Fortbridge Media Release

Resource Capital Research [RCR] - RCR Company Update, Minera Gold Limited (ASX:MIZ), September 2014

Resource Capital Research has released an equity research report on Minera Gold Limited (ASX:MIZ).

Minera Gold Limited is an international mining and processing company with flagship operations in Peru. The Australian-listed company is the owner and operator of a profitable gold and copper toll processing plant in the well established, high grade, gold and copper Nazca Ocona region in southern Peru. The processing plant produces very clean concentrate, with feed from third party operators as well as from own mines of Minera.

Investment Points:

* Producing high grade (+10g per t Au) Torrecillas mine located in a prolific vein mining district of southern Peru, with many small producers (without plants) in the surrounding area. Projects historically sampled by mining, not drilling.
* Purchase of San Santiago gold and copper plant potentially transforms MIZ from a high grade producer to highly profitable toll treatment operator, with a captive group of local miners and margins of US250 dollars per ounce for toll treatment.
* Government formalization of small mining sector prohibits mercury use, pushing all small miners to registered processing plants, creating an opportunity for MIZ to follow the path of established TSX toll-treater Dynacor (MCap US65M dollars).
* SilverStream has gold streaming on 10 per cent of Torecillas gold production (at 400 per ounce), providing US4.4M dollars funding for the San Santiago plant purchase, (no dilution) with US1.1M dollars from an existing shareholder as debt and convertibles.
* Torrecillas and San Santiago (both 100 per cent) mining approvals are in place. Applications in place to increase milling rate from 350 to 700tonnes per day, with construction of an expanded tailings dam to accompany increased processing.
* Cost reduction associated with San Santiago acquisition, aims to reduce all in costs to 700 dollars per ounce, while ramping production up to 1600 ounce per month, with an ultimate target of 2000 ounce per month.
* Potential to add additional production from unexploited Au veins at Torrecillas and new Cu veins at San Santiago currently exploited by local small miners.
* Exploration drilling 4Q14 on veins at Torrecillas aims to increase the resource base, backed by an experienced project team, working in Peru for 7 years.
* MIZ investment case driven by processing of high grade Au and Cu veins from in-house resources and toll treatment, plus potential for larger discoveries longer term at Tumi and San Santiago.
* RCR risk adjusted valuation increases to 0.04 dollars per share with project de-risking.

To view the full announcement please click on the link below:
http:perper

For further information please contact:

Murray Brooker
Analyst
T: +61 2 9439 1919
W: