Silver Bull Resources Inc (SVBL)

[alohamart]

I don't think anyone claimed the company has "proven reserves." The company has stated in several different press releases that it has no "proven reserves." The SEC doesn't allow companies to use the term "reserves" until completion of a feasibility study, which Metalline's going through currently. Until then, it's known as "resources" or "mineralization." NovaGold had over 10 times the market cap without any "reserves."

Metalline's zinc was proven by an independent contractor that specializes in resource estimation: http://www.metalin.com/03-18-05.pdf

Yes, raising money to go to production in mining almost always entails equity dilution if there's no takeover. That's how mining works. If it didn't, a preproduction, prefinancing miner wouldn't trade at such a big discount to producers. You have to factor that in to any valuation calculations. Even after factoring in dilution to finance production and the time value of money, MMG is severely undervalued: http://greatinvestments.blogspot.com/2006/11/mmm-mmm-good.html

The risks are being removed by the feasibility study. If it's positive, the stock will be worth many times the current price. As the feasibility study nears completion and the price of zinc increases, thereby tremendously decreasing the risk that the project won't be economic, the company's value goes way up. Since the similar Skorpion mine was put into production by the same team profitably when zinc was at .35, the risk of this mine being uneconomic with zinc near $2.00 is almost nil.

HudBay Minerals was at $3.75 a year ago, when Metalline was raising the money for the feasibility study, and it's $19.28 now. Just because HudBay was at $3.75 then, does that mean that's how much the stock is worth now, after zinc's nearly tripled in that time? MMGG was at $5.67 in May, when zinc was much lower. With zinc getting ready for an explosive move when the LME zinc inventories drop to near 0, it's only a matter of time before MMG takes out that high.