Far East Capital Newsletter
Updates on Emu, Los Cerros and Marvel Gold
10 Oct 2020

In This Issue

Updates on Emu, Los Cerros and Marvel Gold

In suggesting that Marvel Gold (MVL) was capitalised modestly at $23m a week ago, on the back of the 23.9 Mt at 1.2 gpt (910,000 oz) resource at Tabakorole, we didn’t factor in the exciting exploration play at Lakanfla, in western Mali near the Senegal border. This is strategically located near the Senegal Mali Shear Zone, the same structure that hosts a number of large gold despots such as Yatela (4.5 Moz), Sadiola (13.5 Moz), Loulo (12.5 Moz), Tabakoto (4.3 Moz), Gounkoto (5.4 Moz) and Fekola (7.1 Moz).

We already know that there is something at Qhinchia of a significant size, but we don’t know what the ceiling is. Could it be 5-10 Moz? Maybe that is in the ball park, given the other deposits found along the trend. Therein lies the speculation. Be aware that projects this size take time and money to drill out. Los Cerros is at the starting gate with a market capitalisation of only $70m, but it seems to be in the right place at the right time.

The acquisition of projects in WA represents the start of the rebirthing of Emu, following its withdrawal from Chile. The future value of the company and the share price will depend upon the levels of success it achieves in exploration programs, along with any subsequent acquisitions that the company may chose to pursue. The portfolio is quite topical given the excitement in WA created by Chalice’s discovery at Julimar. 

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