the real story....a bit long but needs reading

After talking with Zeff a couple of times now i am of the opinion that either people don't read announcements or they don't understand them.

I am thinking it is the later so i would like to clarify a few points although i think he did clear up a few of the points in the BRR interview.

The 3 big points of negativity that have come out of the last announcement is:
1) It was only a 1m width and therefore uneconomic.
2) The results were from 140m so they think that is where they are going to mine.
3) There will be a capital raising due soon.

WOW!!!!

Zeff has explained these very clearly and i am astounded that people would be making decisions based on their own perceived knowledge. He said most of the brokers he has spoken to thought the results were very good and in fact were accumulating.

I would like to go through a couple of points.

1) the 1m width - Yes it is a narrow vein from these results and they will have to employ narrow vein mining but that doesn't mean it won't be extremely profitable. What the results showed was there there was high grade mineralisation all the way down to 140m - and as the vein has proven itself continuous there is ore all the way down.

Narrow vein mining is generally characterised by high grade veins and you have to keep following the vein to increase the lifespan so it is difficult to define a resource.

2) Mining from 140m depth - This is just ridiculous for this early stage.

3) Capital Raising - MNE will NOT need to do another raising again, at least not for El Roble.

And here's why.

The goal for MNE has always been to get into early production and now that they have these results and they have confirmed the deposits are high grade and continuous they don't need to keep drilling holes in the landscape.

Their focus will be on extending the underground workings at the Panga mine and essentially taking the ore from the top 50m. There could be at least 80,000 tonnes of 2.5 - 3% ore there which they can truck down the road and start making money.

After a couple of months they should have a nice cash flow and by then the production agreements would have been signed for Descubridora. So now they have two deposits they are working simultaneously, pumping over 10,000 tonnes of ore a month and making about $450,000 a month maybe more. If they do this for 6 months they will have approx $2.7M in profit and can then continue with exploration to potentially find the "mother load".

Also if some good results come in for Veta Gruesa and Bellavista then they could potentially have four zones they are trucking ore from. I think all 4 is unlikely but 3 is very probable.

You can see it won't take much for this company to be generating a serious amount of cash next year. So it boggles the mind that people are happy to be selling out at these levels representing a $5.5M market cap company when they should be making more than that in profit as early as next year.

So if people can't wait a couple of months before this company becomes self sufficient then good luck with the rest of your trading because you will need it.