Teuton Office Visit
I was downtown last Thursday and dropped in to visit the Teuton office. I met with Gary and Dino, great guys and very knowledgeable. We talked for close to an hour about the upcoming season and all the money to be spent this year. I think last tally was around $80 million! That is LOT of money to be put into a relatively small area of ground.
The Golden Triangle is just that, full of gold! The largest undeveloped gold deposits in the world are right in the backyard.
Treaty Creek as for as Im concerned has already hit and hit big! 241 meters of .8 grams gold is a MAJOR discovery next to the biggest undeveloped gold deposit in Canada if not the world right now! I have to ask why aren’t people fighting to get this stock. I then say good for me, more time to get a meaningful position. I will admit i didn’t get any of the sub dime shares and didn’t start chasing it till it was in the high 20’s but thats ok, even .50 will look like a steal very soon.
The Treaty Creek program is being worked out now. I dont think the full budget has been set but I’m guessing it will be a sizeable program that easily defines and expands on the discovery hole. Deposits that reveal 240 meters of mineralization seldom remain small for very long. The hole ended in mineralization and it will be tested to depth with a drill capable of going much deeper.
There is a LOT going on with Teuton in the next months, buy it while its cheap and put it away.
I feel any position in TUO has the ability to significantly change ones net worth, and I’m definitely accumulating a significant position!
warmest regards
caliche
Caliche—-Which has the most short term potential ??? TUO or OLE…in your opinion….My opinion is Ole will be up 300 % (to $2.50 to $2.75) within 90 days and that Tuo , in that timeframe, will be up less than 50 %…….Do you believe that I am way off base ?????….Opportunity-SHORT term-lies with Ole…..IMO
Hi Arlene
actually i believe NES has the best short term potential
once the Ana Paula deal closes (soon) i think it will rocket
Hi Arlene,
I sure hope you are right about your prediction for Oromin in the next 90 days. I am just wondering why you are so precise with your price target? What kind of calculations or numbers are you using to reach this $2.50 to $2.75 range.
Thanks for your continual positive stance on the stock.
Tony
Tony——No one can accurately predict any “precise” price……..I base my OPINION on FS likely to show 5 million ounces gold proven and probable ….3.5 million measured and indicated plus 1.5 million inferred will change to proven and probable once the feasibilty study shows economic viability………Economic viability needs good NAV & IRR which I believe the $3.5 million FS will demonstrate….NAV & IRR just as important as number ounces of gold (maybe more so)…So I am really counting on a good to excellent FS….Your opinion as valid as mine , but I see no reason why Ole’s FS should not be as good as, or better than , MDL’s was……If I am corect , I would expect Ole share price to at least double the mid June share price by mid July…FS due out early July…You tell me precisely what the mid June share price will be and what the NAV & IRR will be and I’ll try to then be even more precise…Best Regards &Keep the Faith……..Ole not dead yet….
Arlene, thanks for your quick response and good luck.
Tony
Caliche—–NES last sold today at .50——-What do you think the potential rocket price will be within 90 days ??? I think they announced today that they have agreement on the Ana Paula deal , did they not ??
Hi Arlene i had a masterful response to you but hit delete instead of post.. grrrr
basically i have leveraged my oromin money into NES
i got roughly a 2:1 nes to ole ratio so for say 50000 ole i bought 100000 nes
on the premise that a companies first million ounces adds more to the share price than does later ounces
basically nes’s first million ounces will add more to its value than oromins 3rd million ounces will add
as for tuo they have a really amazing discovery hole at treaty creek, i dont think the markets have realized the significance of 240 meters of .8 grams in the context of the sea and sso geology..
warmest regards
Caliche——Thx for your response re NES and TUO…….As for market not recognizing the true value of a stock , I can certainly relate to that , as can all the other shareholders of Ole…..We have been , and still are , severely undervalued…….However , with Ole , the upcoming FS will make it exceedingly difficult for the market to continue to do so….Certainly the major producers will absolutely sit up and take notice if the NAV & IRR are anywhere near what MDL’s were……I believe they will be even better , which is why I am so excited about the short term potential of Ole…So many years of waiting & so much frustration will finally pay off for this excellent property in one of the hottest gold zones on the planet….Sorry you won’t be aboard to enjoy this with us , but your other stocks will probably pay off handsomely also , albeit later….Gold and their stocks are all set to rocket in the not too distant future….I still believe gold will be at $1300 per ounce in the second quarter 2010 ,over $1500 per ounce by year end and double or triple that in just a few years…Fiat money is dead , dead , dead …. Ole will prove up , shortly , five million ounces and that is very rare today and becoming even more rare as time marches on….Majors will be all over this concession to replace their diminishings reserves…
Hi Arlene,
i still have enough ole to make a difference .. i was way overweight on oromin at 4 dollars .. at the time it made up 80% of my portfolio. i have lost faith in management and have sold enough oromin to let me sleep at night. are the ounces there yes they are .. will they prove up 5 million ounces yes, by july .. i am not sure.. will the numbers get better probably .. will they be good enough .. i dont know..the upcoming FS is make it or break it.. they wont get a third chance..if it comes back unsatisfactory the stock will be punished and not recover. the upcoming news will be the final pivot point for this stock, if it is economic it will take off .. and i will buy back in at a higher price when all the risk is removed. just too much risk right now and management has IMHO has not done enough to assuage my fears.
NES and TUO are much more forthcoming and i must say i get a better feeling looking into their eyes. also i am more comfortable with the exploration stage and believe me if NES pulls a million ounces it will surpass oromin in a heartbeat. exploration risk is much averted with NES and TUO. IMHO TUO have already discovered a new deposit and from what im hearing NES has acquired one at ANA Paula.
I am very happy you have stuck with OLE and hope and pray we all get out of this with a handsome profit. Your dedication to oromin is commendable and i wish i could share your optimism as i once did.
im happy to say that after 23 years in the markets im still learning from it generally and oromin in particualr
my broker told me when i was very young in this business it is better to pay more and absolve risk than to pay less and carry it for others.
i finally understand that now!
This is from Grandich’s blog dated April 30th.
Oromin Explorations – Recent drill results continue to suggest the company’s projects hold millions of ounces of gold and confirmation of that is due out in the not-too-distant future. Stay tuned and ignore (I do) anyone who expects news and a share price up every day.
There are also several comments on other stocks that he represents.
Tony
Thanks Tony, it really helps when someone with vision makes a comment about this stock!!!!
Here we are in May…. been waiting for some time for the FS. Any one here have any idea whats happening or brewing.? Personally I think we’re going to see more than 4 mil oz of Proven Gold, plus additional gold in resources. We’ll have near 5 mil total. And the FS will show great NAV and IRR . Should take the sp well over 2.
Any other insights?
Hello goldfather and friends.
With Oromin at roughly $0.75 again the entire property is only worth about $180 million considering that 43.5% of that figure is roughly Oromin’s market cap of about $85 million. We all know that there are several ways to value gold whether it is proven or inferred or whatever. That being said, if they show anything over 3.5 million ounces of proven gold that would be a 60% increase over the 2.2 million ounces they showed early last year and SHOULD substantially increase the share price. This is not a tech company that gets slammed if it misses earnings. The gold is in the ground and it is not going anywhere. The ounces will only continue to grow as long as they keep drilling. The catch is to keep drilling without drillng us shareholders with too much dilution. Again we somehow have to trust management and continue to hope they make the right decisions as far as selling, more drilling, another PP etc…
Any comments welcome ,
Tony
Tony,
there is no dispute about the gold in ground. The great debate lies with the willingness of management to sell this property. I have stated many times in the past, I do not believe Chet leaves until he has unearthed (proven) every last ounce. I think there is belief (to the point of being stubborn and even somewhat ego driven) that this project is worth many multiples of where the stock is currently trading. There is no doubt that the $4.50 share price seen historically is on the mind of management. They are dreaming, totally dreaming about getting there again. I think we are stuck for quite awhile. BIG MINING will force Chet to dig and spend, dig and spend. No chance they come in and say “Gosh Chet, great job, there must be 15 million ounces here” and cough up $6.00 per share. No chance. But that’s what Chet seems to be demanding. Biotech is the place for your speculative dollars, or other gold plays which our friend Caliche seems to be on top of. Good luck.
Andy
Tony—If Ole does prove at least close to four million ounces come July and the NAV & IRR are good to excellent , I believe share price could well exceed $3……If they prove closer to five million with good to excellent NAV & IRR , there is little doubt in my mind that we will indeed have a bidding war between two , or more , majors almost immediately as they MUST replenish their diminishing reserves… There are not that many five million ounce concessions available,,,Either now or projected in the future …..Chet may just get his ego satisfied yet this year….Don’t give up the ship yet !!!……….The FS is the key…..It will make us or break us ….