Good on you Stockanalysisguru for your investment in MGX.
The last major diamond drill and assay program was back in 2010.The results found the reource open at depth (no drill hole found an end to the resource). The assay results for each hole are published on the net as well as the position of where each hole was drlled in the main pit area.
Its been 64 years since mining began in 1959 and we are now at 125 metres below sea level. The mine has been modelled on a depth of 215 metres (I recently previously supplied the link to this report).
Peter Kerr has stated in previous reports that the seawall has been reconstructed in such a way that a breach will "never" happen again . . . yes, Peter Kerr used the word "never". So I am not losing any sleep about the seawall.
Cash is now pouring in at a rate to have $1 billion in the bank in just 24 months time.
If you look back on my posts of last year on GRR I stated I had been selling down my GRR shares (at the time circa $1.40) and stated I had been buying 3 to 3.5 MGX shares for each GRR that I was selling).
I follow Charley Munger's investment stradegy of putting money into something rather than leave it in the bank.
Today one only gets 1 MGX for 1 GRR. I could easily triple my previous GRR holding if I decided to swap back. But I won't because I see far greater upside here. IMHO 50 cents is way, way undervalued.
So is, IMHO, Macquarie's target of 60 cents that totally disregarded mineral resource. JORC was instigated by the ASX in 1970 following the Poseiden nickel mine episode. JORC is not an infailable system.
At the moment Peter Kerr is following 2 lines of strike that are consistently pulling high grade, one to the east and one to the west. At the same time strengthening the back (northern) wall for greater access to a revised mine plan.
The processing plant was upgraded 2 years ago and can handle far more than 4 million wmt per annum.
Peter Kerr recently announced guidance of between 54 and 66 ships per annum. That equates to 4.3 to 5.3 million wmt.
4 million wmt is equivalent to 50 ships, so there is plenty of capability of exceeding guidance for Sept 23 and December 23 quarters.
MGX Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
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