risks, page-2

Well as with any potential gold producer there is going to be some sort of risks.


I see the biggest risks going forward as being:


1 - Financing of getting to production - this is my biggest concern personally, it appears they have some sort of deal with Credit Suisse where they might either finance the whole costs or atleast partially finance the capital costs of the project. They already have an 11million loan of them that financed the 100% acquisition of the project and future exploration. I would say if the next few months exploration is highly successful and a greater resource is a given, CS will come to the party and fully fund the project. It is estimated they will need around $60million to get everything up and running and producing gold, so thats a big step for a company valued at around 40million.

2 - Exploration risk - as mentioned they are starting a big exploration program this qtr, with some early result probably due in next couple of week. Not sure this is that rsiky, as i think it is very economical what resource they have now, but im sure MYG will want to grow this resource up to around a million oz.


Other then those risks, im not really sure what is holding the market back to be honest, they have been ticking all the boxes to date, the biggest concern i had before the past few months was metallurgical issues, which is what made the last attempt at mining from past owners uneconomical, but MYG have a better understanding of what is required to get a lot better recoveries - so this is a massive tick in my opinion that makes the whole project a go.


As ive mentioned before, this has huge upside to it, and not a real lot questions need to be answered going forward from here.

I have topped up a few times recently, and intend to once again this week after freeing up some more funds.