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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

Comment by Pepelepieuxon Jan 21, 2021 5:32pm
645 Views
Post# 32355215

RE:Santo Thomas and Haib

RE:Santo Thomas and Haib

If you remember only one thing of what I'm going to say, remember that mining is a really shitty business. 

The odds are way against you making $ in that business compared to going to the Casino where you already know the odds are against you.  Just because OCO is part of the 5% where all the stars perfectly aligned (after 20 years of legal battles, a super unusual way of it falling in the lap of OCO, historical drilling already done, good management team, perfect geography, good access and power, good legal jurisdiction), doesn't mean that it's worth the time to find another needle in a hay stack.

In this already shitty business, you have a deposit already known to be economically unfeasable. So, in order for it to work for you, a tiny company which probably doesn't have the cash to hire the best people in the world, will have to figure out the one method to cut enough corners to reduce the cost of extraction enough to eke out enough profit to keep paying themselves salaries.  By some miracle, they will not only eke out enough to break even, but they will make investors a big return.  What if they get to barely breakeven after huge investments and the price of copper dips just a little bit?  There's such little margin of safety even then!  You see where I'm getting at?

Here's another investment nugget: If you find yourself in an investment situation where time works against you, get out immediately.  In this instance, time is bleeding the company of cash, and the more cash they bleed, the more they have to raise at greater and greater dilution, and if the status quo continues, the worth of the stock goes to zero.  For that NOT to happen, there has to be a breakthrough.  YOU DON'T WANT TO BE IN A SITUATION WHERE YOU ARE DEPENDENT ON AN UNUSUAL BREAKTHROUGH TO HAPPEN.  

A better scenario is to buy the stock if the company is NOT spending any $, and then wait for the price of copper to reach such levels as to make the cost of extraction and processing worth your while.  But it's their spending of $ trying to find this technological breakthrough that will probably kill the time frame you can wait for the price of copper to go high enough for it to be profitable.

Now compare this to Santo Thomas.  Time is on YOUR side.  We know the copper is there.  We know the cash for drilling is there.  The more time goes, the more the company will be able to confirm the historical results AND expand the resource (an expected increase in the price of copper would be an added bonus), making the company and stock more and more valuable.

I hope this helps.  Remember.  Mining is a shitty business.  The only reason I, Mariusz and others are in OCO is because of an incredible confluence of events that makes it incredibly worthwhile.  We learned what I told you above in a very, very expensive way.  Learn the cheap way, from our mistakes.  Best wishes.

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