HELLO ALL

TAKE A GOOD LOOK AT THE CHARTS BELOW. CHECK THIS COMPANY IT SEEMS A GOOD PUNTER BASED ON ITS COPPER MINING POTENTIAL IN PERU.

.
RNS Number:9040S
Monterrico Metals PLC
05 December 2003
Monterrico Metals plc
Rio Blanco Pre-feasibility Study
Strong copper prices provide additional lustre to the results of the
Pre-feasibility Study at Rio Blanco in northern Peru.

LONDON: 05 December 2003 : Monterrico Metals plc. ("Monterrico" or the "Company")

is pleased to release highlights from the Pre-feasibility Study which examined
the economics for the development of the Company's 100%-owned Rio Blanco Copper
Project ("Rio Blanco or the "Project").
Discounted cash-flow analysis using data from the Pre-feasibility Study
indicates a pre-tax Project Net Present Value of US$320 million at a discount
rate of 10% and an internal rate of return of 33% using a copper price of 90
cents per pound.
The Pre-feasibility Study was compiled by GRD Minproc whose conclusions where
drawn from individual reports by Snowden Mining Industry Consultants, Vector
Engineering, SGS Lakefield, Golder Associates, Water Management Consultants and
Minproc.
The report appraised four process design options for the development of the
Project, as it is currently understood. The report concluded that the best
financial return for the lowest technical risk was to mine 10 million tonnes of
ore per annum (27,000 tonnes per day) using simple open cut technique and
produce a copper concentrate for shipment to a smelter. Production in this
scenario would average around 100,000 tonnes of copper in concentrate per annum
in the first seven years.
The key advantages at Rio Blanco are;
- The possiblity to mine higher grade ore for the first five years of
production (at an average grade of 1.13% Cu)
- Rapid payback of capital around 3 years and long mine life, 32 years.
- Waste to Ore ratio very low at around 0.7:1 over life of mine.
- Simple metallurgy allows for high recoveries of around 90 - 95% and the
production of a clean high-grade concentrate (30 - 38% Cu)
- Estimated capital cost for the project is US$191 million, which is
modest for its size due to simple mining and processing.
To date, Monterrico has not taken into account the molybdenum present in the
resource. Molybdenum may be extracted in the concentration process and would be
a valuable by-product. The company intends to calculate a molybdenum resource
as the part of the feasibility study, and this has the potential to further
improve the economics of the project.
The Company has recently secured GBP10.2 million (net) to fund the Bankable
Feasibility Study. Drilling contractors have initiated the 20,000 meter infill
drill program to define proven and probable ore reserves. Tunnelling contractors
are extending the "Karlita" tunnel and are presently at 270 meters through
Henry's Hill. Monterrico currently has 20.17 million shares in issue trading at
around 168p and an undiluted market capitalisation of GBP33.9 million.
Chris Eager (CEO) said: "The timing for the Project couldn't be better, there
is sustained international demand for clean high grade copper concentrate and
the outlook for rising copper prices. Rio Blanco looks very attractive at the
current copper price (around 95 c/lb) and sensitivity analysis indicates that
the project could generate robust cash-flows at much lower prices. The
Feasibility Study has begun and results from both the drilling and tunnel should
be released prior to Christmas."
Contact:
Christopher Eager, Monterrico Metals +44 20 7448 5088
Keith Irons, Bankside Consultants +44 20 7444 4155 / 07885 356 639
Richard Chase, Ambrian Partners +44 20 8528 1456

Monterrico tipped today

Of the horde of explorers and miners that have listed on AIM over the last couple of years one of the great success stories has been Monterrico Metals. The company was founded in 2001 and is led by Australian duo Chris Eager and Ray Angus. The former trained as a mining engineer and, following an MBA, gained extensive City experience as a resource banker with NM Rothschild, the latter is a through-and-through field geologist who has spent the past fifteen years in South America. The company acquired a portfolio of exploration projects in Peru and listed in mid 2002 at a price of 46p, raising 3 million.


Monterrico's main project is the Rio Blanco porphyry copper deposit on the Peruvian - Ecuadorian border, which currently has a resource of 1,071Mt. Within this is a higher grade core of 177Mt at 0.98% copper that would be mined first. A pre-feasibility study was completed in November 2003, which gave the project has an NPV of 320 million US dollars, using a 10% discount rate and a capital cost of 191 million dollars. Over a 30-year life the study anticipates average copper production of 90,000tpy, with 100,000tpy during the earlier years.


Since listing the board has focused on the development of Rio Blanco, and has managed to steer it swiftly through the process of resource definition and pre-feasibility study whilst carefully husbanding the company's resources. Monterrico's share price has risen steadily and it is currently trading at 234.5p giving the company a market capitalization of 47 million pounds. And it has net cash of 10 million pounds following a placing last year. This has been driven by a combination of progress at Rio Blanco and a rising copper price.


Copper on a High
Copper is currently trading at a high of 2,554 dollars per tonne because of the continued strength of demand in Asia, especially China and a lack of supply. This has been caused by a number of mine closures over recent years that have been exacerbated caused by last year's planned production cutbacks and the significant and ongoing pit wall stability problems at the vast Grasberg mine in Indonesia. It therefore appears likely that the copper price will remain strong over the short and medium term. It should however be noted that much of the rise in the US dollar copper price, as with other metals and oil, may be attributed to the fall in the value of the US dollar relative to other currencies. If the US dollar continues to trade at current levels then there will obviously be a negative impact on the sterling value of Monterrico's project and any future revenue from it.


The upside at Rio Blanco comes principally from further exploration, where work to date has focused mostly on the deposit's leachable cap. This was because the company initially envisaged constructing a heap leach operation and further deeper exploration could substantially increase the resource base. Additional upside may be found in the value of the molybdenum credits in the orebody, which Monterrico is currently evaluating. The management believe that the molybdenum credits have the potential to add up to 15 million US dollars per annum to Rio Blanco's cash flow at current molybdenum prices.


Although Monterrico's share price has risen significantly there remains further scope for increase as the NPV translates to 922p per share. Whilst it is unlikely to reach this level a 12-month target of 297p, a 70% discount to NPV based on past performance should be achievable.

Key Data

EPIC: MNA
Market: AIM
NMS: 500
Spread: 232p-237p
Market Cap: 47.3 million pounds

philjj. Thanks for these.....where did u see the article?? I believe the share will pass the 300p well before the 12 months period. I will investigate more regarding the other assest of Monterrico. Also I feel almost all mining are the hot shares at the moment, and some oil stock. I will do some swicth from the stale shares I have: I have my eye on

CDN, MIO, MANA, EUA, BDY, PET AND ENN. All high risk tho.

Up to 4.46% to 257.70pence. There is not stopping Monterrico. I think this will reach 300p in 2 months and pass 400p by end of the year. Read the article above and the directors dealing of today...... to me it is a good buy. There is loosing with the stock. High grade Copper demand is at its highest as manufacturing and China take off.

Company Monterrico Metals PLC
TIDM MNA
Headline Director Shareholding
Released 16:12 11 Feb 2004
Number 3013V

MONTERRICO METALS PLC (THE COMPANY)

The Company announces that on the 10th February 2004 one of its directors, Mr F Z Haller agreed an off market purchase from Torre International Holdings Inc of 112,092 Ordinary shares of 10p each in the capital of the Company at 225p per Ordinary share.



Following the completion of this transaction Mr Hallers direct and indirect shareholding will increase to 760,431 Ordinary shares of 10p each (3.77%) of the issued Ordinary share capital of the Company.



For further information, please contact:-



Mr Chris Eager, Chief Executive Officer, 020 7448 5088.





11 February 2004





END

It reached 267p today. nearly 4% up. At this pace we will reach 300 by end of March. Come on show me the money!!!

Good news. Copper has risen 1000 points since november last year now standing at 3000$/tonne. Great reads regarding copper in IC and Shares Magazine. If this continues MNA will reach 500p by the end of the year. Lets hope Rio Blanco get the go ahead after the feasibility report. Also Monterrico had again a mention in shares.

Price soars on solid demand

Base metal prices have rallied in recent weeks and copper is one of the metals leading the charge. In the past few weeks, the copper price has risen 10% to a new eight-year high of USc124/lb and analysts at Deutsche Bank think it still has momentum left. They think the copper price could test the 1995 high of $3,230/t in the coming months, if not weeks. There have been four such rallies in the past 35 years, but this is no flash in the pan, they say. Higher prices could be here to stay as improving demand and limited new mine capacity should support higher prices over the longer term.

Copper is the metal of choice for analysts at Deutsche Bank for its increasingly tight underlying fundamentals. A range of more speculative factors have also all aligned to give the price a fillip, in particular Chinese demand and US dollar weakness. In China, imports of copper rose a solid 15% year on year in 2003 and this momentum is expected to be a significant short and long-term driver of price. There are also signs of improving demand in some of the more developed markets, according to Deutsche Bank, particularly in the US and Europe, which are currently reflected in higher inventory outflows. Added to this, a strong speculative interest in copper has contributed to higher prices.

On the fundamental side, analysts cite tight supply as the key reason behind the price gain. A review of the projects in production, or due for production, in the next two years reveals just how limited these growth opportunities are. Apart from smaller expansions, there are only five large projects contributing to the growth in mine supply this year Sessego, El Teniente, Escondida, Collahausi and Olympic Dam.

A number of mining restarts should add to volumes, but the net result is more than offset by the impact of the Freeports Grasberg mine slippage and other disruptions, says Deutsche Bank. Freeport recently reduced its copper production targets for 2004 by 28% from 1.4mlb to 1.0mlb because of a delay in the mining of high-grade ore at the site. While these sort of disruptions tend to be once-offs, the main reason behind the fall in supply is the decline in exploration, R&D spending and capital investment across the commodity industry. These supply constrictions should place strong upward pressure on refined prices, increasing the probability of further price spikes.

Given this price momentum, Deutsche recommends investors take positions in mining stocks with exposure to the copper cycle. Its preferred pick is Anglo-Australian mining giant, BHP Billiton (BHP), which is in the process of ramping up its production of both copper and aluminium to tap into the improving demand. Analysts say: It continues to benefit from broad commodity exposure, while the expansion in copper and aluminium is proving well-timed. The groups opportunities are not just limited to earnings from copper; analysts also see the potential for expansion in its iron ore business. The volume expansion in iron ore, planned for 2006/07, would offset any momentum lost from the scaling back in its capital expenditure programme.

Australian-based mining giant Rio Tinto (RIO) is another miner offering exposure across a range of base metals. The company recently reported net earnings of $1.382 billion pre-exceptionals in 2003 against $1.53 billion the previous year. The result was weaker than expected, particularly in industrial minerals, aluminium and energy coal. Copper earnings were a strong point, as were earnings from iron ore and diamonds, according to analysts.

WMC Resources (A:WMRX) also recently reported full-year 2003 results. Full-year profits of A$246 million after tax were well ahead of consensus expectations of A$216 million. The income split revealed mixed results across its various divisions, with a particularly strong nickel contribution offset by weaker copper and fertiliser contributions, according to analysts. The surprise factor was the strong performance of the nickel price, particularly in the second half, which led to a premium in contained metal sales contracts.

Picking stocks with exposure to copper earnings is an investment choice that is underscored by strong fundamentals, according to Deutsche Bank. It is expected that the decline in copper inventory will increase the likelihood of further price rises, say the analysts, and for the mining giants which have a hand in this production, increased copper earnings may be a feature of balance sheets for years to come.


Copper mine expansions - major mine (Kt)
Country Mine 2003 2004 2005
Brazil Sossego 80 180
Chile El Teniente 283 458 454
Chile Escondida 860 1050 1200
Chile Collahuasi 393 465 475
Australia Olympic Dam 172 240 245
Source: Deutsche Bank estimates

UP 14% HERE IS WHY. MORE TO COME. GREAT GROWTH POTENTIAL MY ESTIMATES BY THE ENDO OF YEAR IS 400P

Monterrico Metals plc



New Primary Resource Potential at Rio Blanco


LONDON: 18 March 2004 - Monterrico Metals (Monterrico or the Company) (MNA.L) is pleased to report on the latest drill results from the Rio Blanco Copper Project (Rio Blanco) wholly-owned and operated by the Company, in northern Per



Previous drilling at Rio Blanco has focused on defining the tonnes and grade contained in the enriched copper blanket which consists of secondary copper mineralization amenable to heap leaching. The Pre-feasibility study (completed in late 2003) demonstrated that the most advantageous process route at Rio Blanco is now to build a simple flotation concentrator and market copper and molybdenum concentrates to smelters. This process route would allow Monterrico to treat ore from the large primary resource underlying the enriched blanket and recover molybdenum and other metal credits.



Molybdenum is currently trading above US$8.00 per pound, over six times the value of copper. The global resource potential at Rio Blanco may be substantially increased with the inclusion of additional drilling data from the primary copper/moly mineralization that underlies the enriched copper blanket. Monterrico will now report copper equivalent grades (%CuEQ) to include the contribution of molybdenum, as well as the copper grade. Latest drill hole RB-56 serves as an excellent example where the enriched blanket assayed 220m @ 1.09% CuEQ from 12m below surface. The remaining 109m tail of the hole averaged a primary grade of 0.56% CuEQ and was terminated in mineralization.



Monterrico has begun to quantify the primary resource potential of Rio Blanco. Latest drill results returned significant widths of high-grade primary copper and molybdenum mineralization, including RB-59 which assayed 198m @ 1.12% CuEQ from 46m below surface. The discovery of this zone is significant as it occurs on the margins and extends outside of the previous resource model.



Monterrico intends to publish a new resource estimate that will include copper and molybdenum from both the primary and secondary ore types. The company has commissioned GRD Minproc to assess the capital and operating costs associated with building an operation to treat 20 million tones per annum of ore. This reflects the expanding resource base at Rio Blanco, where doubling production capacity would substantially increase project returns.



Mr Ray Angus, Chief Operating Officer, said We are just beginning to examine the big picture at Rio Blanco and physically step-off Henrys Hill - where we have only explored for copper enrichment. The scenario to install a flotation circuit and concentrator allows the simple processing of both secondary and primary ore types. With the latest discovery of high-grade, near surface primary copper plus moly values in the porphyry shell, we are now running parallel programs to define reserves and to expand the global resource at Rio Blanco.



Ends

For further information:



Chris Eager, Chief Executive,

Monterrico Metals plc Tel: 020 7448 5088/ Mobile: 07903 158 301



Keith Irons, Bankside Consultants Tel: 020 7444 4155/ Mobile: 07885 356 639



Richard Chase, Ambrian Partners, Tel: 020 8528 1456

It has passed the 300p before end of March(as predicted on my post 12 Feb)and up nearly 10% today Now my conservative prediction by end of year is 400p. Come on all there must be people owning MNA. It gets lonely just me posting. any comments?

market cap as of 27.02.04 50 million

I've held Monterrico since they were 100p or so. Its taken about 8 months to triple so far. This may be due to the fact they are one of the few mining comp. to have more or less only good news flow. I think 400p by end of year is realistic. Just wish I had bought more at 100p, but am considering a re-investment in the near future

350-355 price. 12% up today. Lets pray it reaches 400p when further tests come positive on its Rio Blanco Copper reserves

Jeez I wish I had bought more at 100p! still think they are worth a punt and so do investors chronicle. Think 400 is within reach.

For you guys: Tipped as a BUY in the Sunday Telegraph today.

Monterrico Metals

We last tipped Monterrico Metals, the Aim-quoted copper-mining company, when we advised investors to sell at 84.5p in June last year. Our advice came after we had made a 65 per cent gain in six months and it seemed wise to lock in the profits.

We were rather hasty - the shares have since soared to 292.5p. However, we believe that, even at this price, there is money to be made from investing in Monterrico. The company is developing a copper deposit in Peru and is likely to announce this week that consultants from Amec have increased their estimate of its size.

Monterrico has consequently revised its mine plan upwards to produce 200,000 tonnes of metal a year, making it one of the largest copper mines in the world. The news, combined with investors' current strong interest in mining companies, should see the share price continue its stellar performance. Buy.

http://www.money.telegraph.co.uk/money/main.jhtml?xml=/money/2004/05/16/ccmm16.xml&menuId=243&sSheet=/money/2004/05/16/ixfrontmarkets.html&secureRefresh=true&_requestid=14314

RNS Number:7285Y
Monterrico Metals PLC
17 May 2004



Monterrico Metals plc



Feasibility Drilling Results from Rio Blanco

Further resource increase possible



LONDON: 17 May 2004 - Monterrico Metals ("Monterrico" or the "Company") (MNA.L)
is pleased to report that recent drilling of the Rio Blanco copper deposit in
Peru continues to push the mineralized envelope which is expected to lead to a
further increase in the geological resource. The drilling is being conducted as
part of the full bankable feasibility study of the Rio Blanco project ("Rio
Blanco") which is wholly-owned and operated by Monterrico.



Several of the latest drill holes on Henry's Hill intercepted thick zones of
copper and molybdenum mineralization in the enrichment blanket,including RB-60
with 112m @ 1.04% CuEQ and RB-69 with 84m @ 1.24% CuEQ. At the same time, as
new holes are drilled deeper, the zone of primary mineralization is being
developed underlying the secondary enrichment and off the flanks of Henry's
Hill. Examples include RB-63 with 92m @ 0.77% CuEQ and RB-64 with 213m @ 0.85%
CuEQ (See accompanying table).



The resource estimate published in September 2003 based on preliminary drilling
of shallow mineralization was 662 million tonnes at 0.7% copper excluding
molybdenum by-product credits. Recent drilling has confirmed that the deposit
is still open laterally and at depth. One of the most impressive results was
from RB-67, the easternmost hole drilled on the property to-date, which
terminated at a depth of 474m in an equivalent primary copper grade greater than
1%. Sample recovery commenced from 56m below surface, and the entire run
averaged 418m @ 0.60% CuEQ.



Mining and Engineering consultants from AMEC are currently re-estimating the
resources including the additional drilling completed over the past months. As
a result Monterrico has revised its initial development plans to provide for a
mining operation of 20 million tonnes of ore a year to produce 200,000 tonnes of
contained copper together with significant molybdenum in concentrate per year.



Peru is Latin America's second largest copper producer and production of 200,000
tonnes of copper a year from Rio Blanco would equate to around 20% of the
countries current copper production.



Good progress is being made on other aspects of the project bankable feasibility
study. In April AMEC began a review of the pre-feasibility geologic model and
consulted on the infill drilling program as part of its role to update the
resource estimate and open-pit design. Meanwhile, Hatch and SGS Lakefield
Research in Santiago, Chile, have begun to scope the detailed metallurgical
testing program and flow-sheet design.



Representatives of Vector Peru S.A., the geotechnical engineer, have arrived at
the project site to review core logs and collect samples for acid rock drainage
testing. Vector has also entered into detailed discussions with Monterrico on
planning for sterilization and geotechnical drilling and has also begun
coordination with Golder Associates on providing data required for the
environmental impact assessment.



Golder has commenced work on an EIA Scoping Report for the EIA, which will be
submitted for approval by the Republic of Peru Ministry of Energy and Mines
(MEM) in June. The Scoping Report is required for MEM approval of the scope and
methodologies of the EIA. The actual EIA is scheduled to be completed in the
first quarter of 2005.



Monterrico and its feasibility study manager, MTB Project Management
Professionals, have continued to evaluate options for access roads, supply power
lines and concentrate transport methods, as well as to further refine the
project organization and procedures.



Monterrico' CEO, Chris Eager said "Rio Blanco is one of the few substantial
copper projects in the world that can be developed in the next two years.
Recent drilling demonstrates that the resource drilled to date is only part of a
very large copper/moly mineralised system which is why we have revised our
development strategy to provide for mining and milling 20 million tonees per
annum to produce 200,000 tonnes of copper per annum"



Ends





For further information:



Chris Eager, Chief Executive,

Monterrico Metals plc Tel: 020 7448 5088/ Mobile: 07903 158 301



Keith Irons, Bankside Consultants Tel: 020 7444 4155/ Mobile: 07885 356 639





(See following technical note and drill results table, highlighting new drill
holes.)






Technical Note and Tables





The following drill holes represent examples of this style and are tabulated
below.


RB - 60 from - to (m) interval (m) Cu% Mo% CuEQ%

Supergene 126 158 32.0 0.91 0.045 1.19


Hypogene 158 264 106 0.55 0.035 0.77




RB - 61 from - to (m) interval (m) Cu% Mo% CuEQ%

Supergene 78 186 112.0 0.86 0.280 1.04

incl 102 186 84 1.00 0.032 1.20

Hypogene 186 224 38 0.54 0.032 0.74




RB - 63 from - to (m) interval (m) Cu% Mo% CuEQ%

Supergene 140 164 24.0 1.28 0.030 1.47


Hypogene 164 256 92 0.58 0.032 0.77






RB - 64 from - to (m) interval (m) Cu% Mo% CuEQ%

Supergene 84 98 14.0 1.01 0.019 1.12


Hypogene 98 311 213 0.56 0.046 0.85






RB - 67 from - to (m) interval (m) Cu% Mo% CuEQ%

Hypogene 56 474 419 0.41 0.030 0.60

Incl 246 304 58 0.60 0.021 0.73





RB - 69 from - to (m) interval (m) Cu% Mo% CuEQ%

Supergene 88 172 84.0 1.20 0.006 1.24


Hypogene 306 410 104 0.80 0.020 0.92

Incl 306 320 14 1.20 0.023 1.34
Incl 348 378 30 1.03 0.022 1.16






* Copper equivalent grades have been calculated using the ratio of metal prices
(US$1.00/lb. for copper and US$6.20/lb for molybdenum); CuEQ% = %Cu + (%Mo x
6.2).





Glossary

Core Sample Rock samples collected by diamond core drilling

Floatation A means of separating one type of mineral from another after
Concentrator milling, commonly separating sulphide minerals from silicate
minerals.

Grade The concentration of a metal or mineral of interest within a
rock. Grade is commonly expressed as a percentage by weight for
base metals and as a weight in precious metals, grams per
tonne.

Heap leaching A means of dissolving the chemicals of interest out of
mineralized rock by spraying solvent onto a large pile of
crushed material and collecting the solvent for further
treatment.

Hypogene A general term pertaining to mineralization originating within
the Earth, often by ascending fluids. (Primary)

Intrusion A general term describing a mass of igneous rock which
solidifies before reaching the surface.

Metallurgical The means by which minerals and/or metals of interest in the
Processing ore are separated and concentrated into a saleable form.

Metallurgical Laboratory based tests which examine methods of concentrating
testwork minerals and/or metals of interest.

Milling A means of further reducing particle size after crushing
resulting in a sandy or silty finess.

Mineral An occurrence of mineralization of potential economic interest,
Resource studied to the extent that a tonnage and grade has been
estimated and the confidence in these categorized.

Open-pit Extraction of mineralized rock froma pit without the use of
mining underground tunnels.

Ore Reserve That part of a Mineral Resource which has been demonstrated to
be economically extractable.

Porphyry An igneous rock which contains large crystals (phenocrysts)
usually of fedspar.

Porphyry A type of copper mineralization commonly exploited, usually
Copper being very large tonnages mineralization with relatively low
grades of copper and often molybdenum, gold and silver.

Primary Rocks that contain minerals of interest that originates within
Mineralization the earth. Sometimes occurring as a result of fluids rising
from deep within the earth to near surface resulting in
economically extractable concentrations of metals.

Secondary Mineralization resulting from the movement, chemical change or
Mineralization further concentration of primary mineralization. May Include
Supergene Enrichment and Enriched mineralization.

Smelting The winning of metal or amalgam from burning sulphide minerals
at high temperatures.

Supergene Concentration of chemical elements usually beneath and as a
Enrichment result of near surface leaching.




This information is provided by RNS
The company news service from the London Stock Exchange
END

Thanks Sue, I have sold the shares and made a handsome profit, however I am keeping track of it and copper prices. Do u hold some of this as well?

hello monterricans. I bought back some shares this morning. MNA had excellent reviews, in IC and Shares, also newspapers like the Times and Daily Mail. All decided is a BUY. The price has come back. HSBC has been appointed as strategic financial advisor. Numis raised is price target to 490pence which includes the extended ore which they recently announce.

Furthermore take a look at the charts at the beginning of the thread. Does it looks very nice? Upper bollinger twisting upwards broke the 20 and 60 day MA and the 200 MA still intact.

One must remember the fundamentals for this company which is spot on, a very good one. Even is China slows down (which i think may slow only a bit) the demand for Copper, good quality copper is much higher that the supply. The world is developing and raw materials like copper is needed. Huge ecomomic growth prospects comes from Russia, Mexico, Brazil, USA and SE Asia and Latin America

Finally some rumors have been going round as MNA can be a catch for mining gigants like Rio Tinto. Extracte from Minesite. see below

Bid Alert in on at the moment with Junior Mining Companies:

Feature Story

Date : May 27, 2004

Rumours Of Bids Swirl Round Three Junior Mining Companies.

Rumours grease the wheels of markets and there are a number buzzing round Londons mining sector at the moment. Most are constructive; some like the story in the Independent on Sunday tend to be destructive. It claimed that a source within Highland Gold had confirmed that it purchased the Maiskoye gold project in the province of Chukotka from a company called Deerfield Universal and that Roman Abramovich, the owner of Chelsea Football club, is a beneficiary of Deerfield Universal. He also happens to be governor of Chukotka and Russias independent Audit Chamber is carrying out an enquiry into public spending in the region. Ergo, claimed the newspaper, theres something nasty in the wood shed.

Russia, and especially its more distant regions, does not operate exactly like London and Mr Abramovitch is a very successful businessman even if he fell for the old ego trip of buying a football club. Whether or not he spends much time or energy on his role as governor of Chukotka in the Russian arctic is another matter and debates about conflicts of interest carry little weight up there. As far as UK investors are concerned Highland Golds lawyers, its brokers Cazenove and its advisers Fleming Family & Partners all must have been persuaded that the deal was kosher. Agreed they were legged over about the fixed assets at the Mnogovershinnoye gold mine which were being leased from the regional Kharbarovsk government. These were put up for sale and the company had to spend many millions of dollars to buy what it had a legal contract to lease. All part of the learning curve in Russia.

Turning to constructive rumours, they are certainly flying round Monterrico Metals since it announced today that it was bringing in HSBC Bank as strategic financial advisor. Names such as Rio Tinto and Xstrata are being mentioned in some quarters as possible bidders. In fact it matters not which company actually puts its money on the table; what matters is that Monterrico Metals has done what exploration companies are meant to do. It has established through the pre-feasibility study and the initial work on the feasibility study, that the Rio Blanco Copper project in Peru can be developed into a significant copper producer. Recent resource drilling further demonstrates that Rio Blanco is a very large copper porphyry system and that is what tempts the majors. Opportunities such as this occur rarely and it is even rarer for a junior to have 100 per cent control. When, not if , a bid materialises at a sensible price the Monterrico team will have made a lot of money for investors and can go on to repeat what it does best explore.

In a way the same goes for Cambridge Minerals. The company has been beavering away at the Lomero-Poyatos gold polymetallic project in Spain for some time now . Mike Thomsen and Garry Massingill both moved from senior positions in Newmont when the major pulled out of a JV with Cambridge as they wanted to remain involved in the project. By so doing they confirmed that it could prove to be a big one and all the results announced since then from exploration work have confirmed this theory.

A few months back hedge fund managers RAB Capital built up an interest of over 25 per cent in Cambridge through a placing and the story goes that they made clear that they did not think that the Cambridge team was the right one to develop a mine at Lomero-Poyatos. Huge respect was given to the team for its exploration expertise, but a strong suggestion was made and it is always wise to listen to major shareholders that a deal should be done with a developer. Two names seem to be in the frame and the company will make no comment on either. One is Oxus Gold and the other Agnico Eagle. The latter does not seem to have done much outside North America, whereas Bill Trew and his merry men have developed mines from darkest Africa to Central Asia.

It makes sense. The Cambridge team could concentrate on Hereward Ventures with some excellent projects in Bulgaria and Serbia. Mike Thomsen has already declared that he sees plenty of potential in them and he is an explorer. If a deal materialises Cambridge will also have fulfilled its role as a junior and can bow out with a profit for its shareholders. It is what is called proactive fund management and it forces difficult decisions.

The last company round which rumours swirl at the moment is Trans-Siberian Gold. The company has got itself into a very interesting position in the Far East of Russia in a very short time. It plans to bring the Asacha deposit on the Kamchatka peninsular into production late in 2005 and the Veduga mine in Krasnoyarsk should follow in 2006 at the same time as the Rodnikova open pit mine which is 60 kms north of Asacha. Between 2007 and 2111 Trans-Siberian Gold intends to produce at a rate of around 275,000 ozs gold and it has some great exploration potential also. The temptation has to be there for a major which has been left behind in the recent rush to buy cheap ounces of gold in the ground in an underexplored continent.

Minews has no special knowledge of who the bidder might be, but that does not matter. Rumours usually prove to be right if the story makes sense as this one does. Doubtless the regulators will leap around looking for insider traders as and when these deals eventuate. There will not be any unless it is now a sin to guess the name of a bidder correctly. But that is usually a pure fluke.

http://www.minesite.com/archives/features_archive/2004/may-2004/rumours270504.htm

Hello Again.

I topped up again at 365 pence & MONTERRICO is Up 6.21%. 20 Day Moving average just crossed upwards the 60 Day moving average.

We should see another blue day tomorrow. I managed to get an article on Bloomberg relating to more upgrades in Copper reserves in Rio Blanco.

This is getting better and better. I will update you later. It seems that im the only one with Monterrico???

UP 8.56% today. It has break its all time high. It looks like another blue day for tomorrow too.

Top up time guys...

Company Monterrico Metals PLC
TIDM MNA
Headline Director Shareholding
Released 08:37 09-Jul-04
Number 6685A


MONTERRICO METALS PLC (THE COMPANY)

The Company announces that on 8 July 2004, Mr R J Angus, a director of the Company purchased, off market, a total of 104,460 ordinary shares of 10 pence each from family members at a price of 4 per share. The shareholding of Mr R J Angus has increased to 1,349,460 ordinary shares of 10 pence each, which represents 6.62 % of the issued share capital of the Company.







For further information, please contact:-



Mr Chris Eager, Chief Executive Officer, 020 7448 5088

END

more good news


http://www.monterrico.co.uk/s/PressReleases.asp?ReportID=84224&_Type=Press-Releases&_Title=Absolut-Strikes-Gold-at-Monterricos-Pico-Machay