October 3, 2011
Miranda Gold (MAD): Executing on Promising Gold Properties
Miranda Gold Corp. (TSX.V: MAD) (OTCBB: MRDDF) is a gold exploration company active in Nevada, Alaska and Colombia. With a classic joint-venture business model, similar to companies like Mirasol Resources (TSX.V-MRZ) and Lara Resources (TSX.V-LR), the company seeks to develop world-class gold properties at a time when the commodity is trading at record highs.
Currently, the company has 17 properties with 9 projects actively joint ventured with companies like Agnico-Eagle (USA) Inc. and Ramelius Resources Ltd. Last year, the firm saw about $3.7 million in partner spending, while that number is expected to increase significantly in 2011 and beyond as its properties continue to show promise and move closer to commercialization.
A Proven Model that’s Being Implemented
Miranda Gold’s joint venture business model involves shifting capital costs to an external entity while retaining some rights to the property. Its partners can opt to earn a 70% interest by completing a bankable feasibility study or incurring $10 million in exploration costs at a rate of $1 million per year for 10 years, with a $400,000 first year obligation.
By implementing this strategy on seven of its properties, the company saw $275,000 in cash payments in 2009 and holds a portfolio of five junior mining stocks that made equity payments. Investors are hoping that these properties eventually produce NI 43-101 compliant reports that can help boost its balance sheet, while moving closer towards eventual commercialization.
Gold Properties Hold Significant Potential
Miranda Gold has a number of properties that have shown tremendous potential. Its Red Canyon, NV property has a big alteration system that assayed 2.95g Au/t of gold in 2010 when eight holes were drilled (assays for the 2011 drilling are pending); its Red Hill, NV property assayed 8.1g Au/t of gold in 2006 and is now being drilled by a new partner; and its Angel Wing, NV property which is currently being drilled has surface samples that assay up to 92.5g Au/t in outcrop.
With gold prices trading near their all-time highs, investing in a junior exploration company could be very rewarding. Miranda Gold currently has drill rigs active on three projects, is awaiting assays from drilling on 2 projects and expects to see 2 additional projects drilled in the 4th quarter of 2011. Its quality project in Nevada, and aggressive expansion into Colombia, has made it a world-class play on the yellow commodity.
A Great Investment Opportunity
Investors looking for a mature gold exploration company with many prospects and several existing joint venture partners should take a closer look at Miranda Gold Corp. (TSX.V: MAD) (OTCBB: MRDDF).
Here are some resources to take a look at: