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Good future prospects but I don't think I'd buy more unless it goes below 80p - I might get lucky, you never know ;-)
Busy morning for me today - hadn't even looked at anything OMI related. Was too busy reading into another RNS that dropped elsewhere today.
They've also mined and milled more ore and the grades are consistently dropping quarter by quarter - despite effectively processing more ore.
Give me a Gin and the facts will flow.
I have far more research documented and saved from the last 10 years - using google isn't going to find it easily. I'll be divulging that when necessary. If you bought in 35p+, all I'm going to say is hold fire and don't sell at a loss. Keep these shares close to your chest - some of us have gained information that goes far beyond the average posters dribble of "this will be 50p tmrw" or "80p by end of week". I've spent a lot of time researching this company, the company before, the joint venture companies, the geology and the whole damn process involved in realising it's potential.
I'm a serious investor and I don't mess around. I have a 6 figure stake in this bought way beyond the current rise of 10p+. Even at today's price I could make an absolute killing but I'm not interested in pocket change to buy a new car I also bought more at a higher price than today. If you don't have the confidence - sell this tomorrow. If you chase rainbows and think you can make thousands on your investment within the next few months - go chase a covid stock and buy a lottery ticket.
However, if your looking for that one genuine investment whereby you hold your ground and have patience = you will be rewarded, probably ten fold!
The Anzá project has an active gypsum mine on it. A massive sulphide lens was discovered under the gypsum deposit. Samples of this lens have yielded assays as high as 20 grams per tonne and 20% zinc.
There are small artisanal gold mines 10km to the west of the Exman gypsum deposit (not part of the Anzá concession). However, the presence of these mines suggests a high probability of possible hardrock and placer gold sources.
The technical 43-101 study completed by Snowden in May 2010 yielded verification samples ranging 4.39-16.26% Zn and 0.21-7.43 g/t Au (massive sulphide), and 0.41-14.74% Zn and 0.27-28.73 g/t Au (disseminated sulphide) in thicknesses of 5-15 metres with lateral continuity. These are very high grades on the high end.
Three areas of exploration potential were identified in their 43-101 report during their site visit, which relied on results from a stream sediment sampling program undertaken in 1987. Off the back of that data Orosur went in and did further drilling a couple of years later and then again more recently.
I feel people are forgetting that we are actually a step beyond an initial drilling campaign and that further drilling is just going to reinforce the vast potential waiting to be exploited. My well informed mindset is not "if", but "when" !
£62k buy says the writing is on the wall
I don't think that's Newmont's style at this early stage anyway. As in my previous posts I mentioned the number of JV's and projects they already have underway - they would have nothing to gain by doing this and more to lose in overall progress across all projects.
I think Newmont has big plans and a well planned out method of attack across all of its projects. After all - why would you sell 3 mines this year amounting to nearly 1.5 billion? Maybe because you have a lot of projects that you want to fund right through to production to continue dominating world gold production.
Lower than expected grades does not mean an end to the project. There's an area the size of Birmingham to drill and that will take quite sometime. I would expect given their prior drilling results and overhead surveys they will continue to drill near to those previous sites to begin with.
Carlin Trend in Nevada had extremely low grades of gold which was microscopic but found in almost every rock. It was low grade at 1g per tonne but absolutely everywhere. Between 1835 and 2008 152 million ounces were pulled from it.
Retail investors always want to be dazzled by high grades but the smart investor looks at the entire picture - it's all very well having high grades, but how much did it cost to pull that gold out of the ground? Just as Carlin Trend there are many mines out there with low grades making more money than some high grade mines because the cost of extraction was less. Where the mine is located has a lot to do with it, along with the rate of local wages and the cost of any machinery to automate the process. Other important factors are depth of deposits and strip ratio along with extracting the gold from ore.
So results from drilling - both low and high are only small factors in a much longer story.
Thanks for the recognition bhargav - felt these boards needed some meaningful facts and insight from the huge amount of research I have done. I just hope the recent investors didn't lose their confidence and sell for a loss. Patience is the game here and where possible I will challenge any post that questions where this journey is heading.
I'd gained more insight on the new CEO doing my own research than reading that article. Oh apart from what book he's reading and the music he listens to - very relevant :-)
There's good reasons for Newmont doing what they did.
Here's some facts:
1. They currently have 13 projects on the go and 3 of those are joint ventures. There are currently 3 projects in total in South America as well as 3 operational assets.
2. They have 12 current operational assets worldwide and if you look at how old some of those are you might realise perhaps that some of them don't have long left in production.
3. Agnico is on the door step to Anza. So ask yourself this, why would Newmont wait nearly 2 years before gaining any traction on this? No doubt purely because they didn’t have the resources to put on the ground and get the ball rolling.
Given the amount of cash flowing through Newmont I hardly think you can use the word "de-risking". If anything this was an operational strategic move to get this project flying since they were lacking their own resources to take it forward.
Yanacocha in Peru was Newmont’s largest and most profitable mine. That was also a joint venture with them taking a 51% slice. By 2011 they had made a return of $7 Billion with around $2 Billion invested. Since 2005 gold production has decreased year on year from 3.3 million ounces in 2005 to 0.97 million ounces in 2014. If you start digging around the other mine production year on year figures you’ll soon realise that the worlds no 1 miner needs to push every project as hard as possible to remain the no 1.
In conclusion, given the costs involved and the initial investment for exploration and building mine infrastructure, it makes complete sense to spread the financing costs given how enormous they may become. The word “de-risk” doesn’t fit into the vocabulary here – joint ventures have been an important part of the mining industry for decades and have remained instrumental in the development of many major projects.
Forget all your charts and daily price predictions. For all the current and prospective long term holders – be confident. There’s decent historic drilling results along with geologists satellite imaging technology. These guys know what they’re doing and have enough current data to feel confident to spend millions on drilling and exploration. Not to mention all the gold being pulled out of the ground to the north and south of Anza.
Um let me think? The drilling rigs being delivered are just 2-3 weeks away. We then have around 6 weeks of drilling perhaps and the assay results of that drilling in early January
Doesn't make much sense:
Vol Sold 762,136
Vol Bought 1,599,239
I wouldn't worry about the short term blip tbh.
Thanks bhargav - nearly pay day and at this rate I'll be compelled to buy more.
Theres some serious games being played with the price today
All the reasons to decide to buy this stock are in black and white on this thread. Good luck with finding a better opportunity.
Quote from me you mean ;-p
@Professor
I can understand keeping the powder dry, but for me this period since March has given me the most opportunities to make higher returns. I was worried back in March - but every single company in my portfolio, except a certain bank that will remain unnamed recovered quite quickly. I just took advantage and topped up on the three companies I already had and knew wouldn't be affected operationally.
To add to what the Professor said - the Anzá Project is 231 square km's - roughly the size of Birmingham. So if it's anything like Buritica in the same region, there's going to be intercepts all over the place.
With the camp sorted this month, multiple drilling rigs by early November and the first snap drilling assay results in the new year, I have a feeling there's a lot to hold on for. Should be managed well having Agnico just down the road.
As an example Newmont and Continental were pretty aggressive with their drilling program at Buritica. In the early stages - inside of 6 - 12 months they provided the drilling results and feasibility study to provide enough confidence that they were going to continue into production. During the following 12 months they began construction and continued to drill throughout the entire area under their care.
So despite getting good enough drilling results to make production feasible - further drilling continues identifying further targets to exploit in future. And then 12mths after that they discovered 49% more gold than originally estimated.
It seems the price of gold rising back then up to the present time, suggests they fast tracked the project where possible and were ahead of schedule at various points along the way. I suspect with the two major players behind OMI that the same is likely to happen here - after all its the same area and similar geography.
I suspect they are going to move very very quickly imo. Oh and remember what happened to Continental just 1 year before the proposed production kick off - the Chinese bought them out at $5.50 a share valuing the business at a touch over $1 Billion pre production.
Here's a quick historic recap on some previous drilling done:
Good gold intercepts with results of up to 11 meters of 10.57-g/t gold and 2 meters of 40.25 g/t gold with nice zinc numbers. They completed an additional 14,000 meters of drilling. The most interesting thing is that the drill results are all over the map. They have 18 meters of 14 g/t gold, 22 meters of 10.4 g/t gold, 40 meters of 14 g/t gold and 14 meters of 40 gram gold.
They identified a 2.5 km long strike length that appears to be mineralized that is some 200 meters wide and it’s still open to depth and to the north and the south. If you have 2500 meters strike that is 200 meters wide and 100 meters in depth and have an average of 1 g/t gold, you have 2500 times 200 times 100 times 2.5 divided by 31.1. That’s four million ounces. Maybe it’s only .5 g/t gold. That’s still 2 million ounces.
Now that's just a part of Anza - that intercept alone even if its only 2 million ounces amounts to 3.8 billion at todays gold price.