Orinoco Gold (OGX) is truly an exciting project. TRF own 18 per cent
Benefits include
The reward and upside of new opportunity from old artinsal workings. New technology and new expertise to target these high grade host mineralization zones within the winzes.
The high grade gold appears coarse and in clusters (nuggetty) in these quartz mineralization zones. 90% of gold is 150+ mesh size. Its cheaper to drill from the underground mine straight into the ore zone than from above 70m through barren rock.
Lower drilling and lower CAPEX costs, with an average cash cost to produce of around $400 an ounce. Benefits include very quick revenue and cash flow with gravity concentration, simple crushing and separation method as opposed to leaching.
OGX may be in production in the next 6 months to 12 months. Unlike Gold Projects in Australia, which take considerable time with environmental permits etc and usually take 2 to 3 years to begin.
We await further channel and bulk sampling to give a better understanding of the size of deposit and inferred resource next few weeks.
Andean Resources went from 6c to $7 a few years back when they proved up 500,000 ounces and were later taken over by a major.
Other Gold projects in South America include Troy Resources (TRY) which have paid very regular dividends to shareholders.
For me OGX represents a good strategy for TRF shareholders to benefit in the near term.
Arlberg1
TRF Price at posting:
13.5¢ Sentiment: LT Buy Disclosure: Held
