Member Info for EyeGuy

Ready to move up. MMS have had their fill. Spread has tightened now

Looking at other gold mines on the Mid-cauca belt. Further south on the same belt there is Anglo gold ashanti’s La Colosa mine with 24 million oz of gold.

https://www.mining-technology.com/projects/la-colosa/

We are all going to do very well here imo. Took some more again

When mms finish screwing around should be towards 10p very minimum.
As always imo rainbow chasers will be paying higher when it’s seen to be moving.
Imo an absolute gift at this price

Agree madchatter. Nothing to stop other majors buying on the open market or even putting in an offer for the whole
Company. Sandstorm did that with Marl.
Lots of exciting scenarios at play here

Good post Degsy. Personally think 10.5p is way too cheap.
As I stated before, I was in marl before it was taken out by sandstorm gold for $175 million.
That was mainly for their hot maden project of which Mariana had 30% from memory. Anzá seems a much larger project.
These world class gold plays go for vast sums.
I think 20-30p is more realistic personally. Lets see

From rns
Orosur is currently conducting conversations with the Government to analyse different options to continue its operations in Uruguay, which represent a very important source of investment and employment in the north of the country.

Not sure- see if the company release an rns about it. Only
Gold mine in Uruguay so would be in the interest of Uruguay to get the workers back working.
We will see. Guessing if Newmont think it’s a goer they could fund it.
Its in their interest to get the sp higher anyway

So basically imo if we hear anything about operations restarting in Uruguay it’s back to yearly high plus imo swiftly.
Amazing what can be achieved with $2 million and Newmont mining on the share resister.
Worth looking into this as the chance this can be achieved based on news over last few days imo has got much higher.

Main reason for fall here has been the shut down of operations in Uruguay. The underground mine was unsustainable due to scarcity of ore. We were told in June that to continue operations they needed to move swiftly to the Veta a project which they do not have a permit for yet, and need external financing.
Interesting now they have $2 million and Newmont behind them, are they going to restart operations in Uruguay?
From RNS 15th Jan.
The Company is accelerating the preparation and permitting of Veta A, a new underground project that is 1.2 kilometres from the plant, for development. Initial work indicates Veta A is currently the highest grade source of underground ore available on the San Gregorio mine complex. Veta A was previously mined as an open pit, producing 29,000 oz with an average grade of 3.1 g/t between September 2006 and March 2008. Current reserves are 9,440 oz (122,328 tonnes @ 2.40 g/t Au). The Company is targeting a significant increase in reserves following a positive drilling campaign that proved the continuity and extension of the ore body over 140 metres from the current defined reserves. A preliminary study by SRK Consulting at Veta A supports its geotechnical feasibility.

Charrascala despsit previously untested : high grade gold
Page 4 to show geology.
No wonder Newmont want it
http://www.orosur.ca/files/2018-06-07-June-Charrascala-Exploration-PR-FINAL-Website.pdf

page 4:
http://www.orosur.ca/files/2018-04-04-Colombia-Drilling-update-3-FINAL.pdf

Shows how big deposit is. Only have explored circa 10% and all drilling so far shows high grade gold.

And this is the interesting point:
Upon Newmont completing the Phase 3 earn-in, Orosur may elect for Newmont to solely fund all expenditures until the commencement of commercial production at the Anzá Project. If the Company elects for Newmont to do so:

Newmont’s ownership interest shall increase by 5% to 80% in the Anzá Project;

After completing stage 3, Newmont could be spending $500 million to get an additional 5%.
So I disagree with the notion that this project is worth $30 million.
I could argue that when proven, OMI’s stake could be worth about 50p per share.
But more interesting is:

The RNS title is “strategic agreement”
So title of farm in is not that important. Main points here are the omi have already for some fantastic drill results.
So it is. It a speculative punt by Newmont. And as I said earlier, they will be picking up all expenditure costs for 80% so that could be $500 million to spend to get through to production. Even likes of Solg do not have this type of agreement with Newscrest. Solg are funding it themselves but newcrest are happy holding shares.
From continental gold website :

Feasibility Study dated February 24, 2016 were $389.2 million, including contingency but excluding working capital. As at August 8, 2018, the Company revised the total project costs estimate (including scope changes of $74 million) to be in the range of $475-$515 million (including contingency but excluding working capital)

So down the line we expect Newmont to meet similar capex costs for their 80% stake so valuing OMI’s stake at around $120 million for a similar deposit. So yes. This could very easily 10 bag from here as solg have done based on the above.

Solg and marl all over again. Unheard of on aim to find a tie up with a major like this on a world class potential project where funding is no issue. Likely will do another 30-40% tomorrow imo

Good afternoon Aeasty. Taken a chunk over last few days. Looks special to me.
World class potential being funded by a major. Could well be marl and solg all over again

At this mcap- never heard of a major buying in, taking 19.99% of the shares and will
Fund expenditure and give cash too. Hence a long way to go imo before true value outs

Degsy- it will be much more than a $30 million free carry. More like $500 million free carry.

From rns :
Upon Newmont completing the Phase 3 earn-in, Orosur may elect for Newmont to solely fund all expenditures until the commencement of commercial production at the Anzá Project. If the Company elects for Newmont to do so:

So continentals Buriticá project capex is $500 million. Newmont will pay all of this and get 80%. OMI get 20% but the Npv of this of Buriticá is anything to go by is $600 million so that’s $120 million net to omi. Vs £7 mill mcap

And to back this up - capex costs to production could be $5-600 million. Newmont seem to be happy paying that.
Mcap here is £7-8 mill so on a 20% free carry then we should be 10 x this

I think there are still unsettled trades from yesterday. It will be volatile but news imo means this is bagging from here.
Target 20-30p for me short term

We presume Newmont willing to spend the same on a project where the company is only worth £7 million.
Need to get more before it goes up too much.