Mining Speculator issueHere the alert from Greg McCoach.
Mind you, I had that alert out at the 0.60 'ies :-)
then again at the 0.80'ies...1.20....oh well...still some way to go our Orko!
........from The Mining Speculator written by newsletterwriter Greg McCoach, published May 12, 2010.....
NEW RECOMMENDATION
ORKOSILVER CORP.
Symbols: OK onthe TSX-V, OKOFF on the OTC
52 WeekHigh/Low: C$1.80 – 0.57
Current Price: C$1.65
SharesOutstanding: 114,458,979
Website: www.orkosilver.com
Orko Silver isa development stage company that has significant upside potential toincrease the size of their flagship discovery project called LaPreciosa.
This projectis one of the world’s largest primary silver deposits,and is located near the city of Durango, in Durango State, Mexico. TheLa Preciosa silver project and adjacent mineral concessions cover 80,000acres of contiguous mining claims.
There are somevery exciting things happening right now for the company, but first letme take you through some history of the company to get you up to speed.
In February of2009, the Company released its 6th NI 43-101 compliant ResourceEstimate. The La Preciosa deposit at that point comprised 47% IndicatedResources and 53% Inferred Resources. Current Indicated Resources are10.64 million tonnes grading 0.27 g/t Au and 185 g/t Ag for aSilver-Equivalent grade of 201 g/t. at a cut off grade of 100 g/t. Thecontained metal equals 63.2 million ounces of Silver and 94,000 ouncesof Gold for a Silver Equivalent of 68.9 Million Ounces. Current InferredResources are 12.0 million tonnes grading 0.25 g/t Au and 185 g/t Agfor a Silver-Equivalent grade of 200 g/t. at a cut off grade of 100 g/t.The contained metal equals 71.8 million ounces of Silver and 97,000ounces of Gold for a Silver Equivalent of 77.6 Million Ounces.* *Estimatedat a 60 to 1 Silver/Gold ratio with metallurgical recoveries and netsmelter returns assumed to be 100%.The current resource estimate is based on all of Orko Silver’sdrilling to date, including the 2008 drilling of an additional 205holes (79,021metres). There remains significant potential fordefining a larger resource! In April of 2009 Pan AmericanSilver Corp. and Orko Silver announced that they had agreed to form a
joint venture todevelop the La Preciosa project. Pan American will contribute itsdemonstrated mine development expertise, as well as 100% of the fundsnecessary to develop and construct an operating mine, in considerationfor a 55% interest in the joint venture. Orko Silver retains a45% interest fully carried to production.
Key aspects tothe joint venture and the development strategy for La Preciosa include:
- Pan Americancurrently operates 7 primary silver mines
- Pan Americanhas completed 3 successful mining project in the past 4 years
- Pan Americanwill fast track the deposit to production
- Orko Silverretains a 45% fully carried interest to production
- No financingrisk or further dilution for Orko Silver shareholders
- OrkoSilver’s shareholders will benefit from the financial capacity andextensive mine development expertise that Pan American brings to thejoint venture as well as retain the upside potential for the discoveryof additional resources from Orko Silver’s exploration team The jointventure partners have developed a strong working relationship and arecurrently in the process of a 51,000 meter drill program,with the majority of the drilling slated for further resourcedefinition -- 100 kilometres of magnetometer surveys, more detailedmetallurgical testing, additional engineering studies, a preliminaryeconomic assessment and continued community relations. Drilltesting of two additional exploration targets (El Orito Norte and theNancy Vein) along with the completion of a preliminary environmentalimpact study are also integral partsof the 2010 summer program.
Integral tothe planned exploration and perhaps the most important investigationcontinued by Pan American will be determining the optimal mining method,should all the results of the accelerated work program remain positive.Currently, Pan American is investigating the possibilities of miningthe deposit by underground methods, by a large open pit or a combinationof the two methods. It will need the results from the 2010 work programto determine the best approach to mining at La Preciosa.
Pan Americanhas budgeted $10-million for the planned exploration and development. Itis working towards completing a full feasibility study towards the endof the year -- more than a year ahead of the timing contemplated in theApril, 2009, joint venture agreement.
Gary Cope,president of Orko Silver, stated, “Orko is very pleased with theprogress of the exploration to date and the acceleration of the worktowards the completion of the full feasibility study towards the end of2010.”
Thisannouncement is a very big key to Orko’s future share price. For anexploration junior such as OK who has limited funds to drill off and prove up theirdiscovery, a joint venture partner such as Pan American who plans onspending $10 million on your project is a Godsend.
There is avery good chance that the 51,000 meters of drilling over the course of2010 will greatly increase the size of Orko’s resource at La Preciosadelivering to share holders a much higher share price. With silverprices getting ready to make a big move, this kind of play makes a lotof sense to me as our risk is low and the potential to get a double,triple or more in the short term is very good over the course of thenext 8 months.
This story hasbuyout written all over it. I would guess that after the 51,000 meterdrill program is completed, Pan American Silver will make a solid offerto buy out the company sometime this fall. As shareholders of Orko, itdoesn’t get much better than having the best silver company in the worldbe your joint venture partner and the potential buyer of your shares inthe near future.
I am nowrecommending Orko Silver as a STRONG BUY and the numberone stock of The Mining Speculator.
Buy on anyweakness up to C$2.00.
www.orkosilver.com
Sincerely,
The Gold Investment Report
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Disclaimer – Orko Silver is a client of StrataStar Marketing.StrataStar Marketing owns the Gold Investment Report.Thisinformation is not an offer to sell or solicit an offer to buy anysecurities.We believe the information is accurate howeverwe cannot guarantee the accuracy of the statements made in this report.StrataStar Marketing owns stock options in Orko Silver.