Aussie dollar has been falling away for some time now. Gold jumping up through the $1200's and oil plummeted to $50. The rationale behind Mantle Mining's choice of tenement portfolio was pointed out at the last agm; to have both coal/gas and gold in the company portfolio as when one is down the other is up. All things being equal.
If our brown coal tenements were straight energy plays, ignoring the huge potential of industrial chemicals and other non energy commodities that can be derived from brown coal, and if their was not going to be an Emissions Reduction Fund/carbon tax, then our brown coal would more than likely be valueless whilst oil is at $50 a barrel and Newcastle coal down where it is.
But our company directors have the foresight to diversify the portfolio so that we have three gold tenements that are either close to surface or high grade ore bodies. Add to that the company's willingness to think outside the square and use the German built sorter box, which is likely to revolutionise small scale gold mining, then all praise to management if Mantle Mining can actually get into mining.
Could be great/fortunate timing for Norton to go into production in the next sevearl months. With gold rising and Aussie dollar falling two possible scenarios; gold rising to US$1500 and AUD$ falling to 75c, or gold at US$1400 and AUD$ down to 70c , would both send gold to $2000 in aussie dollars.
You have got to like a company that is both a gold and coal/gas play. They are probably out there but I don't know of any other asx minnow that has followed suit.
GLTA josimar
MNM Price at posting:
1.3¢ Sentiment: Buy Disclosure: Held
