RE:RE:RE:13.7 Kilometers of Drilling add at least 4 years Mine Life Nergy wrote: Ganndolph is at least trying to write something constructive to this message board, highlighting the fact that Orvana is hiding excellent drill results at the end of a quarterly production report. Yes there is political risk for mining in Spain, Bolivia and Argentina but the valuation of Orvana is totally out of touch.
Nergy,
I don't think that it is accurate to characterize Orvana as hiding their drilling results. When Orvana announced the discovery of the new High Angle East (HAE) structure in the October 22, 2020 news release, I barely took notice of it even though they announced three high grade gold intercepts.
When I took my first look at the drill hole data, I concluded that maybe Orvana had added between 160,000 ounces of gold to 190,000 ounces of gold if the deposit were continuous.
But, did I understand that 38 percent of the exploration budget had gone into drilling the HAE structure? No, but the data was presented on page 12 of the Q1 2021 MD&A where the breakdown of the exploration activities was presented: Orovalle Growth Exploration Orovalle drilled in El Valle
7,214 meters in first quarter of fiscal 2021. 4,002 meters were infill drilling and 3,212 meters were in brownfield drilling, distributed by areas as follows:
Meters Q1 2021 Comments Infill drilling
A 208 2,041 Drilling program is on going according to the budget. Plan is continue drilling the structures to the North. New resources were added into Measured and Indicated resources. Mineralization is located in the lithology contacts and displaced by faults.
SB 709 Infill drilling program was started in Q1 to define skarn material in Boins South. Inferred resources were converted into Measured and Indicated resources.
S107 867 Inferred resources were converted into into Measured and Indicated resources and new inferred material was added. Narrow sulfides bands were intersected.
BO 142 Drilling to convert Indicated into Measured resources in the oxide part of Black Skarn.
Other areas 243 Grade control drilling for stopes in Boins East and Black Skarn which will be mined in the short term. Brownfield drilling
High Angle East 2,605 Drilling program continue in High Angle East. More drill holes than planned were completed in this area due to the mineralization is still open at depth. For this reason more meters than budget were carried out in brownfield. The objective is add new resources for the Life of Mine. BO 300 Some drill holes were carried out in the oxide part of Black Skarn, extending the mineralization and increasing the new resources. This area will be an objective for the next months.
BE 307 Small exploration program was completed to increase the skarn resources. The strategy for fiscal 2021 is in line with previous fiscal year, that meaning to be focused on oxide areas and to convert the inferred material in measured and indicated material. On the other hand, Orovalle intends to continue with the exploration programs to look for new inferred resources and new areas like High Angle East.
The great part about investing in ORV is that these guys rate:
10/10 in terms of the technical data presented in their technical reports;
10/10 in terms of the quality of their financial reports; but,
3/10 when it comes to the marketing aspects of presenting the investment case to your average investor.
IMHO, that is the fundamental reason behind the undervaluation of ORV's stock price. Stock brokers in Canada hate this stock, because they do not play the game of selling shares to the public and inflating the share count, so there are no commissions to be had for a stock that doesn't dilute its shares.
So, if you are a long term investor looking for a seriously undervalued company, where there is serious upside in the stock valuation based on the company's performance, IMHO there is no better stock to be in at this point in time than Orvana Minerals.
A detailed look at the HAE drilling results, and what it means to follow.