outstanding, but low-key till now

I apologise in advance if this has already been posted.

http://www.mining-journal.com/production-and-markets/outstanding,-but-low-key-till-now

The most outstanding story in the junior resources sector is how Cygnet Capital’s corporate finance executive Dan Fraser describes an emerging copper play in Chile in which his firm is involved.


The company in question is ASX-listed Mining Group Ltd, a junior that Cygnet raised about A$3 million (US$2.7 million) for last August.


While talking up his own book, Fraser makes a fair case for the prosecution. Mining Group is aiming to become a self-funded junior by mining high-grade El Roble copper in Chile at the same time as it explores ground seen as having potential for a big discovery.


Fraser contends Mining Group could net free cash flow of US$1-2 million per month (or more depending on the grade) from the mining and milling of copper-gold-rich veins.


It is planning on acquiring the ground from a Chilean local – who has, and continues to mine the ground himself – via staged payments worth US$8 million.


Mining Group has evidently been hamstrung from more loudly promoting the project by the lack of ASX-compliant data.
But having been on the ground and seen it for himself, Fraser contends El Roble is seriously promising. His main positives are the grade, shallowness, lateral extent, width in various places, closeness to two milling plants, and the established track record of production.


Fraser also points to the quality of management at Mining Group, including managing director Zeff Reeves and non-exec director Cobb Johnstone, the latter apparently known in some circles as the “god of copper”.


While Mining Group is currently in the process of tracking down the original delivery certificates of production from the El Roble project over the past year, the market will no doubt be even keener to see funds from the junior’s own mining going into the company’s bank account.


Fraser said mining of a bulk sample to confirm the viability of Mining Group’s plan would start this week.


Marketing of the company’s potential is also set to get underway this month.


Mining Group was capitalised this week at about A$7 million, with the company’s issued shares set to increase by 45% if the share price more than doubles by mid next year and in doing so puts 137 million 5c options into the money.