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What Does the Future Hold for Miramont?Bob Moriarty After some dreadful timing and miscommunication to the market, shares in Miramont plummeted from $.47 a share to $.12 in two days at the end of March. The company dumped some poor results from six holes onto the market and the market gagged. But the scout program consisted of nine holes and on the 12th of April Miramont released the assays from the last three holes. Companies post dismal drill results all the time and it is not a big deal. Especially with a scout drill program, hitting anything is a victory. But the market was told that three areas were being drilled and three holes would be released at a time and was surprised when six holes were announced in one press release. Actually one of the holes, hole five had some interesting potential, but that was lost in the smoke from the forest fire. Hole number nine showed 249 meters of 0.68 g/t gold equivalent and that’s better than interesting. That says there could be something big nearby. 0.68 g/t gold equivalent would be worth about $28.22 a ton in theory. But you couldn’t mine at that depth and mill that at a profit. Now if you had a starter pit or higher-grade material nearby, 0.68-g/t material would change from being waste to being ore if you had to move it anyway. Investors are always hoping for a giant home run hole but they happen once in a blue moon. In general a drill program is successful as long as each hole advances the project one way or another. Had the last three holes been duds, Miramont would have had only two alternatives. They could put the project on a back burner and go look for something easier or cheaper to advance and come back to Cerro Hermoso later or they could go find a major to partner with to advance the project. In either case, the share price would be deader than a doornail until something took place to move the needle off TDC. Naturally a third alternative might be a lot more attractive. Cerro Hermoso is in the Puno district and they grow herds of elephants there. The chance certainly exists that the property has elephant potential. But the scout program has to advance the quality and quantity of knowledge about the potential. The first six holes barely showed sniffs but hole nine was a great hole. The very best alternative would be for Miramont to use some of that $3.5 million they still have in the bank to fund another 10-15 holes in an attempt to find that magic “Discovery” hole. The press release talking about the first six holes almost put Cerro Hermoso on hold but hole nine brought it back to life. The company is an advertiser. I am a shareholder from both Puno and in the PP and naturally that makes me biased. Miramont Resources ### Bob Moriarty 321gold Ltd |
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