Minaurum Gold Share Price Doubles In Less Than 5 Months After Our Recommendation
Less than five months after our initial recommendation of Minaurum Gold (MGG – $0.215), the Company’s share price hit a new 52-week high of 22 cents this week, an increase of exactly 100% compared with the price at which we initiated coverage.
The Canadian resource Company continues to advance its La Quintera Silver Project in southern Sonora State, Mexico. Since our recommendation, Minaurum announced that its ongoing mapping and sampling program has identified four new targets along the 7.5-km long epithermal vein system at La Quintera.
The Minas Nuevas bulk-tonnage target, located on the northern extension of the vein system (see map below), has a strike length of 700 meters and is 25 meters wide. It includes the Zambona and Purísima historical mines which produced approximately 35 million ounces of silver from small open pits and underground workings between 1860 to about 1910.
Mineralized stockwork quartz veining surrounding the old workings exhibits the potential for bulk-tonnage silver mineralization. The depth of the workings indicates that the stockwork veining extends to depths greater than 100 meters. Minaurum’s sampling work returned some excellent results. Some samples from old mine workings returned 236 g/t Ag and 178 g/t Ag; and from surface 112 g/t Ag, 134 g/t Ag and 176 g/t Ag.
Meanwhile, the other three new targets were spotted in the southern part of the vein system. This area contains the La Quintera and Promontorio mines, which are estimated to have produced more than 140 million ounces of silver from 1680 to 1910.
The La Quintera vein was mined along approximately 800m of strike length and to depths of 500m. Minaurum’s research of historical records indicates that labor disputes on the eve of the Mexican Revolution led to the ceasing of mining activities while still in silver mineralization averaging 40 oz/t Ag and 8% Cu. In addition, one of the four major ore shoots defined at the mine was not developed. Minaurum’s mapping and sampling has discovered a new vein running parallel to the principal vein. This parallel vein and the down-dip extension of known mineralization in the La Quintera vein form the primary targets.
At the Promontorio target, the La Quintera vein was developed over a strike length of 800m and locally to depths of 200m below the level of the Promontorio adit. As at the La Quintera Mine, labor disputes in the years before the Mexican Revolution stopped mining while still in high-grade silver mineralization. Based on Minaurum mapping and sampling, the immediate target is the down-dip extension of known workings along with the potential for mineralized structures parallel to the principal vein. Base-metal and gold values are consistently higher at Promontorio area than at the other targets.
The Gap target is a 500-metre long zone between the southernmost workings of the La Quintera mine and the northernmost workings of the Promontorio mine. The Gap, for various historical reasons, was not developed even though the same surface geological elements as at the La Quintera and Promontorio mines are present in it. Minaurum has mapped multiple semi-continuous quartz veins over more than 300 metres of strike length in the Gap. Additional sampling and mapping is underway in the Gap area. The Gap has the potential to host an unexploited silver shoot.
“As we advance the first systematic exploration program undertaken in this historical district, we continue to identify new high-grade silver targets,” stated Darrell Rader, President and CEO of Minaurum. “The targets reported above demonstrate the potential of this project to host both new, unexploited silver shoots along with down-dip extensions of the historical silver deposits.”
Nearly 200 rock samples have been taken by Minaurum to date, in addition to more than 300 samples in the historical database. Geological mapping and sampling continue in the three target areas, as well as in additional potential targets on parallel zones.
In one of our previous notes on Minaurum Gold, we wrote that some companies stay under the radar of resource investors. Despite its growing portfolio of attractive properties in Mexico, Minaurum was one of those companies.
Partly thanks to the recommendation on Smallcaps Investment Research, some investors did notice the Company’s potential, making Minaurum the 71st stock – out of 156 that we’ve recommended – which at least has doubled.
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