There are two key reasons that determines a possible excellent risk-reward in the coming weeks and months
1) MRZ has a 70% earn-in for the Wapatik project from Azimut which struck gold motherload in the nearby Patwon discovery
2) The man behind MRZ is Michael O'Keefe, the brainchild behind the success of Riversdale Mining that was sold to Rio for $4B and Riversdale Resources a Canadian coal developer sold to Gina Rinehart for $600m. He may have little experience in gold but he is an astute mining entrepreneur.
And of course, it is just $12m , the above 2 factors would IMO be sufficient grounds to make a small punt. Plus technically it is looking like a strong buy. Caveat: It won't be easy to get those share being in the queue.
In January, Azimut (see below) hit the motherlode at the nearby ‘Patwon’ discovery. Spectacular hits like 3.15 grams per tonne (g/t) gold over 102m sparked a 200 per cent increase in its share price and prompted numerous junior explorers to pour into the region.
AZIMUT SHARES TRIPLED ON INITIAL DRILL RESULTS
"Azimut's management considers these results to be among the most significant gold exploration results in the James Bay region since the 2004 discovery of the Éléonore deposit by Virginia Gold Mines," the company said.
Éléonore is now owned by Newmont (NYSE: NEM) and is expected to produce 355,000 ounces this year for the gold major.
Azimut's headline result was from the Patwon prospect and started at 34m.
The company reported "frequent, high-grade intervals in all seven holes" of its maiden drilling programme, including 0.5m at 254g/t.
Azimut said the results indicated the gold-bearing mineralisation occurred in three different orientations.
