China Minerals and Mining Corporation

The China Minerals and Mining Corporation (TSX V: CMV) is a Vancouver based company developing two gold projects in the northern quarter of British Columbia.  Originally named Hawthorne Gold Corporation, the company held its IPO in 2007 and changed its name to China Minerals and Mining Corporation in the spring of 2011.  It is now controlled by Beijing based Skyocean.  Valued at Hawthorne’s inception at a price of $2.50 per share,   China Minerals and Mining Corporation has seen its price continually decline to $0.045 per share early in 2013.

Leadership

CEO Ling Zhu has been a senior executive with Skyocean for the past four years and also serves as CEO of China Minerals and Mining Corporation’s German and American arms.  Zhu is listed as an executive with Ten Ren Tea, Taiwanese employment service 104 Corporation, motherboard manufacturer Biostar Microtech, and keyboard producer Zippy Technology Corporation.  His directorships include appointments with Associated Industries, Singatron Enterprises, and Xinjiang Talimu Agriculture Development Corporation.  He previously oversaw Skyocean’s Investment Division.

CFO Patricia Fong has more than 15 years of experience in resource based industries.  A welcome dash of continuity, Fong has been with Hawthorne since shortly after its 2007 IPO.  Prior to joining Hawthorne Fong served as Controller for various companies controlled by Lundin Group.  Earlier in her career Fong served in different management capacities in manufacturing, construction, real estate and government.

Current Status

The Table Mountain and Taurus Gold Projects, China Minerals and Mining Corporation’s two properties, are both located in The Cassiar Gold Camp and are 100% company owned.  Totaling 58,900 hectares, the area is easily reached by a highway that runs through the center of the region, leaving one project on either side of it.  Secondary roads make for easy travel to most parcels.  A paved airstrip sits six miles away from the mine site.  Staff housing and conveniences for up to 75 people are between Taurus and Table Mountain and on the highway.  Offices and a core logging facility are nearby.

Table Mountain Gold Project

Consisting of the Main (nee Erickson), Bain and Cusac gold mines, Table Mountain is noted for the past production of high grade product south of Provincial Highway 37.  On site infrastructure includes a permitted 270 tonne per day per day gravity and flotation mill, power plant, assay lab and tailing inpoundment facility in the northern section along with 13 portals, more than 14 miles of roads, and 15 miles of underground routes that wind throughout the project.  Bain and Cusac are responsible for most of the output while Main is nearer the end of its productivity.

Overall, Table Mountain offers an indicated resource of 21,471 tonnes at an average grade of 18.02 g/t Au (approximately 12,440 troy ounces of gold) and additional inferred resource of 19,306 tonnes at an average grade of 31.76 g/t Au (approximately 19,714 troy ounces of gold) in the East Bain system. A further inferred total of 65,757 tonnes is listed by China Minerals and Mining Corporation. They have not disclosed exact numbers but states further resources exist in the Eileen vein of the Cusac mine.

China Minerals and Mining Corporation is either being overly cautious about their prospects with Table Mountain or is simply less confident of achieving them as, compared to other Canadian mining companies, they offer less proof of their projections and a stronger caveat against relying on them in corporate communications.

Taurus Gold Project       

While Table Mountain is south of Highway 37, Taurus sits north of it.  Well situated along the main access road to Cassiar, the nearest town, Taurus is near the company milling facility with a landscape that fosters easy access in all seasons.  Thirty years ago, Taurus’ eastern veins provided 35,000 ounces and was explored by others for both open pit and underground operations.  To date its output totals 425,000 ounces.  The western areas are being explored for more promising sites.

The Future

As 2012 came to a close, China Minerals and Mining Corporation was evaluating exploration data  from operational and test sites before even considering offering more tangible information to investors.  While they state there are numerous high quality targets throughout Table Mountain and Taurus, they provide scant information to support their claims, only saying were planning to explore the locations more in 2012.  Indications are that Taurus provides the most hope for significant growth while Table Mountain should be comparatively stable.    While they state they welcome new opportunities, there is little in their history to suggest they are going to go on an acquisitions binge.  They have offered no updates in 2013.