Today Jan 9, 2020 marks the first day that Oroco is just like everyone else. They have clear title to a deposit that they have been working towards for a decade. Many thought it would never, could never happen. A junior miner with a micro cap value landing a multi billion ton copper deposit with an NPV of 1.66 Billion dollars!
Today is the first day we are not waiting for someone somewhere to make a decision that will significantly affect the outcome of our collective futures. There will be no more talks of judges or registries, or legal strategies. That is how we are now just like everyone else.
We are however, nothing like the literal thousands of other juniors scrambling to find some pasture somewhere to survey and drill with fingers and toes crossed we find a sniff of something.. anything, so that we can hire a pr team and tell everyone in hopes our share price moves on the dial.
Oroco is now undisputed owner of Santo Tomas, a world class copper deposit that was discovered in the late 1960’s. Many of the aforementioned herd of junior miners will tout acquiring an “advanced” project. That usually entails a property someone has cut down a tree or two to build a pad and sink a hole or two. Santo Tomas already has over 100 holes drilled for over 30,000 meters with the historical data to back it up. Previous operators took the deposit to the pre feasibility stage in the early 1990’s with copper gold and silver prices a fraction of what they are now. It was attractive then and is more so now with gold at 1500 copper 2.8 and silver 18 bucks.
Not only does Oroco own the main deposit it has also acquired over 7800 hectares of land in the surrounding area. Total project area is now over 22,000 acres. Management has done its homework and has put together a mouth watering project ready for acquisition. From clearing the title to preserving the data and putting together the surrounding lands, a lot of the work a major looks for has been done.
Oroco is not yet ready for a sale though. From previous work it is quite easy to see the deposit is comparable to an iceberg. Only the top portions have really been looked at. The drill data for many holes ends in mineralization and where this is the case, many of those show increasing grade with depth! There are 3 mythical holes drilled to the North that have become lost to time. It appears a previous operator may have drilled on a property they didn’t have rights to, and from stories I have heard they were very much the stuff of legend.
Of course the deposit is also near infrastructure and the strip is very low as the topography dips at the same rate as the deposit which sits on a ridge. I can hear you thinking c’mon Cal.. this is too good to be true.. That is why up till today this has been what the industry deems a “special situation” a massive deposit taken to pre feas with all the good attributes of ST doesn’t come up too often, and I agree. Things needed to get sorted and they have!
I, and several other astute investors jumped in with both feet 2 years ago willing to wait for stuff to get straightened out and have been pounding the table ever since. Some have listened some have not saying it couldn’t happen.. well my friends as of today it has happened..the question is what will you do?
Will you be like everyone else and not believe or will you look at the facts and realize sometimes unicorns are real!
We think fair value is about 1.56 as it stands right now. The shares are trading at about 50 cents. The game changed today from speculation to bean counters pulling out calculators. The big boys look at numbers and Santo Tomas has some good ones. If they invest X dollars at 1 and its worth 1.5 thats a 50% gain. Simple math.
Likewise majors will look at the data run their models and do projections. all the while Oroco will be running geophysical surveys and drilling to tighten up the current deposit and explore. There is a lot of upside here from where the shares are trading to how many tons infill and exploration will add.
This is truly a once in a lifetime opportunity. Today Oroco went from a special situation to being just like everyone else.. but with a world class deposit under their belt.