New Orperu Resources Inc V.ORO

Malcolm Shaw

[Chreca1]

New OroPeru (ORO.V, last at $2.99) case earlier this year (and a couple of times afterwards) and I still like this one a lot. As a bolt-on or a standalone, the Tres Cruces project is one of the cheapest gold resources (3.2mm ozs M+I+I) that I am aware of in the market today given its quality. The deposit has a low-strip oxide cap that will be a veritable windfall (say, USD$1000+/ounce margins on 300,000-400,000 ounces… both guesstimates on my part) for whoever develops it, without even considering the underlying ~3 million ounces of sulphides that are open to depth. I say “whoever develops it” because I just can’t see a deposit of this scale and this quality, with as much exploration potential as it has at depth, sitting out there for long. M&A is starting to tick up in the golds and ORO is like an antique lamp sitting on the shelf, forgotten by all but the most elephant-minded shoppers. Barrick has a role to play in how this all resolves through its Lagunas Norte mine, which was rumoured to be for sale as per an article in the Mining Journal in early November, so I guess we’ll see what transpires. With a little polish, ORO could shine some more.