Following today’s announcement that Eldorado Gold (TSX: T.ELD, Stock Forum) will spend $122.4 million to purchase all outstanding shares of its Brazilian joint venture partner Brazauro Resources (TSX: V.BZO, Stock Forum), speculators are betting that Magellan Minerals (TSX: V.MNM, Stock Forum) could be the next takeover candidate in the region. Shares of Magellan surged 19% to 81 cents on Wednesday.
On May 5, 2010, Magellan said it has received the Preliminary Economic Assessment (PEA) for its Coringa gold project in Brazil, which showed using a cut-off grade of three grams per tonne (g/t) gold, a Measured and Indicated resource of 830,460 tonnes @ 9.64 g/t gold (257,388 ounces) and an Inferred resource of 239,620 tonnes @ 11.86 g/t (91,334 oz).
Magellan boasts “significant” shareholders in both Newmont Mining and Kinross Gold.
On the Stockhouse Bullboards, coffintrader believes“now to continue playing the Tapajos area in Brazil which is getting Red Hot. MNM (Magellan Minerals) is the only 1 left now with a much bigger land position. 12km soil anomaly versus 1km long with BZO. 2 million ounces mined in streams with MNM versus 200,000 with BZO... MNM management discovered BZO 3 years ago so they know the area and went 25km NW to bigger and better.”
The poster also posted parts of a research report that calls for a 12-month target price of $1.6O a share on Magellan Minerals.