Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Well if there are clauses that MMA can buy back in that will make a new JV problematic. We are giving them more than enough with the $15m plus 1.5% royalty.
I have a large network of junior mining investors on twitter, built over many years, and none of them have heard of Orosur or Anza. Most days there are 0 trades on TSX Canada. The potential for this to explode from a mcap of £8m is like nothing I have seen before.
MMA spend $20m on Anza but jumped around from target to target without fully defining any resource estimate. They were looking to answer whether it is a 10m+ monster. However, Newmont also walked from Buritica which turned out to be over 10m oz so we cannot read too much into their exit. There is still a chance that Anza is a 10m+ beast and Newmont just decided to focus elsewhere as part of their strategy.
Even at 5m oz with 100% ownership that is a $500m valuation. Insane potential here but it will be a journey with necessary dilution to progress.
We now need a plan to move towards formal resource definition, drilling is all well and good, but it is the 43-101 and PEA that is sorely needed to wake the market up.
Hxxps://www.mining.com/court-decision-to-uphold-mining-ban-in-colombian-town-impacts-anglogold-project/
An going saga, but my takeaway from it is near the end of the article, that "citizen's participation/popular referenda" can no longer veto a mining project. Unfortunately for Anglogold, it is not retrospective and thus it seems the citizen veto will remain for their project.
As best I can make out this is some 300km south of Anza.
Not a single share traded today so far in Canada. OMI is so under the radar still.
Brad expects M&A activity to ramp up, as do I. Trickle down effect from producers throwing off cash and looking to add ounces.
IMO this is what will start driving valuations for OMI soon, very soon - the medium-large producers who are looking to snap up solid projects. I don't believe OMI will have any issues whatsoever finding a JV partner for Anza, I have stated previously that if Agnico think they are going to get back in on more favourable terms than the JV MMA are exiting they may think again.
We are all here for the Anza gold but do not forget that high zinc content was also discovered there, plus we have options on tin mining in Brazil. Base metals are trending higher. The zinc in particular, as a by-product at Anza, will play it's part in the economic case that will drive the overall stock valuation.
Gonna get broke sometime soon (
Some chunky delayed publication buys today. Hope we can get some action at Pepas in time for this conference in July. Brad seemed pretty excited about that in his tweet. A man newly invigorated.
Masks, I am also working on the assumption of 5m oz. I think this is a conservative estimate. At $100 per oz in the ground this would be a $500m valuation for Anza. Seems crazy when our mcap is $12m, a complete mispricing imo.
The questions for me now are how much the drill plan for Pepas will cost (warrants are now ITM so that will be another £1m into our coffers in the next two years), and what comes next - focus on Pepas and take it to 43-101? We will need a JV partner to prove up the other targets as deep drilling is expensive in the region, especially with helicopters involved to move drill rigs.
Ignore my dumb question below, RNS icon usually shows if there is a new one but I see now it was released yesterday (10th)
Where is this news then?
Impec, tweet from Brad
Who gives a f about price this week or next? Trying to trade AIM shares with low float and high spreads is dumb as f. If traders bail then that is great for investors to load up for the MUCH higher prices coming when we have defined resource.
Correct Karl. We could be drilling up a few monsters here at Pepas imo. I for one will be holding and adding until we have formal resource confirmations.
Tweet this morning suggests multiple hits of 7-10g within 150m from surface. Wow, that is high grade open pit. Now all we need is confirmation plus overall size estimate. I added today.
From 5p to 44p in 13 trading days back in Sep/Oct '20. That was because of the planned drill program. OMI is now arguably in a much better place as Brad controls the drilling and we have all heard the good news about shallow holes (cheaper) and quicker turnaround from the Medellin lab.
5p to 44p in 13 trading days. That is what can happen here as the float is so low. I and many others have 7 figure holdings and for me not one share will be sold in the single digits.
OMI will have no trouble finding a new JV partner, they just need to complete all paperwork on the agreement with MMA first. I am happy at Brad using remaining cash on Pepas, share price should climb which places us in a great negotiation position with any new JV partner.
Carter, MMA was not "for sale" to anyone else. The deal is part and parcel of exiting an Exploration Agreement between OMI and MMA from 2018 that the parties were no longer happy with.
There are wins for both sides in this deal, and all to look forward to now for OMI.
A lot of miners have started to move but FRES stuck in it's lows. Doesn't seem right to me. At what price of silver does FRES start to rocket?
Looking back at some of the key events in recent years, in particular the 3 week run from 5p to 45p in Sep-Oct 2020. That run was caused by Agnico coming onboard, committing 700k to start drilling, with further project spend of $4m that year.
That is a massive run-up as the market knew from historical results that Anza is potentially a T1 deposit.
At present we do not have a comparible drill plan as we do not have $4m in the bank to spend, but we should have enough to drill Pepas and get the ball rolling towards a formal resource estimate. Remember, Pepas is only one of around 8 targets at Anza!
With 100% ownership all value creation from drilling and resource estimates should significantly boost OMIs stock price.