METEORIC RESOURCES SWITCH FROM COBALT TO GOLD

SWITCH FROM COBALT TO GOLD THE RIGHT MOVE, THE RIGHT METAL AND THE RIGHT BOARD AT THE RIGHT TIME.

From the date Dr Tunks, a Ph.D. from the University of Tasmania and a 30 year career in the resource sector, became involved with Meteoric, the market became re-interested in the Company. Then on the 16th October 2019  the Meteoric Board added a heavy weight from the mining industry Dr Paul Kitto.  Kitto joined the Board as a non-executive, technical director. Dr Kitto  has over 30 years’ experience in the mining industry, having held senior positions around the globe as Exploration Manager Africa for Newcrest  and Chief Executive Officer and MD of ASX listed Ampella Mining Ltd, from 2008 to 2014, prior to Ampella being acquired by London/Vancouver Listed Centamin PLC.  There is no doubt with the full Board and management, MEI would have one of the most experienced and professional Boards of all juniors.  Prior to the exciting current suite of prospects, the Company now owns, MEI was a junior Company, chasing the Cobalt dream in Canada. It appears that the experienced Board, rightly, decided that the Cobalt story was a little wishy washy, high in cost of processing and difficult to keep the investors, shareholders and stockbrokers and advisors interested, especially with an up and down value of metals like Cobalt, especially when Gold is forging ahead in value, taking the shine from all base metals.

It seems that the lure of the Gold, was too great for the Board, with the Company switching from the base metals and the Cobalt boom to Gold. The Cobalt tenements were disposed of by MEI to ASX listed Toptung Ltd who issued 31,25m shares. The move from Cobalt to Gold, was quick, bold, without fanfare. The Company within days of disposing of its Cobalt prospects, announced the purchase of the Brazilian Gold assets of ASX listed Crusader Resources Ltd. (21Mar19). The Gold prospects owned by Crusader, included the Juruena and Nova Astro Gold Prospects in Brazil. The price for the acquisition was $A3,000,000 cash and 50,000,000 shares @ $0.01c per share in MEI ($A500,0000). The shares were issued subject to a 12 month voluntary escrowed period of 12 months.) Crusader didn’t hold the shares for long and has already disposed of the Meteoric shares.

WHAT A DEAL

The Juruena Project just purchased had more than $US25,000,000 of expenditure, including 90,000 metres of drilling and contains a Global Mining Resource Estimate (JORC 2012) of 261,000 ounces of Gold. 1.3 million tonnes @ 6.3g/t Gold. To cap it off the metallurgical testwork showed that the processing of the ore recovered 90% of the Gold.

DRILLING  OF JURUENA TO COMMENCED WITHIN 4 MONTHS 21st July 2019

Rapid signing of a drilling Company is undertaken to commence drilling within 4 months of the announcement of the purchase of the Prospects.

HIGHLIGHTS FROM THE DRILLING WITH MAMMOTH GRADES OF GOLD OVER WIDE INTERSECTIONS.

Drill hole JUDD001 intersects 20.6metres @ 94.90g/t Au from only 96.8 metres depth

Drill Hole JUDD002 intersects 1.1metre @ 22.68g/t Au from only 41.2 metres depth

The first hole drilled JUDD001, intersected visible Gold so they were certainly expecting exciting results.  The hole intersected two zones of bonanza grade Gold including: 3.65M @ 508g/t Au from 107.40m.   Considering the JORC resource estimates of over 261,000 ounces of Gold and then on the first drill hole intersecting massive Gold intersections, a normal thinking investor you would have guessed dived in and made MEI a $250m market Cap company.  But the market did not react in the way it would have, if, the Company already had a market cap of $100m. The reaction to an increase of $50m market cap would have been expected and realistic considering additionally the JORC resource purchased from Crusader. The Company continued drilling with great success including more drill holes with 8.3m @ 23.7g/t Au fm 87m, 8m @ 62.4g/t Au. 

MARKET WAS ASLEEP BUT WITH THE PURCHASE OF AN AUSTRALIAN GOLD ASSET HAS REKINDLED THE INTEREST IN METEORIC. THE PURCHASE BY MEI OF THE BUTCHERS CREEK HIGH GRADE GOLD PROJECT IN THE HALLS CREEK REGION OF WESTERN AUSTRALIA.

The market reacted positively to the News, with the stock taking a well deserved price increase. The Company, has struggled with the total quantity  of shares on issue and seems to have attracted the day traders, who are happy to make a 5% margin on trading the shares like sand.

There is no doubt with the acquisition of Butchers Creek, that the Company will achieve their goals. MEI, could not have a better Board in place, especially in these times, with years of the experience in the mining industry they have between them.  The Butchers Creek, was a great historical Gold mine and a great Gold producer, but like many other Gold producers in the mid to late 1980’s had to be shut down due to the crash in the global Gold price, trading below $300 an ounce. Butchers Creek at the grades and intersections of years gone by and now in the hands of great operators is in the opinion of Kitcogold a real contender for the ten bagger prize.  

METEORIC NEEDS TO ATTRACT SERIOUS INVESTORS AND EXTINGUISH THE DAY TRADERS OUT OF THE STOCK. MAYBE TIME WITHIN THE NEXT 12 MONTHS TO CONSOLIDATE THE SHARES 15 TO 1.

The consolidation of shares does two things: it puts the company at a higher share price (from $0.05c to $0.75c) which for some reason known only to God, attracts the attention of the fund managers. Secondly, it wipes out the day traders who trade in “parts of pennies” and, never get rich. In our opinion Meteoric, does not deserve to spin the wheels with the day traders, and the stress on the stock in lieu of looking after real shareholders. It is frustrating for directors and brokers who appear to be held in chains.

WHEN TO CONSOLIDATE?

Timing on consolidation of shares in a company is always difficult with timing being essential. History has shown us that if the timing is not right then the move can be disastrous, but if the timing is right then it becomes a major windfall.  Meteoric has two things going for it in this regard.  It already has a JORC resource of over 261,000 ounces and in todays money is worth around $A700m, add in the Butchers Creek acquisition and the timing is nearing.

Butchers Creek ceased mining on the historical drilling results below:

BCP036: 68m @ 2.5g/t Au fm 44m.  BCRC180: 14m @ 7.5g/t Au fm 82m.

BCD232:  6m @ 21.2g/t Au fm 60m. BCD336:   38m @  2.24g/t Au fm 170m

BCP017: 50m @ 3.31g/t Au fm 50m. GCP017:   2m @ 174g/t Au fm 12m

PROSPECTIVE EXTENSIONS OF MORE THAN 12,500 Ha WITH OVER 60 KNOWN GOLD OCCURRENCES.  

Meteoric Resources, made the move from the jungles of the rich Gold mineral fields of Brazil not because of the lack of Gold, but because of the lack of interest in any Gold resources outside of Australia. This is just the way the Aussie market thinks and that is why the property was disposed of by Crusader. It doesn’t take the value away from the Brazilian tenements, they will always have a value and with the big Mining Companies (Anglo American) operating not far away, we believe that these assets,  if not developed by MEI will be a major attraction to the big Gold Companies operating with the same minerals field in Brazil.  Don’t be surprised in a major pays serious money for the Brazilian assets of MEI.

Drilling has now commenced at the Butchers creek prospect, the Company advises and if serious grades and widths are intersected, then the market will sit up and listen and watch and invest. Its in Australia, so, the only thing holding it back are the day traders that infiltrate companies like MEI, that will apply the screws to the share price. After getting great results and looking like mining going to commence is the time to consolidate. 

MEI not the only company ravaged by day traders who think making a half a cent they are heroes, only in their own mind but never ever get rich. If they ever knew what “ten bagger means” they may save a lot of money on commissions and make a lot of money from trading.

Another Company in the same boat we reported on last week. A little Company who has the famous Mt Freda rich Gold Mine and the Golden Mile high grade historical mines in the NW regional township of Cloncurry in Queensland. The Company namely Ausmex Mining Group is in the same boat as Meteoric. These mines were also closed down in the late 1980s due to the declining Gold price. The Company that used to own the Mt Freda mine in the id to late 80’s

Goldman

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