MBK has already been a major winner for clients. I was fortunate to have raised them money at 0.004c shortly before it ten-bagged to 4c on pretty impressive drilling results at Triumph. I then raised them money at 3c, and feel lucky that with the share price around 2c I will be able to build on our already significant holdings.
MBK has everything going for it in a junior gold company and I believe this is an outstanding buy based on,
* Management. Ines Scotland former MD of Citadel is the Chairwoman. She has brought some large scale funds from the $1.3bn takeover over of Citadel into MBK. Tony Schreck is one of/if not the nicest guys in the industry and has been toiling away at Triumph now for over 7 years.
* Major gold camp where the scale is in km's and not metres. No wonder there has been interest from the majors as this is a very serious gold project with multi-million ounce potential in Nth Queensland.
* Chasing shallow high-grade gold resources but have now identified some bulk tonnage targets at depth. MBK will systematically drill these and believe that the geophysics is now lighting this project up.
* 1 g/t soil samples is insane. I remember with RMS getting a number of clues at surface so for clients I bought around 20% of the company before they 50-bagged. MBK now starting to give me a sight "Wattle Dam" feeling.
* Little resource value now factored in. 2m ounces with another 300m shares on issue still gives me a 10c-12c target price. Based on recent reports and if drilling is successful this may prove conservative.
Weakness begets more selling and MBK's share price has been drifting lower without much interest. This may annoy shareholders and Hotcopperites but it doesn't worry me. A multi-million ounce in QLD will be worth something and probably more to a major in need of replenishing resources. Tony Schreck isn't about appeasing paranoid androids but is rather focused on building a gold company with substance. I am hoping this share price weakness continues for as long as possible and one of my other plays such as RDM drills into 120m @ 3% copper, so I can again buy 20% of a gold junior such as MBK.
MBK Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
