Interesting times ... We had a wild ride today with MOK. At 11:45, QTrade sold 10K shares to BMO for 10 cents, followed immediately by 49K shares to Anon, for 9 cents (a new 52 week low). Funny about that trade -- I don't recall seeing a large bid at 9 cents earlier this morning. Maybe I just missed it -- or was it a cross trade that suddenly appeared out of nowhere?
Anyway, we closed back at 10 cents to give us a market cap of $4.7 million. Thus, our 3.1 million ounces of gold are once again being valued at about a buck and a half per ounce.
Very interesting. The long-awaited PEA is promised to arrive this month. Why the sudden rush to dump shares, I wonder? Has word leaked out that the PEA contains some unforeseen problem? Is the Gov't of Ontario suddenly planning to expand Quetico Park another 25 km eastwards? Has a First Nations group given notice of a claim? I don't recall hearing anything about any such concerns.
Well, we'll just have to wait and see. Up till now, things have looked very very good for MOK. The metallurgical report and the new Resource Estimate were fabulous. By all reasonable measures, the PEA should give us a projected NPV that is vastly larger than the current market cap of the stock. As stated in the MDA issued on May 30/13:
We are very excited about the new geological model,resource model and potential for increases.
Gold deposits of this calibre and favourable geometry for surface mining are very rare. Itslocation, with road access only one hour from Thunder Bay, Ontario, limits potential infrastructurecosts and political uncertainty and risk.
The long wait for MOK shareholders should be over soon. We are living in interesting times.