TTM 0.00% 4.5¢ titan minerals limited

New Report is out today

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    New Research Report out

    http://www.rcresearch.com.au/

    Full report: http://www.rcresearch.com.au/fdl?i=1299

    RCR company update note:

    Minera Gold Limited (ASX:MIZ), 30 September 2014
    Investment Points:

    Column 1
    0
    • Producing high grade (+10g/t Au) Torrecillas mine located in a prolific vein mining district of southern Peru, with many small producers (without plants) in the surrounding area. Projects historically sampled by mining, not drilling.
    • Purchase of San Santiago gold and copper plant potentially transforms MIZ from a high grade producer to highly profitable toll-treatment operator, with a captive group of local miners and margins of ~US$250/oz for toll treatment.
    • Government formalization of small mining sector prohibits mercury use, pushing all small miners to registered processing plants – creating an opportunity for MIZ to follow the path of established TSX toll-treater Dynacor (MCap US$65M).
    • SilverStream has gold streaming on 10% of Torecillas gold production (@ 400/oz), providing US$4.4M funding for the San Santiago plant purchase, (no dilution) with US$1.1M from an existing shareholder as debt and convertibles.
    • Torrecillas and San Santiago (both 100%) mining approvals are in place. Applications in place to increase milling rate from 350 to 700tonnes/day, with construction of an expanded tailings dam to accompany increased processing.
    • Cost reduction associated with San Santiago acquisition, aims to reduce all in costs to ~$700/oz, while ramping production up to 1600oz/month, with an ultimate target of 2000oz/month.
    • Potential to add additional production from unexploited Au veins at Torrecillas and new Cu veins at San Santiago currently exploited by local small miners.
    • Exploration drilling 4Q14 on veins at Torrecillas aims to increase the resource base, backed by an experienced project team, working in Peru for 7 years.
    • 4Q14 trenching followed by drilling on the Tumi IOCG project (JORC exploration target of 80-100Mt @ 0.8-1g/t and 0.2% Cu). San Santiago Cu veins high grade and attractive for processing with a larger IOCG Cu/Au target beneath the veins.
    • MIZ investment case driven by processing of high grade Au and Cu veins from in-house resources and toll treatment, plus potential for larger discoveries longer term at Tumi and San Santiago.
    • RCR risk adjusted valuation increases to $0.04/share with project de-risking.
 
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