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What Does the Future Hold for Miramont?

Streetwise Reports, Streetwise Reports
0 Comments| April 16, 2019

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Click to enlarge

After some dreadful timing and miscommunication to the market, shares in Miramont Resources Corp. (MONT:CSE) plummeted from $0.47 a share to $0.12 in two days at the end of March. The company dumped some poor results from six holes onto the market and the market gagged. But the scout program consisted of nine holes and on the 12th of April Miramont released the assays from the last three holes.

Companies post dismal drill results all the time and it is not a big deal. Especially with a scout drill program, hitting anything is a victory. But the market was told that three areas were being drilled and three holes would be released at a time and was surprised when six holes were announced in one press release. Actually one of the holes, hole five had some interesting potential, but that was lost in the smoke from the forest fire.

Hole number nine showed 249 meters of 0.68 g/t gold equivalent and that's better than interesting. That says there could be something big nearby. 0.68 g/t gold equivalent would be worth about $28.22 a ton in theory. But you couldn't mine at that depth and mill that at a profit. Now if you had a starter pit or higher-grade material nearby, 0.68-g/t material would change from being waste to being ore if you had to move it anyway.

Investors are always hoping for a giant home run hole but they happen once in a blue moon. In general a drill program is successful as long as each hole advances the project one way or another.

Had the last three holes been duds, Miramont would have had only two alternatives. They could put the project on a back burner and go look for something easier or cheaper to advance and come back to Cerro Hermoso later or they could go find a major to partner with to advance the project. In either case, the share price would be deader than a doornail until something took place to move the needle off TDC.

Naturally a third alternative might be a lot more attractive. Cerro Hermoso is in the Puno district and they grow herds of elephants there. The chance certainly exists that the property has elephant potential. But the scout program has to advance the quality and quantity of knowledge about the potential.

The first six holes barely showed sniffs but hole nine was a great hole. The very best alternative would be for Miramont to use some of that $3.5 million they still have in the bank to fund another 10-15 holes in an attempt to find that magic "Discovery" hole. The press release talking about the first six holes almost put Cerro Hermoso on hold but hole nine brought it back to life.

The company is an advertiser. I am a shareholder from both Puno and in the PP and naturally that makes me biased.

Miramont Resources
MONT-C $0.15 (April 12, 2018)
54.8 million shares
Miramont Resources website.

Bob and Barb Moriarty brought to the Internet almost 16 years ago. They later added to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.

1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Miramont Resources. My company has a financial relationship with the following companies mentioned in this article: Miramont Resources is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Miramont Resources, a company mentioned in this article.

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