Re: Silver, Zinc & Metalline Mining --MMGG-- -- siempre lo mejor

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Date Posted: 16:04:12 12/28/07 Fri
Author: paul rembac
Subject: Re: Silver, Zinc & Metalline Mining --MMGG--
In reply to: paul rembac 's message, "Re: Silver, Zinc & Metalline Mining --MMGG--" on 08:33:09 03/20/05 Sun

>>Silver, Zinc, & Metalline Mining
>>
>>By Duncan Hsia & Jason Hommel
>>
>>Currently, silver is 300 times cheaper than historic
>>norms lasting for 1000's of
>>years, when the silver in a dime was worth about a
>>day's wage. The reason that
>>silver is cheap today is that no nation on earth is
>>using silver as money.
>>Monetary demand started to end in the late 1800's, and
>>finally ended in the late
>>1960's. In the last 60 years, the trend has been to
>>consume, in industry &
>>electronics, nearly all the silver ever mined since
>>the beginning of time.
>>Investors are beginning to become aware of the silver
>>shortage, and thus, in
>>2002, Hecla mining (silver) was the top performing
>>stock on the NYSE. In 2003,
>>silver stocks, on average, were up 314%. Today, silver
>>bullion itself is up
>>from $4.15/oz. in the spring of 2003 to about
>>$7.30/oz. Silver prices peaked
>>recently at $8.40/oz. in April 2004, and the trend is
>>still up. Silver may
>>reach about $15-25/oz. in the next year. I believe
>>silver prices will exceed
>>historic norms of about $2000/oz., due to the
>shortage,
>>and the renewed awareness that silver is most useful
>>as money, because it is
>>not fraudulent like broken paper promises.
>>
>>Most silver is produced as a by-product of gold,
>>copper, lead and zinc mining.
>>Zinc prices are also rising.
>>
>>Zinc is an industrial metal used primarily for
>>galvanized steel (47%), brass
>>(19%), and zinc alloys (16%). It is used mostly for
>>construction, the
>>automobile industry, and machinery.
>>
>>World zinc consumption has increased from a historic
>>2% average annual growth
>>rate since the 1960's to over 3% in the 1990's to over
>>4% currently. The main
>>increase in zinc consumption has been in developing
>>countries in Asia (mainly
>>China) with large decreases in Central and Eastern
>>Europe. China is now the
>>largest consumer of zinc in the world, increasing at
>>8-10% per year; although it
>>increased an impressive 22% during first nine months
>>of 2003 and 26.5% in the
>>first 11 months of 2004 (Macquarie Bank, Dec 2004).
>>
>>Zinc metal exports from China have declined
>>significantly in recent years,
>>transforming China into a significant net importer of
>>zinc. As China, India,
>>and other countries continue to develop and modernize,
>>the demand for zinc will
>>continue to grow swiftly while supply shortfalls push
>>prices higher.
>>
>>If substantial new mine development doesn't occur
>>soon, a large supply gap will
>>occur. Unlike other commodities, there are few giant
>>zinc deposits in inventory
>>to fill the gap due to depletion of reserves during
>>the past several years of
>>low zinc prices. Development of two very large mines
>>resulted in an oversupply
>>of zinc in 2001 and 2002; however this completed the
>>development of the giant
>>deposits. The supply deficit now coincides with a
>>period of no new mine
>>production in the pipeline until late 2006.
>>
>>CRU International forecasts that 2.5 million tons of
>>new annual zinc mine
>>production is required by 2007 to meet expected
>>demand. Given that there are
>>few new zinc projects committed to production, this
>>new production requirement
>>is unlikely to be met.
>>
>>Filling the gap is made more difficult as much higher
>>zinc prices are required
>>to finance development of known deposits and there is
>>a need to discover new
>>quality zinc deposits to meet growth projections.
>>
>>The LME zinc inventory is approximately 585,000 tons,
>>well down from its peak of
>>790,000 tons in April 2004. As the supply shortfall
>>continues, inventories are
>>expected to decline to low levels, causing price
>>increases. Here's a current
>>snapshot of zinc prices and LME zinc inventory over
>>the last 5 years:
>>http://www.kitcometals.com/charts/ZINC_historical.html
>>
>>As the demand has grown and worldwide zinc inventories
>>have been drawn down,
>>zinc in 2005 has broken out to a new 5-year high above
>>$.60/lb. The increasing
>>zinc price combined with the upcoming supply gap has
>>created an incredible
>>opportunity for any significant zinc mines ready for
>>production in the next few
>>years.
>>
>>Metalline Mining--Ready to Seize the Zinc / Silver
>>Opportunity
>>
>>Metalline Mining (MMGG - Bulletin Board), led by a
>>management team of seasoned
>>geologists, is ready to seize on the incredible
>>opportunity in the zinc and
>>silver markets. With the share price currently at
>>$1.81/share and 19,928,181
>>shares outstanding, its market cap is $36 million.
>>With 21,924,735 shares fully
>>diluted, the market cap is $39.7 million.
>>
>>Metalline Mining currently owns one 17,446-acre mining
>>property in Mexico known
>>as the Sierra Mojada Property. The Property is located
>>within a historical
>>mining district that has produced in excess of 10
>>million tons of very
>>high-grade lead-zinc-silver ore. The Sierra Mojada
>>Property has produced in
>>excess of 10 million tons of high-grade ore that
>>graded in excess of 30% lead,
>>20% zinc, 1% copper and 1 kg (31 ounces) silver per
>>ton that was shipped
>>directly to the smelter. The district has never had a
>>mill to concentrate ore.
>>All of the mining was done selectively for ore of
>>sufficient grade to direct
>>ship; mill grade ore was left unmined." (That's 310
>>million ounces of silver
>>from historic production. Who knows how much silver is
>>left?)
>>
>>The district has high voltage electric power and is
>>easily accessible via paved
>>road, an airstrip, and rail lines. The government in
>>Mexico also would like to
>>bring in work and jobs to the relatively depressed
>>economy, and has a very
>>hospitable attitude towards mining, especially in
>>comparison to the United
>>States.
>>
>>In 1999, the huge potential of the oxide zinc
>>mineralization of the Iron Oxide
>>Manto and Smithsonite Manto was recognized as a result
>>of a positive feasibility
>>study conducted for Anglo American Corporation's
>>Skorpion mine, located in
>>Namibia, Africa.
>>
>>That Skorpion mine, in Africa, is the first and only
>>mine in the world using the
>>solvent extraction electrowinning process for
>>extracting Super High Grade zinc
>>(SHG zinc is 99.995% zinc) from oxide zinc ore.
>>Solvent extraction
>>electrowinning is a hydrometallurgical process that
>>has about a 30% lower cost
>>for extracting zinc than the pyrometallurgical process
>>used at smelters by most
>>other mining operations around the world. This process
>>costs about 25
>>cents/pound instead of 35 cents/pound.
>>
>>Seeing the Skorpion mine success, Metalline shifted
>>its focus to zinc. Through
>>extensive drilling and block model evaluations,
>>Metalline worked to define its
>>zinc reserve, which they've now shown to have 2.23
>>million tons (nearly 5
>>billion pounds) of contained zinc (worth over $3
>>billion at current zinc
>>prices). Metalline is now more than 3 months into
>>their feasibility study
>>stage, which is about a 1-year process where the
>>logistics are planned for
>>building the mine, getting all the regulatory
>>approvals, defining all the costs,
>>and analyzing the profitability of the project. Once
>>the feasibility phase is
>>done, Metalline may become a very attractive buyout
>>target, as large mining
>>companies look to acquire more metals supply.
>>Metalline plans to use the
>>feasibility study to get debt financing to build the
>>mine, which will take about
>>2 years.
>>
>>To conduct the feasibility study, Metalline selected
>>Green Team International
>>(GTI), the same company that conducted the feasibility
>>study on the Skorpion
>>mine. GTI designed, supervised the construction, and
>>operated the Skorpion mine
>>and extraction plant through initial production and
>>until the mine and plant
>>were at 90% capacity. Given Metalline's plan to use
>>the same efficient,
>>cost-saving process as Skorpion, GTI was the perfect
>>choice.
>>
>>The GTI team has already toured the property above and
>>below ground, reviewed
>>the data, and selected surface locations for the mine
>>and extraction plant
>>facilities. Metalline's plan to help fill the
>>worldwide zinc supply gap in the
>>coming years with potentially one of the world's
>>largest zinc mines with the
>>lowest production cost in the industry is getting
>>closer to reality.
>>
>>If, like Skorpion, Metalline can produce zinc at 25
>>cents/pound, that's over 37
>>cents/pound margin at the current zinc price (which,
>>because of the zinc supply
>>gap, will probably go much higher by the time
>>Metalline's mine goes into
>>production in 2-3 years). With 2.23 million tons of
>>contained zinc, or nearly 5
>>billion pounds, that equates to over $1.8 billion of
>>gross profit. If you take
>>out the approximately $250 million cost of going into
>>production, you still have
>>over $1.5 billion. No matter how you discount back for
>>the time it will take to
>>get the cash flow from the zinc production, Metalline
>>Mining's current market
>>cap under $40 million looks miniscule.
>>
>>MMGG initiated a private placement at $1/share about a
>>year and a half ago to
>>raise capital for the reserve definition and
>>feasibility study. Recently, the
>>stock price has declined as some of the investors in
>>that private placement have
>>sold shares to lock in significant profits of 50% to
>>200%. Despite the
>>fundamentals improving dramatically over the last 6
>>months, with zinc prices
>>moving up about 25% along with successful completion
>>of the reserve definition
>>phase, the stock price has dropped significantly from
>>the high of $3.28/share in
>>October because of this selling. The selling from the
>>prior private placement
>>has created the opportunity of Metalline's low share
>>price, and helps to explain
>>why the shares remain cheap. Metalline's zinc reserve
>>alone is worth about 80
>>times its current market cap. Company insiders,
>>recognizing the value, have
>>bought between $1 and $1.66 over the last 2 years, as
>>zinc has moved from under
>>35 cents/pound in 2003 to over 62 cents/pound n
>>ow and Metalline has successfully moved closer and
>>closer to production.
>>
>>On Friday afternoon, March 18th, Metalline issued a
>>project update news release.
>>Until this update, Metalline had been very quiet about
>>their success thus far,
>>choosing to keep a low profile and not promote their
>>stock. However, they will
>>now start an active stock promotion program in
>>addition to their plans to get
>>listed on the American Stock Exchange. An increased
>>price and market cap will
>>improve their application for listing. They are
>>planning a road show to promote
>>the stock all over the world to the appropriate
>>audiences (including natural
>>resource funds).
>>
>>Silver highlights: Silver grades as high as 341 ounces
>>per tonne! Over 5000
>>samples of the polymetallic mineralization north of
>>the Sierra Mojada Fault have
>>been collected from the Polymetallic Manto by the
>>Company through 1999. These
>>samples contained an average of 300 grams silver per
>>metric ton (10 ounces
>>silver per metric ton), 0.6% copper, 5.5% zinc and
>>2.2% lead. Within this
>>mineralization silver grades range from kilograms (31
>>ounces per kilogram) to as
>>high as 11 kilograms / tonne over a thickness of 9
>>meters (3.28 feet per meter)
>>and copper grades are as high as 4%. This indicates
>>that the Polymetallic Manto
>>contains very high grade silver and copper
>>mineralization.
>>
>>Quick comparison with a more well-known zinc silver
>>explorer:
>>Apex Silver: 7.8 billion pounds of 1.6% zinc, 454
>>million oz. very low grade
>>silver.
>>Metalline Mining: 5 billion pounds of 8-13% zinc, 300
>>million oz. (historic)
>>very high grade silver.
>>
>>Apex Silver: $560 million estimated needed to build
>>the mine.
>>Metalline Mining: $250 million estimated needed to
>>build the mine.
>>
>>Apex Silver: Over $500 million cash on hand.
>>Metalline Mining: About $1.5 million cash on hand.
>>
>>Apex Silver: Market Cap: $872 million
>>Metalline Mining: Market Cap: $40 million (at
>>$1.80/share)
>>
>>For more information about Metalline Mining, visit the
>>company's web site at
>>http://www.metalin.com. You can also call Merlin
>>Bingham, CEO of Metalline
>>Mining, at 208-665-2002 or metalin@adelphia.net.
>>
>>I, Duncan Hsia, along with everyone in my immediate
>>family and household, own
>>shares in Metalline Mining from last year's private
>>placement (and haven't sold
>>any despite the expiration of the lockup period), and
>>have bought more recently
>>on the open market between 1.50 and 1.70. I have not
>>been paid by the company,
>>nor do I or any family or household members work for
>>the company.
>>
>>I, Jason Hommel, sponsored the writing of this essay
>>by offering to give a 100
>>oz. bar of silver to whomever sent me the best essay
>>on Silver & Metalline
>>Mining. I own shares of Metalline that I purchased in
>>last year's private
>>placement, and have not sold any yet, either. I have
>>not purchased any
>>Metalline shares in the open market recently.
>>Metalline has not paid me for
>>this article, and I don't work for Metalline, nor does
>>any of my family. I
>>produce a silver stock report, on occasion, which you
>>can signup to receive for
>>free at silverstockreport.com

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