Value Microcaps Junior Miners

[dr_airtime]

MND.TO - Acquisition of Third Mine

http://www.mandalayresources.com/wp content/uploads/2014/01/MND_June_4_2014.pdf

As I suspected from the recent gold-linked debt raise, Mandalay had their eye on a third mine that fit the "Mandalay Strategy" to acquire un-optimized mines that can be optimized to generate positive free cash flow in less than a year and then free cash flow put to exploration to expand resources. It was too long of a gap to bring Challacolo through feasibility and into production in 2016/17.

Both Mandalay's current two u/g mines are mechanized (no or minimal workers underground - robot controlled machinery) and it sounds like Elgin's Bjorkdal is too:

"Bjorkdal is a safe, highly productive, mechanized underground and open pit mine with a highly automated processing plant producing gravity gold concentrate and flotation gold concentrate."

Furthermore - Since Bjorkdal sells a concentrate it is an easy add on to their current buyers who purchase the Cerro Bayo and Costerfield concentrates (based in Aisa). This is graft-on and fits the Mandalay strategy that has been successful on two mines so far.

Don't forget the Mandalay CEO was former CEO of Lonmin (huge Platinum miner). Not to be discounted!

Mandalay could be a 200,000 gold-equivalent ounce producer in 2016 at this rate.

Raymond James was FA so I'll update board when I get my hands on the analyst report they will put out shortly.