Yes, MTS has the 'goods' w.r.t. zinc/lead, but they have very little silver, are very early stage, and in Northern B.C. they're subject to high labor costs and lack of infrastructure. Still, with Teck and Korea Zinc jointly having similar zinc/lead deposits only 20 km away, and with Lundin increasing their stake again last month at $1.30, it seems like a pretty good risk/reward play for the long term here in the .80's. I think there's a pretty good chance one of these big boys buys them out at some point.
MMG is much later stage with a much better location, labor costs, infrastructure, etc., along with lots of silver they're proving up, so my MMG position is many times the size of my MTS position. However, it's required lots of patience awaiting the news that we're expecting to finally see this year. That news will likely bring in lots of institutional interest, and they probably have an even higher chance of getting bought out, given the Skorpion/Anglo/GTI precedent.
It's been a tough market for juniors, especially the base metals, but patience with the best plays will be rewarded. |
