Thursday, November 11, 2010

NOBLE minerals – Another GHANA GOLD producer in 2011??? (NMG)

NOBLE minerals – Another GHANA GOLD producer soon???? (NMG)


Summary
No of shares – 303m
Share price – $0.45
Market cap – $136m
Main Commodity – Gold
Country - Ghana

Having invested in PRU since it was $1.20 last year, I have done quite some research about Gold, especially Gold companies in Ghana. 
As of yesterday, PRU went up to $3.50, so has sort of risen a lot.....I don’t foresee it going up to $7.00 or more in a year time.....therefore.....time to find another PRU-like junior explorer......
In the process of finding that, we went through Adamus (ADU), Castle (CDT), AZM (Azumah) etc......and some of them actually have increased a bit as well.
However, stumbled across NMG (Noble Minerals) one day and really like this share as well.

Bought it on 30th September for average price of $0.342.

Some of the things that i like about this share is:
1.       150000 oz p.a production starting from 2011.
2.       Good geographical proximity to other big mines like chirano, ahafo etc.... (you guys can google Ghana Gold belt to find out the maps).  This means that it is very likely to find gold in that belt.
3.      
a.       Measured, Indicated and Inferred JORC compliant resource of 32.98 million tonnes at 1.87 g/t Au for 1,980,000 ounces
b.      Proved and Probable JORC compliant Open Cut Ore Reserve estimate of 8.4 million tonnes 2.24g/t
4.       Aggressive drilling campaign that is funded recently by share placements etc........means a resource upgrade is coming soon which will further increase the share price, and also help the company to prepare feasibility studies to advance the mine further.
5.       Bibiani – the gold mine is actually not a new mine, it has been mined in the past already by different companies, so it has confirmed gold deposits there already, plus infrastructure is pretty much fixed.
6.       Gold price is all time high......and will continue to be as long as USD is being devalued by all the money printing that they are and will be doing in the future.
7.       If you look at some of the trades that went through recently, they are pretty large trades which indicate to me that some big timers are in the game - yesterday there was one trade for 1.2m shares in ONE TRADE - that's huge....and a lot of trades that are for 500,000 shares in one go......make your own conclusions from there :)


Happy investing!

Irene


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