GMV MINERALS INC. (GMV-TSXV, GMVMF-OTC)

GMV is still unknown to most of the market but that won't last. As results from exploration and advanced metallurgical testing are announced, the company's following will broaden. This is a low market value deal with a very compact share structure. It will not take much more attention to move the stock much higher. As a member of the HRA Free List you're among the first to hear about it. Take advantage of that opportunity before others do.

I have outlined the company's main highlights below but I strongly recommend you take advantage of the free download of the full report that went out to my paid subscribers just days ago--which you can now access too, further down in this email. This report will give you ALL the important facts about the company, its project, and its potential.

Key Highlights:

• GMV Minerals owns 100% of the Mexican Hat project in SE Arizona with a current resource of 530,000 ounces of open pittable oxide gold. All the mineralized zones remain open. A drill program will soon start and that could increase the resource substantially.
• Metallurgy is a critical factor in the economics of any mineral deposit. Mexican Hat's metallurgy looks excellent. More column test metallurgy results are on the way soon.
• The area around the core resource is essentially unexplored. The next phases of work will include new target generation. There is potential for both additional bulk tonnage material and higher grade discoveries.
• GMV has an excellent share structure with high levels of ownership by insiders and close supporters. This is a stock built to move.
• The combination of low strip ratio, excellent metallurgy and logistics plus the potential to be a "run of mine" heap leach operation means Mexican Hat already has all the hallmarks of an economic gold deposit that could deliver high margins per ounce.
• I've known key management and shareholders of GMV for 20 years. This is a highly effective group that needed only a market that would appreciate their efforts and pay up for their successes. They have that now.
• The mining sector was changed by the recent brutal bear market. I think most of the changes are for the better. Yes, size matters – but margin matters more. Mexican Hat has the potential to be a high margin deposit. Those are very valuable.
• The company has a current enterprise value of $US 7 million. That is a fraction of what a suitor would be likely to pay for a high margin deposit that can potentially be developed using a low capex scenario. On a per-ounce basis, the current market value is less than one eighth the amount paid for recently acquired HRA companies taken over for their oxide gold resources. Yes, HRA readers got there first but I expect plenty of company as GMV reports further news and the word spreads.

Below are short excerpts from the HRA Journal, published on July 26th, 2016. Due to the length of the coverage, we have only included parts of the report below. To read my full write up in PDF format, please CLICK HERE now.

"GMV is a simple story. The company is focused on one project, Mexican Hat in SE Arizona. I was drawn to the company by reporting of very impressive metallurgical test results. Not dramatic stuff perhaps but absolutely critical when one is looking at a potential heap leach situation. Early stage metallurgical results are excellent and offer the potential for Mexican Hat to be either a "run of mine" or single stage crush heap leach operation.

The current resource is 530,000 ounces Inferred but there is very good odds drilling later this year can expand that significantly. There is also potential for higher grade zones or completely new zones to be discovered within the current property boundaries. GMV is the first company to control the entire project area which gives it the ability to potentially tie some zones together that were treated as separate entities by past workers. Just released trench results mark the start of that effort.

A large column leach test is underway and will be reported on through the next three months. Permitting for follow up drilling to expand the resource is underway and both that and new surveys to extend known zones and target new ones will be reported through the late summer and early autumn. Heavy news flow combined with attention from the broader market gives multiple opportunities for upward rerating of the share price."

CLICK HERE to read the full GMV coverage in PDF format

Overview and Summary:

GMV came out of a search for additional "development level" gold assets. There have been several takeovers of near or new production companies from the HRA list in the past few months so our exposure to this part of sector was getting light.

I came across GMV's project, Mexican Hat, while searching through metallurgical releases. Metallurgy is always critical but that is particularly true in heap leach oxide gold deposits that are (almost) always low grade to begin with. Poor gold recoveries or the requirement for multi stage grinding and agglomeration can blow up the economics for a low grade deposit.

I really liked the looks of the Mexican Hat metallurgy so I checked out the company that owned it. In doing that I found that the CEO and lead consultant on the project are both people I know and like and that the deal was very cheap.

I put my hand up for whatever placements were on offer after meeting management and getting walked through the project. I think it could be economic as is but I'm comfortable GMV can grow the resource further which would only improve it.

I initiated coverage in the HRA Special Delivery Alert Service because I was concerned, and continue to be, about the lack of near term liquidity in the stock. I was a buyer in the last placement but haven't bought in the market and will continue not to for a while so others have a chance…

GMV was quiet of necessity though the tail end of the bear market but that is changing now. The next three months should be news heavy and I expect the company's audience will broaden significantly through this period. Even after recent financings the stock is tight and it won't take much buying pressure to move the price a long way. For that reason I repeat my admonishment, again, about staying away from market orders.

Most of the Mexican Hat project and the surrounding region is only lightly explored. Perhaps the current resource area is all there is but I think it's worth looking for more before starting economic studies. A larger financing above current levels would allow GMV to get more aggressive on the exploration front which I would like to see. Management says there have already been approaches by larger companies. I believe that. If GMV can grow the resource and show potential for other new zones outside the resource area, odds are high GMV joins the ranks of HRA list companies taken over by larger competitors.

CLICK HERE to read the full GMV coverage in PDF format

NOTE: HRA updated its Special Delivery Alert subscribers a few days after the Journal was released. GMV released bottle roll tests from three different rock types from three depths below surface. All reported excellent gold recoveries. In fact, all three samples reported higher "measured" grades than "assay" grades. It will take much more sampling to verify the significance of this but it may mean assay grades for the resource are understated. Yet another potential reason for a re-rating of GMV.

Sincerely,


Eric Coffin
Editor, HRA Advisories