Something from Bells. I got the day wrong. Oops. Apparently they also have the only tolling plant for 100kms and there may be some plans afoot to take advantage of that....I took some of these in the recent placement and am cranky at myself for not requesting a pile more.
++++
As UBS upgrade their Gold forecasts to US$1400/oz today (following on from Macquarie and other brokers last week) we had Rick Yates from MDI in today presenting to our Perth office - the key message was that MDI will have plenty of news flow over the next 12mths, starting with drilling commencing in ~10 days.
MDI will look to be in production (30tozpa at AISC of ~$1100 for 3yrs initially) inside 12mths, but in the interim their exploration will start ramping up and the chance of a significant re-rate here is high in my view given the ground they are sitting on.
Historical drilling at the Two Mile Project has seen some exceptional drilling results:
- 141m @ 2.3g/t
- 156m @1.14g/t
- 8.5m @ 49g/t
- 13.7m @26g/t
MDI will be out in the field drilling around the 15-20th July, with a view to a Resource Upgrade in August, further diamond drilling in September, Reserves Upgrade and PFS in November and we will also see Alto Metals (AME, who are right next door) drilling in the next few months also. News flow should be solid over this period and with a marketcap of only $26m MDI is very cheap relative to the peer group.
The company that springs to mind and who Rick gave as a reasonable analogue is Pantoro (PNR) – WA project that started small, who had drilling success and is now producing into an Aussie gold price environment of $1820/oz. Their marketcap is ~$87m and in my view is going a lot higher.
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