Is it our time?
Dec 7th, 2007 by admin
In 2006, Medinah Minerals (MDMN) and Cerro Dorado (CDCH) ranked in the top 50 of gold mining companies with respect to share price appreciation according to Gold Drivers. Medinah opened 2006 at $0.0036 a share and closed 2006 at $0.021. Cerro opened 2006 at $0.012 and closed 2006 at $0.07. Oddly enough, both companies posted the same amount of appreciation, a 483% gain. After an exciting AGM near the end of 2006, many of us thought 2007 would be our year and we named this shareholder site, “Mining Play of 2007″.
Unfortunately, for eleven and a half months our hopes were deferred. The desire to see Medinah Minerals and Cerro Dorado become the envy of the junior mining community seemed thwarted on every side. The companies released very little information other than, “we are continuing to negotiate….” There were rumors of a forthcoming signing every week or month, but none of them ever panned out. The Scriptures say that, “hope deferred makes a heart sick.” Many of us can attest to the truth of that as our hope was drawn out and almost died.
On Friday, November 23, 2007, Medinah Minerals closed at $0.0195 and Cerro Dorado closed at $0.069. They were slightly down for the year and languishing in the bottom quarter of the rankings. After the close of business on the 23rd, Medinah Minerals issued a shareholder Q&A that simply stated:
“There will be no Q&A postings for the next 2 weeks as Les Price, CEO will be in Chile on business.”
Hope was restored! Many figured there was only one reason for the CEO to head to Chile and that was to close a deal. It is just about two weeks since the Q&A was posted. Rumors are abounding at this point. Has a binding deal been offered? Has it been accepted? Is it with a major? Are our renewed hopes going to be confirmed or is this another stepping stone to “Mining Play of 2008″?
We won’t have to wait much longer to find out to the answers. One thing is clear, the market has started to change and the assault up the rankings to becoming the Mining Play of 2007 has begun. A look at the aggregate volume for the last two weeks tells the tale.
CDCH open high low close change volume 12/06/07 0.0735 0.0850 0.0730 0.0800 +0.0075 5,952,625 11/30/07 0.0690 0.0750 0.0650 0.0725 +0.0035 3,446,450
MDMN open high low close change volume 12/06/07 0.0250 0.0365 0.0250 0.0345 +0.0095 26,001,951 11/30/07 0.0200 0.0250 0.0180 0.0250 +0.0055 16,986,347
As it currently stands, Medinah Minerals is now ranked 89th with a ytd gain of 64.3%. Cerro Dorado is ranked 207th with a ytd gain of 14.3% A JV with the right partner will send us catapulting up the charts. Is it our time?