Two very interesting articles concerning Marengo. First is a...

Two very interesting articles concerning Marengo. First is a research note published by Fox Davies Capital in the UK nominating Marengo as a “Candidate for New Year Honours”, Fox-Davies says Yandera prospect represents an “exciting advanced exploration project”. “Yandera has the potential to host a highly commercial plus-one billion tonne copper molybdenum resource,” it says. “The project can be compared with Monterrico’s (Metals plc) Rio Blanco project in Peru, but the Yandera location appears more amenable to development.”

Currently Monterrico’s market cap is approx AUD 600 mil compared to MGO’s market cap of 25 mil which includes the 12 mil recently raised in cash effectively valuing Yandera at 13 Mil. This is inconceivable given a current JORC resource of 371 Mil tons for 4 billion lbs in ground with likely increase to more than 500 mil tons within a month as per MGO’s quarterly release. Report at http://www.minesite.com/fileadmin/content/...tes/Honours.pdf

The second article can be found at http://www.marengomining.com/reports/HIGHGRADE_Yandera_Feb807.pdf and also draws comparisons to a variety of companies in similar positions with much higher market caps to that of MGO. Currently MGO is looking at an AIM or TSX listing mid-year, I assume to fund a bankable feasibility study after the pre-feasibility result are released approx June. Hopefully such a listing will go some way towards rectifying the anomaly with respect to share price.

MD states that “there are 2-3 Canadian companies in the same league, in terms of resource size – they are all in that 0.5-1 billion-tonne deposit range – and there is Monterrico. Generally when they are
reaching that level (resource) they have a market cap around the $US200 million. So that’s
where we see our upside with our next upgrade of the resource estimate, which we expect to
have out in about a month’s time. We’re targeting 500Mt, but we do know the system was rated by BHP at one billion tones pre-JORC days.”

This translates to well over a $1.30 a share. Hopefully the Australian market will come to appreciate MGO before too long.

DYOR

I hold MGO.