MMB 0.00% 65.0¢ magma metals limited

something special...

  1. 15,276 Posts.
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    I suggest people try not to give their winning hands away for a fraction of it’s potential value…

    In my view, we have another special situation here…or at least the serious potential for one.

    We have an already confirmed strike of some 1km from a target of some 1.5km+…with indications of width up to 200m in places.

    In my view this is pointing to a serious find…especially for these sorts of in this part of the world.

    lol…now for some of those numbers I love so much…

    To be conservative, I will assume an average width of just 50m (ranges 0-200m), a depth of just 100m (we have this confirmed already) and a strike of 1km (already confirmed)

    Summary: 1000m (strike) x 50m (width) x 100m (depth) = 5,000,000 m3…x 3.2 (sg) = 16,000,000 tonnes

    Discounting the high grade results from the transported materials, and paying greater attention to the average grade of all test samples,we come up with the following potential parameters…

    Cu @ .5% (recoverable) x 16m tonnes = 80,000t Cu = $800m
    Ni @ .2% (recoverable) x 16m tonnes = 32,000t Ni = $1,088m
    PGM's 4.5g/t (recoverable) = 2,314,800 oz (assume av $800/oz) = $1,855m
    Silver?
    Zinc?

    Total in-situ value (recoverable) = $3,743m…or… $3.74 billion

    An applied market value of 10%of inground (assuming an economic resource) gives us a market cap of $374m…or about $5.67 per share.

    Add cash, and other assets and you get about $6.00 per share.

    Now before getting too excited, remember this will not happen overnight, but if drilling continues to confirm the nature of this find, such prices are more than possible.

    Remember also, the above numbers assume a depth of just 100m…which has already been confirmed…double this to 200m for similar grade and you get $12 per share. Importantly, mineralisation to 1km is not uncommon in this part of the woods, although I would be happy with just 500m.

    Clearly the potential here is significant…so if you do feel the need to be a dumbo by giving your shares away to someone else who is not, someone else who has potential done their homework, I suggest that you at least hang on to a few just in case.

    I wonder how many people originally held significant numbers of shares (in the early days) in a certain other stock, with similar potential, but by the time the run was in full swing, held only a fraction of what they originally started with?

    Interestingly, if your trades are going against you on this one, it’s more than likely because some pretty smart cookies are playing you for your stock…this in itself should be indication enough for most punters to hold on.

    Remember, some of the best stories in recent times have seen manipulated share prices…both up and down…and none of them went up every day.

    I suggest people forget the idea that this is trading from news to news…it might “spike” on news days, but from now on in my view, it is trading on results. Oh and by the way…further drilling results are actually due (zinc) according to the company…and no doubt we still have the possibility for a rushed special on the Canadian assays?

    So…news will be there for those who live by such things…and significant already in the bag for those who do not.

    Cheers!
 
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