I think the market as a whole is soft at the moment, rather than MKO as a stock by itself.
Whether it is because of the 'sell in may and go away' notion or the strength of the AUD taking it's toll on our resource sector, especially some of the specs, MKO shouldn't be seen as being dumped / sold off in isolation.
Previous High
Interestingly, the stock reached a high of 30c in the last few weeks, on anticipation of the Anthill and Goongarrie JORC results. At the time, I think it is fair to say the general consensus was that the market was expecting a JORC in the region of 100k ounces for both tenements.
The Anthill JORC alone exceeded expectations, coming up with 160k ounces @ 1g/t. The Goongarrie figures are still pending, however, given that the grades from drilling there were higher than Anthill's, would be reasonable to expect a higher grade but smaller ounce resource estimate for Goongarrie ? (perhaps nathan or 5hareholder could comment ?)
Anthill and Goongarrie are also the smaller of the MKO tenements, these are their 'MTT' (mine, truck and treat). We may have a upwards of a 200k ounce JORC from these 2 alone very shortly, double our initial expectations.
Upcoming Major Exploration Project
As per the quarterly, they are planning their major exploration projects at both the Bullabulling and Windanya tenements. Going by the diagram on pg 2, these dwarf both Anthill and Goongarrie in size.
Bullabulling - GGG have ground north and east of MKO's tenements here and have a current reported JORC of 1.98 million ounces @ 1.48 g/t Au, with further results to be included.
Windanya - From what I have gathered, quite a few companies have pieces of this area. Siburan Resources have some reported historical hits here of:
Depending on drilling timeframe etc, given the above estimates and comparisons, I conservatively expect MKO to have at least a 1 million ounce JORC by the end of the year. Given the grades of Goongarrie, Bullabulling and Windanya, I would expect it to also be of a grade higher than 1.5g/t.
Given that MKO's ground is at Kalgoorie as well, it is also benefitial in that the majority of the facilities are already in place so the capex should be low. Again, as they have the potential to 'fast track development of an open pit resource as a mine, truck and toll operation', the opex should be relatively low as well.
IMO, anything under 30c is undervalued. Of course DYOR.
MKO Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
