Medoro Resources

Medoro Resources - MRS.T, $2.31 close, released a new upgraded mineral resource estimate for their Marmato Project on Jan. 6, 2011. This is an open pit mine in Columbia.

Updated Mineral Resource Estimate Confirms Gold Resources of 6.6 Million Ounces Measured and Indicated and 3.2 Million Ounces Inferred at Marmato

Some key points. I've followed this one but don't currently own shares in the company. Heavy insider buying is what first drew my eye to this one, but that was a few months back and it appears Front Street Management has recently been selling.

http://www.canadianinsider.com/coReport/allTransactions.php?ticker=mrs

That being said, 2 days ago there was some insider buying.

Ok, the nitty gritty on this. The new estimate is 6.6 mil ozs gold measured & indicated, plus 3.2 mil oz. inferred. In addition to the gold, they have 37 mil oz silver measured & 22 mil inferred.

Since the cut off date for this report, they've drilled an additional 60 holes, and plan 237 in 2011. The key here, is they want to make the inferred resource, measured & indicated.

Current market capitalization is 326 million. Even if we discount this to $100 / oz taking into account operating costs etc. and only use measured 6.6 mil oz x $100 = $660 mil / 141 mil shares o/s gives me a valuation of $4.68
Am I missing something here???

Grade is low, and needs mill, and tailing pond, but it is an open pit mine which is less costly.

Technically, the stock hit a high of 2.88 in mid December and has pulled back to major resistance at 2.20. A breakout over 2.88 gives me a target of 3.90.

As always, do your own due diligence and visit the company website for more information.

http://www.medororesources.com/index.cfm?pagepath=Projects/Marmato_Project_Colombia&id=23274