OREMEX RESOURCES INC. (ORM.v) or (ORXRF)

I have finished making my initial purchases in OREMEX RESOURCES INC. ORM.v or ORXRF in the US. I paid $.44-$.48 CDN

Oremex has six, 100% owned properties in mining friendly Mexico.

The property that has won my investment capital is the Tejamen silver property. Oremex has established a 50.8 million ounce National Instrument 43-101 compliant silver resource, by independent study. Work continues on the Tejamen in order to upgrade and expand the resource, as it is open in at least two directions and at depth. It is important to understand that there are two main zones, which make up the Tejamen. They are a short distance apart. My understanding is that, little or no drilling has been done between the two yet. Other analysts have speculated that there could be over 100 million ounces, in total.

A technical report recently released, suggests a 10,000 TPD open pit heap leach operation could start producing silver, within one year of initiation. Oremex would produce about 5 million ounces per year at $4.50 per ounce, making it the second largest silver producer in Mexico.

Infrastructure is excellent with a major hi-way, mere miles from the property and a very well maintained, wide gravel road to the town were the property is located.

An important negative fact remains, however I believe will soon be resolved. Oremex has mineral rights only, to the Tejamen. Oremex is currently in negotiations with the local Edijo for surface rights, which was recently voted on and denied. I believe this has been the largest contributing factor, to the unbelievable opportunity to buy under $.50 CDN

Mexican law states that mining is the most important use for land and will if necessary, temporarily remove or relocate inhabitants. Many companies have had to resort to this provision, however I don't think this will become necessary in Oremex's case. Oremex has provided many benefits to the locals already, and I believe they are negotiating for more.

Oremex has a market cap of under 20 million CDN fully diluted, and has no debt. They have cash to fund continuing operations, which include delineating and upgrading the Tejamen as well as exploring other 100% owned properties.

Oremex has not raised money recently, but is well cashed-up at this time. There are no overhanging shares coming free trading.

I won't bother to relay all the facts that can be found on Oremex's easy to navigate website. I do encourage you to go through the latest technical report and get a better understanding of the other properties. I also recommend ORM.v for immediate purchase. I don't think it is necessary to buy aggressively, however an initial purchase is more than warranted in my opinion. I am extremely bullish on Oremex, and would not be surprised to see it trading closer to $2.00 CDN within 12 months. If silver were to rise to $20 as many analysts predict by first quarter 2008, then Oremex will have at a minimum, a $1,000,000,000 asset in the Tejamen alone. A $20 million dollar market cap and a mere $25 million capex to reach full production, gives Oremex tremendous leverage to the price of silver, the highest leverage that I can think of by any silver miner.

Oremex gives video presentation:
http://clients.westminster-digital.co.uk/minesite/microsite/events/42/video/index.aspx?CompanyID=42_5

Excellent video! She is very good at telling the story from all perspectives: infrastructure, local community, how to get into production, etc.

I don't hear much about heap leaching in Mexico, as Mexico tends to have high-grade narrow veins (compared to, say, the Nevada desert gold mines). Is it well-accepted by Mexican permitting and environmental authorities?

Ya Studkr...I think I have noticed quite a few open pit style projects in Mexico recently, mostly Sonora State and Chihuahua State though. I was in Zacatecas recently, but I can't recall seeing open pit operations there. I was on Capstones site for about half an hour, which was probably the biggest actual operation I saw while there...not open pit though.

I don't see any problems in Durango. I will keep the question in mind for Linda...see what she has to say.

Partial press release fro back in September 2004

Oremex Intersects 20 Oz. Silver Per Tonne Over 292 FeetVancouver, B.C. September 8, 2004: Oremex Resources Inc. is pleased to announce that recent drill results continue to confirm the presence of a large high grade silver zone which is expected to be amenable to open pit mining, at the El Manto area on its silver-gold Tejamen project located in the state of Durango, Mexico .

Assay results on 16 additional holes are reported in the chart below and drill hole locations are posted on the property map [see map on Tejamen property home page. www.oremex.com ] A total of 91 holes have been drilled to date, [including these 16 holes], comprised of 30 holes on Cerro Pietro and 61 holes on El Manto.

Hole 118 is located on line 150N; holes 93 through to 102 are located on line 200N; holes 103 through to 105, 119 & 120 are located on line 250N; hole 109 is located on 300N; and 114 is located on line 350N. All holes are spaced 30 meters apart along the lines (which are 50 meters apart).

Of particular note are holes 97, 101 and 104.

Drill Hole 97 -- 453 feet [138 meters] assaying 3.39 oz. per tonne [opt] silver [105.5 g/t] , including 26.2 feet [8 meters] at 12.3 oz/tonne [383 g/t],and three other intervals [each 26.2 feet [8 meters]] assaying 7.78, 5.74 and 8.19 opt, respectively.

Drill Hole 101 - 292 feet [89 meters] assaying 19.95 opt silver [620 g/t ] and includes 13.1 feet [4 meters] at 59.89 opt [1862.5 g/t ], 32.8 feet [10 meters ] at 38.61 opt [1201 g/t ] and 36.1 feet [11 meters ] at 22.02 opt [689 g/t ]

Drill Hole 104 -- 131 feet [40 meters ] assaying 4.59 opt silver [142 g/t ] plus gold, and includes 6.6 feet [2 meters ] at 58.75 opt [1830 g/t ] plus 0.55 opt [or 17.05g/t ] of gold . Hole 104 is showing good gold values throughout its depth.

Assay results for selected holes are reported in this release. All holes are vertical and extend to a depth of approximately 150 meters, [the limit of the reverse circulation drill], with some holes still in mineralization.

In the El Manto area of the Tejamen Silver property, mineralization is located along and adjacent to the andesite/rhyolite contact and within NE trending fault-fracture zones containing high grade quartz veins. These structures (veins) dip steeply (+70 deg. to NW) and acted as feeder systems for hydrothermal mineralizing solutions. The solutions mineralized the fault - vein zones, and also spread laterally along the andesite-rhyolite contact (fractured, brecciated, permeable zones). Lower grade disseminated mineralization is found adjacent to the high grade vein zones. In some areas, there are up to 12 of these parallel vein systems cutting the andesite-rhyolite.

Orm only intersected one such long intersection with relatively high grade.

I don't want to freak anyone out, but if you own Tumi resources, it might be worthwhile getting to understand Rhyolite and how it forms.

Rhyolite forms in structures called "Columnar jointing" these pillars may not be wide strucures, so a drill could run down a column, kind of lke a pencil through a straw. This could result in an impressive drill resut, without much substance. Then again it could be a feeder vein, that has multiple offshoots. Good grief! I wish I understood geology better.

Take a look at this photo:

http://hyperphysics.phy-astr.gsu.edu/hbase/geophys/rhyolite.html

Guys
Watched the video..
picked up 20,000 shares today @ 0.44 CAD, and will buy more if price drops to 0.40.
- Bull - I hope your senses are right about this one !

So do I Silverman, so do I. Sold my SLW.wt.to for this purchase.

I have to believe that paying $0.40 for 43-101 oz's, and a very proven mining method that has inherently low risk, must be a good value.

The other big incentive for me, is the very low capex for such an operation. The project could also be scalable to some degree. Seeing projects like CGC.v go into production helps one to visualize OREMEX doing the same thing.

http://www.capitalgoldcorp.com/

There was a time that I was also extremely bullish on ORM. Since I sometimes need confirmation in my DD, I felt validated when I stumbled across the following website:

http://www.silveraxis.com/stocks.html

However, the following NR in February caused me to reassess my position:

http://www.oremex.com/news/2007/news_2007-02-26.html

Sensing the start of another bull run repeating that of almost 18 months ago, coupled by ORM apparently going nowhere, I sold 1/2 of ORM a couple of weeks ago. Why didn't sell all of my shares? When I sell, it always seems to take it bullish run. It's not the best criteria on which to base a decision but maybe I won't be left behind this time.

Quote :

Sensing the start of another bull run repeating that of almost 18 months ago, coupled by ORM apparently going nowhere, I sold 1/2 of ORM a couple of weeks ago.

SilverSleuth,

What you stated is exactly what a very prominent poster at the JH forum suggested is likely to happen now. I agree with Shelby to a point, but your post adds to confidence in my belief that capitulation has already happened, to a large extent.

I have yet to hear, of a single project in Mexico, that was permanently halted, due to Ejido opposition. If anyone can find such an example, please share it.

It has now been roughly five months since Oremex has sought government intervention. The Ejido must realize the jig will soon be up. I am certain, it is in their interest, as it is for all concerned to come to a mutual understanding. Oremex will be the hand that feeds them, why bite it?

Anyway, I am told that one individual is running around the village, theatening members not to show up for the vote. From my understanding, from the begining, the vast majority are in favor of a yes vote. Oremex had no way of knowing, that some mad man was going to threaten his neighbours to vote against prosperity. I think we are near resolution. Oremex has completely fallen off the market radar and for me, these are great times to buy.

BTW thanks for your insight SilverSleuth, and a big welcome to the forum.

Any insight as to the opposing individual's reasons for objecting to Oremex??? and what kind of influence this guy has on the rest of the ejido??? Has the company given any concrete info on progess in negotiations and a time frame for another vote?

I have made a small investment in Oremex but like a lot of others I guess am waiting to get more of an idea on the ejido situation before investing a lot more. It is quite an exciting prospect if this hurdle can be overcome.

Hi Randy!

I do not know too much about the situation at the present time. Oremex has a toll free number and I would encourage anyone to call and talk with Linda. I will make a priority of this situation and hopefully will be able to report something soon. I also have more capital to deploy here as we get more info. I am hoping to arrange a site visit through Oremex very soon (will be calling tomorrow). If I do not get a firm date in the next three weeks, I will fly out and visit the ejido on my own dime. I think it is very important to get a feel for this whole situation, before the new upleg in PM's gathers steam.

Like I said I need to find out more. I will post any new info in the subscriber area.

You have certainly done your homework. Personally, I don't like to invest in uncertainties. The only reason why I am holding onto 1/2 of what has turned out to be a lottery ticket is because I took my position last year. Maybe I will double up if there is a clear breakout to the upside, possibly indicating a resolution to the Ejido surface mineral rights. It is one to watch.

I posted the following in JH forum:

TALKED TO CEO

--------------------------------------------------------------------------------

Just got off the phone with Linda Thorstad.

Says she has had discussions with warrant holders recently, but warrant extention had not even come up. I asked what she preferred, extenting deadline or letting them expire and raise money at higher prices. Linda said the board would have to make such decisions and said she would rather not say what her personal preference was. I can understand, that she would not say anything; she has nothing to gain by angering warrant holders.

I asked for a time frame on the Ejido vote or decision. She said that all they know right now is that the Ejido is working with someone to put together a reasonable request from Oremex.

Linda is talking to a few parties who have shown interest in the upcoming site visit and will get back to me on sheduling, end of this week or begining of the next. I will go on my own dime, if necessary, by the end of August.

Linda summed up the conversation by saying, the priority right now is to resolve surface rights issue. I did not want to push to hard on the warrants expiration at the moment. I will get to know her better in time and I probably am not concerned about it, as much as others. I did however, make it clear that many of us did not like the fairness involved with investors not partaking in private placements.

Shelby, I have no intentions of entering a promotion contract wih Oremex or Peter Spina. I spent some time with Peter earlier this year in Mexico and found him to be a great guy. I just will not accept compensation for stock promotion. I will promote what I believe in, for as long as I believe; don't want to be obligated. When you see a mining company banner ad on my website, you can be sure, I have recieved zero compensation.

If ORM will become your largest holding, will you be selling some or most of SPM, your current largest holding?

Is it worth the costs in commissions and spreads?

Won’t this be contrary to your stated goal of moving into near term producers?

I am hoping ORM will become my largest holding not only through purchases, but also price appreciation. I have no intention of selling SPM. I did not go visit them in Cosala in Feb. for just a trade. I don't like to give hints but, PEZ is not close to production and I do have a profit there. I also have some cash left from my sale in SLW.wt, so who knows what I will do.

My top five can be viewed on my website.

Len - I appreciate your commitment to making recommendations without compensation for promotion. That carries a lot more weight.

While I have concerns about the warrant issue, I think the short term priority, as Linda Thorstad mentioned, obviously needs to be on the surface rights issue. Unless that is resolved in the next few months, the warrant issue maybe come a moot point.

BULL: President resigns !!! What's up ???

Hi Ram

I have no Idea what to make of it. I know he just recently increased his ownership from 9% of theoutstading shares to 13%

I will find out what I can, as soon as I can. I am not very concerned because he will stay on the board. Dale may just be looking for another project. Dale being a man of action, is probably looking for more excitement, knowing that the Tejamen is going into development, which is obviously not as exciting as finding another project maker.

I quess there is not much point in speculating, until I have more info.

I spoke to Linda.

Now that the president has resigned, she will probably assume his role as well as her current role as CEO. After the company’s new project development manager in Mexico was hired, there were too many people in top management. It is all very friendly and it looks like the departing president, who is staying on as a board member, will keep his shares.

The surface rights issue, which she thinks will be resolved anyway, is not a company “make or break” issue. Mining of 70% of the known resource can take place outside the village, with minimal disturbance to the people living there. From the Oremex website:

Quote :

[I]nitial production from Los Mantos, the southern zone of mineralization, … would preclude the need to move the village of Tejamen in the near term. Disturbance to the village would be minimal under this plan of operations and production could proceed for a minimum of four years. The Los Mantos Zone contains approximately 70 percent of the silver content defined to date on the property. It also offers significant exploration potential for the addition of silver resources on the property. [Later on there could be] follow-up mining at the Cerro Prieto Zone.

I explained to her the business model with tight share structure that investors are looking for. She agreed to look at InvestorVoices.com, which has profiles of GORO and TBLC as examples.

Thanks for the update DZ!

I don't think the market saw this event as very bad news. Looks clear to me that, whoever wanted out, got out a while back when the stock dipped to 35c. Looks like a lot more good news will be forth coming, than bad news, so I am feeling very good about the prospects from here. Today would have been as good a day as any, to absolutely hammer the stock, obviously that never happened.

What is it they say about stocks that no longer go down on bad news?....

I will have something tomorrow on Oremex, regarding conversation with Linda.

I just got off the phone with Linda. I would like to reiterate my buy.

I will be going to see their property very soon, there will be directors from the company, as well as Linda on the visit. I know the transition of Dale from president to director is friendly, because of the access I have been given. I feel very secure in my investment.

I am starting to add more to my position here today while the silver prices are correcting abit. I am getting starting to feel more confident about the opportunity with Oremex so look to keep adding more in the coming weeks. Len - it will be great to get your feedback from a site visit.

Like Shelby said in JH forum, I don't think aggressive buying is necessary. We can buy this incrementally. So far I have only made a relatively small purchase, but am sure I will add soon. I will correspond through email from Mexico during my visit. If everything seems good there, I will buy big, even before I return. I should be able to get some good video of the property and management. I also want to document the little village. It should be interesting to see how the locals respond to me as an investor in Oremex, should be very revealing, at least, I hope so. I encourage everyone to think of things I should investigate, while I am there and questions I should ask. It would be nice to have a list of things to accomplish.