Today, on 30th May 2019, Magnum Mining and Exploration Limited (ASX: MGU) announced that its trial mining at the Cobra pits has been completed. The company has now commissioned crushing and wash plant using materials from the low grade and waste dumps. The Gravelotte Project is 74% owned by Magnum and is located at the Limpopo Province of South Africa (SA), which is known for the Emeralds discovery in the year 1927. Since then, several companies have explored the region for Emeralds, and from the year 1929 to 1982, around 113 million carats of total Emerald production was recorded from the Gravelotte Project and the area surrounding the nearby township.
In the present scenario, the Gravelotte Project provides Magnum with a medium-term production opportunity in a niche commodity segment such as Emeralds (growing demand). The project has established infrastructure with the available workforce (local on-site technical expertise) along with a nearby township that can be served as a supply centre. It is well suited with logistics (a sealed road to the mine gate along with a working airstrip) and utilities, which is being served by ESKOM grid power. The company has maintained its laboratory, offices, garages, workshops, a mine hostel to accommodate mine workers along with management accommodation complex at the site.
According to the evaluation program, the final key step will be to undertake testing to determine the best washing, processing, and crushing techniques, and then use the information in a trial mining exercise. The first part of the program was completed in the year 2018, and from then, the company has a good understanding of the crushing and beneficiation characteristics of the Gravelotte emerald bearing rocks. The second part of the program commenced in March 2019, which comprised mining of hard rock from the Cobra and Discovery historic pits. Till-date, close to 7.5K tonnes of hard rock has been stockpiled from the Cobra pits. Around 2K tonnes are yet to be trucked and stockpiled from the Discovery Pit.
In its quarterly report (ended 31st March 2019), the net cash from operating activities was reported at negative $246,000, majorly due to exploration and evaluation expenses and administration and corporate costs of $162,000 and $74,000, respectively. Its cash and cash equivalents at the beginning of the March quarter stood at $901,000, and at the end of the March quarter, cash and cash equivalents were reported at $593,000.
On the stock information front, at market close on 30th May 2019, the stock of Magnum Mining was trading at $0.081, with a market capitalisation of $22.65 million. Today, it reached day’s high at $0.081, which is also day’s low with a daily volume of 125,421. Its 52 weeks high price stands at $0.095 and 52 weeks low price at $0.040, with an average volume of 76,952 (yearly). Its absolute returns for the past one year, six months and three months are 50.00%, 37.29%, and 12.50%, respectively.
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