Based on all current supplied information the deposit in my view...

Based on all current supplied information the deposit in my view looks like it will go into production. It also appears that it will be quite profitable. myself, adzconan and a few others have shown some first principle comparisons which support this and imo it's the overall driving force of the re-rate.

So in the long term, I don't see how it can fit the bill of a pump and dump. which in my view is when a stock goes up and down on something immaterial and was likely never viable long term.

Others tend to classify pump and dumps when the share price oscillates at large percentages. Well with any high volume high rising stock there is always going to be people trading and additionally people sitting on 100-500% profits so that can often occur.

For me personally I see MEI as a very viable project. and it is now more about how profitable could it be, and when. The market will do its thing and attempt to apply a market cap it feels is reflective of the future probably profits given the state of the asset. (projects typically valued at their NPV close to production and fractions of them depending on stage of asset.

What is key for MEI is to validate and derisk what it already a fairly substantive body of results from previous vendors. This will be via;

-the drilling programs to delineate jorc compliant resources
-further met work over the resource for confidence in its behaviour laterally and spatially across that resource and support the development of the process flow sheet.
-a feasibility study or studies (often companies do 2/3 etc) which apply these inputs formally such that they can determine the economics.

these will simply take some cash and some time to perform. part of every resource project but with a large body of supporting data maybe not as long as typical.

At which point there's some formal quantifiable evidence for the profitability of the project. At which point the company is significantly de-risked.

For me personally, it's really about trying to find the best opportunities where the MEI shareprice pulls back to a level which provides a good buying opportunity to increase exposure. I was latish at 4-5c but enough to be sitting on decent profit.

In relation to discussions of raising capital to support this and the gold sale there is 2 strategies MEI could employ.

1) pay the acquisition of Caldeira as per the required tranch payments and thus use the sale money to drill, met work, study and look to raise capital in 12months+ time to cover final acquisition costs and working capital.

or

2) raise cash in the next quarter or so and ensure they don't need to reach out at any point for the next 24months.

It's often a retail thought to do the former because (the shareprice will be so much higher in the future). that's not always the case and macro conditions can change. sometimes a bird in the hand is better. I have no idea which strategy MEI will elect and it has not come up in my discussions with the team.

Either way, a CR in the short term will set a floor on the s/p and severely lessen then likelihood of any massive retrace. on the other hand, they have the cash coming in and so are not in any urgency to raise cash and therefore puts them in a favourable spot for a placement on their terms.

Well done to everyone has been a very good month indeed. the REO pricing continues to rise and strong pipeline of news ahead to give assurance on the asset quality. I'm personally looking to increase exposure if there's big sell offs because I think the project is very viable as per my previous posts on here.

SF2TH