Marengo Mining is a small player developing a world-class gold-copper project in Papua New Guinea. The project is not far from the Ramu Nickel project being developed by Highlands Pacific. Though if I'm not mistaken I believe poor hedging decisions forced them to sell Ramu to the Chinese. They have over a billion tonnes of ore of low grade copper & gold, but the low overburden costs shouldmake this a low cost mine. Both copper & gold prices are very favourable, but this is a long term project, so I would be more inclined to trade this stock, since it might not be operational for another 3 years. The stock is currently drifting towards a technical support. Gold looks like going higher (from $US905/oz), copper I suspect is close to resistance at $US3.75/lb. Anyway I like Marengo at 19c support as a trade. That capitalises the company at $US38 million.
For further information go to Google Finance or participate in my discussion forum for this stock.
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Andrew Sheldon www.sheldonthinks.com
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