MMC - Marengo Mining

[Ruprect]

Re: MGO - Marengo Mining

The next few days should be expected to produce some news for MGO.

Firstly, the Pre Feas has been scheduled to be finalised by the end of July. MGO have been excellent at sticking to their timelines, and previous reports suggeted Les Emery has been busy compling results.

Secondly, we should see the 4th qtr activites/cashflow reports out by the 31st. Every quarterly report that MGO has produced in the last 2 years has come out on time, on the last day of the month. So thats next Tuesday.

Saw some very good movement in the sp yesterday, pulled back today before recovering on limited volume. Obviously not a big buying day for some, but not a lot of sellers here either.

Waiting patiently....

 

[Ruprect]

Re: MGO - Marengo Mining

Pre Feas/Conceptual Mining Study results just announced.

Has found the project to be economic, will now move to Bankable Feas Study. Good news.

From the announcement:

Summary
Key outcomes of the Yandera Project CMS include:
•
a conceptual open pit encompassing 406Mt to underpin an initial 10-year mine life;
•
initial mining rate of 25Mtpa for the first two years increasing to 40Mtpa;
•
production of 112,000t and 88,000t of contained copper for the first two years, increasing to an average of 124,000tpa from the third year onwards.
•
production of 4,200t of contained molybdenum for the first two years, increasing to an average of 6,700tpa from year three onwards.
•
initial US$942M capital cost estimate with additional US$198M to complete the ramp-up to 40Mtpa;
•
forecast cash operating costs of US$10.09/tonne (US$0.75/lb) for the first two years, and US$9.09/tonne (US$0.86/lb) at 40Mtpa;
•
strong economic parameters using a copper price of US$1.50/lb and a molybdenum price of US$15.00/lb.
The CMS has confirmed the potential of the Yandera Project to become a very significant strategic source of copper and molybdenum production in global terms, with a successful development expected to generate substantial value for Marengo shareholders and the nation of PNG.

 

[Morgan]

Re: MGO - Marengo Mining

Great timing on that announcement Marengo- I'm sure you waited until I got stopped out at 36c this morning! :swear:

 

[Pommiegranite]

Re: MGO - Marengo Mining

Pre Feas/Conceptual Mining Study results just announced.

Has found the project to be economic, will now move to Bankable Feas Study. Good news.

From the announcement:

Summary
Key outcomes of the Yandera Project CMS include:
•
a conceptual open pit encompassing 406Mt to underpin an initial 10-year mine life;
•
initial mining rate of 25Mtpa for the first two years increasing to 40Mtpa;
•
production of 112,000t and 88,000t of contained copper for the first two years, increasing to an average of 124,000tpa from the third year onwards.
•
production of 4,200t of contained molybdenum for the first two years, increasing to an average of 6,700tpa from year three onwards.
•
initial US$942M capital cost estimate with additional US$198M to complete the ramp-up to 40Mtpa;
•
forecast cash operating costs of US$10.09/tonne (US$0.75/lb) for the first two years, and US$9.09/tonne (US$0.86/lb) at 40Mtpa;
•
strong economic parameters using a copper price of US$1.50/lb and a molybdenum price of US$15.00/lb.
The CMS has confirmed the potential of the Yandera Project to become a very significant strategic source of copper and molybdenum production in global terms, with a successful development expected to generate substantial value for Marengo shareholders and the nation of PNG.

Just out of interest, do you know why it will take Marengo another 2 years to complete the BFS?

Cheeeeers

 

[UPKA]

Re: MGO - Marengo Mining

certainly good news, the options look cheap atm compared to heads, give it few days, it'll pop up over the news headlines, then we'll see some serious SP movements!

Ok, i have js finished reading it, the capital cost is huge tho, bt their estimate first production time is within 4 yrs, which i think will take up to 5-6yrs in reality, as there will be obsticles. what we need now is the listing on TSX, to gain more exposure to overseaas investors.

 

[PBH]

Re: MGO - Marengo Mining

give it few days, it'll pop up over the news headlines, then we'll see some serious SP movements!

Hmmm..... I think many investors will still be trying to get their heads around that huge US$942M figure, and wondering how realistic the prospect really is of being able to raise this amount.

On the other hand; all Marengo has to do is issue 2.85 billion shares @ 0.37... piece of cake...

 

[Ruprect]

Re: MGO - Marengo Mining

Anyone else still following MGO?

These guys are still working away, increasing the resource. Very good announcement out today. I still think this one is a very good long term hold, with a massive resource and excellent management.

Rock chip and float samples from satellite prospects at Marengo Mining
Limited’s 100% owned Yandera Project (Papua New Guinea) have produced
significant gold, silver and base metal assays, including;
• 12.1% Copper
• 3.76% Zinc
• 0.79% Lead
• 0.83% Molybdenum
• 271g/t Silver
• 19.1g/t Gold

 

[Ruprect]

Re: MGO - Marengo Mining

Spec buy recommendation in the Oz today from DJ Carmichael.

Marengo Mining (MGO)
DJ Carmichael
Speculative Buy recommendation
12-month price target of 45c

IT doesn't come much bigger than the Yandera copper-molybdenum project that Marengo owns outright in Madang Province, Papua New Guinea. Marengo's most recent resource statement for the project says it weighed in at 661.3 million tonnes, at a 0.48 per cent copper equivalent grading. As things sit at the moment, Marengo is raising money so it can complete a bankable feasibility study for the massive porphyry Yandera system which could cost up to $15 million and would build on a Conceptual Mining Study. "All we can say about the project at this early stage is that we agree with Marengo in that commitment to undertake a bankable feasibility study at this stage is warranted," DJ Carmichael head of research Paul Adams wrote late August. DJ has also done its own assessment of the CMS and notes that Yandera could be a "significant producer" based on a 10-year mine life. Marengo is looking at ways of reducing capital costs. But much of the projects financials depend heavily on the pricing of both copper and molybdenum.

 

[Trader Paul]

Re: MGO - Marengo Mining



Hi folks,

MGO ..... looking for a serious low, over the next couple of days:

17012008 ..... negative spotlight on MGO

21012008 ..... minor and negative aspect

15-18022008 ..... 2 significant and negative cycles

19-20022008 ..... minor cycle

10-12032008 ..... 2 cycles and minor news ???

17032008 ..... positive spotlight on MGO ...

01-03042008 ..... 2 cycles and positive news expected,
that may have long-term consequences.

have a great day

paul



=====

 

[Duckman#72]

Re: MGO - Marengo Mining

Hi Guys,

With the spotlight on PNG at the present it might be interesting to have a close look at MGO. PNG has been strong on pushing for its own financial independence particularly through taking advantage of its mineral deposits.

Now that the Png Govt has agreed to preserve the Kokoda trail and stop FNT in its tracks what will this mean for MGO?

As I understand it MGO's holdings are also very close to Kokoda (and has world class mineral levels). Could there be a bit of "give and take" between the respective Govts. "You scratch my back I'll scratch yours" that could lead to an accelerated move forward for MGO (either through financial assistance, untangling of red tape, workforce assistance and/or additional specialist machinery).

Maybe I'm just reading to much into it, but the MGO share price has risen from low 20's to about 27 over the past week or so (on small volume).

Maybe I'm dreaming.

Duckman

 

[kirtdog]

Re: MGO - Marengo Mining

Any news on MGO I bought a small parcel recently because I liked its balance sheet for a bit of a punt..

 

[onshow]

Re: MGO - Marengo Mining

as far as i know they are developing there inferstructure as planned and have found considerable amounts of materials, the feasability study with be finished and annouced late in 2009 with i have no doubt will push the share price up nicely

 

[Sean K]

Re: MGO - Marengo Mining

There are so many little resource companies with charts like this.

Would have loved to have had the vision to see all of these fantastic opportunities a couple of months ago.

Wonder when the bears get back in control?

 

[kirtdog]

Re: MGO - Marengo Mining

well i got in at 0.075, would be a good exit now for a bit of extra cash question is will it keep going up??? And will i get the opportunity to get in that cheap again??

 

[onshow]

Re: MGO - Marengo Mining

This is a great share to be in right now and at the price you bought at i deffenatly wouldnt be selling i have been buying up at every chance i had in the past 3 months ny average is about .06 cents now and very happy if that with the great out look of its long term future and when these feasibilty studies comes out later in the year im sure it will send the share price throgh he roof! ill be looking to pick some more up monday before it gets away from us totally! im a long term holder and with no debt and good cash in the bank i can see it going wrong!!

 

[UPKA]

Re: MGO - Marengo Mining

when these feasibilty studies comes out later in the year im sure it will send the share price throgh he roof!

Anything to back up thisi claim? as far as I know, when their pre-feasibility study came out with capex of over 1.6b (if i remembered correctly), especially under the current economy condition it'll be hard to get funding or joint venture partners that has that sort of cash... BHP has once explored on the tenant before, pulled out due out due to the huge capex and low grade of the mine (higher production cost).

 

[onshow]

Re: MGO - Marengo Mining

Anything to back up thisi claim? as far as I know, when their pre-feasibility study came out with capex of over 1.6b (if i remembered correctly), especially under the current economy condition it'll be hard to get funding or joint venture partners that has that sort of cash... BHP has once explored on the tenant before, pulled out due out due to the huge capex and low grade of the mine (higher production cost).

since then they have found alot more in the ground then first expected and all the new drill holes still need to be reported! so expecting a good feasibility study to come out in my opinion! But please do your own reasearch !

 

[onshow]

Re: MGO - Marengo Mining

Anything to back up thisi claim? as far as I know, when their pre-feasibility study came out with capex of over 1.6b (if i remembered correctly), especially under the current economy condition it'll be hard to get funding or joint venture partners that has that sort of cash... BHP has once explored on the tenant before, pulled out due out due to the huge capex and low grade of the mine (higher production cost).

as for higher production costs that was due to the harsh terrain and poor access to these areas of interest which have now been rectafied

 

[YOUNG_TRADER]

Re: MGO - Marengo Mining

looks like it took a little over 2yrs for my valuation report to reach George Soro's but he finally got it and after reading looks like he's decided to invest :


Glad to see this one getting off the ground with some major major backing now


Not holding but just watching with a smile on my face, good luck Marengo and god speed!

MGO​

Mkt Structure

Shares
125m
65m 20c 28/2/08 Options

Mkt Cap @ 20c = $38m (Includes $13m worth of options)
Mkt Cap @ 30c = $57m (Includes $13m worth of options)
Mkt Cap @ 40c = $76m (Includes $13m worth of options)
Mkt Cap @ 50c = $95m (Includes $13m worth of options)


Cash
$8m + $13m from opies = $21m


Projects

Yandeera Copper/Moly + Gold, 100%, PNG

This project has had something like $30m spent on it be previous explorers such as BHP who left the project in the 1970's due to very low commodity prices,

BHP outlined a resource of 1.143 Billion tonnes @ 0.33% Copper + 0.015% Moly = 0.5% Copper Equiv

Marengo did some intial work last year to confirm all the previous work and estimates and came out with a first pass intial JORC of 371Mt @0.35% Cu + 0.014% Moly = 0.49% Cu Equiv

A new JORC is due out very shortly and should be in the order of say 500Mt-600Mt@0.5-0.6% Cu Equiv

Its only a matter of time however before MGO deliver a 1Billion tonne + JORC grading 0.5% Cu Equiv as we know its there, its just not JORC compliant as the estimation was done pre 2004 when the JORC code was introduced.

Of significant importance is the fact that about 30kms to the North, Chinese firms are developing the large Ramu Nickel Mine and thus alot of the infrastructure costs such as power roads and even transport are mostly taken care of.




Value Comparison
The most obvious comparison is with PMH, Pac Mag which went from 20c - 60c over 2 days after releasing a JORC for its Ann Mason deposit in Nevada, it was 810Mt@ 0.44% Cu Equiv, HOWEVER PMH's deposit has about 100m - 200m of overburden soil, ie the mineralisation doesn't really start until you get 100-200m down, thats alot of top soil/waste soil

In contrast MGO's Yandeera's mineralisation is from surface! ie very very low waste and top soil

Now PMH at 50c = Mkt Cap of $75m
@ 75m MGO should be at 40c


Yandeera EV (Take Over value)

Now the best way to value a large Copper deposit is on an EV per lb basis, generaly speaking large copper deposits have an EV per lb basis of between 2.5c as an absolute minimum all the way up to say 25c per lb based on grade, how deep the deposit is, infrastrucutre, risk and so on



Using the lowest EV of 2.5c per lb and Yandeera's current 4Billion lb's Copper Equiv = $100m = 50c MGO

Assuming the New JORC comes in at say 500Mt@0.5% Cu Equiv = 5.5Billion lb's Cu Equiv @ 2.5c per lb = $137.5m = 72c MGO



Valuation

Current EV Yandeera = $100m
Expected New JORC = $137.5m

Cash + Options = $21m



Current Value = $121m = 63c

Expected New Value = $158.5m = 83c



Summary

There is alot of info on MGO's web page so if your curious where I got alot of my information from go there,

There is also a few articles out there that recommend MGO as the next Tethyan Copper type takeover,

For some reason the Aussie Mkt sees PNG as risky which is crap, the country depends on mining for its GDP so it will always assist, moreover it is corrupt so if you allign Govt and Company interests you won't have any problems, the PNG gov't super fund has invested in MGO so I'd say the Gov't will ensure MGO gets approvals for everything they need so as to maximise MGO value

Finally MGO is looking to list on the TSX or North American mkt later this year, management have been told that given their current position where they listed on say the TSX their Mkt Cap would be 2-3x what it is now.

I expect a NEW JORC soon as well as more spectacular drilling intersections ie 81m at 2.39% Cu Equiv

Enjoy

 

[UPKA]

Re: MGO - Marengo Mining

good old MGO... remembering trading it a few yrs back. great fundermentals, but it will struggle due to the lack of funding for drilling and development. The company is still at infant stage, unless it gets a big miner's backing or get a farm-in partner, it'll be a difficult journey. HOWEVER, with George Soros backing it now, it certainly will attract a different kind of investors...