Member Info for MisterPositive

I think if drilling results come in as good as the first 10% of Anza observed so far, then Newmont not gonna hang about to earn in. NEWMONT probably will either offer to Buy ANZA deposit outright or full TAKE OVER, giving them cheap access to Uruguay assets also. They can easily use OMI set up in Uruguay as well as the processing plant to bring Uruguay back to production. Newmont is both, funding & developing ANZA anyway. Much cheaper & quicker to take control early on the cheap. IMHO.

Bigdownunder, Excellent observation. Very True. Newmont control overall about 21%. Directly 19.9% Indirectly 1.02% (via Continental Gold). Continental 6.38% Holding got diluted down to 5.11% and Newmont own 19.9% of Continental Gold also.

Tiburn, Good post. Ghana probably little better than Nigeria. But still Africa....been burnt few times on different Africa plays in the past. Things generally very slow....as they always seem to want something in return....corruption seems to be widespread. In the end, just a waiting game here. Most AIM punters don't have any patience.

Yep. Love these super high Gold grades from only 10% of the land area at ANZA drilled so far. Looking forward for drilling to resume soon with Newmont leading the way. Noticed comment by Newmont....they reserve the right to increase their holding here.....that would be very interesting. May be after next set of high Gold grades...

Cam,

Your guess is as good as mine. They said soon....could get an RNS update next week.

Gold majors like NEWMONT normally have multiple rigs working at the same time. Should get more visibility in the next RNS about detailed drilling plan.

At APTA strikes are open at depth and all sides, so they could have Multiple drills deployed at both APTA extension zones and Charascalla (5 holes so far on this one).

News should come in fast once NEWMONT get going at ANZA.

Yuri,

There should be regular updates once Newmont get drilling soon.

I would expect multiple Rigs at work once Newmont get going. They don't hang about.

Looking forward to similar high Gold grades.

Newmont effect still not fully priced in yet on my view.

If we just use Continental Gold's Buritica Gold deposit NPV $860m as proxy valuation, being similar in size and profile to ANZA, you should get an idea of where price is headed for OMI in coming months.

first needs to be prepared and then sent to cabinet for review.

We do not know how long the Cabinet review is going to take?.....being AFRICA.

OR

What points/conditions the Cabinet might add or want amended, etc.?

Bit pre-mature to talk about JV at this stage. You need clarity & resolution on Petroleum Agreement first.

No party would enter into a JV before Petroleum Agreement ratification. They would like to see that all written down in black & white.

That is the order of things as i see it.

IMHO, DYOR.

Guidance for WH was end of Sep/early Oct...from what Mike said in the LSE interview. Not sure why some talking about WH might be moved to 2019? I see WH very much happening this year within 2018 drilling season time window. They have a fixed contract with Sinopec where Matd keep acces to the same Rig during winter months, ready for drilling FOX in April 2019. Block XX - they probably will use winter months to sort out separate Rig for Gazelle, Heron and Red Deer. We can all speculate as much as we want. Sure everyone has their own opinion.

Both have one common element: NEWMONT

Plus Continental Gold itself is 2nd Biggest shareholder in OMI after Newmont took 19.9% Equity stake.

Newmont got in very cheap at 9.1c and know they going to make a very substantial ROI here as they fund Anza to commercial production giving OMI 20% free carry.

Continental Gold's "Buritica" gold deposit has NPV $860m and similar to OMI only got 141.8m shares in issue giving them C$8 per share. So Newmont got in cheap paying C$4 per share. As per their CEO Ari Sussman, Newmont wanted even bigger stake, but they restricted it to 19.9% as they want any Major to pay for the upside if they want to acquire us later on.

According to Edison research note, NEWMONT made numerous site visits before coming on board OMI ship.

They estimate at least 3-4m oz deposit at ANZA....similar to Buritica Gold deposit right next door to Anza.

Newmont took the same 19.9% Equity stake in both Continental Gold & Orosur Mining.

Differences are:

CONTINENTAL GOLD

* Newmont bought 19.9% Equity @ 46% premium paying CAD $4.00 per share (Deal value US$109m)
* Total shares in issue 141.8m
* No Earn-In %

* OROSUR

* Newmont bought 19.9% Equity @ 102% Premium paying CAD 9.1c per share
* Total shares in issue 146.8 (after adding Newmont 29.2m shares)
* Earn-In up to 80% ownership interest.

If both Buritica and ANZA deposits look to be similar in size, then surely OMI is significantly undervalued by a mile.

Especially when compared to the US$860m NPV assigned to Buritica's +3.7m oz Au resource @ 8.4 g/t (source: Continental Gold Feasibility report.)

1onic,

I see Gold bull run coming soon, with all major indices, especially US market valuations look very over stretched. ....major correction in Blue chips & Tech stocks just round the corner as voiced by many market experts.Trump pushing for Trade wars with almost everyone (Russia, China, Europe, Japan next) is most likely the one to light that fuse in my opinion.

Gold and Gold stocks should do extremely well.

Newmont seem to be on a shopping spree in Columbia, acquiring exposure to 3 major projects in a hurry.

(1) Buritica (Continental Gold) - May 2017
(2) ANZA (Orosur Mining) - Sep 2018
(3) Lyra (Miranda Gold) - Aug 2018

ANZA gold deposit seems to have very similar profile like Buritica, which looks to be in the lowest quartile with c.$500/oz production costs, making them very robust economically.

* Loryser is the Company’s key operating subsidiary in Uruguay.
* In June 2018, applied for Voluntary Re-organisation Proceedings.

Loryser remains able to enter into transactions with its Uruguayan assets:

* positive relationship with the Government and received two royalty exemptions in recent years.
* conducting conversations with the Government to analyse different options.
* conducting discussions with third parties.

Newmont with almost 20% Equity ownership of OMI, also gives them direct access to URUGUAY assets in addition to developing ANZA to commercial production with OMI on 20% FREE carry to production for COLOMBIA asset.

NEWMONT can really play a very significant role in bringing URUGUAY assets back to production and fast with its technical expertise and Financial muscle.....Market seemed to have TOTALLY ignored this VERY IMPORTANT detail.

After all any appreciation in OMI share price will also give NEWMONT a very healthy return on their initial 20% Equity investment. URUGUAY assets can provide equally MASSIVE upside.

Market (by the looks of it) is only focused on Colombia asset, which NEWMONT have agreed to fully fund to commercial production while earning 80% along the way.

URUGUAY

* 100km Long Under-Explored Greenstone Belt....

A modest discovery in URUGUAY would represent great value given the existing working plant.

OROSUR has a good reputation in URUGUAY and has operated 20 OPEN pit mines & 2 Underground mines.

Thoughts welcome...

Cheap entry price window might not be available next week.

Well not the result we wanted for SL but was always a bonus. Temporary set back....yes. WH to me seems on track. Not going by what other websites say. Unless Matd officially say so. Good that some have Emailed the company for clarification. Will wait patiently for further updates. Not going anywhere.

With NEWMONT taking the lead.

Waiting for drilling to resume...may be start next week...

When it does, this will re-rate fast.

Offer price between the 2 parties jumped +175% from 8c > 22c in just about 5 weeks.

Amazing what happens, when 2 bigger players want the same girl friend.........LoL

Been going through 2016 RNS for Solg...and how Maxit Capital got such good deal for SOLG.

SUMMARY:

30 Aug - NewCrest proposed $10.8m investment @ US 8 cents (6.07p) for 10% Equity

22 Sep - Maxit introduces Superior Proposal $20m @ 16c (12p) @ 100% Premium for 10% equity (from BHP)

26 Sep - NewCrest proposed $22.863m @ 16c for 10% Equity and Maxit invests $10.136m also ($33m Total)

10 Oct - BHP offers $30m for 10% Equity @ 22 cents / share and to Earn-in to acquire 70% of ENSA (who holds licence). with few conditions attached.

NOTE:

That superior Investment proposal came 3 weeks after the first agreement, which then had to be amended to reflect the higher price offered by BHP.

P.S: Wonder if Maxit working in the background on something for OMI also ?

For anyone new, who missed the 'Crazy grades'...

> From page 9 of the Sep 2018 presentation:

219 g/t
176 g/t
72.3 g/t
70.99 g/t
58.03 g/t
45.62 g/t
40.37 g/t
40.25 g/t
29.49 g/t
20.89 g/t

Not seen something like these in a VERY long time...