The capital raise was essential for the drilling to continue.As...

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Fish890

226 Posts.

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22/02/21

10:20

Post #: 51205730
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Originally posted by sydneysider: ↑

On a technical basis MGV is a "falling knife" IMHO avoid until signals flash green. Was invested at 12 cents, rode into the highs. My sense is that the market expected too much, too soon, stock failed to JORC 1M ounces and trend turned bearish, got out between 60 cents and 40 cents via multiple sales. Then MGV management did a massive equity raise which IMHO has not been fully digested, causing the falling knife pattern. My sense is that MGV has lots of gold prospects BUT the individual lodes are on the thin side, so they need lots and lots of (expensive) drilling, typical lode is around a hundred thousand ounces. I asked MGV management if they would consider fast tracking some of individual lodes into development using contractors / selling ore to a local mill. Would have saved / made a ton of money and stopped the falling knife. Sold my position after I got a non-response. It always pays to ask the right questions. Good luck with your position, hope it turns around soon, maybe an uplift in the gold price (which may be underway on the COMEX) will help you.

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The capital raise was essential for the drilling to continue.
As regards, thin side of the lode, not sure if the management has mentioned that. The results should then have had mixed results but most of its results are 10+.
It is sitting in the belt surrounding RMS and SLR mines so dont think they are faking the results.
Just if the management did not agree to your strategy, dont think we should conclude they dont know what they are doing.

Thanks for your insight and respect your reasonng.
However, I will wait and watch.

MGV Price at posting: 31.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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