new fotos from the mine, page-12

Are we comparing apples with apples here? Doubt it big time! Do the stocks mentioned have a jorc resource, jorc reserves and currently mining and are debt free? Do they also have $18M cash and investments which after taking that into consideration values the 56M 0z silver resource with 19M oz reserves at a poultry AUD$29M. No need to value on dillutionary terms because the oppies are well out of the money at the moment! Do some research on heap leach operations and you will find that it is not unusual for operations not to meet production targets in the first two years of operations! The reason for this is that any modifications made to the heap leach will take up to three months to determine whether they are successful or whether other mods need to be made. It's like fine tuning a car but a lot slower. The other option for MMN was to go CIL plant at a substantial extra start up cost plus ongoing reagent costs but the advantage with CIL plants is that the tweaking only takes days to see the results. The heap leach processes are the most economical and easiest processes to manage once the production teething problems are fixed! MMN have other issues though and that seems to be the zinc and other metals effecting recovery via electro winning. We are one year into production so hopefully we start seeing big improvements over the next two quarters! I would like to see 100,000 oz production occuring on a monthly basis by the end of the September quarter to minimise cash burn. With a twelve month outlook I see no reason why MMN should not be trading at around $1 with silver trading at US$30.

Other areas of upside for MMN is Talley Ho and NGG getting a re-rating. Read up on NGG and it is not hard to envisage its shares trading at $2 by March 2009 valuing MMN's investment in them at CAD$36M. It seems NGG with it's gold heap leaching is producing around 1000 0z of gold a month which is about 35% of expected production. NGG has done this in six months and noting that we share a common CEO I would hope that NGG's current success is due to learnings from MMN and that NGG's success can be translated into a MMN success.