Member Info for Professor1

GREAT NEWS - WE HAD NO DOuBTS ON THIS.

THIS AREA (ANZA) HAS BEEN JUICED OVER AND OVER - EXPECT BETTER THAN BURITICA MY FRIENDS

Hi Jotajota

When I spoke with Mr Bolton last week, he did mention to me that as soon as there is news on that front which is materia, that will be RSNd separately.

Good morning everyone

This is great news - the flow of news will be constant here. Make no mistake the huge potential PAT has.

There be a rush to get back in before SP starts creeping up.

GLA

MP and all - agree.

This company has the potential to be big one day.

Rob1967

Courtesy of a poster on RRR

https://twitter.com/DavidLenigas/status/1352936379441942528?s=19

Courtesy of a poster called Helpful on RRR site

https://twitter.com/DavidLenigas/status/1352936379441942528?s=19

TRY SENDING AGAIN
What could OMI share price potential be compared to Continental Gold (with its Buritica project) which had announced 11.3 million ounces of combined Measured, Indicated and Inferred resource.

Continent's share price was CAD $4 (OR £2.30 based on exchange rate of £1 to CAD $ 1.7376) in January 2019 following its NI43-101 Report depicting its 11.3 million ounce total resource. How would this compare with the share price for OMI if it came up with just 5 million oz potential.

One further observation to make is that OMI is an exploration company and Continental too was an exploration company back in January 2019 when it produced the NI 43-101 Report. Continental's accounts for 2019 showed an operating (loss) of some $8.4 million which you would expect.

CONTINENTAL GOLD1) RESOURCE IN MILLION TONNES

a) Measured = 1.4 MT
b) Indicated = 14.6 MT
c) Inferred = 21.9 MT (The point to note here is inferred is nearly 1 and 1/2 times more than combined measured + indicated
2) Gold price in January 2019 = $1,278
3) AIS Costs (ASSUMED) = $800 ( I will assume the same later for PAT)
4) Margin = $1,278 less $800 = $478 per ounce
5) Profit over life of mine = 11,300,000 oz X $478 = $5,401,000,000
6) Outstanding shares in Jan 2019 = 203,000,000
7) Market value in Jan 2019 = $812 million
8) Therefore, in Jan 2019 the market value is 15% of the total future profits ( i.e. $812,000,000/$5,401,000,000)
9) Share price = $812,000,000 / 203,000,000 shares = $4 per share.
10) Share Price in pounds = $4 / 1.7376 (exchange rate in 2019) = £2.30.OMI -

WITH 5M OZ RESOURCE ESTIMATE
1) Gold price in Jan 2021 = $1,800
2) AISC = $800 (Assumed same as in Continental Gold)
3) Margin = $1,800 less $800 = $1,000 per ounce
4) Profit over life of mine = 5,000,000 oz X $1,000 = $5,000,000,000
5) Outstanding shares = 187,000,000
6) Market value % as per Continental Gold = 15% X Profit of $5,000,000,000 = $750,000,000
7) Therefore Share Price = $750,000,000 / 187,000,000 shares = $4.00 per share
8) Share Price pounds = $4.00 / 1.37 = £2.92.

The above analysis indicates that even though Continental Gold had a resource estimate of 11.3 million ounces back in January 2019, the share price is not far out from the estimate which works out for OMI based on half the estimated resource at 5 million ounces.

This is due to :
1) The gold price being much lower in Jan 2019 by almost $600 per ounce (EXACT TODAY = $1871 less $ 1,278 in Jan 2019)
2) The exchange rate difference.

What could OMI share price potential be compared to Continental Gold (with its Buritica project) which had announced 11.3 million ounces of combined Measured, Indicated and Inferred resource.Continent's share price was CAD $4 (OR £2.30 based on exchange rate of £1 to CAD $ 1.7376) in January 2019 following its NI43-101 Report depicting its 11.3 million ounce total resource. How would this compare with the share price for OMI if it came up with just 5 million oz potential.One further observation to make is that OMI is an exploration company and Continental too was an exploration company back in January 2019 when it produced the NI 43-101 Report. Continental's accounts for 2019 showed an operating (loss) of some $8.4 million which you would expect.CONTINENTAL GOLD1) RESOURCE IN MILLION TONNESa) Measured = 1.4 MTb) Indicated = 14.6 MTc) Inferred = 21.9 MT (The point to note here is inferred is nearly 1 and 1/2 times more than combined measured + indicated2) Gold price in January 2019 = $1,2783) AIS Costs (ASSUMED) = $800 ( I will assume the same later for PAT)4) Margin = $1,278 less $800 = $478 per ounce5) Profit over life of mine = 11,300,000 oz X $478 = $5,401,000,0006) Outstanding shares in Jan 2019 = 203,000,0007) Market value in Jan 2019 = $812 million8) Therefore, in Jan 2019 the market value is 15% of the total future profits ( i.e. $812,000,000/$5,401,000,000)9) Share price = $812,000,000 / 203,000,000 shares = $4 per share.10) Share Price in pounds = $4 / 1.7376 (exchange rate in 2019) = £2.30.OMI - WITH 5M OZ RESOURCE ESTIMATE1) Gold price in Jan 2021 = $1,8002) AISC = $800 (Assumed same as in Continental Gold)3) Margin = $1,800 less $800 = $1,000 per ounce4) Profit over life of mine = 5,000,000 oz X $1,000 = $5,000,000,0005) Outstanding shares = 187,000,0006) Market value % as per Continental Gold = 15% X Profit of $5,000,000,000 = $750,000,0007) Therefore Share Price = $750,000,000 / 187,000,000 shares = $4.00 per share8) Share Price pounds = $4.00 / 1.37 = £2.92.The above analysis indicates that even though Continental Gold had a resource estimate of 11.3 million ounces back in January 2019, the share price is not far out from the estimate which works out for OMI based on half the estimated resource at 5 million ounces.This is due to :1) The gold price being much lower in Jan 2019 by almost $600 per ounce (EXACT TODAY = $1871 less $ 1,278 in Jan 2019)2) The exchange rate difference.

No worries at all.

Forgot to highlight in the below analysis that Continental had nearly 2 and 1/2 times as many shares as we currently do

Meant to complete the final sentence by saying - Imagine the share price impact when other West African target results along. Imagine what the share price will do when BHUKIA is finalised.

NEWS DUE ANY TIME NOW

REPOSTING - MICKEY = " I make a resource of 1.5m oz -750k to us around £1.65? Can you confirm "
RESPONSE
In order to meaningfully provide you with a response, I had to do some research on any one company which would be appropriate and to first provide an analysis on this company. Therefore I chose to look at Continental Gold (with its Buritica project). You might say why the hell did I pick this company which had announced 11.3 million ounces of combined Measured, Indicated and Inferred resource.

The reason for this will become clearer when, at the end, we compare Continent's CAD $4 price per share (OR £2.30 based on exchange rate of £1 to CAD $ 1.7376) in January 2019 following its NI43-101 Report depicting its 11.3 million ounce total resource with the share price for PAT following its 1.5 million possible ounces from JUST Labola.

One further observation to make is that PAT is an exploration company and Continental too was an exploration company back in January 2019 when it produced the NI 43-101 Report. Continental's accounts for 2019 showed an operating (loss) of some $8.4 million which you would expect.

CONTINENTAL GOLD

1) RESOURCE IN MILLION TONNES
a) Measured = 1.4 MT
b) Indicated = 14.6 MT
c) Inferred = 21.9 MT (The point to note here is inferred is nearly 1 and 1/2 times more than combined measured + indicated
2) Gold price in January 2019 = $1,278
3) AIS Costs (ASSUMED) = $800 ( I will assume the same later for PAT)
4) Margin = $1,278 less $800 = $478 per ounce
5) Profit over life of mine = 11,300,000 oz X $478 = $5,401,000,000
6) Outstanding shares in Jan 2019 = 203,000,000
7) Market value in Jan 2019 = $812 million
8) Therefore, in Jan 2019 the market value is 15% of the total future profits ( i.e. $812,000,000/$5,401,000,000)
9) Share price = $812,000,000 / 203,000,000 shares = $4 per share.
10) Share Price in pounds = $4 / 1.7376 (exchange rate in 2019) = £2.30.

PAT - WITH LABOLA 1.5M OZ RESOURCE ESTIMATE
1) Gold price in Jan 2021 = $1,800
2) AISC = $800 (Assumed same as in Continental Gold)
3) Margin = $1,800 less $800 = $1,000 per ounce
4) Profit over life of mine = 1,500,000 oz X $1,000 = $1,500,000,000
5) Outstanding shares = 86,000,000
6) Market value % as per Continental Gold = 15% X Profit of $1,500,000,000 = $225,000,000
7) Therefore Share Price = $225,000,000 / 86,000,000 shares = $2.60 per share
8) Share Price pounds = $2.60 / 1.37 = £1.90.

The above analysis indicates that even though Continental Gold had a resource estimate of 11.3 million ounces back in January 2019, the share price is not far out from the ESTIMATE which works out for PAT based on Labola estimated resource of 1.5 million ounces.
This is due to :
1) The gold price being much lower in Jan 2019 by almost $600 per ounce (EXACT TODAY = $1871 less $ 1,278 in Jan 2019)
2) The exchange rate difference.
So Mickey, your estimate of £1.65 X OUR 46% SHARE = seems very plausible.
IMAGINE THE SHARE PRICE IMPACT WHEN B

Hi MP and everyone . Good morning.

It just just shows that the investors may not realise that today even 1.5 million possible ounces can have nearly as much effect on the share price as it did for Continental Gold when it announced 11.3 million oz.

I might repost that note of mine in case some people have missed reading it.

Hi Mickey

I feel the management must be quietly confident in achieving a amicable agreement with the Rajasthan State Govt since we have the Indian Law on our side - the point also made by ClosertoGod. It appears that they are just being prudent and cautious by not wanting to highlight that in the other communications / updates sent to investors until something concrete happens.

Hi Mickey

One point I forget to mention is that we own 46.15 per cent of Labola so need to factor that in the sp.

Hi Mickey

The last sentence should read:

So Mickey, your estimate of £1.65 seems very plausible.

Never attempted this before. It just shows the potential PAT has if the other targets also deliver.

When( AND NOT IF) Bhukia agreement is reached, this PAT will be in a completely different league. NO WONDER MR BOLTON SAID YOU CAN ADD TWO ZEROS TO THE MARKET CAP ONCE BHUKIA IS AGREED.

Hi Mickey

Apologies for responding a bit late to the question below you posed earlier:

" I make a resource of 1.5m oz -750k to us around £1.65? Can you confirm "

In order to meaningfully provide you with a response, I had to do some research on any one company which would be appropriate and to first provide an analysis on this company. Therefore I chose to look at Continental Gold (with its Buritica project). You might say why the hell did I pick this company which had announced 11.3 million ounces of combined Measured, Indicated and Inferred resource.

The reason for this will become clearer when, at the end, we compare Continent's CAD $4 price per share (OR £2.30 based on exchange rate of £1 to CAD $ 1.7376) in January 2019 following its NI43-101 Report depicting its 11.3 million ounce total resource with the share price for PAT following its 1.5 million possible ounces from JUST Labola.

One further observation to make is that PAT is an exploration company and Continental too was an exploration company back in January 2019 when it produced the NI 43-101 Report. Continental's accounts for 2019 showed an operating (loss) of some $8.4 million which you would expect.

CONTINENTAL GOLD

1) RESOURCE IN MILLION TONNES

a) Measured = 1.4 MT
b) Indicated = 14.6 MT
c) Inferred = 21.9 MT (The point to note here is inferred is nearly 1 and 1/2 times more than combined measured + indicated

2) Gold price in January 2019 = $1,278
3) AIS Costs (ASSUMED) = $800 ( I will assume the same later for PAT)
4) Margin = $1,278 less $800 = $478 per ounce
5) Profit over life of mine = 11,300,000 oz X $478 = $5,401,000,000
6) Outstanding shares in Jan 2019 = 203,000,000
7) Market value in Jan 2019 = $812 million
8) Therefore, in Jan 2019 the market value is 15% of the total future profits ( i.e. $812,000,000/$5,401,000,000)
9) Share price = $812,000,000 / 203,000,000 shares = $4 per share.
10) Share Price in pounds = $4 / 1.7376 (exchange rate in 2019) = £2.30.

PAT - WITH LABOLA 1.5M OZ RESOURCE ESTIMATE

1) Gold price in Jan 2021 = $1,800
2) AISC = $800 (Assumed same as in Continental Gold)
3) Margin = $1,800 less $800 = $1,000 per ounce
4) Profit over life of mine = 1,500,000 oz X $1,000 = $1,500,000,000
5) Outstanding shares = 86,000,000
6) Market value % as per Continental Gold = 15% X Profit of $1,500,000,000 = $225,000,000
7) Therefore Share Price = $225,000,000 / 86,000,000 shares = $2.60 per share
8) Share Price pounds = $2.60 / 1.37 = £1.90.

The above analysis indicates that even though Continental Gold had a resource estimate of 11.3 million ounces back in January 2019, the share price is not far out from the ESTIMATE which works out for PAT based on Labola estimated resource of 1.5 million ounces.
This is due to :
1) The gold price being much lower in Jan 2019 by almost $600 per ounce (EXACT TODAY = $1871 less $ 1,278 in Jan 2019)
2) The exchange rate difference.

So, Mickey, your estimate of the price of £1

I have been in regular contact with Mr Salazar, the former CEO. As far as we know from the company information, he still remains a holder of his shares in OMI.

GLA

Hi Mickey - Just re-posting previous note on the potential for Labola

****Based on the previous drilling however, an Exploration Target of 15-30Mt grading between 1 and 1.5g/t Au (0.5 to 1.5Moz gold) is interpreted. The area has previously been extensively drilled by two companies, Taurus Gold and High River Gold, who each held separate parts of the area with some overlap. All up, over 65,000m drilling has been conducted on the project as shown on the table and image below. " THE AREAS OF ARTISINAL MINING SUB-PARALLEL TO THE THREE MAIN ZONES SUGGESTS SIGNIFICANT ADDITIONAL EXPLORATION POTENTIAL EXISTS OUTSIDE THESE ZONES AND NOT COVERED BY PREVIOUS DRILLING ". *******

Please feel free to correct me on the undermentioned parameters / assumptions that I have used in my calculations and if required, I will re-calculate the workings:

PARAMETERS (AND ASSUMPTIONS) USED ARE AS FOLLOWS:

a) Strike length = 9km (=9000m)
b) Width = taken average across the strike length = 0.3km (=300m)
c) Depth = taken average across the strike length = 0.1km (=100m)
d) Density for the area = assumed industry average in west Africa = 2.4 Tonnes /meter cube
e) You will note later in the calculation that I will aim to take ONLY 1/10 th of estimated resource figure to take account of the fact that even though some holes may have returned say over 100 g/Tn, these COULD BE isolated ones or indeed the width of the depth in some areas may not be the same as assumed throughout the strike length of 9km. I have even gone further to reduce the strike length of 9km TO ONLY 1/10 th on the assumption IF the strike length was NOT CONTINUOUS ( IT MAY BE THE CASE THAT THE WHOLE OF THE STRIKE LENGTH IS CONTINUOUS and I therefore do not need to reduce 9km to 1/10th)
(f) Based on the company data I have taken 1 g/T grading
(g) Recovery rate of gold = 80%

So, here it is:
(1) 9km x 0.3km x 0.1km x Density
(2) = 9000m x 300m x 100m x (2.4 Tonne/meter cube)
(3) = 270,000,000 meter cube x 2.4 Tonne/ meter cube
(4) = 648,000,000 Tonnes
(5) Resource in grams = 648,000,000 T x 1 grams /T = 648,000,000 grams
(6) Resource in ounces - 648,000,000 grams / 34.2857 = 18,900,000ounces DIVIDE BY FACTOR 10 = 1,890,000 ounces
(7) Recovery rate of gold (say 80%) x 1,890,000 ounces = 1,500,000 ounces
(8) ********This would be similar to GGP's share of their recent find.*********
(9) If this turns out to be the case then at 1.5m ounces, the impact on PAT share price can be very significant. AND, IF ARTISINAL MINING SUB-PARALLEL TO THE THREE MAIN ZONES SUGGESTS SIGNIFICANT ADDITIONAL EXPLORATION POTENTIAL EXISTS OUTSIDE THESE ZONES AND NOT COVERED BY PREVIOUS DRILLING then there is potential to increase the resource as the company has suggested.

Hi Caravan

When I spoke with Mr Bolton, I could sense, without him giving away anything, that news is imminent. I do not know which one will be out first. On Bhukia, however, we will hear once the Rajasthan court is out of the way I guess.

Hi Bhargav and all

Cant wait for the drill results. Just topped up small number 23,278 @25.775

GLA