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Additional information
Additional Information
Market: ASX
Sector: General Mining
Epic: ASX:MMW
News: Latest news
Web Site: Magma Metals
Other Articles: 21-07-201007-06-201002-06-2010

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Saturday September 04, 06:00Serving up support at Babcock

Support services have been among the worst performing sectors over the past month as revenue fears from the government’s austerity measures weigh heavily on the sector.

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Friday September 03, 11:40 Goldcorp snatches Andean Resources in $3.6bn deal, trumping Eldorado`s earlier bid

Both companies are vying for Andean`s Cerro Negro gold project, which is an advanced-stage, high-grade vein system, comprising 215 square kilometers. It currently has indicated resources of 2.54 million ounces of gold and 23.56 million ounces of silver, while inferred resources total 523,000 ounces of gold and 3.12 million ounces of silver.

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Wednesday September 01, 10:25Green Dragon Gas reports significant growth as China’s thirst for energy continues

China's thirst for energy resources has continued with an increased focus on domestic supplies of gas, Green Dragon Gas chairman Randeep Grewal said today. In the company's interim results, [...]

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Magma Metals

Magma Metals

Magma Metals (ASX: MMW) is a mineral exploration company with precious and base metals projects in Ontario, Canada and Western Australia.

The Companys principal asset is the Thunder Bay North Platinum Project in Ontario - a greenfields Pt-Pd-Cu-Ni discovery made in 2006 which is currently the subject of a Scoping Study. Magma Metals listed on the Australian Stock Exchange in June 2006 and the Toronto Stock Exchange in November 2009 and is based in Perth, Western Australia.

Thursday, March 18, 2010

Wise-Owl puts speculative buy on Magma Metals

by Wise-Owl.com, Tim Morris company news image

Wise-Owl has produced a report on Magma Metals (ASX: MMW), with a Speculative Buy rating on the stock.

MINERAL discoveries tend to put a rocket under the share prices of junior resource companies. Rags-to-riches stories capture many hearts, but often mixed profits for investors buying after the discovery hype.

The transition from explorer to producer is a long one, and so elation following early success with the drill bit needs to be balanced with the realities of planning and funding a profitable mining operation. Magma Metals (ASX: MMW) is a classic case in point.

Soon after the company listed in 2006, a platinum discovery at its Thunder Bay North project in Canada sent its share price soaring from under 15c to more than $1 in a week.

Unfortunately investors buying into this 566 per cent surge would have been hard-pressed capturing a profit, as most of the gains were surrendered within a few months. There haven't been more fireworks during the past three years and the hype has passed.

So with subsequent exploration work yielding positive results, a period of share price growth could be looming. The company has established a maiden resource estimate for the project equating to 690,000 ounces of platinum, 90 per cent of which is amenable to open pit mining.

The shallow nature of the resource should lower mining costs, while nearby infrastructure reduces the financial burden of development. The project is accessible by road, just 45km from the main town of Thunder Bay, and isn't too far from grid power.

The project area also spreads just 20km-60km southeast of an existing polly-metallic mine and processing facility, which is operating below capacity.

An infrastructure sharing agreement may assist project economics, but we are comfortable with Magma's ability to go it alone.

The company has a strong institutional presence on its share register, the largest of which is mining heavyweight Anglo American (12 per cent). Anglo's interest is a testament to Thunder Bay's resource potential, which Magma suggests could be substantially increased by further drilling. In light of this exploration upside, and scoping study results due mid-year, we rate the stock a speculative buy.

Wise-owl.com is regarded as one of Australia’s leading independent research houses. If you would like to receive a complimentary sample of their Small to Mid Cap Equities report, please click here

 

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