Monday Morning News – Copper Mountain, Kaizen Discovery, and Lake Shore Gold

POSTED ON April 27, 2015 BY James Fraser
CATEGORY Kaizen Discovery, Lake Shore Gold, Stories,

Copper Mountain operations (Image Copper Mountain)

A look at my top news releases from this morning with additional comments on each.

Copper Mountain - (CUM:TSX) - Copper Mountain shares are up 10% so far this morning after releasing first quarter results. First quarter production saw 18.4 million pounds of copper, 7,800 ounces of gold and 80,300 ounces of silver. Revenues came in at $71.5 million generating a gross profit of $6.7 million.

A $31.8 million dollar loss was reported though due to a $1.9 million loss on an interest rate swap (unrealized) and a $32.2 million dollar loss on foreign exchange (unrealized).

Jim O'Rourke, president and chief executive officer of Copper Mountain, remarked: "We are very pleased with the increased SAG mill throughput being achieved with the finer feed from the new $40-million permanent secondary crusher. Mill throughput of 37,780 tonnes per day average for the first 22 days of April is a 29-per-cent increase in tonnage over the first quarter of last year and 14-per-cent improvement over the current quarter. The steady improvements in mill throughput and reduced site operating costs achieved this quarter position the company well going forward."

This low grade copper producer looks to have operations in full swing after issues in February and March with the addition of the new crusher. Investors interested in a highly leveraged copper play should look at Copper Mountain in my opinion.

Haywood does have a price target of $2 on Copper Mountain shares.

Read: Copper Mountain loses $31.8-million in Q1 201

Lake Shore Gold - (LSG:TSX) - Lake Shore is out with additional drill hole assays from the 144 exploration area. The 144 zone is located immediately southwest of the Timmins West Mine Thunder Creek Deposit and covers about 4.0 kilometres of the same volcanic/ultramafic, intrusive/sedimentary contact.

Drilling highlights include:

Hole Hwy-14-48W2 - including 11.79 g/t gold over 21.1 m
Hole Hwy-15-87W1 - including 6.23 gpt over 11.2 m
Additional holes also intersected high grade mineralization as well extending the gap zone 400m along strike and 400m vertical.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "The new drill results continue to expand the overall size of the 144 Gap Zone, have extended the high-grade core another 50 m and have identified new zones of gold mineralization in previously undrilled areas. The fact that many of our holes are intersecting multiple areas of gold mineralization within the broader 100 m wide structure is very encouraging and supports our view that we have discovered a significant gold system at the 144 Gap. We have seven drills working on site, and are pleased with the performance and progress of the surface drilling program. Our underground exploration drill drift has advanced over 275 m and we plan to begin underground drilling here in the third quarter."

Excellent news for Lake Shore as it appears they are on to a sizeable new deposit here. A first resource estimate is expected to be released in early 2016. One thing to note is that the mineralization is deep at between 700-1110 metres.

The share price has been quite volatile in the last year with the moves in the gold price. Lake Shore is generating free cash flow even at $1200 gold and is one of my favourite junior gold producers.

Read: Lake Shore Gold Continues to Intersect Significant Gold Mineralization at 144 Gap Zone, Extends Zone Along Strike and Towards Surface

Kaizen Discovery - (KZD:TSXV) - Kaizen has started its 2015 exploration season starting work at the Coppermine project in Nunavut and the Aspen Grove project in British Columbia.

Kaizen plans a full 2015 exploration at Coppermine including mapping,sampling, and diamond drilling. This is a district scale high grade copper play. The project is very early stage but will be exciting for investors to watch and follow.

Mr. Hornor commented, "We are very encouraged by the interest and support shown for our Coppermine Project, which will be one of the few active exploration projects in far western Nunavut this year. We are looking forward to starting field operations and hosting our Japanese partners and interested parties on site, and expect to finalize additional project financing for this district-scale initiative."

A 3D IP survey has also commenced on the Aspen Grove project which is a 60/40 JV with ITOCHU Corp. of Japan. The IP survey will be used to find anomalies and therefore prospective drill targets with 7000m of drilling expected to start in June.

"We are pleased to be back in the field and kicking off our 2015 field season at Aspen Grove, with a significant greenfields drill campaign in a prospective part of Southern British Columbia," said Kaizen's executive vice-president, exploration, Dr. David Broughton.

Kaizen also provided an update on the Tanzill,Fairholm, and Ebende projects.

With 152 million shares out KZD stock hardly trades showing the stock is in tight hands. Kaizen has the financial backing of Japanese partners and is led by an experienced management team. With work being done on several projects this summer Kaizen has multiple shots at making a discovery.

Read: Kaizen Discovery announces the start of 2015 Canadian exploration activities at Coppermine in Nunavut and Aspen Grove and Tanzilla in British Columbia; Update provided on recent Fairholme drilling program in Australia

See you in CEO Live where members are discussing the latest mining and business news daily.

This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.

James Fraser

Mr. Fraser joined CEO.ca in October 2014. He is passionate about the mining industry. His passion led to co-authoring the e-book "Mining Stocks Investor Guide: A Guide to Investing in Mining Companies." He has a finance background and has completed his Canadian Securities Course (CSC) and Conduct and Practices Handbook (CPH). When Fraser is not "digging" up the latest mining stock, he can be found enjoying a wide variety of sports or travelling the world. More →

Twitter: @miningstocks

james@miningstocksguide.com

James Fraser

Twitter: @miningstocks

james@miningstocksguide.com

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