Broker buy note out this morning..16 Oct 2017 11:30
...post below copied from a dvfn.
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FEL Morning Comment - Papua Mining (PML.L) - 'Buy'
NEW PAPUA EMERGES....
COMMENT & RECOMMENDATION
The BGM deal significantly transforms PML�s asset base, revitalising it with new exploration projects within the prolific mining district of North Queensland. All three new projects hold potential to be fast-tracked towards resource definition, given previous historic workings, previous drilling and close-proximity to existing deposits and operating mines.
The Lighthouse project for example lies in a region that has produced over 20 million ounces of gold. The licence boundaries are within 10 miles of two mines (Mt Leyshon & Pajingo), where over 5 million ounces of gold have been mined to date. Another project of note is Copperhead, located on an undeveloped large-scale porphyry copper system, that previously had an old pre-JORC resource of 35 million tonnes at 0.16% copper defined in 1972. Follow-up sampling of the drill core in 1989 showed an improved copper grade and established that the mineralisation is open in all directions.
Moreover, the new properties are in a more accessible region for development than the topographically-challenged project areas in Papua New Guinea, which has restricted PML's operational advancement.
What we also particularly like is the significant investment made by both existing directors and new incoming directors in the placing totalling �267.9K, with existing directors investing �149.5K and the remaining �118.4K invested by the new directors. This shows a very strong alignment of interest with investors and monetary vote of confidence in the new strategy ahead.
Given the clearing of what may have represented a significant overhang of stock from Thalassa Holdings, new additional management and injection of projects with opportunities to be fast tracked towards the important stage of JORC definition, First Equity Limited recommend Papua Mining Ltd as a �Buy�.
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