For new investors, i have left a rehash of a previous post of mine. As always, this is just my opinion and all investors should do their own due diligence.
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MKO provides a good opportunity to get into a gold junior. Current market cap is less than $12 million with significant cash in its treasury.
I have left the timeline of MKO's drill program since inception in late 2010.
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MKO Timeline
11 Oct 2010
Planned a 21 hole [2010m] RC drilling program on its Anthill Gold Project. Previous 10 hole RC program was done by Placer Dome in 2002-2003 when gold price was at $300-400/ounce. Former gold hits by Placer Dome drilling were the following;
* 50m at 1.42g/t Au * 3.8m at 23.8g/t Au * 22m at 1.63g/t Au * 14m at 2.32g/t Au
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21 Oct 2010
Drilling commences on Anthill Gold Project
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8th Nov 2010
Interim drilling results on Anthill Gold Project below;
* 34m at 2.47g/t Au including 4m at 10.19g/t Au [from 55m] * 38m at 1.93g/t Au [from 52m] * 21m at 1.52g/t Au [from 94m]
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19th Nov 2010
MKO completes 21 hole drilling program on Anthill Gold project and intersects thick gold on ALL 21 DRILL HOLES including;
* 49m at 1.24g/t Au * 6m at 6.06g/t Au including 2m at 16.43g/t Au * 36m at 2.47g/t Au including 4m at 10.19g/t Au
Program greatly exceeds company's expectations and has now defined two broad and consistent zones of gold mineralisation on the project. Strike extent and depth remains ope. As such, further drilling is planned for Feb.
Drilling program now moves to their other gold project - Goongarrie project.
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10th Jan 2011
MKO decides to commence a 2,600m drilling at the Goongarrie project on the 10th of Jan 2011 and follow through with another 1,700m drilling program on their Anthill project.
Results due out in Feb 2011.
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9th Feb 2011
MKO returns high grade gold on ALL 28 HOLES at their Goongarrie project at shallow depth;
* 6m @ 5.71g/t Au including 2m @ 10.52g/t Au * 2m @ 5.88g/t Au from 34m * 1m @ 20.89g/t Au from 37m * 3m @ 5.89g/t Au from 11m * 2m @ 13.79g/t Au from 7m * 4m @ 7.81g/t Au including 7m @ 28.35g/t Au from 7m * 7m @ 4.87g/t Au including 1m @ 23.76g/t Au from 12m * 1m @ 5.12g/t Au from 37m
The results have positive implications for a redevelopment of the open pit at Goongarrie. MKO starts the resource modelling process with the results and moves the drill rig back to Anthill.
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25th Feb 2011
MKO reports that their second drilling program at the Anthill project intersects broad zones of gold mineralisation again, including;
* 44m @ 2.40g/t Au including 1m @ 32.40g/t Au from 75m * 42m @ 2.10g/t Au including 3m @ 11.59g/t Au from 69m * 38m @ 1.93g/t Au from 52m * 49m @ 1.23g/t Au from 107m * 32m @ 1.81g/t Au from 89m * 24m @ 1.53g/t Au from 50m * 6m @ 6.06g/t Au from 40m * 15m @ 2.34g/t Au from 46m * 21m @ 1.64g/t Au from 36m * 20m @ 1.52g/t Au from 94m * 19m @ 1.47g/t Au from 49m * 11m @ 2.33g/t Au from 89m
MKO is now doing a resource modelling of the Anthill gold project. Maiden resource figure of Anthill and the results of resource modelling at Goongarrie should be out by end of March 2011.
MKO also commences Aeromagnetic surveys at the major Bullubulling and Windanya Project areas in Feb 2011 which is also now complete.
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Comments - These guys have done 3 RC Drill programs and conducted multiple aero-surveys on all of their projects in the space of 3 months! With that, they have hit thick gold interceptions on ALL DRILL HOLES at both of their near term development projects -i.e. Anthill and Goongarrie.
Best to keep in mind that these two gold deposits will only need to be dug up and transported to a nearby mill to be treated....no significant capital infrastructure is needed. With Gold at $1435/ounce, near term cashflow is guaranteed to make itself into the treasury and progress their other projects thus keeping share dilution next to nil.
In my opinion, their market cap should be conservatively at $40 million once the brokerage firms have cover on it. I do also think that some big buyers are taking their positions before news and coverage. Once MKO conducts their PFS numbers, they will be valued much, much higher.
Current market cap is at circa $12 million!!!
Aside, these guys had spent $296,000 on exploration during the most recent quarter to hit these gold intersections at both projects.
Cash at the end of the quarter sits at $4.32 Million and they now have a programmed exploration expenditure of only $500,000 for the March quarter.
That is great money management and utilization of shareholder funds to create underlying value in their current assets. Of course, these projects are being led by a proven team - Dragon Mining [James Searle]. Management and substantial holders own 45% of shares on issue. Extremely tightly held.
As always do your due diligence....and invest accordingly.
MKO Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
