Thursday, 9 October 2008

Anglo Swiss Is Ready To Start Mining Cash

Anglo Swiss Resources Inc.

Basic Shares 100.5 million
Fully Diluted 129.5 million

Anglo Swiss sent a clear message to the market today (Oct. 9/08) that it is rapidly closing in on an important goal; namely generating cash flow. In this dismal market and depressing times for junior mining stocks, what will set companies apart are those able to generate cash and those, which will be hanging on by the skin of their teeth.

The news from Anglo Swiss was that it has completed the rehabilitation of the main mine shaft (level 257) on its Kenville property just outside Nelson, British Columbia. As a reminder, many years ago Kenville was a producing mine. Historical records show it produced:

  • 2,029 kilograms of gold or 4,473 pounds;

  • 861 kilograms of silver or 1,848 pounds;

  • 23.5 tonnes of lead or 51,808 pounds;

  • 15 tonnes of zinc or 33,069 pounds;

  • 1.6 tonnes of copper or 3,527 pounds;

  • 37 kilograms of cadmium or 81.5 pounds.

The majority of the above production came from level 257 and also noted in the news release that "included in the Kenville Gold Mine rehabilitation is the reconstruction of the main mine portal, installation and activation of the rail, the compressed air systems and the installation of the mine ventilation system throughout the entire 257 level."

Mining veins and gathering "feedstock" from previous mine workings is one thing but to complete the circle, one needs to have a place to take it for processing. On this point, Anglo noted that it is getting close to completing its on-site mill.

"Rehabilitation of the 257 level will allow this material to be brought to surface and fed to the existing mill building. The recently rehabilitated mill building is in the final stages of major improvements to the gold processing circuit with the addition of two ball mills, classifiers and flotation cells."

While Anglo did not comment on when the mill will be completed and full scale processing begins, it's unlikely ASW would have made this announcement if it did not believe it was close to throwing the switch. Although we don't know what this could mean for Anglo's bank account the point is that something is coming quickly and this will set the company apart from the majority of junior companies.

And coming soon are assay results, "the Company will also be releasing the initial assay results from the 2008 drill program shortly. The data from the surface program is currently under review and a 3D model is being constructed by MPH Consulting Ltd. This model of the underground vein structure will assist the Company’s technical team in providing targets for an underground drill program scheduled for this quarter."

And there's more, "the Company’s wholly owned subsidiary “Kenville Sand & Gravel Inc.” (Release 2008/01/07) is operational providing materials to the aggregate markets and the newly refurbished mill and plant will both provide immediate sources of revenue."

A picture is worth a thousand words and a recent video completed by the team at The Silver Bull Report attached here gives viewers an insider look of the inner workings the Kenville mine. There are quartz veins running throughout the tunnel and it is obvious why the mine was a success in its time as mineralization is everywhere. There are 6 kilometers (4 miles) of tunnel into the mountain and now with everything up to code and operational, it is time to start extracting the precious metals that brought us all here in the first place.