Significance of Rossy Concession to Oroco

by | Jul 12, 2019 | General | 0 comments

Today, Oroco announced the acquisition of the Rossy Concession. So I thought that it would be a good idea to point out the significance of it.

From the following map, notice the three holes that I circled north of the river.

The drill data for these holes has been lost but has been reported by those who had been in possession of it to be “high grade.”  The nearest drill hole to the Rossy concession is ~100 meters from the boundary of the two properties, and the mineralized trend runs in the direction of Rossy. Therefore, it is very important to own Rossy for its potential for high-grade copper mineralization.

After Oroco raises some money for drilling, the company will definitely put some holes there to find out if the high grade is really there. Without owning the Rossy Concession, it would not make any sense for Oroco to drill there. You don’t drill on the land you don’t own or close to property you don’t own, if there’s a chance mineralizarion extends onto your neighybour’s property. So by acquiring the Rossy Concession, Oroco will be able to drill new holes in this area and benefit from any success of finding high grade ore.

This property fills in the last piece of the puzzle and gives Oroco control over all known, likely, and possible areas of mineralization at Santo Tomas. Oroco now owns properties containing a mineralized structure up to 8 kilometers in length which, drilling has confirmed mineralization to be present over at least 5 kilometers.  A MI&I resource of approximately 2 billion tons has been identified on only 4 km of the 8. The upside potentail is huge, both on the 4 km area of identified resource, where minerlaization remains open to depth and 24 of 49 drill holes ended while still in mineralization, the extra 1 km from the North Zone resource to the holes near the Rossy proprty, and on an additional 3 km of length of untested length. It’s a DISTRICT scale project, now all owned by Oroco.  

Disclosure: Long Oroco

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About Mariusz Skonieczny

Mariusz Skonieczny is the founder of Classic Value Investors.