From Stockhouse:
Special Update -- Mutapa Gold Corporation [MUA.V]
Symbol: MUA
Exchange: VSE
Current Stock Price: $1.90 CDN
Website: mutapa.com investor1.com stockhouse.com
E-mail: info@mutapa.com
Telephone: (604) 669-4039
Shares Outstanding: 2.8 million
Mutapa [MUA.V] stunned traders today by jumping more than 30% on relatively strong volume -- trading more than 10% of their outstanding shares. Following our Special Alert on Teusday, MUA has appreciated more than $0.50/sh. Urgently, we have prepared this follow-up report, to bring you up to speed on what the market doesn't know about MUA
MUTAPA: The Prime Target
Mutapa is poised for a very strong run after assays on the 40-metre intersection are announced. The warning shot was fired on Tuesday when that intersection was announced. Wednesday's trading confirmed that MUA is being taken seriously. Unfortunately, few investors realize how stunning the results on those assays might be.
MUA announced that the Brinex drilling intersected 25 feet of 5% copper in the 1960's. This was Hole #DDH135. Historically, that sounds just fine. But, MUA's drills, last week, were turning about 30 metres below that spectacular intersection when MUA hit 40 metres of yet undetermined mineralization and alteration. We believe, based on the geological study of this property that the best is still to come. The Brinex hit may have just been the tip of the iceberg and last week's drilling may have found a bigger part of that iceberg!
In the 1997 geophysical survey, a Transient EM (Deep EM) identified an 8-channel conductor. This strong conductor was traced for a length of 1.5 km. In MUA's prospectus, we find several pertinent and illuminating passages:
"The magnitude of the EM response in this area suggests that previously undrilled massive sulphide could be the cause of the anomalous responses. Mineralization, encountered in both DDH 137 and DDH 136 could not have caused such a large magnitude anomaly. Thus, it can be inferred that the drill holes either overshot or stopped short of a MORE MASSIVE SULPHIDE BODY." (Our capitalization)
"Section 000 and Section 500 East encountered a weakly mineralized chlorite sericite schist zone, which appears to be dipping to the southeast. The EM responses in these two areas are of a very high strength, indicating conductance in a more massive orebody. Therefore, the high strength EM conductors indicate the presence of a deeper, more massive zone which was not penetrated by the shallow drill holes."
"The vertical projection of the PEM conductor in this area indicates that DDH 135 intersected the highly conductive horizon and is still open downdip and along strike."
"This hole was stopped in chlorite schist containing sphalerite mineralization." (Sphalerite is the most common and important mineral containing zinc.)
"These holes appear to have been collared in the chlorite schist zone which, in places, contain abundant stringer sulphide mineralization. With respect to the vertical projection of the main conductive zone, Section 1200 East may have clipped stringer mineralization related to a deeper more massive orebody."
"In correlating Brinex drillhole data with the surface trace of the major EM conductive zone between Duck Pond and Little Deer Pond, it appears that the 1960's drilling intersected stringer and stockwork sulphide mineralization that probably constitutes a feeder zone to a more massive sulphide horizon which may occur at depth within the chlorite schist."
"It also appears that past production at the Little Deer Mine occurred closer to the surface than the conductive zones outlined by the present transient EM survey."
It appears that Mutapa Gold is on the brink of a major discovery announcement, as early as Friday afternoon and as late as next Wednesday. Assays should show a significant quantity of copper and zinc, possibly gold and other minerals. The company's president believes a 2-percent copper intersection would a good start. That is probably the downside expectations on MUA's first hole.
If current drilling confirms the high strength EM conductor and previous results, then we may see one or more intersections announcing 5% or better copper and in the ballpark of 1% zinc. There may also be gold values.
We continue to maintain our position that MUA's shares should double over the next week. However, we are now forecasting that MUA should also be among the top 3 or 4 traded issues after assays are announced, despite the company's relatively small number of shares outstanding.
From the Insider Report at stockhouse.com |
