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Here is the Northern Miner link: https://www.northernminer.com/news/orsu-metals-completes-maiden-resource-on-russian-gold-project/1003806328/
A good start although all at the inferred level of classification - 25.09 million tonnes, grading 1.47 g/t gold and containing 1.19 Moz gold at a 0.5 g/t gold cut-off grade. Significantly more to come if you consider that the area explored is only a small part of the property (which is an area populated by gold mines) and that grades are increasing with depth - a very good sign indeed and warrants some deeper drilling.
It would be nice to have some infill drilling to upgrade the category on the currently defined resource but perhaps of more significance is expanding the resource base to start attracting the attention of more significant investors. Both will have to be done to move to BFS and development stage.
Well, Orsu still sit under the radar which, from a UK perspective, is hardly surprising since the company delisted from AIM. However, things have moved on significantly with the drilling campaign and I confess that it has surpassed what I was anticipating. They have drilled more than anticipated and some of the results are excellent. It will be good to see the resource statement that is being produced for part of the property and, significantly, how much will be in the measured and indicated categories (I am not expecting a great deal but indications are that the 40m spacing of some of the drilling will be sufficient for some).
The market capitalisation here is still very low for what looks like a decent property with good infrastructure and other mines (suspended or otherwise) literally sitting next door. As such, this can hardly be described as a 'wild cat' operation and should be rated more highly even considering investors aversion for Russian assets.
Still holding and expect this to come good once the gold price starts moving ahead in anger (I am expecting a 'wash out' low at some point in the not too distant future but I expect 2019 and onwards to be very good for gold prices).
Okay, the website cuts my email. Just write to Orsu corporate email available on the website and they will pass it on to me.
Dear Silverite
By way of introduction, I am Sergei Stefanovich, MD for Orsu these days. Just wanted to say hi. I am, of course, being MD and a shareholder, care what people say about Orsu. We are really refocusing the company, our G&A is 20% of what it used to be a year ago, we have a new and exciting gold project that we keep our shareholders updated on. We maximize our exploration dollars and really run the company efficiently. For all sorts of rules, I can’t say more than the company says in its press-releases. We are working towards a maiden resource and an economic assessment later this year. I expect that we will deliver a solid set of numbers in Q4 this year in terms of resource and appearing economics of the project. Exploration is going really well. Keep following us. If convinced, join the ride. Happy to take your questions on stefanovichsergei**********
Sergei
Still keeping an eye on this one after more promising news about drilling results today. Saw a recent interview with Sergei Stefanovich and Alexander Yakubchuk who said Orsu might relist in London too. According to the website seems directors and insiders own 35% of the shares.
https://www.youtube.com/watch?v=F6VquJttGDc
plus good interview with Sergei Kurzin:
https://www.youtube.com/watch?v=jDarwEslyos
See there have been several promising bits of news in Jan/Feb this year. Keeping an eye on this one.
Apart from the share price of course which, after a 10:1 consolidation, is currently at 24c which doesn't value the company at much but should gold really come into favour it should perform extremely well now that the decks have been cleared. On the positive side the share price has been as low as 13c and very small volumes move it currently.
Well, just incase anyone actually reads this any more, there has been some progress at Orsu. Whilst it is not all unbridled good news, the Karchiga project has finally been sold (for about $2m less than anticipated) and the deal for Sergeevskoe has been revised (somewhat to the detriment of Orsu). The Orsu board do not seem like great negotiators but hey, at least the deals have been done and the new property looks to be a reasonable investment. So Orsu now has its hands on most of a 2m oz gold deposit with scope for more in an area of mature infrastructure next to a gold miner who may well be interested in buying some more at some point. Oh, and with the cash available to actually crack on and explore it properly to the point of a DFS. What is not to like?
Unfortunately the news has not been all that great lately. Although the purchase of Sergeevskoe is continuing, the terms have been altered to account for the fact that the deal to buy Karchiga has fallen through, owing to the fact that the purchaser could not raise the funds. This is quite a setback and has hit the price. I believe that the share price would be higher than C$0.05 if the deal had gone through and it would have been very cheap at that price for a company with a 2m oz gold deposit right next door to producing infrastructure and with the money to prove up the deposit. As it is they are in limbo now and it is unlikely that the share price will make progress until there is more clarity regarding the situation of Karchiga.
I still have a small holding and the latest price I have is 1.25, but was that the price when they left LSE? Looking at TSX I see them trading regularly and currently at CAD$0.03. Latest news this weeks includes: !The highlights of the Sergeevskoe Report include: •The major ore-controlling faults at Kluchevskoye pass westwards into the Sergeevskoe license and it is quite clear that the mineralising structures that were mined at Kluchevskoye are continuous to a greater or lesser extent into the Sergeevskoe area. •In total, and to varying degrees of study, more than 10 gold occurrences and numerous mineralized points for gold, molybdenum and copper have been identified at the Sergeevskoe property. Numerous geochemical anomalies of Au, Cu and Mo were also delineated in the area. •Orsu has possession of a highly attractive exploration license containing many of the structural, mineralogical and lithological controls as are seen at Kluchevskoye, but with the added advantage of a number of drill-ready targets. It is likely that some of these will be mineralised extensions from ore zones mined at the western end of the Kluchevskoye pit whilst others might represent faulted continuations of the same Kluchevskoye system. Either way, the magnitude of the Kluchevskoye body should not be underestimated and as such, Sergeevskoe presents an excellent opportunity to develop near surface oxide mineralization with the possibility of deeper primary mineralisation development. •Furthermore, WAI believes that the budgeted work programmes put forward by Orsu are both practical and prudent and will greatly enhance the understanding of this exciting area. The Sergeevskoe Report titled "NI 43-101 Technical Report for the Sergeevskoe Property, Zabaikalskiy Krai, Russian Federation" is dated March 10, 2017 with an effective date of November 18, 2016, is filed on the Company's profile on www.sedar.com. The pending acquisition of the Sergeevskoe project remains subject to Exchange approval."
It looks like the penny may be beginning to drop on the TSX. A bit of buying today and a tick up.
.... has see a third knocked off the value of the company so clearly the market is not impresses with the deal. I suspect that this is for a few reasons. Firstly, the asset is in Russia. Secondly, gold explorers are being marked down at the moment. Thirdly, and probably most relevantly, I suspect that many investors were eyeing a cash return as a result of the sale of Karchiga. It was never really on the cards that the cash was going to come out of the company and now it is a useful source of funding to quickly define a resource and move towards feasibility. Not many gold miners out there with such an asset and the funds to exploit it. I believe that the market is undervaluing this substantially but that is hardly unusual for these types of companies. It can also last a long time! On that basis it is difficult to judge when this will re-rate. However, with the cash on hand there is no likelihood of dilution so at some point I am confident that the value here will be noticed and realised.
OK, last thoughts on the deal. Let us assume that Karchiga is brought to completion and the company receives $9.75m. In addition, based on the latest news, the company will have at least $3m in cash after transaction costs (i.e. with the payments in the news having been made). So the company will have a low risk opportunity to confirm a resource of 2+m oz in an established mining area with an open pit mine 300ms away from the limits of Orsu's property. At today's market price of C$0.04 and with 330m shares in issue, the market capitalisation on completion would be C$13.2m. For that you get a promising (with open pit/low capex potential) gold deposit and C$16.8m. So the market capitalisation would ascribe a negative value to the gold asset. Given the prospect for gold miners, I think this unlikely.
I don't see why posting that is an error! That is the news release we are talking about.
Sorry posted in error by me
I have been giving this a bit more thought and I confess that I like it more and more. I am convinced that gold is the right place to be for the next few years (with the short term looking somewhat less certain) and this looks like a relatively low risk purchase of a potential 2m+ oz resource in a mature mining region with all the necessary infrastructure. With $13+m to exploit it. Once the deal is done, the market capitalisation will be less than cash. Actually it looks like it could be one of the best value gold plays out there if the Karchiga deal goes through.
it seems the share price has fallen, as ever with this share hardly any shares have changed hands, around a half a percent with a 11% drop. only commentating on this as over 99% have decided to hold on to their's. we know little of what goes on and buy and sell almost on a whim, but those with considerable holdings are still holding. lets hope they are right. good luck all.
So. Is it a good deal? I think the way that the deal has been structured makes it either a great deal or a calamitous deal. The key is Karchiga. You have to assume that the CEO or Orsu is confident that the deal will be done. If it isn't then this becomes not only highly dilutive but also requires additional funding i.e. more dilution. Karchiga not going through would make this calamitous. If Karchiga does go through, however, then this has enormous potential. Soviet resources do not have a value associated with them in the same way that, for example, a JORC code does. But they are usually indicative of mineralisation and do provide a low risk option for drilling to a western code standard. The fact that this seems to have a relatively low risk potential for an open pit mineable resource between existing open pit mines with one of them currently being bought by a huge Chinese gold mining company makes the potential of the property quite exciting. Orsu's cash resources mean that it can go a long way towards developing a mining operation without recourse to the market, so no threat of dilution like most other explorers. So, is it a good deal. I love the potential but the downsides are obvious. It is one for the risk takers. Stash a bit of money in it and you may lose the lot. Or it will go up ten fold.
OK. Finally Orsu have done something and it explains why the shares have been so active recently (clearly this was known but, hey, who cares about insider trading? The authorities don't seem to). The deal is very interesting. The following can be taken from the heads of agreement. 1. It is a gold deal. That is the most positive thing as I believe gold will be the place to be in the next few years 2. An area that already has producing mines so the infrastructure is good 3. Sandwiched between working gold mines 4. It has an exploration potential of between 2 and 4 million oz 5. Other mines are open pit, bulk tonnage 6. A fair amount of drilling has already been done with positive results but no resource compliant with western standards has been produced 7. The transaction involves very little cash ($680k). Most of the transaction is through the issue of shares 8. The operating gold mine next door is currently in the process of being bought by a Chinese company. But not any Chinese company - China National Gold Group. There are regulatory hurdles to go through (huge ones!) but if they are successful, it is pretty obvious what Orsu would hope for. This is a long way down the line though. So, this is an interesting way of getting a potential gold mine. The market capitalisation nearly doubles on the issue of the new shares (unless the shares collapse) which will bring it more in line with current and future cash. But significantly, Orsu will have the cash resources to significantly exploit the property as it is not paying cash. So, what are the downsides? Well, obviously there is dilution but this is quite an effective way of doing it. But the big kicker is if they don't manage to complete the sale of Karchiga as they would then need to issue a lot of shares. This is understandable as the company selling wants Orsu to use its cash to progress the project. If they don't have the cash then they will not be able to progress it as well so the seller wants a bigger slice of the pie. On that basis, if the Karchiga sale falls through, the shares will slump. If it completes, the shares may well soar. All adds to the excitement. Don't you just love it?
I just sold out my 1/2million in 3 tranches all at .04. I just couldn't get my head around the deal in terms of potential risk v reward, and so decided to take the 50% gain I had. My concern was also the potential long timeframes eluded to in relation to receipt of expected sale proceeds. As an aside, I'm not quite sure how the trading works in Canada - the bid and ask prices seem entirely inflexible (with around a 10% margin) and it almost appears that not all the trades show in volume. Good luck all that remain. I'm definitely going to keep one eye on what the price does in the coming months.
the Canadian market does not like the deal - currently showing in sp
What?
so we've sold out half of the company and instead of them paying for it we have paid them for taking it? in exchange we have been given access to see if there is any gold in an old mine. hope they know what they are doing. imho