Potential 3 Bagger!
Dear readers I am the hot on the heels what could be the hottest resource story of the year. It all began on June 6, 2010. As a newbie to the Junior Resource stock investing I decided to attend the World Resource Investment Conference in Vancouver, Canada. On my way to the conference I heard a gentleman say, "Greg, what is your number one pick?" Greg, a well dressed men in a good suit said something to other man that I could not over hear. Being the nosy type that I am and looking for a great investing tip, I had to ask this "Greg" what his number one pick was.
As Greg was entering the Vancouver Convention center, I had to put the question to him, "Greg, what is your number one pick?"
Even though he was on his way to the conference, Greg was kind enough to give me a response, "Orko Silver, symbol OK on the TSX Venture Exchange. It is a potential 3 bagger due to a possible buyout of its La Preciosa claim." Greg then went on to do his presentation at the conference. I was to learn later that I just bumped into Greg McCoach, editor of the Mining Speculator newsletter. If you are reading this Greg, I am sorry for being pushy, but I had to get a handle on one of the hottest stories of the conference.
All right, I had a starting point, and later, I attended Greg's talk on "How to Build a Successful Mining Stock Portfolio." He brought up Orko Silver again, and he stated that there could a possible buyout of their La Preciosa claim in Durango state, Mexico in the next 4-6 months. Well that really got my attention. Unfortunately, Orko Silver did not have a booth at the conference so this was all I had to go on until today.
I got up the nerve to go directly to the head office of Orko Silver, in downtown Vancouver, you know the place where they had that small party called the Winter/Summer Olympics and find out the full story. I met up with Douglas Cavey, of Corporate Development, for Orko Silver. He gave me an hour out of his busy schedule to give me the full details of the story.
Orko Silver has 100% ownership of its La Preciosa claim. According to Doug, this is one of the world's largest primary silver deposits. Their silver project and adjacent mineral concessions cover 32, 400 hectares of contiguous mining claims. Now this is where it gets interesting, on February 18, 2009 they completed a compliant Resource Estimate of 146.4 million Silver Ounces at the La Preciosa Project. That means at today's Silver prices they could be sitting on a deposit worth 1 billion dollars.
Well 1 billion of anything gets me interested and if its dollars all the better. Now here comes the Pan American Silver Corp. part of the story. Pan American Silver has gone into a joint venture with Orko Silver. Doug told me the structure of the deal is that Pan American Silver will bring the mine into production on a 55 to 45 split. That means Pan American will receive 55 percent of the profits once the mine is brought into production. No production, no cut of the profits for Pan American. Simple as that. This is why Pan American is fast-tracking development of the La Preciosa site. The sooner the mine gets into production the sooner they get a return on their multimillion dollar investment in the property, and make bankable profits.
The 4-6 month time line comes in at this point. Pan American is currently doing a feasibility study of the area. This feasibility study is expected to be done by December of this year. The study mainly affects how the resource will be mined. Will it be open pit, underground mine or a combination? The site has only had surface mining operations so the best approach will be determined by the feasibility study.
Once the study is complete Pan American Silver has two possible choices give Orko Silver a 45% share of the profits or go for complete ownership the site and buy Orko Silver out of their claim. Now that is how we get to the 3 Bagger potential for La Preciosa. Once the feasibility study is finished the value of the La Preciosa deposit will be recalculated, and there will be a new valuation of Orko Silver shares. This could make Orko Silver's shares jump to 3 times their present value. It estimated that the La Preciosa project has a potential production of 7-8 million ounces of silver annually and could become the 6th highest silver production site in the world.
Now, here is the story, and I hope it leads you to great profits in the coming year. Please do your own research and due diligence on this company and tell me what you find. The Orko Silver website is http://www.orkosilver.com/s/Home.asp The Pan American Silver Corp. website is http://www.panamericansilver.com/index.php
Final note is that Orko Silver is listed under the symbol OK on the Toronto Stock Exchange (TSX), the exchange website address is http://www.tmx.com/. Orko Silver is currently trading at $1.41 Canadian. Pan American Silver is listed under the symbol PAA on the TSX and is listed under the symbol, PAAS on the U.S. Nasdaq exchange. The current share price for Pan American Silver is $27.22 (TSX) and $26.59 Nasdaq. The Nasdaq exchange website is http://www.nasdaq.com/.
Disclaimer: The views contained here may or may not represent the views of this blog. The author makes no guarantee of the accuracy of completeness of the information (including news, editorials, prices, analyses, statistics or the like). In no event will the author or affiliates be liable to any person for any decision made or action taken in reliance upon the information herein. The information provided is the personal opinion of the author and should not be construed as investment advice. Please consult an investment/tax adviser prior to making any investment decisions.
As Greg was entering the Vancouver Convention center, I had to put the question to him, "Greg, what is your number one pick?"
Even though he was on his way to the conference, Greg was kind enough to give me a response, "Orko Silver, symbol OK on the TSX Venture Exchange. It is a potential 3 bagger due to a possible buyout of its La Preciosa claim." Greg then went on to do his presentation at the conference. I was to learn later that I just bumped into Greg McCoach, editor of the Mining Speculator newsletter. If you are reading this Greg, I am sorry for being pushy, but I had to get a handle on one of the hottest stories of the conference.
All right, I had a starting point, and later, I attended Greg's talk on "How to Build a Successful Mining Stock Portfolio." He brought up Orko Silver again, and he stated that there could a possible buyout of their La Preciosa claim in Durango state, Mexico in the next 4-6 months. Well that really got my attention. Unfortunately, Orko Silver did not have a booth at the conference so this was all I had to go on until today.
I got up the nerve to go directly to the head office of Orko Silver, in downtown Vancouver, you know the place where they had that small party called the Winter/Summer Olympics and find out the full story. I met up with Douglas Cavey, of Corporate Development, for Orko Silver. He gave me an hour out of his busy schedule to give me the full details of the story.
Orko Silver has 100% ownership of its La Preciosa claim. According to Doug, this is one of the world's largest primary silver deposits. Their silver project and adjacent mineral concessions cover 32, 400 hectares of contiguous mining claims. Now this is where it gets interesting, on February 18, 2009 they completed a compliant Resource Estimate of 146.4 million Silver Ounces at the La Preciosa Project. That means at today's Silver prices they could be sitting on a deposit worth 1 billion dollars.
Well 1 billion of anything gets me interested and if its dollars all the better. Now here comes the Pan American Silver Corp. part of the story. Pan American Silver has gone into a joint venture with Orko Silver. Doug told me the structure of the deal is that Pan American Silver will bring the mine into production on a 55 to 45 split. That means Pan American will receive 55 percent of the profits once the mine is brought into production. No production, no cut of the profits for Pan American. Simple as that. This is why Pan American is fast-tracking development of the La Preciosa site. The sooner the mine gets into production the sooner they get a return on their multimillion dollar investment in the property, and make bankable profits.
The 4-6 month time line comes in at this point. Pan American is currently doing a feasibility study of the area. This feasibility study is expected to be done by December of this year. The study mainly affects how the resource will be mined. Will it be open pit, underground mine or a combination? The site has only had surface mining operations so the best approach will be determined by the feasibility study.
Once the study is complete Pan American Silver has two possible choices give Orko Silver a 45% share of the profits or go for complete ownership the site and buy Orko Silver out of their claim. Now that is how we get to the 3 Bagger potential for La Preciosa. Once the feasibility study is finished the value of the La Preciosa deposit will be recalculated, and there will be a new valuation of Orko Silver shares. This could make Orko Silver's shares jump to 3 times their present value. It estimated that the La Preciosa project has a potential production of 7-8 million ounces of silver annually and could become the 6th highest silver production site in the world.
Now, here is the story, and I hope it leads you to great profits in the coming year. Please do your own research and due diligence on this company and tell me what you find. The Orko Silver website is http://www.orkosilver.com/s/Home.asp The Pan American Silver Corp. website is http://www.panamericansilver.com/index.php
Final note is that Orko Silver is listed under the symbol OK on the Toronto Stock Exchange (TSX), the exchange website address is http://www.tmx.com/. Orko Silver is currently trading at $1.41 Canadian. Pan American Silver is listed under the symbol PAA on the TSX and is listed under the symbol, PAAS on the U.S. Nasdaq exchange. The current share price for Pan American Silver is $27.22 (TSX) and $26.59 Nasdaq. The Nasdaq exchange website is http://www.nasdaq.com/.
Disclaimer: The views contained here may or may not represent the views of this blog. The author makes no guarantee of the accuracy of completeness of the information (including news, editorials, prices, analyses, statistics or the like). In no event will the author or affiliates be liable to any person for any decision made or action taken in reliance upon the information herein. The information provided is the personal opinion of the author and should not be construed as investment advice. Please consult an investment/tax adviser prior to making any investment decisions.
