Mantra Resources Limited (MRU-ASX: A$3.80) Update. August 11, 2009 BUY, High Risk* 12-month target price: A$5.30 92% Success Rate Confirms Uranium Continuity and Grade.
Company Description. Mantra Resources is an Australian based uranium development company with projects based in Africa. Its flagship is the Mkuju River Project in southern Tanzania. The Nyota deposit has an inferred resource of 35.9 million pounds of U3O8. A pre-feasibility study is underway.
Conclusion. We recommend Mantra Resources as a BUY with a 12-month share price target of A$5.30. Milestones are plentiful and should help continue to build further investor interest. The company has shown the ability to set goals and achieve them - a testament to its management and technical teams. As infill drill results are presented to the market, our expectations are confirmed that Nyota will ultimately provide a large, shallow, consistent uranium deposit.
• TSX Listing - On schedule for Oct-09 this will provide greater exposure. • Pre-feasibility study - Due in Q4/09 with focus on reducing costs. • Metallurgical testing - Optimizing recoveries within the Pre-Feasibility. • Resource Upgrade - Goal of 25-30 MM lbs U3O8 indicated by Nov-09 • Bankable Feasibility Study - Scheduled to commence by YE 2009.
Please see Disclosures and Disclaimers on the last two pages of this report. 7 page PDF at http://www.minesite.com/fileadmin/content/pdfs/Brokers_Notes_August_09/MRU081109.pdf
MRU Price at posting:
$3.73 Sentiment: None Disclosure: Not Held
