NEW YORK, NY / ACCESSWIRE / March 5, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage on Mineral Mountain Resources Ltd. (TSX-V: MMV; OTCQX: MNRLF) with a target price of US$0.93.
The report is available here: March 2018 Initiation Report.
We initiate coverage of Mineral Mountain Resources Ltd. (TSX-V: MMV, OTCQX: MNRLF) ("Mineral Mountain") with a price target of C$1.15 (USD $0.93). Headquartered in Vancouver, BC, Mineral Mountain is focused on the identification and exploration of gold projects with "camp scale potential" in cost-effective, mining-friendly regions in North America. Mineral Mountain's flagship Homestake South Gold Project is positioned in the Rochford District of the Black Hills of South Dakota along the southern portion of the Homestake Gold Belt. The Homestake Gold Belt is one of the top three gold producing gold belts in North America, including Timmins in Canada and the Carlin Trend in Nevada. In our view, Mineral Mountain offers significant potential given encouraging preliminary resource data and 3D imaging, its attractive location, and an experienced management team which has already demonstrated the capability to build and sell a multi-hundred-million-dollar gold exploration business. We also see the company as offering an intriguing speculative conduit for exposure to an asset class which has historically been non-correlated to the business cycle. If achieved, the target of C$1.15 suggests potential upside of 202.6% from the recent price of C$0.38 on February 28, 2018.
Savvy Management Team Accumulated Promising Assets Amid Weak Precious Metals Pricing Environment
Mineral Mountain is led by a savvy management team with geological and operational expertise in the Homestake Belt, Homestake geology and banded iron formation (BIF) hosted gold deposits. Importantly, CEO Nelson Baker is a successful mining executive with an impressive track record. His last venture, Rainy River Resources, was sold to New Gold for more than C$300mn net of cash. Under Baker's leadership, Mineral Mountain has been accumulating strategic Homestake acreage and mineral rights since 2012 for its flagship Homestake South Gold Project, benefitting from advantageous land prices during a slow metals market, while also acquiring a proprietary database that is thought to be the most comprehensive in the district.
Homestake South Project Offers Promising Location Geological Make-Up
Mineral Mountain's flagship Homestake South Gold Project comprises over 7,500 acres of 100%-owned land and mineral rights and is thought to have the same geological make-up and scale potential as the original Homestake Mine, which produced over 40mn ounces of gold. Mineral Mountain has identified five promising target trends with high grade gold - each with the potential to host multi-million ledge deposits with gold density of 8 to 10 grams per metric ton. The company commenced its Phase 1 drill program on February 7, 2018, a 4,300 meter, twelve hole program supported by 3D MAG data which was completed in September 2017. The program is expected to take up to six weeks and we would expect Mineral Mountain to report in coming months, providing a key short-term event for the company.
Initiating Coverage of MMV with Price Target of C$1.15
We initiate coverage of Mineral Mountain with a price target of C$1.15. We view Mineral Mountain as an emerging gold exploration company offering an attractive combination of experienced management, a promising location, and upcoming drilling results. Additionally, we are intrigued by the countercyclical relationship of gold to the broader economy and note that increasing market volatility has the potential to increase demand for gold - and profit potential for Mineral Mountain given that gold is the underlying commodity for its business.
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About Mineral Mountain Resources Ltd.
Mineral Mountain Resources Ltd., through its wholly owned subsidiary Mineral Mountain Resources (SD) Inc., is focused on the exploration of its 100%-owned Rochford Gold Project situated along the highly prospective Homestake Gold Belt in the Black Hills of South Dakota, U.S.A. The Rochford Project covers approximately 7,500 acres and straddles three major trends of structurally thickened auriferous iron formation that host ledge-type gold mineralization.
Since 2013, the Company has continued to expand its land position in the Rochford gold district by professional claim staking and also by purchasing strategically located private properties that fall along two of the major sub-parallel structural trends that host Ledge-type gold mineralization. The Company now owns the largest land position in the Rochford greenstone belt and now possesses by far the largest and most comprehensive database for the district in modern day exploration history. The Rochford Project is vastly under-explored and has the potential to host several district scale gold discoveries.
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Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.
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SOURCE: SeeThruEquity