Guest Post: Zinc Player Titan Mining Hires New CEO

The following article is a Guest Post from MiningFeeds.com.  I continue to think that #zinc is a very good commodity to be involved in, and this company has an operating zinc mine in New York.  The U.S. is an excellent jurisdiction to work in, note for example that the Federal income tax rate was recently slashed to 21%.  Readers should recognize the vast difference between a company being in production vs. “near production.”  

I, Peter Epstein, CFA, of Epstein Research, have no prior or existing relationship with Titan Mining or its management team / Board.  I do not own shares, warrants or stock options in the Company, but I might make modest open market purchases in coming days. 

Without further introduction, here’s what MiningFeeds.com had to say about Titan Mining’s new CEO…. 

Donald Taylor has been named CEO of Titan Mining Corp. (TSX-V: TI) /  (OTCQB: TNMCFa Canadian-based mining company producing zinc concentrate at its 100%-owned Empire State Mine (“ESM”) in New York State.

Taylor was elected to the Board of Directors of Titan Mining in June 2018 and had previously served as the COO of Arizona Mining Inc. 

As a seasoned exploration geologist with 30 years’ experience, Donald Taylor joined Arizona Mining in 2010 to guide their exploration program.  It was under Taylor’s leadership that the company discovered one of the largest lead-zinc-silver deposits in the world, eponymously named the “Taylor Deposit”. Arizona Mining CEO, James Gowans, stated that it was Taylor’s recognition of a possible carbonate replacement system that led to the exciting discovery.  In early 2017, the company released a PEA confirming the discovery as a world-class base metal deposit with potential for further growth.

Initially, Arizona Mining was focused on the shallow Central silver-manganese oxide deposit at the Hermosa project.  However, Taylor recognized early indications that there was more to it, amended his exploration model and decided to test his new theory.  Drilling confirmed the discovery of a lead-zinc-silver sulfide deposit below the Central deposit.  As a result, the focus of drilling shifted to the delineation and definition of this large deposit at depth. 

Arizona Mining credited Taylor’s determination, in addition to his experience, as the key to finding the now world-renowned deposit.  For his discovery, Taylor was awarded the prestigious Thayer Lindsley award for ‘Best Global Discovery’ at the 2018 Prospectors and Developers Association of Canada Convention in Toronto.

Prior to joining Arizona Mining, Taylor had worked extensively for large and small cap companies, including BHP Minerals, Bear Creek Mining, American Copper and Nickel, Doe Run Resources and Westmont Mining Company.

Leadership at Titan Mining

Donald Taylor’s experience as a geologist will be advantageous for Titan Mining as it focuses on discovering and developing additional high-grade low-cost mineral resources, increasing production and extending the mine life at ESM.

Located in St. Lawrence County, New York, Titan Mining now controls more than 80,000 acres of mineral rights in the district.  Mill commissioning was completed and the first ore hoisted at ESM in late January 2018.  Throughput is expected to ramp up to a rate of 1,800 tons per day (“tpd”) by the first quarter of 2019.

Promoting local economic development will continue to be a focus for Titan Mining with Taylor as the new CEO.  The company is already purchasing goods and services from nearby businesses and has developed a training program to provide prospective local workers with the skills needed to become qualified underground miners at ESM.  Of the 200 plus jobs created at ESM, more than 70% are now filled by locals. These activities support the company’s goal of partnering with and investing in the local community.

Once fully ramped up, ESM is forecast to produce an annual average of 80 million pounds of payable zinc over an eight-year mine life, at C1 cash costs of US$0.70/lb and all-in sustaining costs (“AISC”) of US$0.79/lb of zinc **.  With the first concentrate shipped in March 2018, the company expects to achieve commercial production in the second half of 2018.

Titan Mining remains positioned to benefit from elevated zinc prices supported by low inventories.  While the mine is ramping up, exploration is underway, including the compiling, digitizing and modelling of 100 years of historical data.

A focus on near-mine exploration means the company has potential to increase both production and mine life at ESM.  A study has already commenced on an expansion of production at ESM #4 mine to 3,000 tpd in 2020, and an extension of the estimated mine life beyond the initial eight years.  In 2022, the company is targeting further expansion of production to fill the mill capacity of 5,000 tpd.

Moving forward, Taylor will oversee modernization and innovation at ESM – these are expected to be an integral part of the growth plan, driving an increase in productivity, lowering costs and increasing the mine life.

** C1 cash costs are defined as site-level cash operating costs (mining, processing, G&A, royalties), plus off-site transportation and treatment charges. AISC refers to all-in sustaining costs which are defined as C1 cash costs plus sustaining capital. C1 cash costs and AISC per pound are calculated by dividing the C1 cash costs and AISC, respectively, by the payable metal production expected in the period.