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Mega Precious Metals Inc MPRXF



GREY:MPRXF - Post by User

Comment by goldencraneon May 15, 2013 7:42pm
49 Views
Post# 21399978

RE: RE: HRATTLE

RE: RE: HRATTLE

Hrattle,

I don't know about you, but generally I find that fact something is down over 90% from the high is an opportunity for a major reversal than a future indicator of further downside.

Gold equities compared to gold (as a ratio of major benchmarks) are cheaper than they have been in 60-70 years.  There is strong evidence the ratio of gold equities to gold at current levels will lead to major moves up in gold equities.  Refer to the third chart in this article as a guide:

https://hussmanfunds.com/wmc/wmc130415.htm

I can't see much fundamental reason for the latest gold collapse except for excessive moves up in major risk markets - the general stockmarket now looks very toppy and overdone.  Gold and gold equities are clearly trading inverse to this, just ike they did in the 70s and at the 2000 market top.

This is probably one of the great buying opportunities of our time in the gold sector - is there potentially more downside? - maybe, but the risk return is exceptional.

Why was the headway deal so bad?  I can't see the argument here - it looks like a strategic asset to me and a game changer if they did hit a repitition of the HGZ.

As to Monument Bay needing 1600 gold to fly - I think you are ingorant of the work the company is doing with respect to tungsten and converting waste to low grade ore.  Adding this into continued drilling progress will lead to some interesting economics.

Even the existing open pit is high grade before tungsten by today's standards - adding in a 30% tungsten uplift to effective grade makes the pit very high grade indeed.   800koz for an open pit in a remote location probably is marginal - but the 800koz is before adding in the new drill data, OCAP and tungsten impact.  After all this the pit will be much bigger than 800koz.  We will have to wait to see of course but the writing is already on the wall.

At the moment the market might not care about economics, it certainly doesn't at Gold Canyon!!!   But this will change in time.

 

 

 

 

 

 

 

 

 

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