ORS gold producer developer set to fly, page-2

First 2 Last

Share
Profile

Follow
yeeew87

546 Posts.

69

20/06/14

08:50

Post #: 13548684
Share

Originally posted by sydneysider ↑

ORS developing underground gold resources at Union Mine and high grade open pit resources at Croydon / London Hill which are fully permitted for mining. Inferred Resource is 73,000 ounces of gold.

The Company owns a 150,000 tpa process plant that is currently processing small volumes of high grade ore from the 1,100 level of the Union Mine. Total investment at Union is $35M with no debt. Inferred Resource in and around the 1,100 level is around 200,000 ounces of gold (someone might dig up the actual number as I am relying on memory). ORS has had a lot of success on developing both a high grade vein system and a wider bulk mining target that appears to straddle the top of this inferred resource. They are currently pulling small volumes of high grade ore from this system, and intend to develop multiple and lower levels for production over the next 10 - 11 months.

My sense is that this ore could running anywhere from 6 - 12 grams per tonne from the 1,100 level. ORS is due to report on production and development by end of this quarter and my guess is that they will report a significant increase in gold production from earlier quarters. 12 month target puts this into a production range of around 38,000 ounces at 8 g/t au recovered.

ORS held off from processing ore from Croydon when gold was falling towards US$1,245 per ounce. BUT gold is now skyrocketing. They could easily bring in 4,500 tpm from Croydon at around 3.5 g/t au and produce a total of around 1,000 -1,200 ounces per quarter (including small volumes of underground ore) as they build up underground infrastructure. Creating quarterly revenues of $1.4M - $1.7M.

At a market cap of $9M, cash of $3M and 12 month forward estimated revenue of $50M (A$1,400 gold price for 36,000 ounces annual production) ORS is extremely undervalued.

Expand

Gold price surged over night to 2 month high.

ORS Price at posting: 5.6¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

BAS

Bass completes successful testing work at Kiwi-1, showing higher-than-expected condensate yields

GMD

Genesis set for higher gold production in FY25 and earlier mill start

EMD

Emyria jumps 10% on 'interim' success treating PTSD patients with MDMA

RDN

Raiden Resources jumps 11% as Andover South drilling to kick off with PoW on Minister's desk

TAT

Tartana Minerals firms up producer status with recent 150tn shipment of copper sulphate to the NT

There are more pages in this discussion • 52 more messages in this thread...

First 2 Last

Add ORS (ASX) to my watchlist

ORS gold producer developer set to fly, page-2

Top Stories

Bass completes successful testing work at Kiwi-1, showing higher-than-expected condensate yields

Genesis set for higher gold production in FY25 and earlier mill start

Emyria jumps 10% on 'interim' success treating PTSD patients with MDMA

Raiden Resources jumps 11% as Andover South drilling to kick off with PoW on Minister's desk

Tartana Minerals firms up producer status with recent 150tn shipment of copper sulphate to the NT

Featured News