Here is a company that I only recently took a look at that I believe warrants immediate attention. For those that do not recognize the name you may remember it as Cherry Lane Fashion (CFG). The name was changed earlier in 1998 to reflect the direction that the company is embarking on, namely mineral exploration. Before discussing the merits of the companies assets, I believe its important to begin with the people behind the deal.
This is one aspect in which the company is stacked with thoroughbreds. Nell Dragovan is a proven winner as is evident in her influential hand in the Hemlo Gold discovery with Corona. Her husband , Chet Idziszek, was also involved in this play. As well Chet was the chief geologist at the Eskay Creek discovery. Not a bad pair to have on board. Dan Matthews, along with the above mentioned is involved in Madison Enterprises. Also I believe he some sort of tie-in with a publishing company out of Florida that puts out investment newsletters. Promotion is not going to be a problem here.
Another important person on the board is Abdullah Basodan who is president of the privately owned Nimir Petroleum Co. This is an international oil company with billions in assets. The rumour mill has it that some of the excellent junior properties under Nimir's control will be vended into MCE in the not too distant future.
Douglas J Brown (Director of a Swiss Security firm) and James Stewart round out the board of directors.
The flagship properties which are located in Peru are a 65%/45% J/V with Ulysses Gold (URI). They are called the Leoncocha and Halley Properties and neither have ever seen a drill put to them. However mining did occur on them 50 years ago and some adits are still in shape. Here are the sampling results that are on record:
Locations Continuous Chip gold (g/t)
Sample Meters
Quilca Breccia; Open Cut 6 17.62
Quilca Breccia; Open Cut 13.90 4.38
Quilca Breccia; Open Cut 24.90 3.11
Quilca Breccia; Galeria 3739 10.20 3.72
Quilca Breccia; Galeria 3739 43.05 5.78
Quilca Breccia; Upper Adits 10.75 5.03
Quilca Breccia; Galeria 3781 6 3.59
Obviously this is a very prospective target and warrants drilling. A drill campaign is about to start.
The property lies about 8 hours from Cusco, Peru which is the access town to the legendary Inca city, Machu Pichu (sp?). The exploration target Quilca Breccia has an exposed dimension of 150m x 160 m with a vertical extent of 85 m minimum. There are many other targets on the property. The potential here overall is for a multi-million tonne bulk tonnable deposit with average grades similar to the ones above.
At first glance the share structure doesn't seem great with 32 million on a fully diluted basis. However, insiders control most of the float. Between Dan, Nell and Chet they have roughly 9 million shares and also took down almost the entire 4.8 million unit private placement at $0.16. With other directors management controls roughly 22.5 million of the 32 million f/d shares. Including friends and family one could assume that 25 million or even more of the F/D stock is in their control. One can say that they put their money where their mouths are.
Cash on hand is well over $2 million or so and if everything is exercised then it will put another $3.4 million in the bank.
This company deserves attention at the moment as it has made a significant technical breakout on the charts when it broke $0.60 on volume. The web address is maracote.com
I open the floor for discussion here now
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