around the traps with the ferret
Around the Traps ... with THE FERRET 08:27, Friday, 6 October 2006
Sydney - Friday - October 6: (RWE Australian Business News) - ****************************
No wonder they went for the doctor in PACMAG METALS (PMH) yesterday.
The company announced its Ann Mason deposit in Nevada contained 64 per cent more copper than previously estimated. The shares soared 28.5c to 47c before closing at 41.5c (and, fair dinkum, you gotta feel for the poor saps who sold down from 21c to 18.5c ahead of the trading halt on Monday). Managing director Michael Clifford spelt it out in terms we can all dig.
The 3.2 million tonnes (7.1 billion pounds) of contained copper metal in the deposit had an in-ground value of $US25 billion (more than $33 billion in Pacific pesos), based on buoyant current metal prices, he said.
In the ground is a long way from copper cathodes but it still means something when you compare it with PacMag's market capitalisation of $42 million.
"Our Ann Mason deposit (810 mt at 0.4 per cent copper, 0.004 per cent molybdenum) means PacMag has one of the largest undeveloped deposits of its type in the American continent and during the fourth quarter of this year we will complete our scoping level study which will provide us with the details we need for mine and processing operations," Mr Clifford said. And in case you still didn't get it ... "Given this new up-grade we can now compare favourably in size and grade to some of the biggest copper mining operations in the world, including Teck Cominco's Highland Valley Canadian mine, Quadra's Robinson mine in Nevada and Phelps Dodge Cobre-Chino and Morenci mines and no doubt what we are doing will attract international attention."
PMH Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
