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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (12495)	6/1/2006 4:21:15 PM
From: jackjc	Read Replies (1) \| Respond to of 78416

The mineable lbs of zinc etc depend on the price, at these prices there is more profitable ore for example. So the old numbers at .35 zinc are understated IMO, and do not include the other zinc, lead, and silver-cu depostis. I think a 5% of ore in the ground (when fease proven) might be reasonable as one of many ways to get a rough idea of value. And considering the total ore package maybe your value figure is in the ball park. Also at 50M sh there would be close to $20M US extra cash from the wts which are far far in the money. Depending on the fease figures and the need to get a handle on all the other deposit values, I personally would not entertain possible buyout numbers at less than 5%.

To: loantech who wrote (12495)	8/14/2006 9:40:26 AM
From: Mr. Aloha	Read Replies (2) \| Respond to of 78416

re: valuing MMGG at 10% of what they have in the ground, an article on Barrick's bid for NovaGold last week (http://www.resourceinvestor.com/pebble.asp?relid=22356 ) states: There are many ways to value juniors, including the following. The late Julian Baring, used a simple rule of thumb for valuing metal shares. "Buy up to 10% of the in situ value of a deposit using current metal prices, hold up to 40% and sell above 40% taking no prisoners!!!!" The article goes on to use NovaGold's total resources, most of which are inferred, to value NovaGold. MMGG, as a U.S. company, has no "inferred" resources, though it probably could hire a certified Canadian geologist to estimate a huge "inferred" resource using their many thousands of promising drill samples separate from their proven zinc. Just based on their independently verified 5 billion pounds of zinc (http://www.metalin.com/03-18-05.pdf ), which is actually much more than that using a more realistic cutoff grade lower than 5%, MMGG is valued at well under 2% of metal in the ground. If they estimated "inferred" resources and used a lower cutoff grade as with NovaGold, it's probably valued around 1% of metal in the ground. For a late-stage project that could be one of the biggest new zinc mines in the world, that's an amazing bargain, especially considering their safe North American location with great infrastructure and weather. Once they get off the bulletin board, the upside for MMGG is staggering.