Given the court injunction on their main "company making"...

Given the court injunction on their main "company making" diamond project, one might suggest it has been a pretty tough few years for ORP…

A quick look at their share performance over this time paints a very sad picture...in spite of this however, ORP has managed to quietly go about the business of progressing Sihayo to an economically viable project...even more so given the recent rise in the price of gold.

What's more, they have managed to do so without the need to issue too many shares along the way, which becomes even more surprising when you consider the low share price over this time.

Anyway, back to the diamond project.

For those unaware, the cessation of activities court order has nothing to do with ORP, but was directed at their JV partner by the then local government...their JV partner was run by something of a local celebrity figure who found himself in financial and legal problems.

The injunction has been in place for several years now, but over this time there has been a quantum shift in attitudes...both sides of government are now calling for the reinstatement of the project for the benefit of all concerned, including the local economy.

Prior to the cessation of exploration activities, the JV partners were making very encouraging discoveries, with a significant number of micro and macro diamonds being recovered from relatively modest sample sizes...as a result they also pegged off many other nearby areas, who's applications are also awaiting the reinstatement of the D-7 block.

In the 15th and 16th centuries, areas covered by ORP's applications produced some of the biggest diamonds ever found. To this day, the source of these alluvial diamonds have never been located...and modern exploration techniques haven't been used over these areas.

ORP could well be sitting on a resource of major world importance here.

The majors are all over this part of the woods...ORP was in their sights before the legal problems developed...I am sure they will be again.

On it's own, the imminent reinstatement of the diamond project might be an explanation for the current interest in the stock...but I suggest people do not discount the gold angle.

Sihayo North (7.1Mt @ 2.7g/t Au for 609,000oz Au.) is shaping up as being much bigger than originally thought.

Recent drilling outside the existing resource area has intersected significant mineralisation and should result in a substantial upgrade...perhaps the most important of these are located some 450m to the south-east.

These distant results were originally thought to be part of a separate structure, but recent drilling closer to the main resource footprint has provided "conclusive evidence" that the resource is still open to the south and that these most distant intercepts may in fact be a continuation of the main Sihayo North resource.

If so, the economics of this resource will be turned on their head, because it suggests the resource continues over 450m into an area previously undrilled...and may even link up with significant intersections some 1.5km further along strike.

I think it is fair to assume at this point that Sihayo North will easily hold 1m+ ounces…with a doubling of this resource a distinct possibility.

A quick look at the size of some of the other resources nearby and you can see the potential at Sihayo.

Diamonds in India, Gold in Indonesia…both potential company makers on their own…and at today’s closing price, you get the lot for about $11m.

Cheap at twice the price.

Just a guess, but when the Block D-7 issues are resolved, I wouldn’t be surprised to see ORP split the company into separate ASX listed vehicles, each with their own focus…possibly combined with a capital raising for each in the process.

At current prices, ORP are one of the best speculative mining stocks on the ASX in my opinion.

Tell me I'm wrong!

Cheers!