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Hi Guys,

I want to share with you my last email I sent to Sinch. It's a pitch on a stock I just recently found out about, one that got me pretty excited. Good luck to all and do your own DD!

"I'm sure you heard of the last Sandstorm deal - they cut a NSR with Magellan Minerals, on two of their projects in Brazil. Well, wouldn't you know, I did some DD on Magellan, and I am very, very intrigued!

Facts: The financing with Sandstorm was for $7.5 million cash, $.5 mill in common shares (at .50 cents - the stock is currently only .20 cents).

At .20 cents, they have a market cap of about $20 million. Not considering what other cash they have in the bank (not sure to be exact but I will check), we know they have at least $7.5 million cash. Close to 40 percent of their current market cap!

Management owns 11 percent. Both Kinross and Newmont are shareholders.

You can bet that they are going to use this cash to start getting the drills going.

Their two properties have total resource of 2.4 million ounces of gold. Brazil is a great mining jurisdiction.

I bought yesterday at .20 cents.

The last point I'd like to make is Sandstorm's management and how they choose their deals. They only go for safe political locations, solid management teams, project upside, etc. That only gives me more confidence.

They are aiming for first production in 2015 and second mine in 2016. I of course like the potential of both of their projects. Check out the presentations on the site - http://magellanminerals.com/.

Have a great weekend everyone!

 I am long V.MNM.

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My first impression at a quick glance is that it sure has been been down in the past year.

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Their NI 43-101  has over half a million indicated oz and another one and a half million inferred.

The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

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I think there is little downside risk here IMO with 7.5 mill in the bank. 20 mill market cap. 500 K indicated and over 1.5 inferred... just my opinion. I think Sandstorm likes the potential.

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I think there is little downside risk here IMO with 7.5 mill in the bank.

I presume management didn't raise the cash just to let it sit in the bank, though...

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Duh.

"The agreement results in minimal shareholder dilution and allows us to advance Coringa through a revised scoping study and feasibility, as well as continuing to expand the resource base at Cuiu Cuiu”, said Magellan President & CEO Alan Carter.

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Time to get those drills going.

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"Magellan released a positive preliminary economic assessment on Coringa in May 2010, which is in the process of being updated, and will commence a feasibility study in the third quarter of 2012.    

Cuiu Cuiu is located 180 kilometres southwest of Itaituba in northern Brazil. Exploration work has identified a series of major gold soil anomalies and Magellan anticipates conducting a drilling program during the second half of 2012 with plans to release a revised resource estimate in Q1 2013.

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You guys are evidently much more expert on gold mining stocks than I. What do you think of Brigus as a potential turning around stock?

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The  Coringa Deposit has a pretty high grams/ton. My question though is what their burn rate is. After all if managment needs to raise cash they issue more shares so initial investors can get burned or lose their initial deposit. High risk high reward rating though.

 

My other question is if they are close near other major mine developers who are willing to pay or if its a developed area. 

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Brigus is a top holding of my both mine and Sinch.

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How do you gain investing access to something like this? 

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MAGNF (over the counter - otcqx)

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You could also apply for a global trading account at Etrade and trade in Candaian dollars like I did, but that's up to you.

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Magellan up to .26 today. Looks like the bottom is in perhaps.

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