TSE:MNM
Megellan Minerals is a mineral junior focused on the state of Para in northern Brazil. Founded as a private company initially in 2005 and going public in 2008, the company has interests in a number of projects some containing large near surface mineralisation.
Still An early stage play but at the site of one of the largest gold rushes ever (from 1978 - 1995) the deposit looks exciting. With most of the easy alluvial gold gone (25-30million ounces) to target is now the source rock from which this gold was released from.
After good drill results a very good land position and size and a wealth of experience in the region (15 years)
the projects look good enough for Newmont Mining(4%) and Kinross Gold(2%) to be significant shareholders although nowhere near having control. As a side note it is very rare for these big boys to take a straight investment in a company without an interest in the companies projects so they must see something good or very sure.
At one stage they were looking to buy and work a small open pit operation with suspected good mineralisation to generate cashflow for exploration. As part of due dillagence however they discovered that only parts of the quarts veins were mineralised so decided not to proceed. This upset the market but even though it was a good decision.
They have two advanced projects, Coringa with an initial resource of 37000 troy oz of gold of about 9gpt stuff, with the main vein currently about 7km long (open at both ends). The current strike length is about 10km and Alan Carter says "This could easily double". The other project Cuiu Cuiu, where about 8 thousand soil samples have been taken showing very large gold anomaly about 12km long. 5 separate anomalies have been identified within this structure. Alan Carter says this has an "excellent potential to host multiple ore bodies". From drilling such results as 220meters at 2.3gpt, and 17meters at 13gpt.
Both deposits are looking to be world class open pit operations and I will be watching this one very closely.
Both deposits are looking to be world class open pit operations and I will be watching this one very closely.
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