  Hanson Westhouse says 'hold' Metals Exploration after Runruno gold-moly project update
Reported by Proactive Investors on Friday, 20 November 2009 (on November 20, 2009)
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Hanson Westhouse put a 'hold' rating on Metals Exploration (AIM: MTL) after the Philippines focused miner updated the resource estimate for its Runruno gold-molybdenum project, which reduced the overall resource after this year’s drilling did not support the previous interpretation of the inferred resource around the fringe of the deposit, but inceased the measured and indicated resource.The new estimate reduced the contained gold estimate from 2Moz (million ounces) to 1.5Moz and the contained molybdenum from 34.4 million lbs to 25.4 million lbs, however, 57% of the updated resource is now in the measured and indicated categories, while drilling campaigns to expand this resource continue. Measured gold resource has doubled from 270,000 oz to 560,000 oz.The geology still supports the interpretation of the mineralisation and the area remains a prospective exploration target, with its prospectivity currently being tested by ongoing drilling operations. Metals Exploration has also noted that artisanal miners were active within the area, giving a strong indication of the occurrence of additional mineralisation. So far, only about 20% of the complex has been explored, providing a possibility for discovery of further mineralisation.In its note headlined "Less Ounces, More Certainty", the broker said the company will now have to complete an optimization study to consider the updated resource estimate and investigate the economic implications of a smaller operation. Hanson Westhouse analysts are expecting the feasibility study to be completed on its previously targeted timeframe of January 2010."We recommend that investors HOLD the stock until an optimisation study has been completed to provide confirmation of the economic viability of Runruno," Hanson Westhouse added.
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