Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Oroco Resource Corp V.OCO

Alternate Symbol(s):  ORRCF

Oroco Resource Corp. is a Canadian mineral exploration company. The Company is engaged in the acquisition and exploration of mineral properties in Mexico. It holds a net 85.5% interest in those central concessions that comprise 1,173 hectares (ha) (the Core Concessions) of The Santo Tomas Project, located in northwestern Mexico. It also holds an 80% interest in an additional 7,861 ha of mineral concessions surrounding and adjacent to the Core Concessions (for a total Project area of 9,034 hectares, or 22,324 acres). The Project hosts a large, outcropping porphyry copper deposit comprised of fracture-hosted and disseminated copper and molybdenum sulphides with significant gold and silver credits. Its Xochipala Property is comprised of the Celia Gene (100 ha) and the contiguous Celia Generosa (93 ha) concessions. Its Salvador Property is a 100-hectare mining concession, which lies around 25 kilometers (kms) to the west of the Xochipala Property and 30 kms west of Chilpancingo, Guerrero.


TSXV:OCO - Post by User

Bullboard Posts
Comment by thereaderon Jul 12, 2020 2:14pm
221 Views
Post# 31257707

RE:RE:Why Is Santo Tomas Number 1 in the World

RE:RE:Why Is Santo Tomas Number 1 in the WorldIMO, Oroco will have a higher acquisition price than Solgold, relative to its NPV.  Solgold's CAPEX would be significantly higher and development would be understood to be much riskier, with a higher liklihood of technical challanges and cost overuns. Alpala is an undergound block caving operation, which carries a MUCH higher cost, both CAPEX and OPEX, and has significianlty more tecnical challanges than Santo Tomas' simple open pit.

As an example, the developmet of a similar underground operation at Oyu Tolgoi resulted in a h"cost blowout " for the developer....https://www.mining.com/rio-tinto-faces-1-9bn-cost-blowout-further-delays-at-oyu-tolgoi-copper-gold-mine/

In an M&A transaction this risk would manifest itself in a lower price for Solgold relative to the NPV, and it would also limit the number of buyers as it's a much smaller number of companies with the technical know-how to take on a project like Solgolds. 

And, IMO, Mexico represents a better regulatory environment than Ecuador, with more predictable permitting.

So, if both SOLG and OCO are in similar value positions now, it's OCO that will perform better relative to SOLG, both as the resource is confirmed and expanded, and in an M&A transcation.
Bullboard Posts