Work will now be directed at confirming this
grade. The 24 holes drilled into the Carmen deposit in the fall of 2002 were
the basis for an estimate of Inferred resources published at that time.
Since then Kimber has produced a revised resource estimate based on 45 holes
which advanced a significant portion of the deposit to Measured and
Indicated status. Further drilling is expected to advance more of the
Inferred resources to Measured & Indicated status. Additional resources are
expected in parts of the Carmen deposit which have not yet been drilled.
Development drilling will continue on the Carmen deposit along with
metallurgical and environmental studies. Other drilling will test targets on
the mineralized structures to the west of the Carmen. |
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