MKG Summary

May I first start by saying finally it seems all the noob/novices, along with the twitter pumpers and followers have seen to evaporated and sold out for their loss. Nothing worse than buying a stock when the whole twitter brigade is talking about it. The best is to buy when no one is talking about it, and the threads are quiet. Only 1 person on twitter talking about it and thats ASXcowboy. I applaud your work mate.

I wanted to start with saying how truly undervalued this stock is. There is nothing better that I love in the markets than a low risk high reward play. The recent raise and current cash balance de-risks this project enormously and the people behind it gets me excited.

Ive currently got a Market cap of around $25 mill and EV of $13 mill with cash on hand exceeding $12 mill. This includes the tranche 2 shares, so correct me if I am wrong.

Registry


Ill dive into management
The management team is one of the main reasons I have invested here. They seem very proactive and are not stuffing around. It is like they are hungry and want to make a name for themselves. I have spoken to Peter a coupe of times via email and can I just he is brilliant. Best Ive come across for any spec company I hold. Responds very quickly and is up front and honest. Everything he is told me thus far has instilled a great amount of confidence into this company. Hence I have taken a large position.


Unfortunate to lose Mark Elliot today but grateful for the recent appointment of Steve Zaninovich. He was one of the reasons I invested in MXR at 7 cents. Also the promotion of Michelle Muscillo is a nice move as well with experience in other previous gold companies.


Salaries/wages - Pretty standard across most mining companies. I assume Mark Elliot to get paid out leave etc, but happy with this, not to over the moon.

Technical Analysis - Recent double top, similar to MXR before it made a massive move from 7 cents to 22 cents. You can see the decrease in volume from the recent sell down and touch of a key FIB point around 10 cents. I was looking for that negative divergence which on the 4 hourly is present. should see a base here and possibly one final shake but shouldnt go lower than 9.5/9.6 cents max IMO. I have further orders there just in case.

About the company - GOLD
Now this is what excites me, the actual land and resource they have. You can see from the map below the vicinity they are from Barricks 4.9 Moz Mine/Mill (30km away) and that was from the recent grant.

The Korhgo Nord permit - 100% owned, covers 185m2

Exploration to commence late October, early November


Oangolodougou PermitThe pending application above for a further bit of land is in the works as well and hopefully should hear something about this very soon

Finally the main project currently in the works

Napie Project - 51% interest with Occidental Gold (subsid of PRU) - Can earn up to 75% interest on project through delivery of a Feasibility Study

This area is broken down to the following

The Tchaga Prospect - main one atm - Results due for the 13 RC drill holes and 14 DD holes mid to late October



The project below shows not massive hits but decent enough. Very shallow so thers lots of upside should they come across a large fault while drilling

Tchaga North Prospect - Look to management to maybe explore this project more now with cash in the bank

Gogbala Prospect - Again similar to North Tchaga look for management to explore more now with cash in bank

Overall, like I said this hits all my parameters of when to invest in a spec company. With gold prices also starting to boom again and to be definitely a commodity for the future, this is as good a play you get. Low risk v high reward.

As always DYOR, ad if I've missed anything important please feel free to add in.

Cheers