After some dreadful timing and miscommunication to the market, shares in Miramont
Resources Corp. (MONT:CSE) plummeted from $0.47 a share to $0.12 in two
days at the end of March. The company dumped some poor results from six holes
onto the market and the market gagged. But the scout program consisted of
nine holes and on the 12th of April Miramont released the assays
from the last three holes.
Companies post dismal drill results all the time and it is not a big deal.
Especially with a scout drill program, hitting anything is a victory. But the
market was told that three areas were being drilled and three holes would be
released at a time and was surprised when six holes were announced in one
press release. Actually one of the holes, hole five had some interesting
potential, but that was lost in the smoke from the forest fire.
Hole number nine showed 249 meters of 0.68 g/t gold equivalent and that's
better than interesting. That says there could be something big nearby. 0.68
g/t gold equivalent would be worth about $28.22 a ton in theory. But you
couldn't mine at that depth and mill that at a profit. Now if you had a
starter pit or higher-grade material nearby, 0.68-g/t material would change
from being waste to being ore if you had to move it anyway.
Investors are always hoping for a giant home run hole but they happen once
in a blue moon. In general a drill program is successful as long as each hole
advances the project one way or another.
Had the last three holes been duds, Miramont would have had only two
alternatives. They could put the project on a back burner and go look for
something easier or cheaper to advance and come back to Cerro Hermoso later
or they could go find a major to partner with to advance the project. In
either case, the share price would be deader than a doornail until something
took place to move the needle off TDC.
Naturally a third alternative might be a lot more attractive. Cerro
Hermoso is in the Puno district and they grow herds of elephants there. The
chance certainly exists that the property has elephant potential. But the
scout program has to advance the quality and quantity of knowledge about the
potential.
The first six holes barely showed sniffs but hole nine was a great hole.
The very best alternative would be for Miramont to use some of that $3.5
million they still have in the bank to fund another 10-15 holes in an attempt
to find that magic "Discovery" hole. The press release talking
about the first six holes almost put Cerro Hermoso on hold but hole nine
brought it back to life.
The company is an advertiser. I am a shareholder from both Puno and in the
PP and naturally that makes me biased.
Miramont Resources
MONT-C $0.15 (April 12, 2018)
54.8 million shares
Miramont Resources website.
Bob and Barb Moriarty brought 321gold.com to the Internet
almost 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline,
coal, solar, wind and nuclear energy. Both sites feature articles, editorial
opinions, pricing figures and updates on current events affecting both
sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than
832 missions in Vietnam. He holds 14 international aviation records.
[NLINSERT]
Disclosure:
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