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Interview with John Thornton
The following is an interview with mining legend John Thornton. He is currently the senior consulting mining engineer to Oroco Resource Corp. This is part one of two part interview. The second part is with Craig Dalziel.
http://classicvalueinvestors.com/2018/11/01/interview-with-john-thornton/
Mariusz Skonieczny: John you have been involved with Santo Tomas for more than 20 years. You also worked on other major copper deposits. How would you describe Santo Tomas in comparison to other copper projects?
John Thornton: I’ve had the good fortune to work on a lot of the world’s largest porphyry copper deposits and producers. I’ll pick just two, with instructive similarities to Santo Tomas; both of the projects are large porphyry copper deposits with crush, grind and floatation plants with concentrate shipped to other locations for smelting and refining.
In the 1990s I was Chief Consulting Mining Engineer at the Bajo de la Alumbrera project in Argentina for Adolph Lundin’s company Musto International. BDA went on to become the ninth largest copper producer in the world for a time. Starting in 1999, I worked on the complete re-evaluation of the Cananea Mine belonging to Grupo Mexico, for their planning to increase production from 80,000 TPD to 180,000 TPD. Cananea is a part of the same orogenic trend as the Santo Tomas deposit, and is fairly close to Santo Tomas, and Cananea is considered one of the top producers of copper in the world and is still one of the largest copper deposits in the world. It has been in production for over a century with current remaining reserves that rank in the top echelon of copper deposits.
My involvement in those projects have included geological modeling and determination, mine and road design, expansion feasibilities and operational open pit mine planning, and production scheduling.
When the stars align for a large deposit, all major characteristics must get at least a passing grade. Size, grade, strip ratio, metallurgy, political jurisdiction and access to infrastructure should all be favorable, as a failure in any one or several of these areas can be enough to prevent the successful development of a project. Few deposits meet the test, but those that do, like Cananea, BDA and Santo Tomas, stand out.
BDA, Cananea and Santo Tomas benefit from excellent access to infrastructure and transportation routes. Power, water and transportation play very important roles in operations that mine, move and process several tens of millions of tons of ore and waste every year. Low costs per tonne of ore mined and processed, and concentrate shipped or locally smelted and refined, drive profitability and long-term viability. Santo Tomas has this, excellent access to low cost power and water from the Huites Dam close by, and excellent access to the nearby deep-water port of Topolobampo on the Pacific Rim near Los Mochis. Other fundamental traits shared by Santo Tomas and those projects I’ve worked on that have gone on to be successful operations, include good metallurgy and low strip ratios. Santo Tomas, has a calculated very low strip ratio which compares very favorably to other projects, and with conventional metallurgy is very amenable to producing a good, clean concentrate, the kind that smelters and refiners prefer.
Santo Tomas is already a very large copper deposit, probably larger than BDA, and the mineralization remains open north and south of the known and partially drilled deposits and also down dip to the west. Santo Tomas has an ‘evaluated’ close to a billion tons of Measured and Indicated material above a 0.15% sulfide copper cut-off grade containing about 7.0 billion pounds of copper, with another 900 million metric tons of inferred ore awaiting development within and just below the conceptual M&I open pit. The project also contains significant gold silver and excellent molybdenum as potentially recoverable by-products. So, it’s already an extremely large deposit, but additional exploration carries a very high likelihood of making it even larger. As you approach 2 billion metric tonnes in a resource a deposit becomes one of a very rare breed and capable of operating for several decades.
In short, what is known about Santo Tomas suggests it shares the traits of a great many of those projects I’ve worked on that became successful mines and are still operational: it meets the test on all major characteristics required for successful development, and at this stage I see no hurdles to its successful development.
Mariusz Skonieczny: Based on my research, I learned that previous drilling at Santo Tomas was extensive enough to establish a substantial resource and support several advanced level engineering and a Prefeasibility Study completed by Bateman Engineering Inc. in the early 1990’s where you developed the Mineral Resource and completed the mine designs and schedules as part of Mintec, Inc. Yet, the limits of the deposit are still unknown, correct? In other words, even though there is already a lot of value in the ground, the exploration potential has only slightly been touched. Can you elaborate more on this and why past drilling might have been cut short?
John Thornton: We have data on 89 holes that have been put into Santo Tomas by two separate companies. There was additional drilling by two other well-known Mexican mining companies, who developed mineral inventories of the deposits, but the data was never given to the next company or put into a digital file when the option was dropped and remain unknown -except for remarks that the results were very much in line to what Asarco had found. That’s a pretty reasonable start and has established it as a large potential copper resource. It’s enough drill data to have completed a resource determination and a Prefeasibility Study back in the 1990s, but the deposit contains a great deal of un-drilled additional potential. Mineralization is open on the northern and southern extremities of what was drilled, and down dip to the west along several kilometers. The known and drilled western extremities of the northern area is several hundreds of meters thick and dipping to the west. Within the area of the conceptual pit from the mine plan of the 1990s there is nearly a billion tons of material that would be considered an Inferred Reserve, and thus wasn’t included in the original mine plan. Santo Tomas warrants additional drilling to realize its full potential.
The last drill program by Exall was cut short by a collapse in copper prices in the mid-1990s. Drilling could have continued if the goal was to have been a complete testing of the possible resource, In the mid 1990’s, and again in the early 2000’s. I specifically advised Bateman to explain to any interested parties who were prepared to option the property that so much remained to be drilled.
The deposit is open to the north and south, at depth and to the west. Many kilometers of strike length remain to be tested. About half the holes that pierced the ore body ended in ore and the original resource calculation didn’t include estimates below sea level, so, there is a great deal of obvious additional potential at Santo Tomas.
The Laramide trend, extending from south of Santo Tomas into Arizona and upwards into Nevada and Utah, hosts some of the world’s largest copper resources. This cordillera is no stranger to multi-billion tonne porphyry copper deposits, and Santo Tomas’ history has contained many twists and turns that have prevented it from ever being fully tested. The legal problems that Oroco has worked to resolve, the collapse of copper prices in the 1990s, and before that, a long period of under investment in exploration pretty much sum it up.
OROCO SIGNS OPTION AGREEMENT TO ACQUIRE ADDITIONAL INTEREST IN SANTO TOMAS PROPERTIES
VANCOUVER, British Columbia – (October 9, 2018) Oroco Resource Corp. (TSX-V: OCO) (“Oroco” or the “Company”) is pleased to announce that further to its news release dated February 23, 2018, Oroco has entered into a definitive option agreement (the “Option Agreement”) with Altamura Copper Corp. (“Altamura”) and its shareholders (the “Optionors”) whereby the Optionors have granted to Oroco the exclusive option to acquire the remaining issued and outstanding common shares of Altamura not owned by Oroco (the “Option”). The Company currently holds an approximate 13% equity interest in Altamura.
The Company may exercise the Option by issuing an aggregate of 39,800,000 (thirty-nine million eight hundred thousand) common shares of Oroco to the Optionors in exchange for all of their common shares of Altamura. Oroco may exercise or terminate the Option in its sole discretion at any time within three years. Oroco also entered into a loan agreement (the “Loan Agreement”) with Altamura to advance, for working capital purposes, an aggregate amount of up to US$600,000 (the “Loan”), of which US$275,000 has already been advanced to Altamura. Each advance of a Loan amount is subject to Oroco’s approval at its sole discretion. The Loan is secured by a promissory note, bears interest at the rate of 12% per annum and is re-payable within 90 days of demand, such demand not to be made during the term of the Option. The Company has also entered into an agreement dated September 27, 2018 with Altamura granting the Company the right to convert the Loan into common shares of Altamura at a price of US$0.057 per share at any time within six months after the expiry or termination of the Option. Altamura currently has 45,750,000 shares issued and outstanding, of which 5,950,000 are held by the Company.
Altamura holds a controlling 65% interest in Xochipala Gold S.A de C.V. (“XG”), which holds the rights to acquire up to a 90% interest in a group of seven mineral concessions (the “Santo Tomas Concessions”) located in Sinaloa, Mexico. The registration of XG’s concession rights is subject to a legal dispute between Compania Minera Ruero, S.A. de CV. (“CMR”), which holds the registered title to the Santo Tomas Concessions, and third parties. CMR is the vendor to XG of the concession rights. Following an extensive legal review, Oroco management and Oroco’s Mexican legal counsel are confident that the legal dispute involves an unenforceable judgement, that the dispute will be favourably resolved, and that the concession titles will be registered to XG. Altamura’s interest in XG may be increased in stages to 90%, effectively an 81% indirect interest in the Santo Tomas Concessions, by funding up to CAD$30 million in property-related expenditures, with no minimum funding obligations (see the investment table in the Management Discussion and Analysis filed by the Company on October 1, 2018). In addition, Altamura holds an indirect 50% interest in CMR and an option to acquire both the remaining interests in CMR and the remaining equity of XG for US$18,000,000.
The Santo Tomas Concessions are subject to a 0.5% (one half of one percent) Net Smelter Royalty in favour of Ruben Rodriguez of Mexico City and a 1% (one percent) Net Smelter Royalty in favour of ATM Mining Corp., a company owned by the spouse of Oroco’s President, Craig Dalziel. In furtherance of its acquisition of rights to the Santo Tomas Concessions, which involved the resolution of several legal challenges, Altamura agreed to pay certain fees contingent upon the sale, as a final disposition, of Altamura’s interest in the Santo Tomas Concessions to a third party (other than Oroco), as follows: (i) 10% of the sale price, to an aggregate maximum of US$3.6 million to Mexican legal counsel, of which US$600,000 is payable six months after the registration of title to the Santo Tomas Concessions to XG, and (ii) 1.5% of such sale price, to an aggregate maximum of US$4.1 million, to seven persons, of which up to US$1 million is payable to David Rose, an officer of the Company.
The Company formed a special committee (the “Special Committee”) with a mandate to evaluate, review and report on this transaction and carry out negotiations in good faith on behalf of the Company with regards to the Option Agreement and Loan Agreement. Upon careful consideration of the proposed Option Agreement and Loan Agreement, the Special Committee made a recommendation to the board of directors of the Company (the “Board”) to approve the Option Agreement and the Loan Agreement, and the Board subsequently approved both agreements.
In conjunction with this transaction, the Company intends to carry out a “part and parcel”, non-brokered private placement (the “Private Placement”) of up to 3,000,000 units at a price of $0.20 (twenty cents) per unit to raise gross proceeds of up to $600,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole share purchase warrant will be exercisable into one additional common share for a period of 18 months from closing at a price of $0.32 per share. The Private Placement is subject to its acceptance by the TSX Venture Exchange. The net proceeds of the private placement will be used for the balance of the loans to Altamura, the costs and expenses related to obtaining TSX Venture Exchange and shareholder approvals, and those expenses necessary to the Company’s obligations, under the Agreement, to maintain the Santo Tomas Concessions.
Oroco’s exercise of the Option is subject to closing conditions set out in the Option Agreement, which include: due diligence; completion and review by the Special Committee of a formal valuation report prepared by an independent qualified person in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (the “Valuation”); TSXV acceptance; and approval by the shareholders of Oroco, as required.
The exercise of the Option will not create any new insiders or control persons and the Oroco shares issuable to the Optionors will be subject to a hold period of four months in accordance with applicable TSXV regulations and securities laws. In addition, 75% of these shares will be subject to a pooling arrangement, pursuant to which the shares will be subject to resale restrictions as follows: (i) 25% of the shares will be subject to a six-month resale restriction; (ii) 25% of the shares will be subject to a twelve-month resale restriction; and (iii) the remaining 25% of the shares will be subject to an eighteen-month resale restriction.
The Option Agreement involves non-arm’s length parties pursuant to TSXV policy 5.3. David Rose is one of the Optionors and a senior officer of Oroco. ATM Mining Corp. is also one of the Optionors and a company of which Craig Dalziel, a director of Oroco, and David Rose are directors. Accordingly, David Rose and ATM Mining Corp. are both considered to be non-arm’s length parties of Oroco pursuant to the policies of the TSXV. Pursuant to TSXV policy 5.3, the transaction involves non-arm’s length parties and the Company is required to provide evidence of value and disinterested shareholder approval.
The Option Agreement also involves a related party pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). As a senior officer of Oroco and one of the Optionors, David Rose is considered to be a related party of Oroco. The exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 are available for the related party transaction pursuant to section 5.5(a) and section 5.7(1)(a) of MI 61-101 on the basis that, at the time the transaction was agreed to, neither the fair market value of the subject matter of the transaction, nor the fair market value of the consideration for the transaction, insofar as it involves interested parties, exceeds 25% of Oroco’s market capitalization.
Having provided the TSXV with certain documentation in support of the contents of this news release, and having received TSXV approval to resume trading, the Company intends to resume trading of its securities at the market opening on October 10, 2018.
Information about the Santo Tomas Concessions:
The Santo Tomas Concessions are located in Choix, Sinaloa State, Mexico. The names of the seven individual claims and their title numbers are as follows: Roberto Verde, title number 149,672; Bob, title number 149,675; Karisu, title number 209,594; Karisu Fraccion 1, title number 209,595; Tona, title number 215,721; Santo Tomas, title number 212,003; and Esme, title number 211,954. The Santo Tomas mineral camp is characterized by copper porphyry and skarn/replacement style mineralization linked to the Laramide Orogeny (80-40 Ma age). The Santo Tomas Cu-Mo-Au-Ag porphyry mineralization lies mostly on the Santo Tomas Concessions and is associated with a NNE-trending zone of quartz monzonite porphyry stocks and dikes, hosted in Cretaceous limestone and metamorphosed andesite. The mineralization is primarily comprised of chalcopyrite, pyrite, and molybdenite sulfides with lesser bornite and chalcocite sulfides. Minor oxide copper occurs on surface. Taken together, the porphyry intrusions and mineralization comprise the Santo Tomas mineralization zone.
The Santo Tomas mineralization zone is mapped on surface and drill tested along a strike length of 4 km on the Santo Tomas Concessions and Papago 17 area. The Company has assembled information from historic diamond drilling, rotary and reverse circulation holes from exploration programs spanning 1968 to 1993. In 1994, Mintec, Inc. prepared a mineral resource estimate based on assay information from 14,881 meters of drilling in 49 drill holes drilled by ASARCO and Tormex–Peñoles, and 40 drill holes drilled by Exall Resources Limited (“Exall”). During that year, Exall commissioned Bateman Engineering Inc. (“Bateman”) to conduct an economic assessment of the Santo Tomas project, based on technical work by a team that included Mintec, Inc., Mountain States Research and Development, Inc., and Minetek S.A. de C.V. In July of 1994, Bateman completed this study, termed “Santo Tomás Project, Sinaloa, Mexico, Pre-Feasibility Study,” and did not use any inferred mineral resource estimates in its work. The economic assessment by Bateman contains favorable metallurgical test results and engineering designs that remain broadly acceptable today. However, the Company considers these historical economic studies and associated mineral resource estimates to be only conceptual in nature until confirmed by current technical programs.
In 2017, the Company initiated a program of mineral exploration in the Santo Tomas mineral camp with surface geological mapping and the assembly of historical drilling information on the Santo Tomas Concessions and surrounding properties. Additionally, Auracle Geospatial Science, Inc. (“Auracle”) was contracted to task MDA’s RadarSat 2 satellite for the acquisition of Synthetic Aperture Radar (“SAR”) data for the entire camp. Modeling by Auracle of the SAR data has confirmed and significantly enhanced the structural geology results from the 2017 field mapping by the Company. Historic drilling indicates a well-mineralized zone of quartz monzonite dikes and hornfelsed andesite of the Santo Tomas mineralization zone passes southward from the Santo Tomas Concessions onto the Papago 17 area.
The geological information contained in this news release has been approved by Dane A. Bridge, M.Sc., P. Geol., who is an Independent Qualified Person and who conducted surface geological mapping on the site of the Santo Tomas Concessions and the surrounding properties in 2017.
For further information, please contact:
Mr. Craig Dalziel, President and CEO
Oroco Resource Corp.
Interview with Craig Dalziel from Oroco Resource Corp
http://classicvalueinvestors.com/2018/10/06/interview-with-craig-dalziel-from-oroco-resource-corp/
SANTO TOMAS PORPHYRY COPPER PROJECT
Major parameters scoped in 1994 Prefeasibility Study by Bateman Engineering- 60,000, 90,000 and 120,000 MTPD productionratesstudied. SupportingmetallurgicaltestworkfromMountainStatesR&DInternational,Inc.andresource estimates from Mintec, Inc.
• Favorable Deposit Characteristics; Size and low strip ratio: The >900 million tonne deposit, containing approximately 8 billion pounds (3.6 million Tonnes) of copper and equivalent, exposed at surface, is comprised of fracture and disseminated Cu & Mo sulphides, with significant Ag & Au. The central part of the North Zone occurs under a ridge, minimizing the stripping ratio.
• Metallurgy: Ore responds favorably to conventional flotation, common flotation reagents and a 200-mesh grind - 94.83 % copper recovery. A 26 to 28 % copper concentrate with no deleterious elements is likely with minimal concentrate cleaning.
• Established Infrastructure: Adjacent to the Chihuahua-Pacific Railway (35 km), federal highway (6 km), and upgraded Pacific Ocean seaport of Topolobampo (160 km from proposed mill site). Power and water are available locally.
• Favourable Jurisdiction: Mexico is a mining powerhouse, recognized as a Top Five jurisdiction, (Behre Dolbear, “Where to invest in Mining,” 2015)
• Positive NPV: No major risks were identified and the study yielded a positive Net Present Value
• Potential to expand and improve grade: Resource in the North and South Zone was identified as “likely to increase in grade with additional exploration” (Bateman Engineering, 1994) The deposit remains open on strike to the North and South, down-dip to the West and to depth. 24 exploration holes drilled ended in ore grades. An estimated Inferred Resource of several hundred million Tonnes exists, is considered “waste” in conceptual pit and mine design, yet a significant portion of this can be expected to be ungraded to M&I resource, increasing mineable tonnage and lowering the strip ratio.
Game Changing News for Oroco Resource
September 29, 2018 Mariusz Skonieczny General 0
Oroco just announced a game changing news. It finally acquired 65 percent of Santo Tomas Copper Project. This news was part of the financial statements that were released on Sedar on Friday. On Monday, an official press release will probably come out before the market opens.
I suspect the volume will explode. In my opinion, the stock should go to CAD $0.40 from the current CAD $0.20. Whether it will or not, we just have to wait and see.
For months, people have been skeptical about Oroco’s ability to get a world class copper project like Santo Tomas. Here is just a few comments that I collected.
“Dozens of companies in the resource space make wild assertions about their asset value. of course, few are accurate or pay off. A $5mm market cap company will be worth BILLIONS in a few years? Color me skeptical…”
“Oh buddy, you’re succumbing to wild promoter talk. No interest. Find me something real and I’m happy to review!”
“Dream on pumper..”
Ok, so let’s take a look at what Oroco has and how it translates into valuation.
If you recall, there are two parts to Santo Tomas property. Main property and surrounding properties. In February 2018, Oroco acquired 77.5 percent of Papago 17 concession which is the surrounding property. Yesterday, it acquired 65 percent of the Main property. So it total, the company owns about 57 percent of the entire Santo Tomas property. With incremental spending, Oroco can earn up to 81 percent in the entire property. But for now let’s just stick with 57 percent.
Santo Tomas has about 8 billion pounds of copper. This is based on historical drilling over the last 20 years or so. Based on recent acquisitions of copper projects, mining companies pay about US $0.07 per pound. Before the takeout, juniors trade at about US $0.025 per pound. So based on that here is Santo Tomas’ value.
Take out value: 8 billion x US $0.07 = US $560 million
Trading as public company value: 8 billion x US $0.025 = US $200 million
Because Oroco owns 57 percent of it, this translates into
US $560 million x 57 percent = US $320 million
US $200 million x 57 percent = US $114 million
How does this translate into value per share?
US $320 million / 135 million shares = US $2.37 or CAD $3.08
US $114 million / 135 million shares = US $0.84 or CAD $1.10
The reason why I said that the stock price should reach CAD $0.40 (instead of CAD $1.10) is because Oroco will have to update the engineering report. The prior report which has 8 billion pounds of copper was done before the industry implemented NI 43-101 standard. However, now that the company owns the asset, it will work on updating it.
Also, the news states that Oroco will own 65 percent of unregistered interest in Santo Tomas main property which means that the legal dispute still has to be completed. I am not going to get into it here but this legal dispute is pretty simple. Oroco owns the asset but the legal dispute prevents it from transferring/selling it to another party. It is kind of like a lien that has to be removed. You can study the legal dispute at santotomascopper.com.
So two things will prevent the stock from trading at CAD $1.10: non-compliant engineering report and legal dispute. Considering that the probability of completing these two items is 99.9 percent, I figured CAD $0.40 would be appropriate price.
THERE IS MORE UPSIDE
While going from CAD $0.20 to CAD $1.10 and eventually CAD $3.08 is a big upside, this is just a base scenario. Remember how I said that Oroco will be able to increase its ownership to 81 percent based on incremental spending? Well that incremental spending is supposed to increase the size of the deposit too.
Because Santo Tomas has been in legal dispute for so many years, there has barely been any significant drilling done. Also, the property has significant inferred resource which does not count into the 8 billion pounds calculation. That inferred resource can be reclassified into measured and indicated (with closer drilling) thus increasing the number of pounds. Based on my conversations with friends geologists, the number of pounds could reach 14 billion and even 25 billion. Of course, we can ignore this upside since there is enough upside just from the current number, but let’s just see what is possible.
14 billion x US $0.07 x 81 percent = US $800 million
25 billion x US $0.07 x 81 percent = US $1.4 billion
To get to this number will require money spend on drilling but this is the point. This is what Oroco will do to earn 81 percent interest in the entire project. By that point, the company will probably have 200 million shares since the raised money will come from dilution.
US $800 million / 200 million = US $4 per share or CAD $5.20 per share
US $1.4 billion / 200 million = US $7 per share or CAD $9 per share
In summary, CAD $1 to $3 is a conservative upside and CAD $5 to $9 is a realistic but more aggressive upside where a lot of things have to go right. One last thing that I want to add is that starting on Monday, the company will finally be able to market the company to a wider audience. Before it couldn’t do it because it didn’t own the asset. This is a game changer.
Disclosure: Long Oroco
OCO,V Oroco Finally secures Santo Tomas!
Oroco have agreed to issue 28 million shares for up to an 81% interest in the core santo tomas properties!
Santo Tomas has 8.5 billion pounds of copper metal with a grade of .4 cueq and 95% recoveries using floatation
infill drilling could increase that number to between 12 and 14 billion pounds
low strip in a mining friendly jurisdiction access to water..
you are not going to find a better copper deal, if you do please let me know
Xochipala Gold S.A de C.V. (“XG”) holds an un-registered, 100% contractual interest in the Core Concessions, the registration of which interest is subject to a legal dispute between Compania Minera Ruero, S.A. de CV. (“CMR”), the vendor of the interest which holds registered title, and third parties. XG’s interest in the Core Concessions is subject to net smelter royalties of 1.5% and agreements with third parties granting these parties a non-registered, contractual aggregate 15% interest in the Core Concessions. The third parties contractual interest in the Core Concessions may be diluted in tiered steps down to 10% by the expenditure by XG of up to $30,000,000, with no minimum expenditure obligations. Altamura Copper Corp. (“Altamura”), a British Columbia company, holds a 65% interest in XG, which interest may be increased in tiered steps to 87.5%, which would represent an 81% interest in the combined Santo Tomas Properties and Core Properties, by funding XG and incurring expenses on behalf of XG of up $30,000,000, with no minimum funding obligations. The Company holds a 13% equity interest in Altamura Copper Corp. An officer of the Company and a private company owned by the spouse of a director and officer of the Company are also shareholders of Altamura. The Company and Altamura have no common directors, officers or control persons. Altamura also holds an indirect 50% interest in CMR and an option to acquire the remaining balance of CMR and the remaining equity of XG that it does not already hold for US$16,000,000, subject to a 1% net smelter royalty, one half of which may be bought back for US$2,000,000. 3 MINERAL PROPERTIES (cont’d…) Santo Tomas Properties, Sinaloa State, Mexico (cont’d…) Pursuant to an option agreement dated September 27, 2018 between the Company, Altamura and the shareholders of Altamura other than the Company (the “Other Shareholders”), Oroco holds an option (the “Altamura Option”) to acquire all of the Other Shareholders’ shares of Altamura (the “Altamura Shares”) in consideration for 37,800,000 common shares of the Company. The Altamura Option has a three year term. In consideration for the granting of the Altamura Option, Oroco also entered into a loan agreement with Altamura to advance (the “Advances”), for working capital purposes, an aggregate amount of up to US$600,000, of which US$275,000 has already been advanced to Altamura. Each individual Advance is subject to the approval of Oroco.
ORT
we have been buying between 2.68 and 2.78..
thanks for a great board here.. the ORT SH board is a gong show..
warmest regards
caliche
Hi dr_airtime
Newstrike Capital 43 101
my best guess is the week of the 24th..they are still getting good grades in breccia and they will need to be included in the model..Gillians talk thursday will get the excitement levels up there will probably be more holes released then the big show later this month
warmest regards
caliche
NES Newstrike Capital ready to move
The stars are aligning on NES. Gold is on its way up, the junior market is getting its legs and Newstrike is charging ahead with 4 drills turning on the Ana Paula project as we speak.
The new discovery in the South West and the continued de risking of the project have received little recognition in the market. The share price is essentially where it was at the end of August (with several excellent buying opportunities in between). That in itself is a testament to the importance and magnitude of the discoveries since many other stocks are down significantly over the same period. We feel that is about to change. Newstrike has added George Brack to the board, he was previously an advisor along with John Morganti, who remains as advisor.
Mr. Brack is a mining industry veteran with extensive experience in the areas of investment banking and corporate development. Most recently Mr. Brack acted as the Managing Director and Industry Head, Mining Group, of Scotia Capital where he led a team responsible for the identification, evaluation and execution of strategic mergers and acquisitions, as well as the provision of equity financing.
The market has begun to notice Newstrike of late with over $20,000,000 in buying coming into the market in the last 30 days. The analyst site tour in early January went well with coverage beginning from Cormark and Desjardins. Cormark coincidently has been the largest buyer of late with over 8.2 million dollars in the last 30 days. The institutional buying is beginning. We feel there have been many eyes on NES. With continuing excellent results and consistently moving the project forward with the purchase of lands adjacent to AP and the initial 43 101 pending the more astute institutions are coming into the market. We feel the trend will continue with a re adjustment of share price upward to reflect the significant milestones achieved in the last 4 months.
We can easily compare Newstrike with Torex and see the comparative undervaluation of NES relative to TXG. Torex is on its way to updating their current ounce count to to 5 million ounces of gold. We have confidence that the Newstrike deposits will outweigh 5 million ounces within the current year with an initial 43 101 coming in between 3 and 5 million ounces. Given the market cap of TXG we feel NES should be closer to $8.50, and feel confident the market will agree once the full extent of AP is realized.
Mineralization has been found in every hole drilled to date. This is a credit to the geological team we have working at AP, with constant modeling and evaluation of every hole, sample, and road cut they are able to determine the optimum drill locations to move the project forward. The mineralization has now been shown to exist over an area of 1Km x 2Km with a high grade Breccia Zone measuring 250x150x250 meters deep. The breccia will provide an excellent high grade starter pit with mineralization from surface to the breccia body. This will give the project excellent economics and will shorten payback significantly to the prospective buyers of the property.
Technically the stock has just completed a bullish continuation diamond within a very wide ascending channel. The current price target based on this trend is 4.20 to 4.60. Almost every other technical tool is calling NES a BUY.
The market is playing catch up with NES and we feel that within a very short period of time the share price will catch up with the fundamental value the company has demonstrated.
We believe the step out discovery to the SW will prove to be at minimum a typical GGB deposit (that so far have averaged 3+ million ounces) and hopefully much more if they are again blessed with a mineralized breccia!
We maintain our overweight position in NES and expect it to outperform the market and its peers!
warmest regards
caliche
Newstrike Capital ready to move UP
hey everyone.. its not a penny but im sure its due for a good move..
The stars are aligning on NES. Gold is on its way up, the junior market is getting its legs and Newstrike is charging ahead with 4 drills turning on the Ana Paula project as we speak.
The new discovery in the South West and the continued de risking of the project have received little recognition in the market. The share price is essentially where it was at the end of August (with several excellent buying opportunities in between). That in itself is a testament to the importance and magnitude of the discoveries since many other stocks are down significantly over the same period. We feel that is about to change. Newstrike has added George Brack to the board, he was previously an advisor along with John Morganti, who remains as advisor.
Mr. Brack is a mining industry veteran with extensive experience in the areas of investment banking and corporate development. Most recently Mr. Brack acted as the Managing Director and Industry Head, Mining Group, of Scotia Capital where he led a team responsible for the identification, evaluation and execution of strategic mergers and acquisitions, as well as the provision of equity financing.
The market has begun to notice Newstrike of late with over $20,000,000 in buying coming into the market in the last 30 days. The analyst site tour in early January went well with coverage beginning from Cormark and Desjardins. Cormark coincidently has been the largest buyer of late with over 8.2 million dollars in the last 30 days. The institutional buying is beginning. We feel there have been many eyes on NES. With continuing excellent results and consistently moving the project forward with the purchase of lands adjacent to AP and the initial 43 101 pending the more astute institutions are coming into the market. We feel the trend will continue with a re adjustment of share price upward to reflect the significant milestones achieved in the last 4 months.
We can easily compare Newstrike with Torex and see the comparative undervaluation of NES relative to TXG. Torex is on its way to updating their current ounce count to to 5 million ounces of gold. We have confidence that the Newstrike deposits will outweigh 5 million ounces within the current year with an initial 43 101 coming in between 3 and 5 million ounces. Given the market cap of TXG we feel NES should be closer to $8.50, and feel confident the market will agree once the full extent of AP is realized.
Mineralization has been found in every hole drilled to date. This is a credit to the geological team we have working at AP, with constant modeling and evaluation of every hole, sample, and road cut they are able to determine the optimum drill locations to move the project forward. The mineralization has now been shown to exist over an area of 1Km x 2Km with a high grade Breccia Zone measuring 250x150x250 meters deep. The breccia will provide an excellent high grade starter pit with mineralization from surface to the breccia body. This will give the project excellent economics and will shorten payback significantly to the prospective buyers of the property.
Technically the stock has just completed a bullish continuation diamond within a very wide ascending channel. The current price target based on this trend is 4.20 to 4.60. Almost every other technical tool is calling NES a BUY.
The market is playing catch up with NES and we feel that within a very short period of time the share price will catch up with the fundamental value the company has demonstrated.
We believe the step out discovery to the SW will prove to be at minimum a typical GGB deposit (that so far have averaged 3+ million ounces) and hopefully much more if they are again blessed with a mineralized breccia!
We maintain our overweight position in NES and expect it to outperform the market and its peers!
warmest regards
caliche
Ana Paula is, without question, one of the richest gold discoveries in Mexico. —Richard Whittall
Newstrike President Richard Whittall on Mexico assays of 4.6 g/t gold over 120m
Newstrike Capital Inc TSXV:NES announced results from its Ana Paula Project in Guerrero State, Mexico. Highlights include 4.6 g/t gold and 3.96 g/t silver over 120 metres (including 8.89 g/t gold and 6.3 g/t silver over 50 metres), 0.81 g/t gold and 6.4 g/t silver over 108 metres (including 1.39 g/t gold and 11.1 g/t silver over 48 metres), 0.43 g/t gold and 6.6 g/t silver over 155.8 metres (including 0.73 g/t gold and 3.9 g/t silver over 10.3 metres) and 0.67 g/t gold and 3.7 g/t silver over 68.3 metres (including 0.97 g/t gold and 6.9 g/t silver over 22 metres).
President/CEO Richard Whittall tells ResourceClips.com, “We acquired Ana Paula a year ago from Goldcorp, and we started drilling in October of last year. We’ve put in about 24,000 metres of drilling on an exploratory program. We initially acquired the property from Goldcorp because they had put in 11 holes and we analysed the assays from those and thought it might be what we call a classic GGB—or Guerrero Gold Belt style of mineralization. Low grade and shallow. These are porphyry-gold, porphyry-skarn deposits. We ended up achieving results that were very predictable in terms of low grade, with some high-grade gold-skarn kicks. Then we punched some holes in the southern part of the project and hit a very high-grade breccia zone. It has been probably the most robust mineralizing system we have seen in 15 years in Guerrero. But Ana Paula has a lot more to tell us.
“The drill program is continuing. Normally what you do is just step out 100 metres at a time until you fall off the edges of the mineralizing system. To date, it’s still open in every direction and at depth. So it’s a pretty significant gold discovery. And, it turns out, it has some pretty interesting silver values as well.”
Whittall continues, “It’s a guess at this point, because we’ll be drilling till the end of this year, but at that point we’ll make a decision on whether we bring in a group to help us do a resource estimate and a 43-101. But, at the moment, we’re still not even a year into this.
“We’re not production people. Our business model is to partner or sell the company. Which is pretty common among 3,000 other junior companies. We have a track record in Guerrero. Our team was responsible for discovering the deposit next door, Torex‘s Morelos project. We sold another deposit back in 2003 [i.e. the Los Filos deposit]—we were partners with Teck Resources—and Goldcorp bought that, and it’s now the largest gold mine in Mexico until Penasquito gets up and running. We’re exploration people, and it’s pretty likely that we’re just going to continue on that path.
“The infrastructure is terrific. The community is just excellent. We have water and power and, topographically, it’s easy to get to and easy to navigate around. Like most places in Guerrero, it has ravines that are quite shallow. I’m not an engineer, but this is shaping up to be a shallow, robust discovery—potentially an open pit. I would say we’ll finish the year with about 35,000 metres of drilling. Eventually, I think it’ll make a beautiful deposit for someone. But, again, I can’t emphasize how early it is, and we’ve been spectacularly lucky by hitting a very high-grade area early on.
“[These results] give a huge boost to our confidence about the scope and scale of this breccia area. Furthermore, in the lower-grade mineralization it confirms another large bulk area of mineralization that’s holding together. Our confidence, with every set of assays, is increasing in the scope and scale of this project.” Whittall concludes, “I can’t say it’s world class because we haven’t put enough holes in it. But it is, without question, one of the richest gold discoveries in Mexico. A very significant discovery.”
View Company Profile
Contact:
Richard Whittall
Director/President/CEO
604.605.4654
by Greg Klein and Ted Niles
Great Board,
thanks for all the hard work
Take a look at the new presentation, a very good beginning to your DD on NES
Top notch people behind this one, and a =n excellent project with Ana Paula!
http://www.newstrikecapital.com/download/Presentation-Dec-2-2010.pdf
IAMGOLD acquires 17% intrest in Oromin
Mr. Joseph Conway reports
IAMGOLD ANNOUNCES EQUITY POSITION IN OROMIN EXPLORATIONS LTD.
Iamgold Corp. has acquired 16,088,636 common shares at 70 cents per share for a total investment of $11.26-million, or 17 per cent of the now issued and outstanding common shares of Oromin Explorations Ltd. in partial subscription to a private placement. Oromin is a Toronto Stock Exchange-listed company with its principal property being an interest in a joint venture covering a large landholding in Senegal in close proximity to the Sabodala mine.
The common shares of Oromin acquired by Iamgold were acquired for investment purposes. Iamgold does not have any present intention to acquire ownership of, or control over, additional securities of Oromin. It is the intention of Iamgold to evaluate its investment in Oromin on a continuing basis and such holdings may be increased or decreased in the future.
The Oromin investment is consistent with the company’s exploration strategy in the region where it is looking to acquire interests in large prospective land packages.
Thank you very much!
i think 09 is the year for west africa!!
warmest regards
caliche
Oromin Blog... I have created an oromin blog with info on the company and some of its neighbours in Senegal
please come by for a visit... any suggestions on what you would like to see would be appreciated!
http://calichebahada.wordpress.com/
warmest regards
caliche
OLE now trades on the TSX ..
the chart page still has it trading on the tsx-v ..
Oromin to start trading on TSX on Dec. 16
Oromin Explorations Ltd (2) (C:OLE)
Shares Issued 65,227,606
Last Close 12/12/2008 $0.60
Monday December 15 2008 - News Release
Mr. Chet Idziszek reports
OROMIN TO COMMENCE TRADING ON TORONTO STOCK EXCHANGE
Oromin Explorations Ltd.'s common shares will commence trading on the Toronto Stock Exchange (TSX) at market open on Tuesday, Dec. 16, 2008. The company's stock symbol will remain OLE.
Chet Idziszek, president and chief executive officer, stated: "Attaining this listing for Oromin on Canada's senior stock exchange marks another important milestone we've achieved in 2008. This will provide a higher profile, which we believe is warranted based on the extreme success we have at our Sabodala Gold Project in Senegal, West Africa. Since filing our initial resource estimate in July, aggressive drilling on several targets comprising the three gold deposits included in the resource estimate (1.4 million ounces) and the discovery of a new high grade gold deposit at Kerekounda, has continued to provide important and gratifying gold results. The company expects updates to the initial resource estimate in the first and second quarters of 2009 with the results of the prefeasibility study by the end of the third quarter.
"In addition, we are making steady progress towards drilling at least two test wells at the Santa Rosa oil and gas project in Mendoza, Argentina. This wildcat test is scheduled for the first or second quarter of 2009. Oromin and its project partners are poised for a very active and exciting series of programs throughout 2009. Again, I emphasize the higher profile for the company that its listing on the TSX will bring, and invite the investment community to become familiar with and follow our story."
� 2008 Canjex Publishing Ltd.
Oromin should be coming out with the updated resource calc in a week or two .. im betting it will add at least another million ounces ..
Oromin AGM report
as usual the office was plastered with maps and diagrams floor to cieling .. satellite images taken in march this year show the progress of both mdl and oromin the pad of mdl 's plant is easily recognizable the hundreds of trenches are visable as are many of the drill pads .. the beginnings of the water dams and some captured water are easily recognizable .. the airstrip and the laterite caps are also easily recognized ..
in attendence were Chet, David Mallo, Ian Brown, Doug Turnbull David Scott and James Stewart. James ran the business part of the meeting efficiently as last year and you could pretty much read the minutes from last year to get a replay of this year .. stock options, directors etc .. everything passed with no objections ..
there were about 25 million shares represented at the meeting almost 50% so quorum was not an issue ..lol
shareholders present were Ron, Ryan and myself with two other gentlemen present from last year and again I didn’t get their names .. apologies if they are reading this .. there was at least one broker present and again apologies I didn’t get his name or house ..
there was not really a formal presentation this year although it was set up …the format was more of a Q&A with chet and david .. and all pertinent info was discussed as we looked at the slide show a bit later ..
we started off talking about the oil deal ..the “argentine tango” as chet put it .. basically we got awarded this property in a different time of 25 dollar oil and no one was interested in exploring in our neighbourhood .. since petrolifera’s discovery to the south of us and 78 dollar oil there has been a significant increase in intrest around our permit and its surroundings ..new permits are going for “astronomical” amounts of money.. as always there is only one signature left and oromin and otto are putting as much pressure on the government as they can to get this thing done .. the discussions are ongoing but there is no doubt or negotiation that the permits are not ours .. and we will be drilling them! as always it is about timing and talking to the right people at the right time .. there is another flight going to mendoza next week ..i am confident there will be movement on the oil issue soon .. the company is still slated to be split into oromin oil and oromin gold ..i just made those names up so don’t hold anyone to them ..lol
and for the main event Sabodala .. WOW .. I have said it before this thing will be a monster! .. we spent a lot of time talking about the golouma deposits merging and the structure of the deposit .. the deposit is a dilational infilling where movement between two brittle masses opens up space in the rock .. the fluids in motion will find those spaces and flow along them until they have reason to drop the gold out of solution .. could be chemical or pressure temperature related .. I wont bore with the details .. needless to say where there is more space there is more room for fluid transport and where there are more fluids there is more likleyhood of deposition .. I was lucky enough to see some of the core and trench samples and let me tell you I have never seen so much visible gold in such quantity ..they were indeed very impressive samples .. most core I see at shows and such have so much other ore associated with gold it is very hard to see the tiny glitters .. and I did see some core many others would be showing off under a microscope saying VG .. but the blebs of gold I say were fingernail size and not hard to see at all ..again .. very impressive .. the structure of the golouma deposit itself is unique to the area .. the norm is for the deposits to follow the two main shear corridors or the secondary structures trending ne/sw .. which mdl hypothesizes are the feeder structures depositing in the main shear .. golouma is open in ALL directions and at depth .. which can be quite deep .. I learned today some of the deposits on the mali side can be up to 1.6 kilometers deep .. masato would not be economic at those depths but golouma would!.. it is unknown at this point how deep the main shear structures go .. it could be hundreds of meters deep or over 10 kilometers deep .. no one knows .. my own personal theory on mdl eastern flats is that it may be a horizontal shear plane that has detached from the lower rocks and become mineralized ..just my wild arse guess at this point not knowing the orientation of the shears on mdl land. .. more will be known when the pit is started .. the golouma deposit makes a bit of a dog leg turn to the west and it will be drilled out blind under the laterite cap .. there are many areas where the soil geochem and chargeability are muted but some of the largest finds on the mali side were blind .. we very well may have the motherlode right under our feet …we will delineate the best we have now but if something better is found we will concentrate on the best zones .. and IMHO we will find some ..
there are many other targets .. around 30 I think … the next drill ready target is sekoto ..about 1 km square soil anomaly.. looking at the maps it is farther away from the main shears .. the theory is that it is a different deposit type from the general sabodala type .. it is looking more like a porphyry deposit than the structurally controlled ones we have found so far .. makes the whole story much more interesting .. it could be of a different age meaning several deposition events on the property .. also could have a different chemical suite associated .. we will have to wait and see .
.korolo also one to watch …
masato is much more like mdl’s deposit in both width and grade .. it is on trend with many of the mdl drill targets this round and may well link to nikifiri to the south ..and even the maki medina farther south ..
important events will be the linking of deposits such as the golouma west and northwest ..tonnage will build FAST .. I think we will find more of the golouma deposits merging in the not too distant future ..into one super golouma deposit .. sabodala north is on trend with the main sabodala pit of mdl ..so I expect similar grades and widths from there .. the nikifiri is not a priority since we know what we have and its proximity to mdl’s drilling we can speculate on grades .. it is an easy drill and will add ounces fast .. I think the nikifiri deposit is at least double what mdl is reporting at 350K ounces they will have a revised count in September I believe .. my bet is on 7 to 800k on nikifiri and near 3 on the main body ..
other notes .. we have 2 more RC rigs arriving after the rainy season
there was a jv announced with iamgold and randgold on a property south of us .. intrest in the area is building and money is going into the ground ..
we have about 15 mil in the kitty with 17 more in options and warrants .. no need for another financing for a while ..
the feasibility with 40m grid will be out around feb 08 contracted to SRK ..
mdl will be doing some condemnation drilling on the northwest side of the property to be used for water and tailings .. they will also test a few areas of intrest for us in the vicinity ..
as always mdl and oromin are doing right by the local population helping with basic needs water wells medical and educational aid etc ..
it has been a long while since I was this excited about a project and am proud to be a shareholder of a fine and reputable group as we have in oromin ..
there is still lots to be told in this story every NR that comes out has another clue to the final chapter if you look hard enough it becomes obvious where we are going .. chet is on a course to production with a central mill with feed from many deposits .. this all equals many ounces of gold and profits for anyone smart enough to get in cheap .. I will be picking up more shares in the coming weeks .. this is not to say if an offer comes in at the right price we would not take it .. after all chet has sold many a deposit to barrick for a pretty nice pile of change .. lol
in my opinion we are undervalued by about half .. the story gets better every hole and every NR and every time 2 deposits merge .. upward pressure is building and there will be a tipping point where the broader market sits up and takes notice .. will it be a MAJOR jv partner .. a massive hole with great length and excellent grade .. will it be a surprise to the upside on the feasibility .. I don’t know but it will come ..
happy investing and my warmest regards to all ..
caliche
PS
if anyone has any direct questions I will do my very best to answer them ..
Oromin drills three m of 98.37 g/t Au at Golouma NE
Oromin Explorations Ltd (2) (C:OLE)
Shares Issued 49,911,233
Last Close 3/2/2007 $3.60
Monday March 05 2007 - News Release
Mr. Chet Idziszek reports
OROMIN EXPLORATIONS LTD.: NEW GOLD DISCOVERIES AT GOLOUMA NORTHEAST AND NORTHWEST CONFIRMED BY DRILLING
Oromin Explorations Ltd.'s highlights at the Golouma gold discovery are:
Initial drilling at the Golouma Northeast discovery returns high-grade gold intersections including 98.37 grams per tonne gold over three metres and 17.61 g/t gold over eight metres.
Step-out drilling at Golouma West returns another high-grade gold intersection of 74.71 g/t gold over three metres.
Reverse circulation drilling at Golouma South identifies a new parallel zone and continues to confirm and expand mineralization including 8.84 g/t gold over seven metres and 3.58 g/t gold over 12 metres.
Drilling has been initiated to test a new zone, Masato North, where strong gold-in-soil geochemistry has been confirmed by trenching.
Oromin Explorations has provide results from the initial core drilling at the Golouma Northeast and Golouma Northwest gold discovery areas. In addition, results from core drilling at the Golouma West gold zone and reverse circulation drilling at the Golouma South gold zone are also presented. Also, a core drill has moved to initiate drilling evaluation at the Masato North discovery and drilling is continuing at the Maki Medina gold discovery with results pending.
For location of all mineralized zones please refer to the Oromin website.
Golouma Northeast discovery
The Golouma Northeast discovery is located approximately 500 metres to the northeast of the Golouma South zone. Golouma Northeast is an area of extensive and deep artisanal pits and excavations from which Oromin has previously reported rock-sample results of up to 27.54 g/t gold. No previous drilling has ever been undertaken at the Golouma Northeast discovery.
As previously reported, visible gold was intersected in two of the holes completed. The zone has been intersected over a 100-metre extent and to a depth of 150 metres. The mineralization remains open in all directions and will be the focus of follow-up drilling.
The table outlines the significant results from Oromin's initial six of seven holes completed for which assay results are available.
Drill Grid Azimuth/ From/ Interval Gold
hole co-ordinates dip to (m) (m) (g/t)
DH-67 3700N/5415E 150/-45 145-147 2 25.07
DH-68 3661N/5462E 150/-45 109-110 1 162.30
DH-70 3672N/5518E 182/-45 85-87 2 1.91
DH-72 3661N/5462E 182/-45 81-84 3 98.37
incl. 81-82 1 289.00
DH-73 3661N/5462E 182/-60 162-170 8 17.61
incl. 163-166 3 38.36
DH-76 3700N/5415E 180/-45 49-49 3 1.15
Golouma West zone -- two additional core holes completed
At the Golouma West zone, two drill holes were completed during this period. Previous drilling has returned results that included 65 metres at 7.83 g/t gold in hole DH-17, 20 metres at 3.97 g/t gold in hole DH-21, nine metres at 7.79 g/t gold in hole DH-50, nine metres at 9.78 g/t gold in hole DH-55 and three metres at 101.7 g/t gold in hole DH-51.
Drill Grid Azimuth/ From/ Interval Gold
hole co-ordinates dip to (m) (m) (g/t)
DH-62 3465N/4722E 030/-45 44-47 3 1.41
53-54 1 4.18
DH-64 3465N/4722E 030/-70 74-85 11 1.94
incl. 77-83 6 3.17
91-94 3 74.71
incl. 92-93 1 194.70
In addition, Oromin has initiated an extensive reverse circulation drilling program based on a 40-metre drill hole spacing on 40-metre drill sections across the entirety of the known area of mineralization over a minimum strike extent of 750 metres. The current sectional drilling evaluation is a precursor to a resource evaluation.
Golouma South zone -- parallel zone identified
At the Golouma South zone, previous drilling has returned results that included 23 metres at 6.64 g/t gold in hole DH-11, 17 metres at 7.06 g/t gold in DH-14 and nine metres at 24.58 g/t gold in RC-10.
Sectional drilling at 40-metre intervals continues to the south and northerly directions along the northeast trend of the mineralized zone. The mineralized zone has been intersected on all sections and it remains open in all directions. To the south, the sections include:
Drill Grid Azimuth/ From/ Interval Gold
hole Section co-ordinates dip to (m) (m) (g/t)
RC-10 160S 2925N/5170E 110/-60 94-103 9 24.58
incl. 99-101 2 98.77
RC-11 160S 2970N/5115E 110/-60 50-57 7 8.84
incl. 54-55 1 51.17
RC-15 200S 2925N/5120E 110/-60 32-36 4 4.12
RC-16 200S 2940N/5085E 110/-60 60-72 12 3.58
incl. 60-64 4 6.93
RC-17 200S 2955N/5045E 110/-60 113-121 8 4.24
RC-19 240S 2888N/5105E 110/-60 2-13 11 2.22
RC-21 240S 2918N/5030E 110/-60 119-128 9 1.83
incl. 122-125 3 3.87
In addition, a second parallel zone has been interpreted on sections 040S and 060S to the north. The main zone intersected in hole RC-8 returned 11.9 g/t gold over eight metres followed by a parallel zone which returned 3.13 g/t gold over 16 metres. These two zones were also intersected in hole RC-5 which returned 9.8 g/t gold over four metres followed by a parallel zone that returned 3.73 g/t gold over 15 metres. Current follow-up reverse circulation drilling has intersected similar altered sections in holes RC-26 to 30 for which assays are pending.
Drill Grid Azimuth/ From/ Interval Gold
hole Section co-ordinates dip to (m) (m) (g/t)
RC-05 040S 3075N/5140E 110/-60 80-84 4 9.80
111-126 15 3.73
incl. 112-113 1 31.34
RC-08 060S 3045N/5170E 110/-55 8-16 8 11.90
incl. 9-11 2 27.04
30-46 16 3.13
Golouma Northwest discovery -- initial three core holes completed
The Golouma Northwest discovery is located approximately 350 metres to the north of Golouma West. Previous trench results extending along a minimum strike extent of 250 metres includes: 5.08 g/t gold over nine metres, 5.72 g/t gold over 12 metres, 3.5 g/t gold over four metres and 2.25 g/t gold over four metres. To date, Oromin has drilled only three core holes over a limited extent of the Golouma Northwest mineralized zone. Follow-up drilling is planned. The table outlines the significant results from these drill holes at Golouma Northwest.
Drill Grid Azimuth/ From/ Interval Gold
hole co-ordinates dip to (m) (m) (g/t)
DH-63 4050N/4600E 030/-45 48-50 2 2.76
138-139 1 5.86
DH-65 4050N/4600E 030/-70 54-58 4 1.04
DH-66 4015N/4675E 110/-65 78-82 4 5.69
85-87 2 1.58
199-201 2 4.84
All drill hole assay intervals within this release are based on one-metre sample composites and a 0.5 g/t gold lower cut-off. The attitude of mineralized intervals varies and may not represent true widths.
Masato North discovery -- core drilling started
Masato North is represented by a strong gold-in-soil geochemical anomaly extending for approximately 1,000 metres immediately on trend and beyond previous drilling at the Masato gold zone. Results from a series of widely spaced trenches have confirmed strong gold mineralization, including: 1.04 g/t gold over a minimum of 13 metres in TRX-133, 1.07 g/t gold over 21 metres, including 2.13 g/t gold over six metres and an additional 2.34 g/t gold over six metres in TRX-134, and 2.03 g/t gold over nine metres in TRX-143. Additional trenching is planned beyond the areas tested thus far. A core drill has been moved to Masato North and drilling has begun.
Verification of data disclosed in this news release was carried out by Douglas Turnbull, PGeol, and fieldwork was carried out under the supervision of Gerald McArthur, PGeol, both are qualified persons for the purposes of National Instrument 43-101. TSL Laboratories in Saskatoon, Sask., carried out all assaying.
Oromin up again ..
somethin' is cookin ..
here is a letter form grandich .. mabey some of the reason it jumped today ..
http://www.grandich.com/docs/GL_02-21-07_ole.pdf
Oromin making new highs
here is a writeup by armstrong ..
link with pics and graphics ..
http://news.goldseek.com/StewartArmstrong/1170432120.php
February 1, 2007
Preface
We just completed an article titled “Exciting Junior Mining Companies for 2007” posted on Goldseek on January 27, 2007. We believe that gold is going to begin picking up the pace as is silver, and its time to highlight some of the companies we just listed as our “top picks”. I listed the choices simultaneously so investors could acquire a sense of the variety and diversity of the companies. I also wanted to “throw them all into the ring” at once so people could make their own determinations after performing their own due diligence. Even though these companies are different in a multitude of ways, the one thing I believe they all have in common is the possibility of doubling in price at some point during the next 12 months. For you the investor, they are all at the starting line at the same time. However, I certainly have my favorites as do many of you.
Over the next several months, I’d like to highlight each of them. At that point, I am planning on creating a simple template in order to track these companies over the next year or so. There may be more companies added to the list as we move forward. There are probably four or five dozen high quality junior explorers that deserve our attention. We shall endeavor to list many of them all in due time.
There is one thing I want you to consider and that is simply that fortunes are going to be made in this sector in 2007. Hence the title for Oromin from the old “Doors” song, “Come On Baby Light My Fire!” I would hope that you put yourselves in a position to create that success. Junior mining companies by their very nature are high risk-high reward scenarios. There is no getting around that fact. But if one chooses companies carefully, and takes into consideration so many different factors from the investment sector to the international geopolitical situation to the stability of the country in which the program is being undertaken to the management, projects and on and on; then one can certainly create better odds for themselves. Above all other things perform your own due diligence. Do your homework. I am trying to lead you to the water, but I cannot make you drink.
Oromin's Camp Sabodala
Camp Sabodala's Rules of the Road
A Local Village Near Camp Sabodala
Oromin Explorations has the Potential to Meet all of our Requirements for Success!
Oromin was listed as the number one company because I believe it has the potential to become a world class discovery. Attached is a chart of OLE covering the past year and you can see over the past three months that volume has picked up and we have a series of higher highs and higher lows.
I’ve been following OLE for about three years now and I’d like to draw your attention to four articles I‘ve written about the company. These will serve as solid background material and bring you up to speed regarding the basics of the company. All are in my archives on Goldseek.com. Scroll to the bottom of any article listed in my column, Series 950, and you will see the archives. Click on either section and you will be able to locate the articles by date. Peter has been gracious enough to keep the archives posted even though his site is extremely busy and getting busier. I thank him for that consideration. Here are the articles listed from the present backwards to the beginning.
1. Oromin Explorations: Bang the Drum Louder dated April 16, 2006
2. Oromin Explorations: “To the Moon, Alice, To the Moon” dated March 28, 2006
3. Update on Oromin Explorations dated December 16, 2005
4. Introduction to Oromin Explorations dated September 27, 2005
I began writing seriously about OLEPF when it was about $.40 US (forty cents). At $1.75US +/-, it is my opinion that this company is just starting to move again and that 2007 is going to be an excellent year for the company. All the quintessential elements necessary for success are present. As a future point of reference, allow me to list a few of them for you.
1. They have three projects, the prime one being Sabodala, in Senegal Africa. It is a huge 230 square kilometer land package (about 140 square miles) that hosts a plethora of gold zones and drill targets. That is a very large property ideally situated in a stable country and right next door to another company, MDL, with a 1,000,000 ounce gold resource. Realistically, only a small portion of the 140 square miles has been explored to date. For the record, MDL has approximately one-tenth the land mass of OLE.
2. Oromin also has in its portfolio, an oil and gas play in Argentina called the Santa Rosa Dome. They also have an interest in the Carneirinho Gold Project in North Central Brazil.
3. The Drill Programs at Sabodala are aggressive, meaning that they are pushing forward as fast as equipment and manpower will allow. With approximately $15M US in the bank, I believe we will be witness to a constant flow of positive news coming forth from the project in 2007. Remember that 2006 was an excellent year.
4. The following should be household names according to a trusted geologist involved with the project and who is a friend of mine. He makes an excellent point because these zones are enormous and the results to date have been most positive.
a. Golouma (West, Northwest, Northeast, South, East, etc.)
b. Niakafiri
c. Masato
d. Maki Medina ( a new zone—see below)
e. Sabodala North
f. Masato North
g. Sekoto
h. Kinemba ( a new zone, see below)
5. Oromin has experienced management that have been involved with huge mining successes in the past. Successes such as Eskay Creek and Hemlo come to mind.
Golouma, Niakafiri, Masato are the three gold zones that have produced excellent drill results to date. Through a series of infill drilling and step out programs, the company continues on the road to delineating a major gold deposit.
I’m not going to rewrite the four articles listed above, but I will say that if you are remotely interested in this company, I would suggest printing out those four articles found in my archives and review them. I did, and found them to be an excellent refresher course. What is really amazing is how much work has been completed on this project in just a little over a year and a half. Chet Idziszek, David Mallo, and his team have pulled out all the stops to move this project along. David Scott is directing the IR campaign and has just recently returned from the property along with Messrs. Idizeszek, and Mallo and their teams. There is excitement in the air!
Since the inception of this project, they’ve done exactly what they’ve said they were going to do and they’ve been consistently hitting their marks. They may even be a bit ahead of schedule.
This is a tightly Held Company
Most importantly, I want you to understand that insiders and employees own approximately 35% of the company. That tells me that insiders have a large vested interest in this project and it is still only two years old in terms of the work program. When gold gets popping, we are going to see some of these very high quality gold projects in the $25 to $50 range. The Newmonts and the Barricks are going to be in the $150 range. It will continue to be proportional but I tell you again and again that fortunes, real fortunes in the millions and millions of dollars are going to be made in this market.
Old school geologists believe that if they work a project properly and in an orderly sequence, the market will come to them. It may take a bit more time, but if one is in the possession of a world class discovery, the market will eventually take note. This is one of those projects.
It is my opinion and the opinion of many other people who are infinitely more in tune with the junior mining exploration business than I, that Oromin Explorations has the potential to be a world class discovery. Peter Grandich just named it his number one pick in the Junior Mining Sector. If you care to tune in to Rob TV on Friday, January 26, 2007 at 7:55 PM, you can hear his presentation. To date, the data is proving us all correct. Below is the latest press Oromin Press Release as of January 18, 2007. Please take note of the far right column or the g/t data.
Before we get to this PR below, I want you consider two things. The first is that MDL or Mineral Deposits Limited is a Company out of Australia that has a property contiguous to Sabodala. It is of a much smaller scale and they have proven up a resource in the vicinity of a million ounces of gold. I’ve mentioned this before but I’m reiterating it because the two properties are literally “connected at the hip”.
The second is that when we first started covering Oromin in September of 2005, the share price was in the vicinity of $.40 US. Today the price is in the vicinity of $1.75 so we’re looking at about a 300% increase. I believe that with the work being undertaken and with the progress being made in Sabodala, this could just be the beginning of a major move forward both in share price and in terms of the progress being made on the project.
Those are but a few of the reasons why I’m putting Oromin at the top of my list now and why it’s been there for so long. Remember, that I am employed by the company; the same company that also controls Madison Minerals, and Lund Gold. I am a very big believer in Madison Minerals and have been for five years or so. I’m telling you this so you realize that I’ve followed these companies carefully for a very long time and patience has been required. But that is simply the nature of this business. Patience, Patience, and more Patience and then all heck breaks loose. I believe that we are at that point when all heck is going to break loose, on Oromin, on Madison, and on many of the companies I've listed. Some of which I work for and some of which I do not.
That’s my story and I’m sticking to it!
To conclude this section, in addition to what I am reading on their site (www.oromin.com), I am also listening to some very qualified geologists who believe that Oromin is on its way to becoming a world class discovery. If that is indeed the case, then a $2.00 US price range is just the beginning. So far they have not disappointed us. I would not quibble over quarters or even half-dollars at this point in time. I have a very strong feeling that this company is still going to be a buy at $5.00 US because of the ongoing drilling results. I cannot possibly be any more bullish. Do not take my word for it; perform your own due diligence. If you have any additional questions feel free to email me at consulting@seacoastpub.com and I’ll either answer them as best I can or point you in the right direction.
David J. Scott - Marketing / IR
Suite 2000- 1055 West Hastings Street
Vancouver, BC; Canada, V6E 2E9
Phone: 604-331-8772
US Toll Free at: 1-877-529-8475
January 18, 2007 Press Release:
I’m including this Press Release because I feel it is one of the most important to date. It can also be found on the www.oromin.com web site.
Mr. Chet Idziszek reports
INITIAL RC DRILL RESULTS CONFIRM AND EXPAND CONTINUITY OF GOLOUMA SOUTH GOLD MINERALIZATION
Oromin Explorations Ltd. has received results for the initial 10 reverse circulation drill holes at its Sabodala property in eastern Senegal. All 10 holes were drilled at the Golouma South gold zone just prior to the Christmas break.
The following table outlines the significant results from the infill and step-out reverse circulation drilling at Golouma South. Previous core drilling has returned results that included 23 metres at 6.64 grams per tonne gold in hole DH-11, 17 metres at 7.06 g/t gold in DH-14, nine metres at 9.7 g/t gold in DH-43 and 16 metres at 4.99 g/t gold in DH-61. (See previous releases for details).
Getting Under Way With Drilling
Samples Ready for Lab
All RC drill holes assay intervals are based on one-meter sample composites within the mineralized zone. The attitude of mineralized intervals varies and may not represent true widths.
These new drill results confirm and expand the lateral and depth continuity of gold mineralization previously identified at Golouma South by both excavator trenching and diamond core drilling. Combined trenching, core and RC drilling results have now intersected the Golouma South gold zone mineralization over a minimum 400-metre strike extent. The Golouma South gold zone remains open to expansion, especially to the south where RC-10, the southernmost hole completed to date, intersected nine meters at 24.58 g/t gold. RC drilling is continuing up dip, down dip and along trend to the south of Oromin hole RC-10 using a 40-metre grid and drill hole spacing leading toward the undertaking of a future resource study.
Drilling restarted at Sabodala on Jan. 11, 2007. Oromin is presently drilling with two core rigs and one reverse circulation rig and has sourced additional reverse circulation rigs that are expected to arrive at Sabodala in the first half of 2007. The two diamond core rigs are presently drilling at the recently discovered Golouma Northeast and Maki Medina zones and the reverse circulation drill rig is at Golouma South. The RC drill rigs will focus on 40-metre centre drilling of known mineralized zones as a precursor to future resource calculations whereas the diamond core rigs will be used to broadly define the lateral and vertical extent of gold zones and deeper drilling requirements. Upcoming drilling will be directed at Niakafiri South, Masato, Golouma West as well as more recent discoveries at Sabodala North, Masato North, Sekoto and Kinemba.
Fieldwork was carried out under the supervision of Gerald McArthur, PGeo, a qualified person for the purposes of National Instrument 43-101, who has also verified the data disclosed in this news release. TSL Laboratories in Saskatoon, Sask., carried out all assaying.
Don’t forget, Oromin was awarded this concession in early 2004 in a highly competitive, open bidding process participated in by many high profile gold companies. In just two and a half short years, they have gone from zero to sixty. In other words, the targets and zones mentioned above have been developed in only several years. When combined with all the IP Surveys, trenching, mapping, surface sampling, and all of the other components that go into developing a project, this project is just now hitting its stride.
Money in the Bank
On December 7, 2006, the company announced the closing of private placements in the amount of $15 million Canadian. Over and above that they raised additional funds giving them some $18 million dollars with which to work over the next several years.
I don’t know if the market hasn’t been paying attention or if the market has simply been in hibernation but with the results being released, I should think that the share price should be considerably higher than where it is. That’s just my opinion.
Additional Press Release Information
For instance, as per a Press Release dated January 18, 2006—about ten days ago, and inserted above, OLE drilled 24.58 g/t Gold over nine meters at Sabodala. But more importantly, Initial RC Drill Results confirmed and expanded the continuity of the Golouma South Gold Mineralization. This is big news because they are exponentially expanding the perceived deposit.
As per that release: Drilling restarted at Sabodala on Jan. 11, 2007. Oromin is presently drilling with two core rigs and one reverse circulation rig and has sourced additional reverse circulation rigs that are expected to arrive at Sabodala in the first half of 2007. The two diamond core rigs are presently drilling at the recently discovered Golouma Northeast and Maki Medina zones and the reverse circulation drill rig is at Golouma South.
The RC drill rigs will focus on 40-metre centre drilling of known mineralized zones as a precursor to future resource calculations whereas the diamond core rigs will be used to broadly define the lateral and vertical extent of gold zones and deeper drilling requirements. Upcoming drilling will be directed at Niakafiri South, Masato, Golouma West as well as more recent discoveries at Sabodala North, Masato North, Sekoto and Kinemba.
Working our way backwards to December 21, 2006, The Company drilled 65 meters of 7.83 g/t Gold at Goloma West.
Working back still further, I’d like to for you to take special note of the Press Release Dated June 19, 2006 titled Additional Drilling Success at Sabodala. Not only is this PR telling us about the 65 meters grading 7.83 G/T Gold , we also have the benefit of a map at the end of the release that puts all the zones into perspective on this 230 kilometer square property. Correlating to this PR is the article I wrote titled Oromin Explorations, “Bang the Drum Louder”.
It is necessary to go at this story as one might read a good mystery novel. All the parts of the puzzle have to be understood and we, the investors, have to take the time to keep reviewing where and in which direction the field generals are taking the project. It takes time, but in the end, it could conceivably pay off very handsomely if you just take the time. This is a project that warrants your personal efforts.
Conclusion
I’m not one much given to over promotion and hyperbole but I think given the track record of this company and this project in particular, one should seriously consider OLEPF for their portfolio. OLEPF has the potential to be a world class discovery and the group is diligently working in that direction. They are now “cashed up”, have an excellent staff of geologists on and off the property, and have exploration results that have come fast and furiously over the past year or so. Those results have been exceptional. I am told that three drills will be turning “24/7” and that 2007 should offer us results in a very steady fashion. There is talk of a fourth drill being in operation within the next several months.
This is a company with a future so bright it would appear they need “shades”. Currently, the market is giving them a valuation of about $2.00 per share. If and when we look back on this article when the share price is at $5.00 or better, we might suffer a bit of consternation.
Sabodala Trenching (Notice Man in Trench)
Until Next Time,
D. Stewart Armstrong
Consultant to the Junior Mining Sector
Special thanks to Maureen MacPherson of Colourworks for the included photos. Ms. Macpherson is based out of Vancouver, Canada, has her own design company and can be reached at colourworks@telus.net The photos were taken on a recent visit to “Camp Sabodala”
Disclosure and Disclaimer by the Author: In the spirit of full disclosure, although D. Stewart Armstrong, Seacoast Consulting, and or Seacoast Publishing, are independent entities, they may be employed by this particular company, may own shares in this company, and this company may be an advertiser on GoldSeeek.com which is an internet site in which the author is consistently involved. Although the author is an independent analyst, he is also a paid consultant by the Junior Mining and Exploration Sector. The author is a private investor in the precious metals markets. He is not a board qualified or licensed investment advisor. All material is deemed to be accurate and to have been gleaned from reliable sources in a timely fashion; but said material cannot be construed as being totally complete or absolute. Consequently, the aforementioned parties can take no responsibility for any investment decisions you make or the results thereof. The author does not accept responsibility for any possible errors in calculations disseminated by any company he represents or in which he is involved, nor does he guarantee or insinuate any type of investment results. Consider any and all recommendations as personal opinions on the part of the author. It is highly recommended, and even insisted by the author, that investors, individuals, and all interested parties, conduct their own due diligence before becoming involved in any investment or with the interests of any company mentioned. That process would include direct contact with the company to confirm any facts, opinions, or ideas represented by these companies in general or on any Company CD’s distributed and referred to in these articles. The author would suggest the possibility of hiring professional advice from a certified investment advisor before making any investment transactions. Again, please consider these articles as opinions and please understand that investing in Junior Mining Companies is a high-risk, high reward proposition and you must take full responsibility for your own actions because there is always the possibility of losing all or a portion of your investment capital. This disclaimer applies to this article, Email correspondences, and all communications with both public and private entities. This disclaimer is applicable to all articles and communications published previously and to ones to be published in the future.
-- Posted Friday, 2 February 2007 | Digg This Article
Oromin Explorations: (OLE.V)
www.oromin.com
Suite 2000
1055 West Hastings Street
Vancouver, BC
Canada, V6E 2E9
Phone: 604-331-8772
Fax: 604-331-8773
Toll Free at: 1-877-529-8475
Contact: David Scott
Highlights: Excellent Management and one of the best Projects in Africa: a truly exceptional combination
Extraordinary geological team
Excellent Web Site and Brochures will bring you up to speed quickly and efficiently
Reread the Press Release dated May 24, 2006.
Knocks: Currently, there is no US listing but that is soon to change. Management is working on having an OTC symbol in the near future.
News: The news has been continuous and positive. Look for assays to be posted from now until the holidays. Please review my two past articles on
Oromin in my archives on GoldSeek.com
Oromin Exploration continues on unabated beneath the radar screen of most investors. I personally believe that this is a big mistake because this company has all the elements for a grand slam. Many investors are up 500% or better since their entry point. However, I personally believe that Oromin, based upon their approximately 230 square kilometer project at Saboda, is just at the beginning of the race. Don’t be fooled by the big gains. Yes, the drill results have been spectacular and yes there are precedents to use as models (MDL “next door”) but this is an absolutely huge project by anyone’s definition and I can assure you that the majors are watching every move that is occurring at this project. Yes, you are going to pay a bit more to become involved but no, don’t look for the price to take a big move down. It just ain’t gonna happen. Now is the time so buck up and buy this company up to $3.00. Again, my opinion is that you won’t be sorry. And I said the same basic thing when the stock was trading at $.40.
Their main project is Sabodala project in Senegal, Africa. However, they also have an excellent gold project in Brazil http://www.oromin.com/download/August_02_2006.pdf) and a very highly regarded oil and gas project in Argentina (http://www.oromin.com/download/November_16_2005.pdf ) I’ve written about Oromin several times in the not too distant past and I plan on doing another report in the near future. All past articles are available in the archives on GoldSeek.com. Those write ups and the special report they’ve posted will give you the skinny on this deal. What you “feel” throughout this company is QUALITY which simply reflects the quality of the project, the managers, and the assisting staff of independents and consultants.
Listen, this project has grand slam potential and the numbers keep getting better and better. David Mallo, their chief geologist is a very special and talented guy and one who I happen to hold in very high regard. I think that’s about as much as I can get away with saying because he is very low key in terms of personal promotion. And of course, Chet Idziszek is no slouch himself having been named Canada’s Prospector of the Year a few years back. He is also as seasoned as they come. Jimmy Stewart is one of the directors and an attorney to boot—but I don’t hold that against him. He is a very bright talented person who has been in the business for a very long time. It’s a formidable team that has this extraordinary talent of landing highly desirable projects.
I’d be remiss if I didn’t mention Doug Turnbull who is an independent geologist and is on the board of directors of several of the companies I’ve mentioned including Oromin. Doug is another talented no nonsense type guy who is very good at what he does. All of this talent on this one project has to tell you something and I know you’re bright enough to figure out what that something is.
Incidentally, Maureen McPherson, an independent graphic designer, created the very user-friendly, beautiful web site. What a job she did. It just goes to show you the talent that Chet, Jim, and David have assembled on this Project. They also control Madison and Lund Resources. When this market blows off in stage four and five, you are going to be kicking yourself if you don’t have a position in this company. Yes, I’m totally biased as I am working on all of these companies, but this one just happens to be the cat’s meow. By the way, what is a cat’s meow. How come they don’t say, this one is the dog’s bark? Or this one is the fishes bubble or the shark’s bite. Just checking to see if you’re still awake!
In my very biased opinion, Oromin is a buy. I believe it is preparing to “blow through” the resistance of $2.25 Canadian in the next leg up in gold. During this current summer of 2006 phase, $2.75 is my comfort zone. However, drilling continues on almost unabated and when the next drill results are announced, I believe that $5.00 will be a near term target.
'Thanks for explaining the downward spike in Oromin in May. Where do you learn about these things?'
i have been around longer than i like to admit ..lol ..
downward pressure on gold and shares and a big market order starts hitting bids all the way down .. easy to see ..
plus i called the co ..lol
caliche
there are no limits to stink bids as far as i know ..
pick a price you would be willing to pick some more up and put an order in .. it is easier with a full serv broker then you dont have to lock up capital to do it .. i would put in a bunch of "either or orders" as stink bids but as yet i cant do these on e trade ..
like on ole right now i would put in a 1.50 order if i get it great for me if not who cares ..
the only problem arises if there is a freefall in the stock price and you really dont want it anymore .. great for sudden drops in SP when the underlying fundamentals have not changed .. ie mgn calls but bad if they are drilling oil and come up dry .. lol
regards
caliche
oh lord no .. i was not on mgn .. there was a call on someone else that dumped 100K in may .. i have borrowed money on a line of credit to the tune of 20 grand so far, and 20 grand on a credit card promo for 3.9% that i couldnt turn down .. but thats it ,,i dont own any marginable stocks yet .. ole will be the first .. and i will have to lock up the computer so i dont use it ..lol
caliche
"Brave man: "Oromin... it is my largest position by dollar value""
lol .. why brave man...it has been one of my best performers to date and there have been no surprises except for the 100K mgn call back in may .. still kicking myself i had no stink bids..
should i not be sleeping well?
agnico seems like a stand up outfit based on my limited dealings with them ..good on ya ..
caliche
Oromin
looks to have bounced off 1.65 and not looked back .. gold is on its way up and so is OLE .. my last buy was 1.71 a few weeks ago ..
thanks to stateside for the heads up on your site ..hope i can add something re ole .. it is my largest position by dollar value
caliche