Oro Gold increases financing size to 12.9 million units
2009-06-17 08:41 ET - News Release
Mr. Darren Bahrey reports
ORO GOLD ANNOUNCES INCREASE IN PRIVATE PLACEMENT TO UP TO $12 MILLION
Oro Gold Resources Ltd. has increased the size of its private placement previously announced in Stockwatch on June 16, 2009, to 12.9 million units of the company for gross proceeds of $9.03-million. Each unit, priced at 70 cents, will consist of one common share and one-half common share purchase warrant; each whole warrant will entitle the holder to purchase one additional common share at an exercise price of $1 per share for 18 months from the closing date. The units will be subject to a four-month hold period from the closing date.
The syndicate of underwriters for the offering is led by Wellington West Capital Markets Inc., and includes Canaccord Capital Corp. and Blackmont Capital Inc.
The underwriters shall also have the option exercisable up to 48 hours prior to closing to increase the size of the offering by up to an additional 4.3 million units, for gross proceeds under the offering of $12.04-million, if exercised in full.
The offering is expected to close on or about July 7, 2009, and is subject to applicable regulatory approvals.
We seek Safe Harbor.
Thursday, June 18, 2009
Sunday, June 14, 2009
Buy Sam a Drink and Get His Dog One Too..........
Being born and raised in Pittsburgh and being there for the 91 and 92 Stanley Cups, I'm still on Cloud Nine after "The Save" Friday Night. Here's the last 10 seconds of the game.
http://www.youtube.com/watch?v=kANbgKP6seM
http://www.youtube.com/watch?v=kANbgKP6seM
Thursday, June 11, 2009
Oro Gold News
Today's trading in Oro Gold is all the evidence you need to understand why 90% of retail investors lose money on exploration plays and 90% of institutions make money. Oro Gold will be over $1 by the end of next Friday.
Oro Gold drills 30 metres of 6.3 g/t Au at Trinidad
2009-06-11 10:05 ET - News Release
Mr. Darren Bahrey reports
ORO GOLD DRILLS 6.3 G/T GOLD OVER 30 METRES AND EXTENDS NEW HIGH-GRADE ZONE AT TRINIDAD PROJECT, MEXICO June 11, 2009
Oro Gold Resources Ltd. has released gold assay results received for three more diamond drill holes that expand the new gold zone toward the south at the Taunus target on its Trinidad property near Mazatlan, Mexico.
09TR019 returned 6.3 grams per tonne gold over 30 metres, including 17.6 grams per tonne gold over 4.5 metres. This is the first diamond drill hole that has been drilled from the west side of the abandoned pit, and intersected the new breccia gold zone approximately 20 metres south of recently reported high-grade gold results in 09TR015 and 09TR016. The hole was lost prior to reaching its planned depth with the last three metres averaging 2.3 g/t gold, indicating additional potential at depth.
09TR020 returned 5.3 g/t gold over 13.4 metres and 4.1 g/t gold over 12.9 metres in two distinct zones. This confirms that the gold mineralization continues to the south by more than 200 metres from the initial high-grade zone discovered by Oro Gold in holes 08TR012, 09TR015 and 09TR016.
These zones are interpreted to be near vertical, with a true width of 12 and 11 metres, respectively. "This continued drilling success demonstrates that we are onto a very significant gold discovery at Trinidad," commented Oro Gold's vice-president, Frank Powell. "Hole 09TR020 continues to grow the high-grade gold zone into a new area, suggesting significant depth potential and is open in multiple directions. We are now planning to extend our drilling program into the summer, in order to continue moving forward with the goal to add more high-grade gold ounces to our resource base."
09TR018 returned narrow intervals in the range of one to three g/t gold, interpreted to be located near a fault which has offset mineralization.
Core hole From (m) To (m) Interval (m) Gold (g/t) Recovery (%)
09TR018 137.4 140.0 2.6 1.0 98
169.0 170.5 1.5 2.6 97
197.2 205.7 8.5 0.9 78
223.5 229.8 6.3 0.9 56
09TR019 178.5 208.5 30.0 6.3 67
Including 192.0 196.5 4.5 17.6 53
234.0 237.0 3.0 2.3 75
09TR020 165.0 177.9 12.9 4.1 92
221.5 234.9 13.4 5.3 79
Note: Interval widths may not represent true widths.
SIGNIFICANT PREVIOUSLY REPORTED GOLD INTERVALS IN DIAMOND
DRILL HOLES
Core hole From (m) To (m) Interval (m) Gold (g/t)
08TR012 151.0 212.1 61.1 8.5
08TR013 147.0 180.6 33.6 3.8
including 160.9 168.2 7.3 15.8
08TR014 106.2 114.0 7.8 5.3
and 131.0 138.0 7.0 9.7
09TR015 124.0 189.9 65.9 5.3
including 124.0 166.5 42.5 7.6
09TR016 160.9 221.5 60.6 3.4
including 160.9 197.4 36.5 5.2
High-grade gold mineralization is now delineated over a 350-metre length and down to a depth of 200 metres below surface. The spacing between the diamond drill holes range between 20 to 100 metres. The high-grade portion of the mineralized breccia zone is averaging above five g/t gold. Step-out holes 09TR021 and 22 are in progress, testing the new zone at depth and along strike. Additional information, including location maps and figures pertaining to the continuing diamond drill program, can be viewed at the latest Trinidad drilling link on Oro Gold's home page. As well, a short production on Oro Gold's exploration activity at the Trinidad project will be broadcasted on six networks, including BNN and 120 United States stations, starting June 22, 2009. The video will be made available for viewing on Oro Gold's website soon.
The company has accomplished one of the objectives, in confirming the gold grade of the mineralized zones at the Taunus target is much higher than what has been reported in reverse-circulation holes, and is now focused on defining and expanding the new high-grade breccia zone discovered by Oro Gold. Meeting these objectives is expected to have a positive impact on the company's reported National Instrument 43-101 inferred oxide gold resource of 200,930 ounces contained in 4.5 million tonnes at an average grade of 1.4 g/t gold, based on a 0.5-gram-per-tonne cut-off. This resource estimate was released in 2008 and it does not include the high-grade gold results from the diamond drilling. The Taunus gold target is interpreted as an oxidized, low-to-intermediate, sulphidation, epithermal vein system. The mineralization is characterized by multiphase stockwork veining and hydrothermal brecciation hosted in a clastic, unit, quartz, feldspar porphyry intrusive and andesite volcanics. Oro Gold has identified 10 other gold targets within the 650-square-kilometre Trinidad district that require follow-up exploration. Based on what the company is accomplishing at the Taunus gold target with diamond drilling, this will aid in further defining and prioritizing these additional targets toward drilling. Oro Gold's technical team is interpreting this district to be situated in a northwest-trending structural corridor that extends for at least 80 kilometres formed by active, deep-seated, major fault structures. There is evidence of this in the recent drilling, based on intersecting a thick clastic and conglomerate sequence that has a vertical profile exceeding more than 250 metres in depth. The Taunus deposit is interpreted to be hosted in a local pull-apart basin within this trend.
Oro Gold drills 30 metres of 6.3 g/t Au at Trinidad
2009-06-11 10:05 ET - News Release
Mr. Darren Bahrey reports
ORO GOLD DRILLS 6.3 G/T GOLD OVER 30 METRES AND EXTENDS NEW HIGH-GRADE ZONE AT TRINIDAD PROJECT, MEXICO June 11, 2009
Oro Gold Resources Ltd. has released gold assay results received for three more diamond drill holes that expand the new gold zone toward the south at the Taunus target on its Trinidad property near Mazatlan, Mexico.
09TR019 returned 6.3 grams per tonne gold over 30 metres, including 17.6 grams per tonne gold over 4.5 metres. This is the first diamond drill hole that has been drilled from the west side of the abandoned pit, and intersected the new breccia gold zone approximately 20 metres south of recently reported high-grade gold results in 09TR015 and 09TR016. The hole was lost prior to reaching its planned depth with the last three metres averaging 2.3 g/t gold, indicating additional potential at depth.
09TR020 returned 5.3 g/t gold over 13.4 metres and 4.1 g/t gold over 12.9 metres in two distinct zones. This confirms that the gold mineralization continues to the south by more than 200 metres from the initial high-grade zone discovered by Oro Gold in holes 08TR012, 09TR015 and 09TR016.
These zones are interpreted to be near vertical, with a true width of 12 and 11 metres, respectively. "This continued drilling success demonstrates that we are onto a very significant gold discovery at Trinidad," commented Oro Gold's vice-president, Frank Powell. "Hole 09TR020 continues to grow the high-grade gold zone into a new area, suggesting significant depth potential and is open in multiple directions. We are now planning to extend our drilling program into the summer, in order to continue moving forward with the goal to add more high-grade gold ounces to our resource base."
09TR018 returned narrow intervals in the range of one to three g/t gold, interpreted to be located near a fault which has offset mineralization.
Core hole From (m) To (m) Interval (m) Gold (g/t) Recovery (%)
09TR018 137.4 140.0 2.6 1.0 98
169.0 170.5 1.5 2.6 97
197.2 205.7 8.5 0.9 78
223.5 229.8 6.3 0.9 56
09TR019 178.5 208.5 30.0 6.3 67
Including 192.0 196.5 4.5 17.6 53
234.0 237.0 3.0 2.3 75
09TR020 165.0 177.9 12.9 4.1 92
221.5 234.9 13.4 5.3 79
Note: Interval widths may not represent true widths.
SIGNIFICANT PREVIOUSLY REPORTED GOLD INTERVALS IN DIAMOND
DRILL HOLES
Core hole From (m) To (m) Interval (m) Gold (g/t)
08TR012 151.0 212.1 61.1 8.5
08TR013 147.0 180.6 33.6 3.8
including 160.9 168.2 7.3 15.8
08TR014 106.2 114.0 7.8 5.3
and 131.0 138.0 7.0 9.7
09TR015 124.0 189.9 65.9 5.3
including 124.0 166.5 42.5 7.6
09TR016 160.9 221.5 60.6 3.4
including 160.9 197.4 36.5 5.2
High-grade gold mineralization is now delineated over a 350-metre length and down to a depth of 200 metres below surface. The spacing between the diamond drill holes range between 20 to 100 metres. The high-grade portion of the mineralized breccia zone is averaging above five g/t gold. Step-out holes 09TR021 and 22 are in progress, testing the new zone at depth and along strike. Additional information, including location maps and figures pertaining to the continuing diamond drill program, can be viewed at the latest Trinidad drilling link on Oro Gold's home page. As well, a short production on Oro Gold's exploration activity at the Trinidad project will be broadcasted on six networks, including BNN and 120 United States stations, starting June 22, 2009. The video will be made available for viewing on Oro Gold's website soon.
The company has accomplished one of the objectives, in confirming the gold grade of the mineralized zones at the Taunus target is much higher than what has been reported in reverse-circulation holes, and is now focused on defining and expanding the new high-grade breccia zone discovered by Oro Gold. Meeting these objectives is expected to have a positive impact on the company's reported National Instrument 43-101 inferred oxide gold resource of 200,930 ounces contained in 4.5 million tonnes at an average grade of 1.4 g/t gold, based on a 0.5-gram-per-tonne cut-off. This resource estimate was released in 2008 and it does not include the high-grade gold results from the diamond drilling. The Taunus gold target is interpreted as an oxidized, low-to-intermediate, sulphidation, epithermal vein system. The mineralization is characterized by multiphase stockwork veining and hydrothermal brecciation hosted in a clastic, unit, quartz, feldspar porphyry intrusive and andesite volcanics. Oro Gold has identified 10 other gold targets within the 650-square-kilometre Trinidad district that require follow-up exploration. Based on what the company is accomplishing at the Taunus gold target with diamond drilling, this will aid in further defining and prioritizing these additional targets toward drilling. Oro Gold's technical team is interpreting this district to be situated in a northwest-trending structural corridor that extends for at least 80 kilometres formed by active, deep-seated, major fault structures. There is evidence of this in the recent drilling, based on intersecting a thick clastic and conglomerate sequence that has a vertical profile exceeding more than 250 metres in depth. The Taunus deposit is interpreted to be hosted in a local pull-apart basin within this trend.
Friday, June 5, 2009
On the look out for the next Oro Gold and Underworld Resources
As I'm not one to cease doing research just because one of my plays (Oro Gold) is on the verge of a major break-out, I've been looking this week for the next under $.20 stock that has the potential to be a 5 bagger like Oro Gold (OGR) and Underworld Resources (UW). As you know, those are few and far between but I may have come across a stock that has the potential to break-out over the next few weeks. The stock is Northern Tiger Resources (NTR.V) and I've put out a quick short story report on them which is linked on my website at the top left. Take the time to do some more research on them this weekend as their Nightmusic zone looks awful inviting. The share structure is tight which is one of the ingredients needed for a major move up in price. Once the story gets out that it is high grade gold and on trend to the Underworld Resources discovery, the price may move quickly. I've been buying shares this week under $.20 but it is difficult to buy in blocks without the price moving up quickly.
There has been a major rush to stake ground near the Underworld discovery but any drilling by other companies will be months away. Northern Tiger will be drilling this month now that they closed their $1 million private placement. As always, please do your own due diligence and sell 1/3 to 1/2 when the stock doubles.
There has been a major rush to stake ground near the Underworld discovery but any drilling by other companies will be months away. Northern Tiger will be drilling this month now that they closed their $1 million private placement. As always, please do your own due diligence and sell 1/3 to 1/2 when the stock doubles.
Sunday, May 31, 2009
Unlocking the Oro Gold Story
When Darren met with Wendell Zerb and the analysts at Canaccord last week that resulted in Canaccord buying several hundred thousand shares over the next few days, you have to wonder what dots they connected to buy in the $.75-$.80 range. Was it just the 200,000 ounce current resource at around 1.5 g/t that we now know has been understated and probably is more in the 600,000 ounce range at 5 g/t? This resource is confined to a relatively small 200-300 meter area. Is this what Canaccord got all excited about? Probably not.
Just like I connected the dots when Oro Gold was at $.18 when no one cared, Canaccord is connecting the dots at $.75-$.80 when none of the other inistitutions care. What dots are those?
We know that hole #20 which is 200 meters south of the discovery zone is showing visual signs of the breccia that is present in the high-grade discovery zone. Assays are pending and will most likely be released in the next 7-10 days. If the assays show the same type of grades, the resource area may be twice as large as the current one under the 43-101. Is that what got them all excited?
We know that 400 meters north of the north end of the discovery zone (see picture on the current presentation here) is the Bocas discovery which there is a 11 g/t gold large boulder at surface that appears to be made of the same type of breccia that has been discovered in the high-grade discovery zone 400 meters to the south. They also trenched 63 meters of 3 g/t in this zone (sound familiar?). Does the high grade breccia material run 400 meters north to Bocas thereby doubling again the size of the deposit? Has Canaccord connected those dots?
We know (maybe one or two of us anyways) that 1 kilometer (1,000 meters) to the south of the high grade discovery zone and along strike is the Colinas discovery. Not much has been said about this zone since no core drilling has been done yet like that in the high grade zone, only RC drilling. We know that the RC drilling has been understating the high grade breccia zone by 3-4 times when compared to the core drilling. A few of us know that RC hole 08-TRRC-016 drilled in late 2007/early 2008 hit two zones at the same depth as these last few discovery holes of 26 meters of 1.14 g/t from 128-154 meters and 14 meters of 1.98 g/t from 182-196 meters. Taken together, this RC hole showed 40 meters of about 1.5 g/t on average. Since the RC holes were underestimating the grades by 3-4 times, it is possible that when they put a core drill down this zone (Darren plans to do just that), it may show a hole of 40 meters of 5-6 g/t gold (sound familiar)? Did Canaccord connect those dots and is that what got them all excited? Will other institutions connect the dots?
If (and it is an "if" until core drilling confirms this) this high grade breccia zone runs from Bocas in the north through the discovery zone at Taunus down to Colinas in the south, you are looking at some 1,700 meters on strike of high grade breccia (or for those stateside about 1 mile long). Is that what got Canaccord excited and led them to compare the Oro Gold geology to the 14 million ounce Fruta Del Norte discovery?
Have you connected these dots?
Just like I connected the dots when Oro Gold was at $.18 when no one cared, Canaccord is connecting the dots at $.75-$.80 when none of the other inistitutions care. What dots are those?
We know that hole #20 which is 200 meters south of the discovery zone is showing visual signs of the breccia that is present in the high-grade discovery zone. Assays are pending and will most likely be released in the next 7-10 days. If the assays show the same type of grades, the resource area may be twice as large as the current one under the 43-101. Is that what got them all excited?
We know that 400 meters north of the north end of the discovery zone (see picture on the current presentation here) is the Bocas discovery which there is a 11 g/t gold large boulder at surface that appears to be made of the same type of breccia that has been discovered in the high-grade discovery zone 400 meters to the south. They also trenched 63 meters of 3 g/t in this zone (sound familiar?). Does the high grade breccia material run 400 meters north to Bocas thereby doubling again the size of the deposit? Has Canaccord connected those dots?
We know (maybe one or two of us anyways) that 1 kilometer (1,000 meters) to the south of the high grade discovery zone and along strike is the Colinas discovery. Not much has been said about this zone since no core drilling has been done yet like that in the high grade zone, only RC drilling. We know that the RC drilling has been understating the high grade breccia zone by 3-4 times when compared to the core drilling. A few of us know that RC hole 08-TRRC-016 drilled in late 2007/early 2008 hit two zones at the same depth as these last few discovery holes of 26 meters of 1.14 g/t from 128-154 meters and 14 meters of 1.98 g/t from 182-196 meters. Taken together, this RC hole showed 40 meters of about 1.5 g/t on average. Since the RC holes were underestimating the grades by 3-4 times, it is possible that when they put a core drill down this zone (Darren plans to do just that), it may show a hole of 40 meters of 5-6 g/t gold (sound familiar)? Did Canaccord connect those dots and is that what got them all excited? Will other institutions connect the dots?
If (and it is an "if" until core drilling confirms this) this high grade breccia zone runs from Bocas in the north through the discovery zone at Taunus down to Colinas in the south, you are looking at some 1,700 meters on strike of high grade breccia (or for those stateside about 1 mile long). Is that what got Canaccord excited and led them to compare the Oro Gold geology to the 14 million ounce Fruta Del Norte discovery?
Have you connected these dots?
Wednesday, May 27, 2009
canaccord compares OGR breccia to Aurelian 14 million ounce deposit breccia
Oro Gold (OGR-V)
Canaccord Adams Senior Mining Analyst Wendell Zerb highlights that the
best intersection of eight core holes thus far is: 8.5 g/t gold over 61 m, a
strong indication the RC drilling was understating the grades. The company
has released a handful of further encouraging drill results in the past week.
Based on results to date, the Taunus zone appears to be about 350 m on
strike, up to 50 m wide, and has been tested vertically over about 70 m. It
appears to be open in all directions. Recent work by Oro Gold suggests a
regional northwest-trending corridor could represent an extensional pull-apart
basin. Some specifics relating to the extensional setting are that
breccia/conglomerate units host mineralized clasts and a later higher-grade
mineralized matrix. This could be an indication of multiple mineralizing events
possibly associated with a long-lived extensional environment. Zerb notes
that the 14-million-oz Fruta del Norte deposit (of Aurelian fame – now Kinross
(K)) has been interpreted to be associated with an extensional pullapart
basin environment.
Canaccord Adams Senior Mining Analyst Wendell Zerb highlights that the
best intersection of eight core holes thus far is: 8.5 g/t gold over 61 m, a
strong indication the RC drilling was understating the grades. The company
has released a handful of further encouraging drill results in the past week.
Based on results to date, the Taunus zone appears to be about 350 m on
strike, up to 50 m wide, and has been tested vertically over about 70 m. It
appears to be open in all directions. Recent work by Oro Gold suggests a
regional northwest-trending corridor could represent an extensional pull-apart
basin. Some specifics relating to the extensional setting are that
breccia/conglomerate units host mineralized clasts and a later higher-grade
mineralized matrix. This could be an indication of multiple mineralizing events
possibly associated with a long-lived extensional environment. Zerb notes
that the 14-million-oz Fruta del Norte deposit (of Aurelian fame – now Kinross
(K)) has been interpreted to be associated with an extensional pullapart
basin environment.
Oro Gold drills 60.6 m of 3.4 g/t Au at Trinidad
Oro Gold drills 60.6 m of 3.4 g/t Au at Trinidad
2009-05-26 09:53 ET - News Release
Mr. Darren Bahrey reports
ORO GOLD DRILLS 3.4 G/T GOLD OVER 60.6 METRES IN NEW HIGH-GRADE ZONE AT TRINIDAD PROJECT, MEXICO
Oro Gold Resources Ltd. has released gold assay results received for two more diamond drill holes that twinned previous reverse circulation (RC) holes at the Taunus target on its Trinidad gold property near Mazatlan, Mexico.
09TR016, a core twin drilled in the new discovery zone at Taunus, intersected 5.2 grams per tonne gold over 36.5 metres (from 160.9 to 197.4 metres) within a larger interval of 3.4 grams per tonne gold over 60.6 metres (from 160.9 to 221.5 m). The recovery of the mineralized intervals was 80 per cent and 75 per cent respectively.
09TR017A, a core twin located south of the Taunus pit, which targeted a satellite near-surface gold anomaly, intersected 1.0 gram per tonne gold over 4.3 metres (from 41.1 to 45.4 m). The recovery of the interval was 75 per cent.
Oro Gold has now completed five core twin holes. The results of these core holes confirm RC drilling has been under-reporting the gold grade of the mineralized zones. A comparison of the core versus RC assay results in the higher grade mineralized intervals is summarized in table. Further drilling of twin holes is not planned in the current drill program.
The diamond drilling is focused on expanding and defining the limits of the high-grade new (breccia) zone. To date, eight diamond drill holes have been completed in the new zone, with four of them twins (08TR012/13/14 and 09TR016) and the other four step-outs (09TR015/18/19/20).
The step-out holes 09TR018, 19 and 20 extend the new zone to the south along strike 20 metres, 50 metres and 200 metres respectively. There is visual indication in the core that the mineralized breccia zone continues to the south and appears to be between 10 and 40 metres wide. The drilling has now tested this zone over a 350-metre strike length and down to a depth of 200 metres below surface. The spacing between the diamond drill holes range between 20 to 100 metres. The current interpreted dimension of the breccia zone is 350 metres long, 70 metres vertical, and 10 to 50 metres wide, and is still open in multiple directions. The high-grade portion of the mineralized breccia material is averaging above five grams per tonne gold. Assays are pending for 09TR018, 19 and 20. The next step-out holes will be determined based on assay results for these holes.
The location of the diamond drill holes with reference to the breccia zone can be viewed on a plan map at the "Latest Trinidad Drilling" link on the Oro Gold website. Also a summary table of the high-grade gold assay intervals in the diamond drill holes completed to date in the new zone as well as core photos can be viewed at the same page.
The objectives of the continuing diamond drill program are (i) to confirm by twinning holes that the gold grade of mineralized zones at the Taunus target is much higher than what has been reported in RC holes, and (ii) to define and expand the new high-grade breccia zone discovered by Oro Gold. Meeting these objectives is expected to have a positive impact on the company's reported National Instrument 43-101 inferred oxide gold resource of 200,930 ounces contained in 4.5 million tonnes at an average grade of 1.4 grams per tonne gold, based on a 0.5-gram-per-tonne cut-off. This resource estimate was released in July, 2008, and it does not include the high-grade gold results from the diamond drilling.
COMPARISON OF CORE VERSUS RC GOLD ASSAYS IN NEW ZONE
Core hole From To Interval Gold Distance
(m) (m) (m) (g/t) (m)*
08TR012** 151.0 212.1 61.1 8.5 8.0
08TR013 147.0 180.6 33.6 3.8 4.0
including 160.9 168.2 7.3 15.8 12.0
08TR014 106.2 114.0 7.8 5.3
and 131.0 138.0 7.0 9.7
09TR016 160.9 221.5 60.6 3.4 10.0
including 160.9 197.4 36.5 5.2
RC hole From To Interval Gold
(m) (m) (m) (g/t)
08TRRC023 148.0 212.0 64.0 1.5
08TRRC025 150.0 180.0 30.0 3.3
including 162.0 172.0 10.0 8.5
08TRRC029 96.0 102.0 6.0 2.2
and 122.0 130.0 8.0 1.8
08TRRC040 166.0 266.0 100.0 1.6
including 182.0 214.0 32.0 3.0
*Distance in metres between centres of mineralized intersections in
the corresponding core and RC holes; some of the distances are approximate
due to lack of down-hole surveys.
**Drill hole abandoned for technical reasons.
The Taunus gold target is interpreted as an oxidized low to intermediate sulphidation epithermal vein system. The mineralization is characterized by multiphase stockwork veining and hydrothermal brecciation hosted in a clastic unit, quartz feldspar porphyry intrusive and andesite volcanics.
It is important to acknowledge that there is significant exploration potential in the Trinidad district, as the company has identified 10 other gold targets with several of them having a similar footprint to Taunus and have yet to be drill-tested. Oro Gold's technical team is interpreting this district to be situated in a northwest trending structural corridor that extends for at least 80 kilometres formed by active deep-seated major fault structures. There is evidence of this in the recent drilling based on intersecting a thick clastic and conglomerate sequence that has a vertical profile exceeding more than 250 metres in depth. The Taunus deposit is interpreted to be hosted in a local pull-apart basin within this trend.
SUMMARY OF OBJECTIVES AND RESULTS OF DIAMOND DRILL HOLES (COMPLETED OR IN PROGRESS)
Objectives
1) Grade 2) Expansion 3) Geologic
Drill hole Area confirmation model Main result
08TR012 New zone Indicated higher 8.5g/t gold over 61.1m in
hrade new zone breccia and clastic unit
08TR013 New zone Confirmed 5.3 g/t gold over 23.6m in
higher grade breccia and clastic unit
new zone
08TR014 New zone Confirmed 9.7 g/t gold over 7.0m and
higher grade 5.3 g/t gold over 7.8m in
new zone breccia and clastic unit
09TR015 New zone Confirmed 5.3 g/t gold over 66.0m in
higher grade breccia and clastic unit
new zone
09TR016 New zone Confirmed 5.2 g/t gold over 36.5m in
higher grade in breccia and clastic unit
new zone
09TR017A SW pit Did not confirm 1.1 g/t gold over 4.4m
satellite zone grade in satellite
zone
09TR018 New zone Defined new Assays pending
zone Hydrothermal and tectonic
breccias
09TR019 New zone Defined new Defined W pit Assays pending, breccia
zone stratigraphy and clastic unit
09TR020 New zone S Extend new Defined W
expansion zone 100m S pit In progress
and at depth stratigraphy
09TR021 Pending Definition and Geologic Pending
possible
expansion
09TR022 Pending Possible Geologic Pending
expansion
09TR023 Pending Possible Geologic Pending
expansion
2009-05-26 09:53 ET - News Release
Mr. Darren Bahrey reports
ORO GOLD DRILLS 3.4 G/T GOLD OVER 60.6 METRES IN NEW HIGH-GRADE ZONE AT TRINIDAD PROJECT, MEXICO
Oro Gold Resources Ltd. has released gold assay results received for two more diamond drill holes that twinned previous reverse circulation (RC) holes at the Taunus target on its Trinidad gold property near Mazatlan, Mexico.
09TR016, a core twin drilled in the new discovery zone at Taunus, intersected 5.2 grams per tonne gold over 36.5 metres (from 160.9 to 197.4 metres) within a larger interval of 3.4 grams per tonne gold over 60.6 metres (from 160.9 to 221.5 m). The recovery of the mineralized intervals was 80 per cent and 75 per cent respectively.
09TR017A, a core twin located south of the Taunus pit, which targeted a satellite near-surface gold anomaly, intersected 1.0 gram per tonne gold over 4.3 metres (from 41.1 to 45.4 m). The recovery of the interval was 75 per cent.
Oro Gold has now completed five core twin holes. The results of these core holes confirm RC drilling has been under-reporting the gold grade of the mineralized zones. A comparison of the core versus RC assay results in the higher grade mineralized intervals is summarized in table. Further drilling of twin holes is not planned in the current drill program.
The diamond drilling is focused on expanding and defining the limits of the high-grade new (breccia) zone. To date, eight diamond drill holes have been completed in the new zone, with four of them twins (08TR012/13/14 and 09TR016) and the other four step-outs (09TR015/18/19/20).
The step-out holes 09TR018, 19 and 20 extend the new zone to the south along strike 20 metres, 50 metres and 200 metres respectively. There is visual indication in the core that the mineralized breccia zone continues to the south and appears to be between 10 and 40 metres wide. The drilling has now tested this zone over a 350-metre strike length and down to a depth of 200 metres below surface. The spacing between the diamond drill holes range between 20 to 100 metres. The current interpreted dimension of the breccia zone is 350 metres long, 70 metres vertical, and 10 to 50 metres wide, and is still open in multiple directions. The high-grade portion of the mineralized breccia material is averaging above five grams per tonne gold. Assays are pending for 09TR018, 19 and 20. The next step-out holes will be determined based on assay results for these holes.
The location of the diamond drill holes with reference to the breccia zone can be viewed on a plan map at the "Latest Trinidad Drilling" link on the Oro Gold website. Also a summary table of the high-grade gold assay intervals in the diamond drill holes completed to date in the new zone as well as core photos can be viewed at the same page.
The objectives of the continuing diamond drill program are (i) to confirm by twinning holes that the gold grade of mineralized zones at the Taunus target is much higher than what has been reported in RC holes, and (ii) to define and expand the new high-grade breccia zone discovered by Oro Gold. Meeting these objectives is expected to have a positive impact on the company's reported National Instrument 43-101 inferred oxide gold resource of 200,930 ounces contained in 4.5 million tonnes at an average grade of 1.4 grams per tonne gold, based on a 0.5-gram-per-tonne cut-off. This resource estimate was released in July, 2008, and it does not include the high-grade gold results from the diamond drilling.
COMPARISON OF CORE VERSUS RC GOLD ASSAYS IN NEW ZONE
Core hole From To Interval Gold Distance
(m) (m) (m) (g/t) (m)*
08TR012** 151.0 212.1 61.1 8.5 8.0
08TR013 147.0 180.6 33.6 3.8 4.0
including 160.9 168.2 7.3 15.8 12.0
08TR014 106.2 114.0 7.8 5.3
and 131.0 138.0 7.0 9.7
09TR016 160.9 221.5 60.6 3.4 10.0
including 160.9 197.4 36.5 5.2
RC hole From To Interval Gold
(m) (m) (m) (g/t)
08TRRC023 148.0 212.0 64.0 1.5
08TRRC025 150.0 180.0 30.0 3.3
including 162.0 172.0 10.0 8.5
08TRRC029 96.0 102.0 6.0 2.2
and 122.0 130.0 8.0 1.8
08TRRC040 166.0 266.0 100.0 1.6
including 182.0 214.0 32.0 3.0
*Distance in metres between centres of mineralized intersections in
the corresponding core and RC holes; some of the distances are approximate
due to lack of down-hole surveys.
**Drill hole abandoned for technical reasons.
The Taunus gold target is interpreted as an oxidized low to intermediate sulphidation epithermal vein system. The mineralization is characterized by multiphase stockwork veining and hydrothermal brecciation hosted in a clastic unit, quartz feldspar porphyry intrusive and andesite volcanics.
It is important to acknowledge that there is significant exploration potential in the Trinidad district, as the company has identified 10 other gold targets with several of them having a similar footprint to Taunus and have yet to be drill-tested. Oro Gold's technical team is interpreting this district to be situated in a northwest trending structural corridor that extends for at least 80 kilometres formed by active deep-seated major fault structures. There is evidence of this in the recent drilling based on intersecting a thick clastic and conglomerate sequence that has a vertical profile exceeding more than 250 metres in depth. The Taunus deposit is interpreted to be hosted in a local pull-apart basin within this trend.
SUMMARY OF OBJECTIVES AND RESULTS OF DIAMOND DRILL HOLES (COMPLETED OR IN PROGRESS)
Objectives
1) Grade 2) Expansion 3) Geologic
Drill hole Area confirmation model Main result
08TR012 New zone Indicated higher 8.5g/t gold over 61.1m in
hrade new zone breccia and clastic unit
08TR013 New zone Confirmed 5.3 g/t gold over 23.6m in
higher grade breccia and clastic unit
new zone
08TR014 New zone Confirmed 9.7 g/t gold over 7.0m and
higher grade 5.3 g/t gold over 7.8m in
new zone breccia and clastic unit
09TR015 New zone Confirmed 5.3 g/t gold over 66.0m in
higher grade breccia and clastic unit
new zone
09TR016 New zone Confirmed 5.2 g/t gold over 36.5m in
higher grade in breccia and clastic unit
new zone
09TR017A SW pit Did not confirm 1.1 g/t gold over 4.4m
satellite zone grade in satellite
zone
09TR018 New zone Defined new Assays pending
zone Hydrothermal and tectonic
breccias
09TR019 New zone Defined new Defined W pit Assays pending, breccia
zone stratigraphy and clastic unit
09TR020 New zone S Extend new Defined W
expansion zone 100m S pit In progress
and at depth stratigraphy
09TR021 Pending Definition and Geologic Pending
possible
expansion
09TR022 Pending Possible Geologic Pending
expansion
09TR023 Pending Possible Geologic Pending
expansion
Wednesday, May 20, 2009
Oro Gold drills 42.5 m Au of 7.6 g/t at Trinidad
Oro Gold drills 42.5 m Au of 7.6 g/t at Trinidad
http://www.orogoldresources.com/main/?Taunusgoldtarget
Hole #1 was drilled with 2 primary objectives, both which were wildly successful:
1. To de-risk the play. The discovery hole in Oct 08 of 61M of 8 g/t was a core hole in between two RC holes of approx 100M of 1.5 g/t. The risk was that the discovery hole may have hit a thin vein of high grade gold and that the rest of the deposit was more in the 1-1.5 g/t grade which is what the 43-101 is based on. As you can see in the map of the drill holes, hole #1 was drilled vertically to cut across several of the RC holes at different angles and the high grade gold was still achieved throughout the 40-60 meter length. This essentially de-risks the play.
2. A larger drill core was used in this round of drilling to prevent losing holes short of their intended depths as was the case late last year. The drilling so far, although slow, has been successful.
Now that the discovery has been de-risked, we go after increasing the deposit size. The second hole (#16 with assays to be released next week) is according to the press release:
Diamond drill hole 09TR016, a twin of RC hole 08TRRC040 (1.62 g/t gold over 100 metres), is located on the same section and approximately 20 metres below hole 09TR015. Geological logging on 09TR016 indicates mineralized material very similar to what was observed in diamond drill holes 08TR012 and 09TR015 over a comparable interval. The objective of the second hole is to confirm higher gold grades in the deeper part of the new zone.
This second hole, although a twin, will show if the higher grades exist deeper in the deposit. The RC showed 1.62 g/t. This hole should show grades significantly higher. It appears the mineralization goes for 100 meters in this core hole and if we get 5 g/t over 100 meters, the share price will move north of $1.00.
The third hole steps out a very long 500 meters to test a near surface anomaly.
The fourth and fith holes will start stepping out and going deeper than the first two holes to see if indeed this is a monster.
The next few months will be exciting to say the least. My recommendation was to sell 1/3 or 1/2 on the news but this is not yet the news that will cause a buying panic and therefore I haven't sold a share (although many did and locked in a nice profit). The best is ahead of us.
stateside
http://www.orogoldresources.com/main/?Taunusgoldtarget
Hole #1 was drilled with 2 primary objectives, both which were wildly successful:
1. To de-risk the play. The discovery hole in Oct 08 of 61M of 8 g/t was a core hole in between two RC holes of approx 100M of 1.5 g/t. The risk was that the discovery hole may have hit a thin vein of high grade gold and that the rest of the deposit was more in the 1-1.5 g/t grade which is what the 43-101 is based on. As you can see in the map of the drill holes, hole #1 was drilled vertically to cut across several of the RC holes at different angles and the high grade gold was still achieved throughout the 40-60 meter length. This essentially de-risks the play.
2. A larger drill core was used in this round of drilling to prevent losing holes short of their intended depths as was the case late last year. The drilling so far, although slow, has been successful.
Now that the discovery has been de-risked, we go after increasing the deposit size. The second hole (#16 with assays to be released next week) is according to the press release:
Diamond drill hole 09TR016, a twin of RC hole 08TRRC040 (1.62 g/t gold over 100 metres), is located on the same section and approximately 20 metres below hole 09TR015. Geological logging on 09TR016 indicates mineralized material very similar to what was observed in diamond drill holes 08TR012 and 09TR015 over a comparable interval. The objective of the second hole is to confirm higher gold grades in the deeper part of the new zone.
This second hole, although a twin, will show if the higher grades exist deeper in the deposit. The RC showed 1.62 g/t. This hole should show grades significantly higher. It appears the mineralization goes for 100 meters in this core hole and if we get 5 g/t over 100 meters, the share price will move north of $1.00.
The third hole steps out a very long 500 meters to test a near surface anomaly.
The fourth and fith holes will start stepping out and going deeper than the first two holes to see if indeed this is a monster.
The next few months will be exciting to say the least. My recommendation was to sell 1/3 or 1/2 on the news but this is not yet the news that will cause a buying panic and therefore I haven't sold a share (although many did and locked in a nice profit). The best is ahead of us.
stateside
Sunday, May 17, 2009
Follow the money..........Paulsen & Co. goes all in
Two years ago he made billions shorting the real estate market. Now he will make billions in the gold and gold equities market. The 13-F filed Friday is incredibly bullish for the precious metals. The bloomberg article highlights just some of his purchases.
Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter
By Katherine Burton
May 15 (Bloomberg) -- Paulson & Co., the hedge-fund firm run by billionaire John Paulson, increased its investment in gold and gold-mining shares in the first quarter, according to a regulatory filing.
As of the end of the first quarter, Paulson was the largest holder of SPDR Gold Trust, an investment fund that buys gold bullion. The New York-based firm owned 8.7 percent of the fund, valued at $2.8 billion as of March 31, according to a filing with the U.S. Securities and Exchange Commission.
That position was established as a hedge, the company said in a statement, because its funds have a share class that is denominated in gold rather than in dollars or euros.
Paulson bought or added to several gold companies in the quarter as well. He purchased a 15 percent stake in Market Vectors Gold Miners ETF, a fund that mirrors the move in the Amex Gold Miners Index. That stake was worth $638 million at the end of the quarter.
Paulson also bought a 2.6 percent of Gold Fields Ltd., becoming the fourth-largest holder of the Johannesburg-based gold miner.
The investment firm, which manages $26 billion, also bought an additional 2.4 million shares of Kinross Gold Corp. Paulson owned 4.4 percent of the Toronto-based gold producer and was its third-largest holder at the end of the quarter.
Paulson reported owning an 11.3 percent stake in AngloGold Ashanti Ltd., also based in Johannesburg, in March.
Armel Leslie, a spokesman for Paulson, declined to comment.
Paulson’s largest fund, the Advantage Plus Fund Ltd. returned 4.8 percent through April.
Money managers who oversee more than $100 million in equities must file a Form 13F within 45 days of each quarter’s end to list their U.S.-traded stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.
To contact the reporter on this story: Katherine Burton in New York at kburton@bloomberg.net
Last Updated: May 15, 2009 15:58 EDT
Paulson’s Hedge Fund Bought Gold Stock, Miners in First Quarter
By Katherine Burton
May 15 (Bloomberg) -- Paulson & Co., the hedge-fund firm run by billionaire John Paulson, increased its investment in gold and gold-mining shares in the first quarter, according to a regulatory filing.
As of the end of the first quarter, Paulson was the largest holder of SPDR Gold Trust, an investment fund that buys gold bullion. The New York-based firm owned 8.7 percent of the fund, valued at $2.8 billion as of March 31, according to a filing with the U.S. Securities and Exchange Commission.
That position was established as a hedge, the company said in a statement, because its funds have a share class that is denominated in gold rather than in dollars or euros.
Paulson bought or added to several gold companies in the quarter as well. He purchased a 15 percent stake in Market Vectors Gold Miners ETF, a fund that mirrors the move in the Amex Gold Miners Index. That stake was worth $638 million at the end of the quarter.
Paulson also bought a 2.6 percent of Gold Fields Ltd., becoming the fourth-largest holder of the Johannesburg-based gold miner.
The investment firm, which manages $26 billion, also bought an additional 2.4 million shares of Kinross Gold Corp. Paulson owned 4.4 percent of the Toronto-based gold producer and was its third-largest holder at the end of the quarter.
Paulson reported owning an 11.3 percent stake in AngloGold Ashanti Ltd., also based in Johannesburg, in March.
Armel Leslie, a spokesman for Paulson, declined to comment.
Paulson’s largest fund, the Advantage Plus Fund Ltd. returned 4.8 percent through April.
Money managers who oversee more than $100 million in equities must file a Form 13F within 45 days of each quarter’s end to list their U.S.-traded stocks, options and convertible bonds. The filings don’t show non-U.S. securities or how much cash the firms hold.
To contact the reporter on this story: Katherine Burton in New York at kburton@bloomberg.net
Last Updated: May 15, 2009 15:58 EDT
Thursday, April 30, 2009
Questerre news and link to webcast
Good news for all of the Utica Players.
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2624820
Questerre's St. David No. 1 well tests at 450 mcf/d
2009-04-30 06:07 ET - News Release
Mr. Anela Dido reports
QUESTERRE ANNOUNCES VERTICAL SHALE WELL SUCCESS
Questerre Energy Corp. has released preliminary test results from its program in the St. Lawrence lowlands of Quebec.
Two prospective shale zones in St. David No. 1 were fracture stimulated in a single operation. On a 17-day test, the well flowed at a stabilized rate of 450 thousand cubic feet per day based on an analysis of the production logs, this flow rate is interpreted to be primarily from a single zone. The well is currently shut-in for buildup to gather additional pressure data.
Michael Binnion, president and chief executive officer of Questerre, commented: "Four hundred and fifty thousand cubic feet per day from a single frac in a vertical well is excellent for an emerging shale play. This result correlates with the over 800,000-cubic-feet-per-day test last August from the same zone in Gentilly No. 1. We look forward to drilling our first horizontal well with multistage fracs targeting this zone, which we are confident will significantly increase the rates."
Questerre also updated the status of recent testing on Gentilly No. 1 and La Visitation No. 1:
The Lorraine formation was successfully frac'd in Gentilly No. 1. Sustained gas flows were achieved encouraging further work to assess this potential.
Three prospective shale zones in La Visitation No. 1 were stage-fracture stimulated early this winter. Two zones in the Utica formation flowed at a preliminary rate of approximately 300,000 cubic feet per day over a five-day test period. Production logging indicates the majority of the flow is from the same zone as the successes at St. David No. 1 and Gentilly No. 1. Testing was affected by flow back of proppant and frac fluids, and further analysis is necessary to fully evaluate the results.
Mr. Binnion added: "Over all, we think this program is delivering tremendous results. We have one zone with three vertical successes over a broad geographic area. While early, this zone exhibits the characteristics required to carry a commercial development. Two other zones show good promise and we expect further engineering work will unlock their potential."
Questerre also reported that the operator has begun work on a seismic acquisition program in the lowlands. The 2-D data will target several areas for prospective pilot pads that could include multiple horizontal wells.
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2624820
Questerre's St. David No. 1 well tests at 450 mcf/d
2009-04-30 06:07 ET - News Release
Mr. Anela Dido reports
QUESTERRE ANNOUNCES VERTICAL SHALE WELL SUCCESS
Questerre Energy Corp. has released preliminary test results from its program in the St. Lawrence lowlands of Quebec.
Two prospective shale zones in St. David No. 1 were fracture stimulated in a single operation. On a 17-day test, the well flowed at a stabilized rate of 450 thousand cubic feet per day based on an analysis of the production logs, this flow rate is interpreted to be primarily from a single zone. The well is currently shut-in for buildup to gather additional pressure data.
Michael Binnion, president and chief executive officer of Questerre, commented: "Four hundred and fifty thousand cubic feet per day from a single frac in a vertical well is excellent for an emerging shale play. This result correlates with the over 800,000-cubic-feet-per-day test last August from the same zone in Gentilly No. 1. We look forward to drilling our first horizontal well with multistage fracs targeting this zone, which we are confident will significantly increase the rates."
Questerre also updated the status of recent testing on Gentilly No. 1 and La Visitation No. 1:
The Lorraine formation was successfully frac'd in Gentilly No. 1. Sustained gas flows were achieved encouraging further work to assess this potential.
Three prospective shale zones in La Visitation No. 1 were stage-fracture stimulated early this winter. Two zones in the Utica formation flowed at a preliminary rate of approximately 300,000 cubic feet per day over a five-day test period. Production logging indicates the majority of the flow is from the same zone as the successes at St. David No. 1 and Gentilly No. 1. Testing was affected by flow back of proppant and frac fluids, and further analysis is necessary to fully evaluate the results.
Mr. Binnion added: "Over all, we think this program is delivering tremendous results. We have one zone with three vertical successes over a broad geographic area. While early, this zone exhibits the characteristics required to carry a commercial development. Two other zones show good promise and we expect further engineering work will unlock their potential."
Questerre also reported that the operator has begun work on a seismic acquisition program in the lowlands. The 2-D data will target several areas for prospective pilot pads that could include multiple horizontal wells.
Thursday, April 23, 2009
Oro Gold and Real Time Measurement
The Oro Gold play is progressing as planned. Recommended a few weeks ago at $.185, the stock closed today at $.33. I would feel comfortable buying up to the $.50 level as I fully expect a $1 share price on the day of their press release in May (just added more today). My sleeper which I just highlighted as my April Energy Alert is Real Time Measurement (RTY). The share price actually fell on their blockbuster announcement and it sits at a paltry $.03 but I look for a $.15 share price over the next month. See my report at the top left of the website.
stateside
stateside
Sunday, April 19, 2009
One of the few to see this coming - from 2005
No one else on Wall Street dared talk like this in 2005. No one on Wall Street will tell the truth now.
stateside
http://www.youtube.com/watch?v=KT3yKNAJ2vE
stateside
http://www.youtube.com/watch?v=KT3yKNAJ2vE
The entire IMF sale of gold would be incredibly bullish
The rumour of an impending sale of some or all of the IMF gold has lead to a $100 sell-off. If it occurs, it will be incredibly bullish contrary to the conventional trade. The following below explains why:
http://www.321gold.com/editorials/russell/russell042009.html
http://www.321gold.com/editorials/russell/russell042009.html
Monday, April 13, 2009
A Primer on Junior Resource Investing
I posted this on the Investor Village board in response to a poster on Oro Gold (OGR.V) so I thought I would repost it here as well:
Good points. I made the assumption that since this is a precious metals board that most board members have at least a portion of their speculative money in the Canadian Juniors. Since that''s not the case, I'm more bullish than ever that this gold bull run has years to go. If we were at the heights of the gold bull, every widow and orphan would have some of their money in the Canadian PM juniors. Personally I only buy precious metal stocks that are traded on the Canadian exchanges even though I live stateside.
On Oro Gold (OGR.V), if you don't follow the Canadian Juniors then DO NOT SPECULATE on this stock. Take some time (several months) to read the Northern Miner publication and get familiar with how these stocks should be played. Follow a few of them daily to see how they react to news as these stocks are mostly news driven. After a while, dabble in a few of them to build your confidence in the sector.
For those who speculate in the sector, the following below is nothing new but it may help those who eventually get into one of these stocks:
Managment is key. Only speculate on a junior exploration stock where managment has worked for one of the larger precious metal companies and have been involved in prior discoveries. This can be determined by reading the bios on the website. In Oro Gold's case, the three executives are from Placer Dome and were involved in multi-million ounce discoveries.
Property is key/. The best place to look for gold is next to a gold deposit (duh). The property should also be close to road access and power. In Oro Gold's case, Eldorado Gold mined an open pit for 2 years in the 90's andf shut it down after 2 years due to low gold prices. They never drilled down further than 100 meters during their exploration phase. Oro Gold drilled 150 meters underneath the open pit and may have found a major new discovery with much higher grades than were mined by Eldorado.
Share structure is key. Avoid companies with a large number of shares outstanding (over 100 million) and preferably they should be under 50 million (as is the case with Oro Gold). The lower the number of shares, the greater the potential near-term return on a discovery.
News flow is critical. Juniors live and die by news flow and in certain parts of the world, no drilling can take place for months due to rain/cold/etc which leaves the junior void of news. In Oro Gold's case, the can drill year round and just started a new drill program with the first assays due back in 30 days.
Timing is critical. Even if a company releases good news, the overall sector performance has a drastic effect on the likelihood of a rapid rise in price on any news. Since mid-2008, most juniors (including Oro Gold) are down 80% or more from their highs. Very few large gains have been realized. When Oro Gold released their initial drill results in October 08 hinting of a major discovery (to be determined), it was the same day the TSX had their biggest point decline in history. After an initial spike, the share price got hit with all the other juniors. Also, the juniors trade smaller volumes in the Summer so it is tough to make large gains past the end of May through August.
Cash is critical. In this environment, many juniors can't raise funds to explore. Oro Gold has over $3 million in cash to drill throughout 2009 without needing to go to market for funds.
Technicals matter. Avoid any stock that rises suddenly on no news as it is sure to come back to earth. The key is to find a stock near it's 52 week low and one that has based for a while and is starting to move slowly higher (as is the case with Oro Gold).
Promotion matters. Juniors are a lighted match. They only have so much time to make a discovery before investors get impatient and the stock slowly dies. Since the major institutions don't cover the junior explorers, it is up to newsletter writers and company management to get the word out as financings are a necessary evil (similar to bio-techs in the states). Before relying on any newsletter writer, make sure they disclose their holdings of any stock they recommend (see my disclosure). Some of the better ones are Lawrence Roulston, Doug Casey, Peter Grandich and John Kaiser. Sprott Investments is the best resource institution who covers the juniors and also listen to Rick Rule if you get the chance.
Country matters. Mexico (Oro Gold), Canada and Chile are the best in my book. Fraser puts out a list of the most friendly mining countries.
High grade matters. In this tough financing environment, high grade gold offers a lower cost, higher payback proposition. Drill results over 5 g/t over significant widths are preferable (Oro Gold fits this criteria).
There are many other things to look for in a junior investment but you will find these out as you explore potential investments and make and lose money in the process. That being said, the juniors are so under-covered that you can find a diamond in the rough every now and then before the rest of the speculators realize the potential and those are the ones where significant profits can be achieved. You must be prepared, however, to lose your entire investment as the risks are high as well as the rewards.
Good points. I made the assumption that since this is a precious metals board that most board members have at least a portion of their speculative money in the Canadian Juniors. Since that''s not the case, I'm more bullish than ever that this gold bull run has years to go. If we were at the heights of the gold bull, every widow and orphan would have some of their money in the Canadian PM juniors. Personally I only buy precious metal stocks that are traded on the Canadian exchanges even though I live stateside.
On Oro Gold (OGR.V), if you don't follow the Canadian Juniors then DO NOT SPECULATE on this stock. Take some time (several months) to read the Northern Miner publication and get familiar with how these stocks should be played. Follow a few of them daily to see how they react to news as these stocks are mostly news driven. After a while, dabble in a few of them to build your confidence in the sector.
For those who speculate in the sector, the following below is nothing new but it may help those who eventually get into one of these stocks:
Managment is key. Only speculate on a junior exploration stock where managment has worked for one of the larger precious metal companies and have been involved in prior discoveries. This can be determined by reading the bios on the website. In Oro Gold's case, the three executives are from Placer Dome and were involved in multi-million ounce discoveries.
Property is key/. The best place to look for gold is next to a gold deposit (duh). The property should also be close to road access and power. In Oro Gold's case, Eldorado Gold mined an open pit for 2 years in the 90's andf shut it down after 2 years due to low gold prices. They never drilled down further than 100 meters during their exploration phase. Oro Gold drilled 150 meters underneath the open pit and may have found a major new discovery with much higher grades than were mined by Eldorado.
Share structure is key. Avoid companies with a large number of shares outstanding (over 100 million) and preferably they should be under 50 million (as is the case with Oro Gold). The lower the number of shares, the greater the potential near-term return on a discovery.
News flow is critical. Juniors live and die by news flow and in certain parts of the world, no drilling can take place for months due to rain/cold/etc which leaves the junior void of news. In Oro Gold's case, the can drill year round and just started a new drill program with the first assays due back in 30 days.
Timing is critical. Even if a company releases good news, the overall sector performance has a drastic effect on the likelihood of a rapid rise in price on any news. Since mid-2008, most juniors (including Oro Gold) are down 80% or more from their highs. Very few large gains have been realized. When Oro Gold released their initial drill results in October 08 hinting of a major discovery (to be determined), it was the same day the TSX had their biggest point decline in history. After an initial spike, the share price got hit with all the other juniors. Also, the juniors trade smaller volumes in the Summer so it is tough to make large gains past the end of May through August.
Cash is critical. In this environment, many juniors can't raise funds to explore. Oro Gold has over $3 million in cash to drill throughout 2009 without needing to go to market for funds.
Technicals matter. Avoid any stock that rises suddenly on no news as it is sure to come back to earth. The key is to find a stock near it's 52 week low and one that has based for a while and is starting to move slowly higher (as is the case with Oro Gold).
Promotion matters. Juniors are a lighted match. They only have so much time to make a discovery before investors get impatient and the stock slowly dies. Since the major institutions don't cover the junior explorers, it is up to newsletter writers and company management to get the word out as financings are a necessary evil (similar to bio-techs in the states). Before relying on any newsletter writer, make sure they disclose their holdings of any stock they recommend (see my disclosure). Some of the better ones are Lawrence Roulston, Doug Casey, Peter Grandich and John Kaiser. Sprott Investments is the best resource institution who covers the juniors and also listen to Rick Rule if you get the chance.
Country matters. Mexico (Oro Gold), Canada and Chile are the best in my book. Fraser puts out a list of the most friendly mining countries.
High grade matters. In this tough financing environment, high grade gold offers a lower cost, higher payback proposition. Drill results over 5 g/t over significant widths are preferable (Oro Gold fits this criteria).
There are many other things to look for in a junior investment but you will find these out as you explore potential investments and make and lose money in the process. That being said, the juniors are so under-covered that you can find a diamond in the rough every now and then before the rest of the speculators realize the potential and those are the ones where significant profits can be achieved. You must be prepared, however, to lose your entire investment as the risks are high as well as the rewards.
Saturday, April 11, 2009
The best near-term investment opportunity of the last 4 years
Since following the Canadian junior exploration sector since 2005, the opportunity I highlight in my April investor alert on the website is the best near-term (less than 1 month) precious metal gain potential I have encountered. It's almost like knowing that Aurelian was going to announce their Fruta Del Norte discovery 3 weeks before the announcement. The clues are there but no one is connecting the dots. I have purchased 100,000 shares of Oro Gold over the last week and expect the shares to trade over $1 at some point in May. They currently trade under $.20. The opportunity is summarized here (right click to open in a new2 window):
http://www.statesidereport.com/Stateside_Gold_and_Silver_Report_-_Oro_Gold.pdf
Please do your own due diligence before considering purchasing shares and if you happen to get a double, sell 1/2 to recover your original cost and let the rest ride.
stateside
http://www.statesidereport.com/Stateside_Gold_and_Silver_Report_-_Oro_Gold.pdf
Please do your own due diligence before considering purchasing shares and if you happen to get a double, sell 1/2 to recover your original cost and let the rest ride.
stateside
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