Greenshore, well said. But i can tell you that i am quite familiar with their Anthill deposit and have invested quite heavily and profited from companies who had produced from historical mining camps. The main key in these situations is in proven management....
In relation to their projects, the current thickness displayed in their drill results already indicates that this is different from a narrow vein system. In AXM's case, they were also utilising a really high cutoff in their resource calculations but the real reason it's share price is so low is due to the management's resolve to "mine the stock market" rather than keep their overheads costs low.
They have issued 3.92 Billion [yes, that's BILLION] shares...but have a look at their market cap...it is sitting at $42 million. That is not sound management of shareholder's funds....ultimately, they work for us. Many investors do forget that sometimes...
There is another key difference that needs to be pointed out here. MKO management is wanting to have a simple mine-truck-treat operation in both Anthill and Goongarrie. Their major focus, however, is on Bullabulling and Windanya. The previous two projects are going to be providing immediate cashflow while they start their drilling campaigns on the latter two projects. Management are not going for a million ounce deposit on Anthill and Goongarrie...just viable economic deposits with low capex upfront. Economic viability is the catch phrase on those two projects.
I am well aware that an ideal vein is usually straight, thick and highly consistent....and that most veins aren't like that. Some of my juniors overseas have lodes that twist and get displaced by faults and do continue to have lower content. However, the dynamics of MKO's primary and secondary goals are different from the garden variety gold juniors. I do get what you are putting across though...
Ultimately their management of overheads and issuance of shares is also a major factor in my investing in them. I need all three factors to be ticked off...
I will be waiting for their pre-feasibility numbers though...should be interesting. In my opinion, there is no doubt that Anthill is a viable near term cashflow operation for MKO. Bullabulling is another ballgame altogether...its blue sky if they hit a discovery hole there.
MKO Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
