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

To: AlphaRomero who wrote (54425)	12/20/2007 9:09:13 AM
From: Mr. Aloha	Read Replies (2) \| Respond to of 78418

Wow -- I've never seen an NPV@3% in a pre-feasibility study, nor assumptions that 16.7 million options and warrants at an average exercise price nearly double the current stock price will be exercised, as well as assuming a significant amount of additional resource will be added while also ascribing $10 million of value for exploration prospects. Definitely take this report with a grain of salt -- there's no way the pre-feasibility study can make these assumptions.

To: AlphaRomero who wrote (54425)	12/20/2007 12:49:32 PM
From: Mr. Aloha	Read Replies (1) \| Respond to of 78418

Just ran a few numbers on MMG vs. the "Comparison Table of Small Cap Silver Companies" on page 12 of that report. Even just using 4.9 billion lbs. zinc at a high 5% cutoff grade, that would be 445 million oz. AgEq using their assumptions. MMG's AMC using their calculations would be about $75 million, so MMG's AMC/AgEq oz. would be about $.17 vs. the $1.94 average, or less than 1/10th the valuation of the average, and that's without counting any of their silver. Even if you completely ignore the wold-class zinc deposit and use straight Ag rather than AgEq, MMG would need about 39 million inferred oz. to get the $1.94 average. With their 4 drills working 2 shifts on their huge high-grade silver district, I think they'll be able to prove up far more silver than that (and may have already when added to their existing database), thus more than justifying their market cap based solely on the silver. I don't know of any other juniors doing that much drilling, with their own assay lab helping to direct silver exploration, all while completing a feasibility study on a world class zinc mine. Considering that the similar Skorpion oxide zinc mine (with far less infrastructure and more complex metallurgy, and doing the oxide zinc processing on that scale for the first time ever), which was put into production by the same team that's doing MMG's feasibility study, was bought out at a far higher valuation than MMG's current market cap upon completion of their feasibility study when zinc was much lower, MMG's an amazing value no matter what happens to zinc prices.