re: Ann: High-Grade Gold at Frenchman's R...
I first invested in SLR at 17c, I bought a parcel at 20 and it fell back to 15 and I was wondering if I had done my money. Some days there was hardly any trading. the brokers were generally negative, the previous operator of the Daisy Milano had lost money bulk mining it. they said the ore ran out at the dyke. It was a wildcat punt for me.
Sound a bit like ORS now right.
I backed it because of management and there was a theory that the rich narrow lodes repeated across the field, of great interest was the Haoma lode, and guess what , it did repeat, there was even better and richer structures on the other side of the dyke and SLR starting generating strong cash flow which set up it up
the relevance of all this is that some people think that this is an SLR look a like. Personally I don't think so, however it has many features that the Mount Monger Field had for SLR. It has bonanza narrow vein lodes which can be mined with airleg to reduce dilution. It has not been explored at depth, it has a decline in place and a mill.
The only way a junior can get traction without ongoing share dilution is to mine a bonanza lode and make a lot of money very quickly, like SLR did ( and BHP, WMC NCM and Normandy have done). The then have to control a goldfield that is vastly underexplored and may have significant upside. And they need a mill that could be expanded if they are succesful, organic growth funded from cashflow, the holy cow of junior miners. You dont make serious money in this game unless you back juniors, buying midcaps once they have matured is just as risky.
lets see how we go.
ORS Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held
