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Hot Stocks: Midlands Minerals reopens Sian pit mines

There are hundreds of undervalued junior exploration companies out there, and amongst them is the exciting story of Midlands Minerals Corp (TSX.V:MEX). This TSX-Venture-listed exploration company  has highly prospective properties in Ghana and Tanzania, including its full-permitted, 600,000 ounce flagship gold project, Sian/Praso.What’s interesting about the Sian property is that it has two past-producing open-pit mines — Esaase and Ampeha. Sian can boast of a renewable 30-year mining lease, an existing CIL plant and all the right infrastructure. When Sian Goldfields was operating the open-pit mine from 2000 to end of 2003, it was barely making ends meet; its cash costs per ounce were $250 while gold price averaged about $280 an ounce in 2000 and about $319 an ounce in 2003. The situation today is different. With gold price at more than $1,500 an ounce, Midlands’ estimated cash costs of approximately $400 to $450 an ounce presents significant margins.

“All the villages were relocated by the previous owners, which takes away a huge risk from us and makes the project very, very attractive,” Midlands Minerals president and CEO, Kim Harris. “Taking it back to production will really be at a grossly discounted price because of all that is in place: the power is there, water, sewage treatment plants, skilled people that were working for the previous owner, buildings. Sian is a fantastic project, a lot of potential with 600,000 ounces and counting. We believe it is a multi-million-ounce deposit.”

Of course, what investors would like to see are numbers to back it up, which Midlands Minerals is earnestly working on. Ongoing drilling has increased the indicated resource on Sian/Praso from 2.6 million tonnes grading an average of 2.3 g/t to 5.4 million tonnes grading 1.87 g/t. The company’s priority in the short term is to increase the project’s gold resource to a minimum of 1-million ounces.

Meanwhile, the company is also advancing their Kaniago project in Ghana, where the drilling launched in early March has returnied positive results. Kaniago’s neighbouring mine, the Obotan project owned by PMI, recently announced good drill results as well, further strengthening Midlands Minerals confidence in Kaniago.

Evaluate Midlands Minerals’ project values and more here.

This presentation may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Issuer relies upon litigation protection for forward-looking statements. This piece is for information purposes only and is not a recommendation to buy or sell any securities.

Disclosure: No Positions