Member Info for AGEOS

MarketGS, impressed by you tenacity, so agree that there are connections between the two companies at management level. Maybe this is time to be reminded of the old adage “beware of not seeing the forest for all the trees in the way”. I've been guilty of that myself with some previous investments and paid a hefty price. Best of luck, and luck does play a part however thorough the research.

MarketGunslinger, just for your information and to assist in your research, the Helioparc, Pau, France address you quote for both Olive Energy and FracGeo does not mean they are one and the same company. They are simply registered here to comply with French company law. If you access the helioparc website at https://annuaire.helioparc.fr/fr/annuaire and scroll down, you will find hundreds of companies including many geo-science enterprises head-quartered or with subsidiaries here, but that excludes those without web-links such as Olive E and FracGeo. Surprising what can be revealed by browsing such websites but if a predictable query arises my answer will be “no comment”,

You are correct that the Sawdust Rd., Montgomery, Texas address is shared by both companies but that is the sales tax and franchise tax permit holder address and business address as registered with the Texas Public Accounts Office, on 01.02.2019 for FracGeo and 10.08.2016 for Olive Energy. They are not one and the same company. I don't know but my guess is that this is simply the address of a franchise holder acting on behalf of both companies for tax purposes and who need not necessarily have any other connection with either.

Keep up your comprehensive work but I suggest you dig deeper re Tunisia especially into the recently announced “Ezzaouia New Concession” and the Sidi El Kilani 22.5% former CNAOG interest for which the published “Concession Expiry Date” was 24.12.2022 ref page 131 “Secrets of Hydrocarbon Contracts in Tunisia” www.atcp.org.tn click on publications. Best of luck with your investment here.

Doubts regarding ZEN's negotiating position in Congo [Brazzaville] first appeared in my estimation in early 2022 when, as I posted on 06.02.2022, it became apparent that the MKB Fields which had previously been the potential “second, third and possible fourth” acquisitions which AC had referred to on several occasions, and which I had reported on throughout 2021, had been conceded to Trident OGX with the probable involvement also of Orion Energy.

Significantly, Trident OGX had employed the services of Houston based FracGeo in its MKB assessment, FracGeo being the geo-tech service provider to Olive Energy E & P which as we now know has won the Tilapia II operator licence.

There is a great deal more background information I could add but which I will simply summarise as being indicative of failure by AC and the BOD in understanding what was necessary to achieve a successful conclusion to negotiations for the Tilapia II concession and for other opportunities in the country. Those who resort to claims that ZEN is “well out of it” are clearly clueless as to the potential now lost. The Council of Ministers Report from which I posted details of the Tilapia II award yesterday [now removed from this BB I see] included details of awards to ENI, TOTAL and WING WAH Petrochem [460+ wells to date], three major international O & G operators, and there have been similar developmental and operational concessions awarded in recent years to Perenco, Hemla E & P, Africa O & G, Petro Congo, Orion, and others, all of which reflects the potential seen by others in the industry. The sub-salt Vandji play on which I posted recently was a substantial potential addition to the Tilapia resource, also now lost.

For ZEN to have been owed US$5.3m by SNPC, via its subsidiary AAOGC, and to have failed to negotiate award of the Tilapia II licence, with that as a bargaining chip, does not reflect well on management. The Azerbaijan venture failed through insufficient understanding of the geo-technical challenges inherent in a tectonically dynamic mature field. This current failure probably owes much to a related cause, inability to enlist third party expertise necessary in exploiting technically challenging mature fields. If Trident OGX, FracGeo and Orion could do it for the MKB Fields and FracGeo with Olive Energy do likewise in convincing SONAREP [research & operational arm of SNPC] of their competence, why did ZEN fail.
AGEOS

Those familiar with the concession contracts within the ANZA region will know of Royal Road Minerals' interests in the Guintar and Niverengo areas immediately west of OMI's La Virgencita and APTA West concessions, sharing a common boundary with the former.

Yesterday Royal Road announced the integration of its Guintär and Niverengo mining concession contract areas into one new concession area of 1848 hectares, and the consequent renewal of the relevant exploration term for a further 19-years and 11-months. This is subject to the existing 50-50 exploration joint venture as part of a strategic alliance agreement between Royal Road and Mineros S A, with RR as the operator,

The significance of the concession contract integration is that the process of integrating a mining Concession Contract in Colombia requires certain regulatory approvals including the approval of a unique plan of exploration and exploitation (Plan Único de Exploración y Explotación, PUEE) which, amongst other stipulations, requires the applicant to prove that mineralization is continuous across relevant concession contract boundaries.

Drilling results to date at Guintar have established gold, silver, copper mineralization with gold[e] intercepts of 303m @ 1.0g/t, 126m @ 1.4g/t, 118m @ 1.0g/t and 181m @ 1.1g/t in 4 holes indicative of a possible intrusive or porphyry-related source, similar to the postulated scenario at Pepas. Drilling at Niverengo has produced additional intercepts of 22m @ 1.3g/t, 14m @ 4.1g/t and 10m @ 1.3g/t with the possibly structurally contiguous area of the El Aleman Mine, 1.5km to the west, producing an intercept of 80m @ 1.0g/t au, including 18m @ 3g/t au.

With an inferred W-E orientation to this metalliferous domain, its proximity to La Virgencita and APTA West, has obvious implications for possible further extensions of mineralization into those concessions also.
AGEOS

Having just listened again to Brad's two 2022 LSE Webinar presentations and Q & A exchanges with Donald Leggatt, I am reminded of how highly informative and positive these are. As they should be mandatory listening for any investor, present or prospective, I've added the links below:
.
LSE Investor Webinar March 8th 2022 duration 29 mins
www.youtube.com/watch?v=YHXMukKXPyA

LSE Investor Webinar Sept 6th 2022 duration 32 mins
www.youtube.com/watch?v=DXcp0NROZPo

The March webinar confirms the 5M+ oz au minimum target interest of Newmont/Agnico [repeated in the Sept webinar also, at 32mins.], which is significant in that it leaves open the possibility that APTA remains a contender for that role, assuming no other ANZA prospect proves to satisfy the minimum resource requirement. That possibility is alluded to by Brad's reference to the potential significance of the anticlinal structure proved in the exploratory holes [92 & 95], and which I have previously posted as providing a possible westward displacement of the high-grade zones at depth. Proof of such an extension, which would require considerable deep and therefore expensive drilling to establish, could elevate the potential resource at APTA nearer to that 5M+ oz target.
The September webinar account highlights the ANZA, Pepas initial drill results and the potential for further exploratory drilling along the Aragon trend scheduled for Phase 2, but also emphasises the significant potential which the Brazilian and Argentinian opportunities offer.

Impecunious2, you're not alone in having trust and confidence in Brad as CEO.

Thanks PP for those amendments. I must revisit Brad's interviews as I was unaware of some of the points you raise.

A fellow-geologist who is familiar with the APTA prospect and has contact with some of the in-country crew, is of the opinion that sufficient is known of the resource potential at APTA for Orosur to favour a continuation of drilling toward achieving NI 43-101 status [Canadian National Instrument regarding Disclosure for Mineral Projects]. The consensus is apparently that this would cost in the region of $20m over 3 years.

However, because Newmont/Agnico want a single mine capable of producing c5M+ oz au over at least 10 years and are in charge via MMA, further drilling at APTA is on hold until the other targets at ANZA have been assessed.

In the meantime Orosur cannot disclose publicly its own internal resource assessment of APTA in advance of further drilling results as this would contravene NI 43-101 criteria.

The above is an expression of his personal informed assessment and should not be interpreted as in any way a disclosure from, or on behalf of, the company.
AGEOS

Karl, I have been an investor in Orosur since 2018, adjusting my holding up and down according to both market sentiment and my own assessment, as a geologist, of company prospects. As posted on 24th Jan, I “topped up”, I have not “ become an investor”,

With regard to the indicated resource at APTA of 2.3M oz au posted earlier today it is not an expression of being “distinctly bullish” it is an estimation using a modified form of RockWorks software and many years experience of geomodeling bore-hole data. During a presentation on July 7th 2021, Brad gave a clear indication of the increase in resource indicated by the then recent drilling when he said “APTA makes a good start to achieving a multi-million oz gold resource; 60m at 10g/t if over 200m provides a basis for doing the sums.” If you do the sums from that statement you get 672,897 oz au from just two 100m3 blocks.

My concerns first posted on 17.10.2019, relating to the proposed TDF [Tropical Dry Forest] protection orders were wholly justified since they would have impacted 80% of the licence area which included the Jesuitas target, 50% of the area which included La Cejita and 100% of the area between that and the Cauca river. It is not “bearish” to raise such issues. Having monitored the progress of the TDF orders through Corantioquia, the government environmental agency, I am now reassured that the loss of licence area which the company itself now acknowledges, will not impact access to the targets unduly. If you access page 10 of the June 2022 Presentation entitled Bosque Seco Tropicale -BST, the left-hand map shows the 2018 proposals for forest protection zones thus confirming most of my original concerns, whilst the map on the right shows the 2021 and current proposals. Note, there is a long corridor of protected forest extending well into the APTA prospect area but that others are now unaffected. The Dec 2022 Presentation states that “The total land holding may start to reduce as part of the conversion and consolidation process” [ref page 7] and the map on page 8 confirms the boundary of the TDF west of the Cauca river as now proposed.

I trust this answers your queries and clarifies apparent issues.
AGEOS

Those familiar with the background to the APTA prospect will know that the baseline for estimation of the gold resource is that produced by MDA [Mine Development Associates] of Reno, Nevada who calculated a resource of 1.6M – 2.3M tonnes averaging between 3.2 – 3.7g/t au, based on the data from 53 holes. This indicated a potential resource of between 165,000oz and 274,000oz au.

I used the parameters inherent in MDA's calculations as the basis for an update on the potential resource, as posted in detail on 13.10.2018, and calculated an indicated resource of between 308,000 and 357,000oz au based on the then total of 71 holes drilled.

With the resumption of drilling in late 2020 I posted on 08.02.2021 that I had constructed a 100m3 block-model to quantify the results from hole 072 and 9 legacy holes within a 925-825m asl [above sea level] 100m3 block, resulting in an indicated resource of 114,907oz au, based on 1,234,530t @ 2.895g/t au. This being an illustration of the high yield from a single 100m3 block subject to high-grade mineralization.

Since then I have extended the 100m3 block model to encompass all the data relevant to APTA and can confirm that the indicated resource based on my estimations now totals 2,342,717oz [troy] au, from 25.07M tonnes @ 2.61g/cm3 [sp.g. of assay samples] a total for which a 20% + or – error margin would be appropriate. In addition there is an estimated 8.613M tonnes of siliceous breccia ore, within the zones designated as 'high-grade' in the various cross-sections, for which there is no assay-data indicative of grade values. The data-points and calculations on which this is based are far too numerous to detail here. However, a total of 29, 100m3 blocks contributed to the total au resource, and 6 blocks to the additional ore-tonnage total.

On 21.10.2018, I suggested that extensions of the high-grade zones could have been displaced at depth west of the N-S aligned El Cuno Fault, a possibility now supported by results from holes 92 and 95, and which if confirmed by future deep drilling could significantly increase the resource potential in that direction. That, plus the potential for further down-dip and infill drilling, and not forgetting the polymetallic aspects of the prospect, supports the possibility that APTA may well be developed to economic viability irrespective of what is discovered elsewhere in the ANZA region. It is perhaps significant that in a recent interview Brad compared APTA to the deposit at the working El Roche Mine 30km to the SW, the economics of which I referred to in a 16.01.2019 post as being indicative of APTA being a potential 'legacy' asset for Orosur, bearing in mind the more ambitious objectives MMA is pursuing in the ANZA region.
AGEOS.

Jackbal re your query regarding progress on the Brazil JV, a Canadian registered holding company has been incorporated and the incorporation of a Brazilian operating company is in progress. Reference to this was published on SEDAR September 28th, 2022 as copied below:

Brazil
“The JV will require the establishment of a new corporate structure to hold and manage the assets. Post period end,[ie after May 31st 2022] the required Canadian holding company was incorporated. This will be followed by the incorporation of the necessary local Brazilian operating company.”

Source: SEDAR Filing September 28, 2022 Orosur Mining Inc. Management’s Discussion & Analysis PDF for Year Ended May 31, 2022. Page 5
AGEOS

Rob, there are no assay samples remaining at the labs; unfortunately just another of the misconceptions generated on this site. Yes, duplicate samples were sent for retesting as Brad said, as this is a prerequisite to ensure the validity of most high-grade results, but the processing time was as normal.
Drilling at Pepas was suspended, as I understand, in order to undertake further field-work and no doubt to better assess core lithologies, in order to maximise effectiveness of the next drilling phase. Only then can drill pads be localised and the necessary access roads constructed in what is often very difficult terrain.
The Phase 2 $20m drilling expenditure is the minimum necessary to comply with the terms of the Agreement. There is no maximum limit. They will spend whatever is necessary to ensure that all possibilities of finding a 5M + oz au mineable resource have been investigated.
Hope that allays some of your concerns.

Rob, thanks for your response and generous comments. I have no doubt that both the field staff and management of Monte Minera Aguila[MMM], the Colombian company which represents the 50/50 JV interests of Newmont and Agnico, have only one objective, that being to locate and quantify the maximum mineable resource at ANZA. Fears that they or anyone else further up the management hierarchy want to somehow acquire the asset “for peanuts” or are contriving “to restrict information flow to investors”, which I know has been a subject of discussion on this site, are I am sure entirely unfounded. The industry simply doesn't work that way as the reputational damage to the perpetrator would be terminal. Yes, during the 4-year Phase 3 period of the Agreement, MMM will acquire a 75% interest in ANZA, but only after producing a 43-101 feasibility report at which stage Orosur's 25% interest, in what would have to be a 5M+ oz au resource for the JV partners to be interested, would be valued in hundreds of millions of dollars. In the meantime, and in the absence of any preventive clause in the Agreement, Orosur could sell its 25% interest, but why do so when there is such a massive potential at Phase 3, and even if Phase 2 fails to produce the 5M oz au target and the Agreement is terminated, the company will retain 100% of APTA [1M oz au minimum] and whatever other assets have been identified, at zero cost.

Hedgehog,
Highlander47 was a highly contentious poster here during 2020 and claimed to be Alex MacDonald the former CEO of AAOG who was involved, with other personnel of AAOG, in a legal dispute with Zenith. It led to an intervention by Teresa Goma the then Director General of Hydrocarbons, hence her aversion to Zenith assuming the Tilapia licence. I have copies of all the relevant exchanges.
It is a subject best left to history.

Thanks Chicken. The El Pantano, Argentina, geochemical results are highly indicative of a substantial epithermal system so I am anticipating very positive results from the field program which has been underway since last September. Early days but with a commitment of $1m to earn 51% during the 3-year Phase 1 period and $2m to earn 100% over a subsequent 2-years for Phase 2, well within the anticipated cash reserves, this could rapidly become a valuable adjunct to the ANZA asset. Will post further on this and Brazil in due course.

continuation:

As I understand it, the Newmont/Outcrop survey of the Lyra Project area showed a concentration of positive Au/t anomalies in the south, immediately north of the La Virgencita prospect and within the same structural block bounded by the N-S Tonusco [E] and Mistratos or Sepultura [W] Faults both thought to have provided the fluid pathways for mineralized vein systems. It is of special significance that the Guintar-Niverengo concessions, immediately west of, and abutting La Virgencita, target an area including over 50 historical adits which mined an E-W oriented au-rich vein swarm immediately west of the Sepultura Fault. Recent drilling has intercepted porphyry style mineralization with gold, silver and copper bearing stockwork and quartz veins. Deep drilling to intercept possible high-tonnage vein systems or breccia ore-bodies nearer to the tonalite/diorite source is under consideration by Royal Road.

Royal Road is also operator of the La Margarita concession which is surrounded on all sides by Orosur's main central concession of APTA West, APTA etc, by the Aster prospect to the south and by the unnamed western concession of licence 7248B [HDH-08101X in the 2019 Technical Report]. Royal Road reports a very different geology at Margarita to that at Guintar-Niverengo with field sampling of hydrothermal breccias showing gold at up to 1 g/t and silver up to 100 g/t prompting consideration of possible deep drilling to test the breccias nearer to the presumed tonalite/diorite mineralized fluid source. There is a substantial breccia pipe in the vicinity of the APTA West prospect adjacent to the shared boundary between it and the Margarita concession.

In all there is a substantial list of potential targets for the Phase 2 drill program, plus considerable scope to determine the full extent of the APTA resource.
AGEOS.

Whilst continuation of drilling at the Pepas prospect will presumably be the first and immediate initiative as part of the four year Phase 2 drilling program, a successful conclusion to the current mapping and sampling field-work in the south, and of the applications for the four outstanding exploration licences, will no doubt result in additional prospects being fast-tracked into the drilling program.

Of the options available I conclude that the southerly Roble prospect will be high on the list of targets for near-term drilling as this appears to incorporate both the Charrascala and Guaimarala prospects as previously defined. Scout drilling at Charrascala in 2018 intersected gold up to 3.43 g/t in polymetallic zones of 0.9 – 3.8m thickness in host rocks of the Barroso Formation [same host rocks as Buritica] along an 800m N-S structural trend. Trace element geochemistry identified a significant correlation between gold and ****nic, an anomaly which extends to the adjacent Guaimarala prospect. The proximity of proven mineralization to the Charrascala tonalite/diorite, a possible plutonic source, is of further significance regarding the metallogenesis. All this points to Roble being a prime target for near-term drilling.

The Cedro prospect at the southern end of the T13635011 licence block, appears from the sampling data to be on a continuation of the Roble N-S trend and only 2km from the northern limit of the Oribella gold-copper prospect currently licenced by Outcrop Silver & Gold Corp. Outcrop and Newmont were partners in exploration of the Lyra Project covering most of the area between Buritica and ANZA, as posted during 2019-20. As Newmont will presumably have had access to the geotechnical data relating to Oribella that may also have a bearing on the priority given to the Cedro prospect. There is reference in the December Presentation that “several new applications on the southern margin may be added” which may relate to the Cedro/Oribella interface.

Of the four licence applications in progress, the most significant is ICQ-080035X which includes the La Virgencita prospect, formerly known as La Cejita, which is anticipated later this year now that presumably the legal complications, which I covered in detail during 2020, have been resolved. Due to its prominence in the initial ground sampling survey it has been assumed to have the greatest potential of all the ANZA prospects and despite the recent shift in exploration focus to the more southerly ANZA prospects, I anticipate scout drilling will commence once licence approval is granted. Detailed mapping indicates a much more complex geological substructure than initially envisaged, providing a variety of potential host-rock contexts for CBM(Au) systems like Buritica, including a hornfels-grade metamorphic aureole in meta-tuffs and meta-sedimentary rocks. Other characteristics indicate a possible porphyry style deposit.

To be continued.

Yes Chickenlegs, very much so and even more with the geochem at Roble, the former Charrascala and Guaimarala which I anticipate will be a priority in the drilling program in Phase 2. I've topped up big-time, everyone of over 20 buys in recent days showing as sells.

continuation:
The probability of the ore-body exceeding that volume calculation is extremely high as indicated by the following factors:
Firstly, the disclosure in the 02.12.22 RNS of evidence of “three distinct phases of structurally controlled veining, with the youngest phase being the polymetallic sheeted veining that produced the thick intersections of high-grade gold intersected at Pepas in earlier holes [meaning PEP-001 especially]. It is also likely that these various vein systems have different orientations, with the most important potentially dipping away from hole PEP-008. As a result, hole PEP-008, being drilled from the west, may have drilled under this important later structure [ie the late phase polymetallic veining].” From this, and the outcrop evidence of vein systems depicted on the page 15 geological map of the Sept 8th presentation, I infer that the late phase polymetallic vein system is that which has an approximate E-W strike, an orientation for which any holes with near-parallel azimuth would have had low probability of interception. Of the 9 holes drilled, 5 have such an orientation and intercepted zero or minimal mineralization ie veining, whilst 4, drilled from the same pad and at an angle to the E-W orientation, all produced intercepts of high-grade. If, as the evidence so far indicates, the high-grade mineralization is primarily concentrated in a swarm of parallel veins, and possibly less so in disseminated stockwork, the direction of drilling is critical if maximum interception of those veins is to be achieved.

Secondly, the page 9 geological map in the December 6th presentation shows surface outcrop of mylonite, a distinctive rock type, displaced by a NE-SW fault, to the NW of the PEP-001 drill pad indicating a possible extension of the ore-body in that direction. Hole PEP-003 drilled at azimuth 95 and at 49.6 dip through that region produced 5 intercepts from ground to 261m depth totalling 55.4m and with au g/t ranging from 0.54 to 1.3, whilst PEP-009 drilled at azimuth 80 and 50 degree dip, intercepted 14.05m at 0.38 au g/t, 300m below PEP-003, Since both drill holes were oriented W-E there is a high probability that if the late phase polymetallic high-grade vein system extends northwards into this area and maintains the same orientation as that to the south, these holes would have intercepted only a small proportion of those veins. Vein systems tend to maintain a consistent orientation over large areas as they are the product of regional tectonic forces.

Finally, results to date indicate that Pepas is a Miocene age epithermal deposit with possibly three phases of mineralization of which the last was polymetallic and of highest grade. As such it has affinities to the occurrence at Buritica. APTA in contrast is a high-grade VMS type deposit of Cretaceous age supplemented by a low-grade Miocene epithermal overprint. Further drilling could significantly enhance the economic potential of both.
AGEOS.

Since my last post, on 06.09.2022, in response to the RNS of that date detailing assay results for the first three Pepas drill holes, the results from a further six holes have been released, which together with some initial geological interpretations included in company presentations, provide the basis for an update on the au-resource potential of the Pepas prospect. It seems timely to provide this assessment, especially in view of the imminent transition to Phase 2 and the anticipated acceleration of the drilling program both at Pepas and elsewhere at ANZA. I may also compile an update on the potential au-resource at APTA to bring the resource estimation sequence of that prospect, posted from 13.10.2018 – 08.02.2021, based on 100m block-modelling, up to date.

What follows is based on the assay results and the Investor Presentations of Dec 6th 2022 [ page 9 geological map and cross-section] and Sept 8th [ page 15 map and 16 cross-section].

With reference to the cross-section illustrated on page 9 of the Dec Presentation, the ore-body as currently defined, can be calculated as approximately 150m x 50m x 50m, ie 375,000 cu m in volume, which at 2.61 g/cm3 [specific gravity of the hydrothermal breccia ore assayed from APTA] yields 978,750 tonnes of ore. At an average 3g/t au [ for the PEP-001, 005 & 007 intercepts] that produces 2,936,250g au, ie 103,754 oz au.

The above volume calculation is based on the estimation of a vertical NNW-SSE oriented plane [coinciding with the 150 azimuth of the PEP-001 hole] of approximately 7500sq m [150 x 50m]. The only hole at 90 degrees to that plane is PEP-008 but that passed below the mineralized zone. However, PEP-005, at azimuth 95 and therefore 55 degrees northeast of PEP-001 intercepted 36.85m at 2.13 g/t au, and PEP-007 at 170 azimuth and therefore 20 degrees southwest of PEP-001 intercepted 80.55m at 3.05 g/t au, on which basis it is reasonable to assume an approximate 50m minimum dimension to the ore body in the WSW-ENE direction, hence the 150x50x50m approximate volume calculation.

To be continued

Apologies for the Ministere de l'Industrie, list of concessions web link failing, despite having tested it successfully before posting. Many subsequent attempts to get it to work have also failed so you will have to take what I have posted at face-value. It is buried somewhere on the site linked below.

www.energiemines.gov.tn/fr/accueil/