No I totally disagree. A few amateur Hotcopper readers might feel that the tonnage is too low, and the deposit too deep ... but they cant see the forest for the trees!
I would agree, IF this was low grade, was a new find, and they had to drill to prove up the 600koz, and then finance and build a new mine.
But none of that is the case. The have a good grade gold mine, with significant copper by-product, they already have the deposit drilled and defined, and the mine al all infrastructure is already built.
Then to further debunk your misconception ... the current resource is to be mined as an open pit, with mineralization starting from the surface. The even have stockpiles ready to go.
Then once they mine out the open pit, they drive a portal and continue underground activities ... the the kicker is that at this depth, the deposit is yielding significantly higher grades, making underground mining just as profitable as open pit.
The wildcard then is: What lies underneath? Is there a "Golden Grove-style mineralization down to 1400m? Based on current knowledge, there exists a very high probability. Regardless, the deposit is still open along strike at surface, and will grow in size without the real deep stuff.
Then we have the upside of the other deposits that are now being explored.
In reply to Sledger:
Even one million shares is peanuts ... looking at a chart and volume over the last month or so. While the SP has languished during this quiet phase ... the volume has dried to a trickle. MYG is a deceptive stock. Even though it is a minnow, it is quite illiquid, and can move very rapidly. Just my opinion, but I reckon this is building up steam for a blast off soon.
I am holding tightly on to mine!
MYG Price at posting:
14.3¢ Sentiment: LT Buy Disclosure: Held
