Aggressively Moving Forward as Others Retrench

Aug 11, 2014

The three year bear market in the Canadian junior resource sector that began in early 2011 looks to have bottomed and is now poised to move higher. However, most resource companies have curtailed exploration activities and have decided instead to hibernate. Only those companies moving forward on the exploration front and on investor awareness initiative will garner the majority of new investor money that has been sitting of the sidelines waiting to get back into the sector. Montana Gold Mining (MGM on the CSE in Canada – $.075/share) is accelerating activities on both fronts and will be one of the leaders that attract investor attention this fall.

Within the next 30-60 days, MGM expects to receive their final permit needed from the BLM to begin their drill program on the very promising Golden Trail project in Nevada. Montana Gold’s Golden Trail project sits 50 miles north and on trend with the $2.3 billion purchase of Newmont’s Long Canyon project.

Another 50 miles south and on trend of Long Canyon is the Pilot Gold/Nevada Sunrise Kinsley Mountain project discovery that has attracted the attention of the junior resource sector. For those who read my initial report on MGM (see http://www.montanagoldmining.com/_resources/media/introduction.pdf), recall that a few months after Newmont purchased the Long Canyon project for $2.3 billion in 2011, Newmont picked up all of the surrounding adjacent claims to the MGM Golden Trail project. I’ll let you speculate as to why a $10 billion gold producer would claim ground to completely surround a promising gold project run by a company with a market cap of $3 million.

In advance of the upcoming drill program, management took the opportunity to fine tune the drill targets using a relatively new technology.

As discussed in the press release issued by management on July 29th, (http://www.montanagoldmining.com/news/index.php?&content_id=131) MGM recently completed an encouraging pilot survey using hyperspectral imaging technology on 44 five-foot rock-chip line samples taken late last year at the Golden Trail project. This pilot survey discovered a distinctive alteration mineral assemblage associated with higher gold values and therefore useful as an exploration pathfinder at Golden Trail. You can read more about this revolutionary technology at (http://www.terracoreint.com).

You may recall that results from the original surface sampling program at Golden Trail included one continuous five-foot line sample that returned 13.7 grams gold with 36.2 grams silver and a second five-foot line sample returned 3.49 grams gold with 105 grams silver. The largest identified vein at surface is over 1,200 metres long and has an associated alteration zone that averages about 30 metres wide.

MGM management is also accelerating their investor awareness initiatives to coincide with the upcoming drill program and the renewed interest in the junior resource sector. While nearly all other junior exploration companies are waiting for the market to fully recover, MGM is out front capitalizing on the upcoming opportunities as shown on the following page:

Upcoming Events:
September 25-26, 2014 – Canadian Investor Conference Toronto 2014, Sheraton Toronto Center Hotel – Display Booth # 708
September 27, 2014 – Global Chinese Financial Forum Toronto 2014, Sheraton Parkway Toronto North Hotel – Display Booth
January 18-20, 2015 – Geological Survey of Nevada Symposium, Reno, Nevada – Geological Paper, Presentation and Display Booth
March 1-2, 2015 – Prospector & Developer Association of Canada (PDAC) Investor Exchange, Toronto Convention Centre – Display Booth
June, 2015 – Elko Mining Expo, Elko Convention Center, Elko, Nevada – Display Booth

With gold continuing in the $1,250 – $1.350 range, the gold stocks have been forming a base for the last year. This fall we should see the long awaited break-out higher and along with it those companies such as Montana Gold Mining who have plowed ahead in spite of the difficulties faced by the sector.

Vince Marciano, CPA, MBA

August, 2014

http://www.montanagoldmining.com/news/