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

Do you have a date scheduled for your visit yet? I will definitely pass on some questions I have before you go.

Linda mentioned the end of August. Mexican Silver Mines is doing a site visit Aug. 21-22. I kind of hope they will be around the same time. MSM is not a priority for me, but I would go if it worked out well. Lawrence Roulstons geologist will be at the MSM visit. I wouldn't mind being there, maybe learn a few things.

Congratulations! You bought my shares and shortly after, ORM goes up more than 20% while the PMs go through yet another correction. That's what I call good timing! At least I held onto 1/2 of them to take the ride with you. It's a good investment but it has more of a long-term horizon.

My thinking is that when, not if the surface rights are successfully negotiated, Oremex shares will instantly reprice at $1.00 or better. An announcement could come at any time, and I can't risk not having at least an intial investment. I am having a hard time, not buying more here. ORM is now above the 200 DMA, it's now throwing off buy signals and I just don't know how many sellers are left. What the heck to do, right?

Bull: I'm in same dilemma !! Ready to strike but will it pull back ?? Will 5or 7 cents make a difference down the road ?? Penny wise and silver foolish !!

Best I can do I quess, is have some bids in around 50c.

I am prepared to pounce if we get a clear break-out. I think the stock will start trading large volume just before the announcement, unless they are very proactive and halt the stock immediately.

I don't think 10c one way or another really matters. I have more regrets than I care to druge up, trying to get the absolute best price. At the same time, I have also chased too often.

Looks like the bids dropped-out, right in the last minute of trade. Might be a good buy opportunity in the morning. I doubt there will be much available though.

The Oremex press release on June 25th indicates that mining of the Los Mantos zone could proceed without moving the village in the short term. What I am not clear on from the information I have read so is whether some type of surface rights agreement still has to be obtained in order to begin mining at Los Mantos or only to move the village.

I am trying to understand what the worse case scenerio might be for Oremex if no agreement can be reached on moving the village. I read on the JH forum that Linda Thorstad was reported to have said the surface rights agreement wasn't a make it or break it issue for the company. However, I still would like further details on the on mining startup requirements at Los Mantos before making further investment in Oremex. I made an inquiry with Linda Thorstad about that issue but haven't heard back yet.

Got a prompt response from Linda Thorstad to my previous questions as follows:

"In answer to your question, mining companies have rights to the mineral by way of mining concessions but must negotiate for surface access with the underlying land owner whether federal, local in the case or the "EJido" or private. The Ejido owns the surface access rights for a large tract of land around the actual village. The Mantos zone rests within that area. We are continuing discussions with the Ejido through our project development manager. "

Thanks Randy!

The next time I talk to Linda, I will ask Why they insist on negotiating a thirty year lease with a another thirty year extention option. Personally I think it has to do with their geologists belief that they have much, much more than 50 million oz's. The current plan calls for a 10 year mine life including reclamation. Everything would change if they were able to prove up lets say 100 million oz's. I can't wait till they put a drill between the two known mineralized zones. No one knows if this is not the source of the silver, which could be high grade. Wouldn't it be great if the drilled zones where just the periphery sulfidization deposits?

Bull: sounds like that geology course you're taking is starting to kick in !!

Like they say; just a little knowledge, can be dangerous.

I am working on getting a better handle on geology and at the very least, it is getting easier to do DD.

The final results from the Tejamen.

http://www.globeinvestor.com/servlet/story/CNW.20070802.C3815/GIStory/

These diamond drills confirm the results from the reverse circulation assays and will also be used to determine pit wall strengh. Looks good to me so far.

Some questions I answered in another forum.

Quote:
"Snowden notes that the most critical claims in the immediate area of the Los Mantos and Cerro Prieto pit boundaries are owned by Mrs. Jarvis. No provision for the


costs of purchasing the claims from either Minera Montana or Mrs. Jarvis is included within the preliminary mining assessment."

Can you clarify if Oremex has the rights to the land, or if that is still under negotiation?


Here is the answer.

From press release Feb.26/2007 (second paragraph)


Quote:
The Company also announced that it has completed the final buyout of the underlying owner, Mrs. Jarvis, for the mineral concessions in its property portfolio including its Tejamen Silver Property, part of the San Lucas Property, and three other property interests. There are no ongoing obligations or residual royalties payable to, or net profit interests retained by, the former owner of the mineral concessions.

From March 1/2007 press release (second paragraph)


Quote:
Under Mexican mining law, ownership of mining concessions confers certain rights with respect to minerals. With completion of the final payment to the underlying owner of the mineral concessions, the Company now owns a 100 percent interest in the mineral concessions, with no ongoing obligations or residual royalties payable to, or net profit interests retained by, the former owners.

From Macoda


Quote:
Also, the report mentions possible environmental problems with metals in the rock:



"MESH notes that elevated levels of several metals are present within the rock mass. It is unknown at this point whether these metals will present long term environmental
issues for the project. However, test-work must be undertaken to determine the potential impact of these metals and mitigating actions should any be required."


Do you know anything about this?


Macoda, the scoping study completed by wardrop engineering included $4,000,000 for reclaimation. I am almost certain that Oremex has not done test work yet, as to net acid generation. These are the type of things that would in no way effect the viability of the project. Rather the results of testing would conclude whether post leaching of metals would merely require heap rinsing or the more expensive heap capping. Often the miner will use their abandoned open pit for reclaimation. More often, expired leach heaps do not require burial or capping. I will have to look closer at the metallurgy to find out what the likely hood is that the $4,000,000 included in the scoping study will have to be spent.

What we are hoping for is NAG pH that is less than .5, however in Mexico I think I have read, heap leach projects, have been deemed safe for open oxidization with NAG pH of 2.2 or greater. Sorry at this time I can't recall a source for the given "net acid generation figures" Anyway this is NOT a significant issue, rather a matter for resolution, with a maximum $4,000,000 swing impact.

Len - I hope you will be able to talk with the project manager during your visit as well as Linda in detail about the surface rights issues. While I am sure they will probably not want to reveal too many details about their negotiations, hopefully you will be able to get a much better sense in person about what particular issues remain to be resolved and the likelihood and ball park time frame of an agreement with the ejido.

Best of luck on your trip!

The project manager is supposed to be there. I defintely want to get a sense of his ability to help resolve the Ejido surface rights issue. From what I hear, he is more in tune with the locals-we will soon know.

Hey Len - I just read your post over on JH's forum. It was an interesting comment you made about a large number of the Tejamen ejido members living in the US. Maybe they all need to be issued some shares along with some pesos to get the surface rights agreement done! Anyway looking forward to additional comments from you on that matter.

The current SP on a lot of your picks other than Oremex are at attractive prices right. Which of them do you feel offers the best opportunity at this point in time. PEZ.V, PCM.V, NI.TO, SPM.TO ???

RandyH wrote:

Hey Len - I just read your post over on JH's forum. It was an interesting comment you made about a large number of the Tejamen ejido members living in the US. Maybe they all need to be issued some shares along with some pesos to get the surface rights agreement done! Anyway looking forward to additional comments from you on that matter.

I don't want to say too much here, but I think you will be surprised about what really is going on with the Ejido; much different than I thought before I went. Being in the village and interacting with the locals (some right on the Mantos and Cerro zones, has really opened my eyes. I have to be careful what I say here as this is a public forum, but you will understand what I am getting at when I release my report.

RandyH wrote:

The current SP on a lot of your picks other than Oremex are at attractive prices right. Which of them do you feel offers the best opportunity at this point in time. PEZ.V, PCM.V, NI.TO, SPM.TO ???

I have to say that ORM is much cheaper in my mind now, than before I left for Mexico.

If I thought anyone would listen, I would scream at the top of my lungs to buy PCM, SEG, NI. and GBB. I think others are cheap as well, but for these are stocks that could double or triple and still be dirt cheap. We will eventually see catalysts come to the forefront and drive these companies up so fast that it will surprise even me. I can sleep well owning such companies, which is very important at least for me.

Len - have you read the story just posted at JH forum regarding the Mexican govt mineral staking. Any thoughts on this? (makes Canada start to look more attractive!)

Ya, I'm aware of it. I need to ask around about it. I am not too concerned yet. Who knows, maybe it has something to do with the N.A.U

Hi Bull,

read the report, saw the video: nice! I can imagine you felt like an old- time explorer walking there. I even got that feeling sitting here, watching the video :-).

I have some questions/remarks:
1. I don't see much water. Will that be a problem? Or isn't water necessary with heap leaching?
2. About the Cerro Prieto zone: you only mention noise polution as a reason to move the village. I think when you start drilling and exploding, those old builings are gonna crack. Or is 200 meters to far away for that to happen?
3. This is gonna be a tough one: What time frame do you expect? How long will the paperwork take? I don't expect the state and the government to move fast...
4. What is Oremex doing right now? Is Are they only minding the paperwork? I saw no work being done. I had expected them to be digging, taking samples, doing research etc. (Maybe I'm naive here).


I must admit I was a bit disappointed when you got back from Mexico. I joined the Silver Bull Report in the hope of having some headstart to non-subscribers. But the first thing you did when you came back 08-30-2007 was to put this message on the JH forum:
"...I have discovered many interesting details while on my visit. I now know why management is so relaxed, why Dale Scholtz is not selling, but bought recently."
So much for a headstart...
No hard feelings, not after you pointed me to Pez, and later your advice to sell when it spiked up! Thanx!

I still don't own Oremex yet, I'm waiting for the right price. I have bought some for my girlfriend though.

Hi Henk!

Sure is nice to have you aboard.

Quote :

read the report, saw the video: nice! I can imagine you felt like an old- time explorer walking there. I even got that feeling sitting here, watching the video :-).

Thanks Henk!

You know, I do feel somewhat like that when I walk the gound on some of these properties. Seems like they never give you enough time to take it all in.

1. you are right, there is not a lot of water, however there is plenty enough for heap leaching. What you could not see from the video is the water behind the "Sarh" dam. Also the Mantos zone has a lot of water trapped in fractures, below the water table. These underground water banks are just that, not unerground rivers but reservoirs. Too much water could be a problem.

2. Though the Cerro zone could be mined by open pit method, even Oremex is considering looking at underground exploitation of the high grade areas. Under this scenario, blasting would not represent any problems. Modern blasting techniques are now so precise, the ground 200m away would barely shake from small and shallow, subterranean heave blasting.

3. The good news is, the government needs only stamp filed paperwork; Tejamen is not making any application for consideration. News could come very quickly and without decipherable advance hint or notice.

4. Oremex is working on planing for upgrade, cancellation and stepout drill plans. Oremex is currently not permitted to conduct operations on the property. We were cordially given permission to view the property by the Ejido, I think that is significant.

Oremex is also working on a local public relations campaign-more on that in a supplementary report.

Quote :

must admit I was a bit disappointed when you got back from Mexico. I joined the Silver Bull Report in the hope of having some headstart to non-subscribers. But the first thing you did when you came back 08-30-2007 was to put this message on the JH forum:
"...I have discovered many interesting details while on my visit. I now know why management is so relaxed, why Dale Scholtz is not selling, but bought recently."
So much for a headstart...
No hard feelings, not after you pointed me to Pez, and later your advice to sell when it spiked up! Thanx!

Henk, you may have missed a TRADE ALERT by a day or two. I like to give subscribers nudges to buy as I do. I hope this will be beneficial for all of us. Subscribers who bought as I did are now up about 20% even after this recent down draft in the market. I hope you will take advantage of many head starts in the near future.

Thanks for the questions and presented concerns Henk!

BTW Henk, I think Oremex under 70c is an absolute steal!

Admin wrote:

Henk, you may have missed a TRADE ALERT by a day or two.

Hi Bull,
No, I checked, your trade alert came out a day later.

I like the idea previously posted, about granting the villagers shares/warrants if they vote positive on the surface rights. I'm fantasizing about warrants that will only be exercisable if there is a positive vote. A little dilution won't hurt in that scenario. If suface rights are granted shareprice is gonna explode anyway.

Len - I'd like to see you get a lot more traffic on the Silver Bull Forum. I think it would help build up more traffic if you made more comments regarding Oremex and your other recommended stocks here rather than mostly on the JH forum.

Anytime, you have some new info and updates, you could mention it in a post on JH forum but refer people over to the Silver Bull forum for the details. Maybe there is some info in the subscriber section already released in your recent Oremex report and other recent site visits that you could begin to reveal in bits and pieces on the forum to attract more readership and comments here. You can keep the best stuff for the subscribers or just give it to them first but you should still have a lot of interesting info from your recent trip to Mexico to share here. I am confident Oremex will really fly once positive news comes out about the surface rights issues.

Thanks for all your efforts