At this stage of proceedings, with the world economy seemingly teetering on the brink, I am concentrating my new investments solely into the PM arena.
My thoughts are that the base metals and energy stocks will weaken in line with any retreat of the general markets and so my latest foray, after a prolonged watching brief, has been into MDL and their substantial gold resource in Senegal.
Just briefly, as justification for the decision, plant construction is around 50% complete with commissioning set for the 3rd 1/4 2008 followed by production of around 200 000ozs initially at an attractive margin.
The story should grow on those who are prepared to do the research and discover what Oromin (TSX-V:OLE) are turning up next door, what the further possibilities are within the Sabadola tenement and within the 930 sq km northern tenements and of course the contribution from the Grande Cote project which is planned to produce 7% of the worlds zircon by 2009.
The in-progress Canadian listing should eventually prove to be the most critical event in the Company's evolution as it was with EQN and their Zambian project, while further down the track MDL should attract the attention of the majors for anyone prepared to buy and hold.
Cheers ... WJ
MDL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
