After normal
profit-taking, we are channeled but notice the lows are staying
above C$3.00 to slightly above C$4.00.
This tells us the stock does
not want to sell and is merely pausing in the sideways channel for the next
hot rally.
We contend that new rally begins at the end of August,
later this month or, right after USA Labor Day holiday.
This next
run should be a dandy.
Note the price will make a more pronounced move after
volume slows down and takes a rest.
The second to the last price bar from
C$3.50 to over C$4.00, we think was a reaction to the latest positive
news when the resource estimate doubled.
More Details On The Maudore Comtois Flagship Project:
-From Maudore’s Website
The current resource estimates a potential open pit inferred
resource in the upper 150m at the Osbell area of the Comtois deposit.
From
surface to a vertical depth of 150 meters, the estimate is 4,876,000 tonnes
grading 3.2 grams per tonne for a contained 504,384 ounces of gold at a
cut-off grade of 1 gram per tonne.
Underground potential inferred resource
is estimated to be 3,250,000 tonnes grading 6.8 grams per tonne or a
contained 708,409 ounces of gold using a cut-off grade of 3 grams per
tonne.
The combined open pit and underground Inferred Mineral Resources
include a contained 1,212,793 ounces of gold.
Since ongoing drilling
continues to add new high grade intercepts, there is considerable
opportunity to optimize potential size and mining approaches.
Furthermore,
there is good potential for volcanogenic massive sulphide (VMS) gold
mineralization occurrences on the property.
This region of Quebec has prolific
VMS mine occurrences.
It is important to remember:
- The presence of some near surface mineralization at these high
grades,
- The main road crosses the property between the Bell and Osborne,
- The James Bay power project to the North, providing Québec
with North America’s lowest-cost power,
has a transmission line
less than 3 kilometers away and,
- Lebel-sur-Quévillion and the relatively nearby towns of
Rouyn-Noranda and Val
d’Or have a plethora of experienced mining
personnel.
All these factors, along with high grades, argue for an
ultimately low cost operation.
A focus on MAOs annual chart shows a tighter view
of the C$3.00-C$4.00 trading channel.
Our New Maudore Stock Price
Forecast
Based upon current share price and our precious metals forecast for the
balance of 2010; we see the following support and resistance numbers
expressed in Canadian currency:
Next Support: C$3.50 with following resistance
C$4.00. From C$4.00, we resist at C$4.32.
From C$4.32 next resistance
is C$4.83. From C$4.83, we see C$5.25 resistance followed by a cycle
seasonal high of C$5.66.
These prices are based upon the next rally from a
C$3.50 base.
Our forecast says the minimum fall high for these shares is
C$4.50 but we are expecting C$5.00 to C$5.66.
Should precious metals stocks
diverge from the others, there is a chance the gold and silver prices and
their related shares could perform even better.
Early technical signals now
tell us this divergence process has begun.
Trader Tracks
recommends buying the shares at the market with a potential hold until
at least Thanksgiving this fall.
Higher volatility is expected so we
recommend no risk stops for now.
Trader Tracks Says
Quebec,
Canada Is
The Best Location For Precious Metals Miners.
Here is a Note From The Maudore Chairman On The Latest
News Report
Ron Shorr, Chairman/CEO of Maudore: stated,
“We are delighted to significantly boost our resource.
The
grade of our open pit potential mineralization is favorable compared to
similar deposits and operating mines.
The underground resource is also of
an above-average grade.
The growth potential of both components is clearly
demonstrated by the intercepts we’ve reported since the resource
cut-off date.
Notably, many exceptional drill results are coming from areas
that until recently received much less drilling than the main Osborne
resource area, and they confirm that high grade gold exists at both ends of
the 1.5km strike length and remains open.
The study provides significant
data and insight to assist in planning further exploration and development
of the project.
An additional 38,500 meters (110 holes) have been completed
since the cut-off date for this resource estimate and work has begun to
incorporate this into the model.
The Comtois project is located on a
highway, has access to North
America’s lowest cost power, and is close to abundant
water resources and a labor supply.
Quebec has been named by the Fraser
Institute as the best place in the world for mineral exploration (third
straight year), and, unique to this area of the world, Maudore benefits
from 47% cash rebates on in-ground exploration expenditures.”
Maudore Company Data.
From BigCharts.com.
The Company has
22,731,347 shares outstanding with a market cap of $83.9 million.
High
price was C$4.95 on Wednesday, December 2, 2009.
The 200-day average
trading price is C$3.78 and average volume is 35,739.
Five year chart shows
the steady growth of these shares.
Trader Tracks expects more good
things to come.
Please follow this link to an audio interview with Roger on Maudore: http://www.kereport.com/weekendshow/weekendr-aug2110-seg6.html
TSX-V: MAO US: MAOMF Frankfurt:
M6L
1000 de la Gauchetiere West, 24th Floor,
Montreal, QC, H3B
4W5 Canada
Website: www.maudore.com
Email:
Investor Relations: Douglas
Hickey 604-808-4983
