Marengo Mining (MGO)

[Huang Chung]

I picked up a parcel in MGO last week at 31.5c.

Their Yandera project is a very large tonnage, low grade copper molly deposit in New Guinea.

DFS is probably due in the next few weeks, which should add a few more pieces to the puzzle.

EV around $230m, with $70m in the bank.

Soros Fund holds just under 20% of the company.

Couple of issues for me:


Grade
Tailings disposal
Eureka Report are looking at MGO favourably, as per the link below:

http://www.eurekareport.com.au/iis/iis.nsf/lpages/MEZT-8AP7JA?opendocument


Latest company presentation:

http://www.marengomining.com/reports/Marengo_MinesandMoney2011_PRINT.pdf

[trackers]

Wow, some pretty massive intersections there!! Pity about the very low grade. Will be interesting to see what they think their margins are going to be. In a quick comparison with YTC, I like YTC a lot more, though these guys are a bit further down the track... Ex PM on the board has to be good too, in a place like PNG

Will be watching further drill results with interest

[drillfix]

Looks like a severe game of Monkey in the middle at present with Buyers cued up at 31c for 1.2 million shares & Sellers also cue up 32c for 1.1 million shares.

I wonder if it is the same buyer and seller playing both sides? Very likely you know, but will be interesting to see how things pan out.

[Huang Chung]

Heard today about one big seller who's been around for a while, so maybe when they're done we'll see some movement.