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Mining

Montezuma Mining Company drills high-grade cobalt at Pinnacles Project

Montezuma holds cash and assets exceeding in total A$10 million.

Montezuma Mining Company Ltd's (ASX:MZM) latest drilling assays have revealed high-grade mineralisation up to 0.45% cobalt, within a broad downhole intercept of: 14 metres at 0.15% cobalt from its wholly-owned Pinnacles Project in Western Australia.

The goal of the reconnaissance drilling program was to investigate a number of multi-commodity targets, which also included nickel and gold.

In addition to confirming historic work, the samples obtained will be the focus of first pass metallurgical testing to establish whether the laterite ores at Pinnacles are amendable to low capital cost processing pathways.

READ: Montezuma Mining Company test results exceed expectations

Montezuma's value-add portfolio

Montezuma is well-funded with over $4 million in cash at the end of June 2017, but the company's listed investments are often over looked in a valuation scenario.

The company owns a portfolio of listed securities, with the biggest holding the liquid Danakali Ltd (ASX:DNK).

Montezuma holds 7.5 million Danakali shares which are worth around $5 million, and adding further intrigue are the 2.3 million in-the-money $0.35 options. (Danakali last traded at $0.65).

Not to be forgotten are smaller investments worth over another A$1 million spread across: Buxton Resources Ltd (ASX:BUX), Duketon Mining Ltd (ASX:DKM), Exterra Resources Ltd (ASX:EXC), Auris Minerals Ltd (ASX:AUR) and Lefroy Exploration Ltd (ASX:LEX).

Montezuma has a market cap of circa $13 million, and with cash and assets of at least $10 million, the company's enterprise value is just a couple of million dollars.

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