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Mega Precious Metals Inc MPRXF



GREY:MPRXF - Post by User

Post by ctoivoon Jul 08, 2011 9:56am
465 Views
Post# 18810144

Here is article

Here is articleYeah, its nice that they've settled on Mega to dwell on, and they only talk about Monument Bay--so far. I must say that once again I was thinking, (hoping) the rise might be from the Headway drillers friends and kin.

NIA has been receiving countless emailsin recent weeks asking when we will be announcing our next new stocksuggestion. We average about one new stock suggestion each month, but wehaven't had any new stock suggestions since May 18th. There is a very good reason for this.

NIA believes that our latest stock suggestion Mega Precious Metals (TSX Venture: MGP), currently
.455, is the opportunity of a lifetime and has the largest upside potential in the market right now. MGPperhaps has the most leverage to rising gold prices out of all goldexploration stocks. We will not be releasing any new stock suggestionsuntil MGP reaches a level where we believe it is a lot more fairly valued.
MGP originally rosefrom NIA's May 18th suggestion price of
.37 up to a high on June 1stof
.65 for a gain of 76% in exactly two weeks! Since reaching its highof
.65, over the past five weeks MGP has slowlydrifted down 30% on very low volume to yesterday's closing price of
.455, which is still up 23% from our suggestion price seven weeks ago.
A perfect storm is quietly building for MGPthat will get it on all of the major radar screens of the wealthiestprecious metals investors from all around the world looking for thegreatest ground-floor opportunities with the least downside risk!
A major new development just took place at MGP that NIA was the first to predict, but this development actually surpassed our highest expectations! MGPtraded practically no volume when this development was announced theother day, which tells us nobody knows about it yet. Once the wordspreads about this development, it wouldn't surprise us to see MGPquickly soar past its high of
.65 that it reached two weeks afterNIA's suggestion at
.37. Seriously, there is a very realistic chancethat MGP could fly past
.65 in just days if this news spreads fast enough.

We apologize for not telling you aboutthis development when it was first announced on June 27th. NIA's wholeentire staff has been hard at work starting the production of a newdocumentary that we will provide more details about in the weeks tocome. To make up for this, one week from today on the morning of July 15th, NIA will be releasing an up-to-date in-depthand very detailed informational PDF report about MGP. This will be themost exciting report ever written about the company and it willhighlight why NIA believes MGP's upside potential is many times greaterthan its downside risk. The report will compare MGP to its closestcompetitors that have nothing compared to MGP but are valued many timeshigher than MGP!

In our first alert about MGP, we wrote about MGP's flagship Monument Bay project and its inferred resource of 1,212,000 ounces of gold. At the time, after subtracting MGP's $11.22 million in cash (MGP has no debt) from its market cap at
.37 of $27.49 million, the market was valuing MGP's inferred gold resource at only $13.42 per ounce.
When it comes to valuing goldstocks, "inferred" is the lowest category of a gold resource. As thegold miner drills more holes to try and more accurately prove what is inthe ground, the next category above inferred is "indicated" and thenext category above indicated is "measured". Our experience tells usthat mining stocks see their largest percentage increases when upgradingfrom inferred to indicated, and from indicated to measured. When a goldmining stock already has proven and probable reserves, you most likelyalready missed out on the big run!
NIA predicted several weeks ago that we felt MGPhad a very realistic chance through its latest drilling program ofadding 300,000 ounces of gold to the higher rated "indicated" categorythis year! In fact, NIA went on the limb and even said that it believedthere was a chance that some of their gold at Monument Bay could evenreach the "measured" category this year!
MGP just blew away our highest expectations! MGPjust reported a 47% increase in their total Monument Bay resource baseto 1,779,184 ounces of gold! Not only that, but 503,188 ounces of goldreached the indicated category, 68% more than what NIA had forecast!Most surprising, 88,905 ounces of gold reached the measured category.NIA was the only organization in the world predicting MGP would see a small amount of their gold resource reach the measured category this year and we were right!
Gold is currently $1,527 perounce. Based on our experience in this industry, companies are typicallybeing valued today at around $300 per ounce of proven/probable goldreserves, $150 per ounce of measured gold resources, $100 per ounce ofindicated gold resources, and $50 per ounce of inferred gold resources.
Let's come up with a fair valuation for MGP:
Inferred resources 1,187,091 X $50 = $59.35 million
Indicated resources 503,188 X $100 = $50.32 million
Measured resources 88,905 X $150 = $13.34 million
Approximate cash on hand = $10 million
Total Potential Valuation for MGP = $133 million

Potential share price based on latest shares outstanding of 76.26 million = $1.74 per share!
Here we have it, NIA calculates that MGP'strue value at this time should be $1.74 per share and the stock iscurrently only
.455 because almost nobody knows about it yet but us!When the facts spread, MGP could easily become the best performing stock in the entire market for many weeks and months to come!
All NIA stock suggestions are completely unbiased. NIA has NOT been paid a fee by anybody to suggest MGP to the public. We don't own any MGP shares and never have.
It is important to spread the wordabout NIA to as many people as possible, as quickly as possible, if youwant America to survive hyperinflation. Please tell everybody you knowto become members of NIA for free immediately at: https://inflation.us
NIA is not an investment advisor and in no way do we recommend buying MGP stock. Nobody has paid us in any way to suggest MGP and we have absolutely no financial interest in the company. If NIA ever purchases a position in MGP, it will be fully disclosed to the public. We are not making any target prices or projections for MGP.There is a chance NIA will bewrong about MGP and the stock couldfall to zero. Never invest money into any stock that you can't afford to lose.
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