I own a ton of it. I like it. IMO it has more potential than any stock discussed here by far that is not just a flash in the pan and has a bit more stability than many. Why? 5 billion lbs of drill proven zinc with silver and copper credits. I really think $20-50 bucks stock share price may not be out of the question but do your own DD and IMO only. IMO A TRUE NO BRAINER.
<Reserva International, an independent contractor, specializing in resource evaluation was retained to complete a block model evaluation of the oxide zinc data. The results, using a 5% cut off grade (using grades greater than 5%) and with blocks of 5 meter dimensions, estimate 17,926,988 metric tons with a grade of 8.78% zinc for the Iron Oxide Manto and 5,431,050 metric tons with a grade of 12.08% zinc for the Smithsonite Manto>
metalin.com
At an average of 8.78 % zinc that is 2,230,060 tons of pure zinc or 4,915,053,091 lbs.
But here is the kicker they just released a hole of 29% zinc over 20 meters and a potential new manto:
<For Release June 1, 2006—9:00 A.M. ET Contact: Merlin Bingham
(208) 665-2002 Metalline Mining Company Commences Drill Program at Sierra Mojada Coeur d'Alene, Idaho – Metalline Mining Company (MMGG:OTCBB) has contracted World Wide Exploration S.A. de C.V. to conduct a 3,500 meter surface diamond drill program at Sierra Mojada, Coahuila, Mexico. The drill has been mobilized and is drillingthe first hole.
The drill program objectives are to explore the western continuation of oxide zinc mineralization and to test polymetallic, copper silver zinc lead, targets. A high priority area for additional oxide zinc mineralization is located 2 kilometers west of the San Salvador mine in the vicinity of the San Antonio mine where North Limited
drilled 2 holes and Penoles drilled an additional 5 holes. These holes intersected near surface oxide zinc mineralization which is amenable to low cost open pit mining. The mineralized interval begins 20 meters below surface and is 100 meters thick. Penoles drilled SMW4A 100 meters south of North’s NSM1. The projected near surface horizon
was weakly mineralized. However, the hole intersected a spectacular deeper horizon between 175meters and 199 meters, 24 meters with a weighted average of 29% zinc.
This discovery is possibly a new manto, the hole will be twined and offset holes will be drilled to explore its extent.>
metalin.com
<Metalline Mining (MMGG: OTCBB) (MMGG.OB --symbol works at Yahoo! Finance.)
Just under 50 million shares, fully diluted.
Share price: $2.39/share
Market cap: $119 million.
Two years ago, as zinc prices just began to move up, MMGG spent $8 million and drilled up 5 billion pounds of zinc resources, at high grades 8-12% zinc, which it can mine at a lower cost than nearly all competitors, at $.25/lb. (Zinc is at $1.14/lb., and is set to rise for the next several years, many reliable industry sources say.)
MMGG is currently working on a final feasibility study, so all my numbers are preliminary.
MMGG aims to produce nearly 400 million pounds of zinc per year (which gives a ten year mine life). At current zinc prices, MMGG could probably pay back mine construction costs within one year.
If MMGG earns $1.14 - .25/lb x 400 million pounds, that's just over $350 million per year in earnings.
Those kinds of earnings could drive the market cap to a 5-10 times multiple of that. The share price could easily hit $10-15/share, or higher, and the share price could hit that sooner if the company is bought out by a major mining company.
MMGG also has silver. MMGG has zinc and silver in Mexico at Sierra Mojada, which is a Silver District, which produced silver in grades of over 30 ounces of silver per tonne!
"The Sierra Mojada Property has produced in excess of 10 million tons of high-grade ore that graded in excess of 30% lead, 20% zinc, 1% copper and 1 kg (31 ounces) silver per ton that was shipped directly to the smelter. The district has never had a mill to concentrate ore. All of the mining was done selectively for ore of sufficient grade to direct ship; mill grade ore was left unmined."
(That's 310 million ounces of silver produced historically. Who knows how much silver is left?) That's the question with an explorer.
MMGG has proved up the zinc, but has not yet focused on the very high grade silver.
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Final disclaimer: I own shares of MMGG, and nobody has paid me to send out this email. This email is going out to nearly 18,000 opt-in emails.
I offer a "look at my portfolio", a once-a-month peek, if you want to know the relative percentage of each stock that I own. If you want to try it out, I think the best time to subscribe is right after the start of each month, so wait a couple of weeks.
Sincerely,
Jason Hommel>>>
silverstockreport.com
<Here's an apt comparison. EuroZinc Mining Corp. (EZM) is aiming to produce 200 million pounds of zinc per year. MMGG is aiming to produce just under 400 million pounds of zinc per year.
EuroZinc has a market cap of $1.6 Billion dollars, or $1600 million.
MMGG has a market cap of $192 million. (50 million shares at $3.85)
EuroZinc already rose in price much more than ten times since mid 2003.
MMGG will likely catch up to, and exceed the market cap of EuroZinc!
If MMGG merely matches the market cap, including a $300 million dilution at $10/share (to finance the mine construction) that will be an additional 45 million more shares (to allow for a half warrant), and MMGG will rise to $16.84/share. (That's $1600 million / 95 million shares = $16.84.) But MMGG may well exceed that, because if zinc prices are slightly above a modest $2/lb., MMGG could be earning about $800 million per year, which, at a P/E of 10, could point to a market cap of $8 billion! If that market cap is reached, at 95 million shares, that's $84/share for MMGG!>>>>>>>>>
Message 22434495
The silver averages in these releases are huge:
stockwatch.com
metalin.com |
