Marengo Mining (ASX:MGO) is up still more today to 14.5c. We bought this stock just a week ago for 9.4c. The target price is 20c - since that is significant resistance. This stock has a major long life copper-gold project. Looking at the sections in the presentation shows that certain parts are amenable to cheap mining, i.e. low overburden removal costs. This is the case because one area hosts the mineralisation in a mountain. Easy mining and adequate grades means this project will be a great target for a major miner. The project will offer huge cashflows for the first 20 years of its life. Its hard to see the economics of the project beyond that point until I see more sections of the orebody, but there is no reason to think it would be less profitable, even if overburden rates increase.
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Andrew Sheldon www.sheldonthinks.com
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