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In the last 2 weeks, MMGG has rallied over 50% off of the multi-year low level, starting to catch up with other zinc stocks. Normally, one might think a 50% rally would make a stock less attractive for new investors, but in MMGG's case, it has a long way to go just to return to the $3+ level it traded at 15 months ago, and this rally makes the company worth far more than if the stock had continued to languish at the lows.
The biggest issue Metalline Mining had 2 weeks ago was getting financing to retain GTI to complete the feasibility study. Now, with this rally, big investors have jumped on the private placement, as they get an immediate 50%+ increase as well as the warrants. Closing this financing will mean a huge risk will be removed, as they'll have enough cash to complete the feasibility study with the team that's done it before at Skorpion, and they may have extra cash to expedite the development of the silver/copper deposit.
We didn't go into the silver/copper side much in the first report
, but one seasoned industry investor who has invested in dozens of different mining private placements over the years told Great Trades that he likes the silver/copper potential even more than the zinc potential. Metalline Mining has essentially ignored the silver/copper side since 1999 when the Skorpion mine feasibility study was completed, but it used to be their primary focus. Since then, the price of silver has almost doubled and the price of copper has tripled, both up more than zinc. Most of the current investors probably have no idea there is any silver/copper deposit, as all the focus has been on zinc.
If the work they restarted recently on the silver/copper side indicates economic value, as the original samples did when prices were much lower in 1999, that should provide a major boost to MMGG's stock price. Watch the news over the coming months to see if they get any good silver/copper results.
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