RE:RE:Goldman Sachs...TFSAfunds, the Red Bird math. The time is now for Cabacal to give MNO stock a lift. The Red Bird example illustrates a couple things. (a) Historic resources being validated during elevated metal price cycles can definitely give a stock a decent boost. (b) A deposit that is valued at multiple billions of dollars on paper doesn't necessarily mean the exploration company would see benefits anywhere close to what the value might suggest should be the case.
Before you remind me about the Manganese history and lack of resource definition, it was a very different situation than what Red Bird then or Cabacal today represent. The latter two have some serious work done by industry majors rather than a resource defined by a Brazilian drunk and improperly validated by a P/Geo who should have known better to sign his name to a 43-101 document that could be shredded to bits on the basis of there being no way to audit the numbers.
Investors were duped in my view. Not intentionally par se, but by at worst incompetence or at the same worst negligence by a licensed professional. The SRK report pretty much sums that up. Forgetting about that mess, back to Red bird.
I believe Red Bird was lost due to Torch not being able to make the final option payment on the project. I could be wrong on that point.
I don't know if Red Bird was ever developed to mine under new ownership or what happened to Torch's carried interest which I think was 25%. Don't think it was put into production but could be wrong there too.
I do know what the historic chart indicates. The best time to have been an investor in Torch was when the company moved to validate Red Bird historic resource into a compliant 43-101 resource. Reliance on historic drill data and re-assay of historic core along with a few new drill programs and investors were treated to a multi-bagger.
Can McArthur get it done on Cabacal?
The metals cycle and historic resource are where you want them. The rest is on Meridian managements ability to execute.
Do it right and the stock should be able to get a decent lift, at least a triple from here if not more.
"In 2006 Torch carried out 1900 meters of core
diamond-bit drilling in seven holes. In 2007
Torch carried out a 2800 meter program. The
results of the 2006 and the 2007 programs were
covered in an updated N.I. 43-101 report in
January of 2008 which increased previously
reported contained molybdenum by 80. The total
indicated is now 88.2 million tonnes and total
inferred is 63.4 million tonnes. This calculates
to 118 million pounds of indicated and 78.6
million pounds of inferred. Molybdenum is
presently valued at 33 per pound."
"Recent Preliminary Resource Calculation Report
Reserves have been classified by Giroux
Consultants Ltd as 88.21 million tonnes indicated
and 63.39 million tonnes inferred. The total
151.6 million tonnes have an average grade of
0.06 Mo at a 0.03 cutoff with 0.068 Cu.
Further infill drilling was recommended between
existing Craigmont and Phelps Dodge holes to
bring more of this resource to a measured and
indicated status.
Torch mentions that previous owners of the
property did not analyze for copper, silver or
rhenium and that there appears to be a large
copper zone adjacent to the upper molybdenum
zone.
Torch also mentions that assaying cores for
rhenium has given averages of .635 grams/ tonne
from 10 samples in its 2005 program and .106
grams/tonne from 137 samples in its 2006 program
on Red Bird."
"
Why the Red Bird Project Now? In the 1980s, the low world prices for
molybdenum precluded further work by Craigmont
Mining and they let their option with Phelps
Dodge lapse. Phelps Dodge Mining then divested
much of their Canadian mining interests and the
Red Bird Property reverted back to crown land.
When Craigmont Mining prepared its resource
calculation on the Red Bird Property, molybdenum
was trading for approximately 8 US / pound.
The price of molybdenum is now in the range of
33 to 35 US per pound.
The price of rhenium is now 188 US per gram in
its pure form."