Is there anyone out there young enough to remember Ralph Cramdon’s infamous words to his beloved wife Alice, in “The Honeymooners”? Well, I do, and all you have to be is young at heart to appreciate that wonderful era. At the end of each episode, after getting himself into yet another fine mess, he’d turn to Alice and say, Honey, you’re the greatest!
Of course, in between all that lovey-dovey stuff it was “to the moon, Alice, to the moon.” It was his signature line and he frequently used it because Alice, like many women, always had more common sense than her man.
The phrase has worked its way into the vernacular to mean something is really going places—usually up. I think Oromin is really going up! In fact, I can hear Ralph saying, “To the moon, Oromin, to the Moon!” Well, that might be stretching things just a bit but you do get the idea?
A quick refresher course.
Oromin Explorations LTD (OLE-V) is a junior mining company under the Mine-Tech umbrella that has three excellent projects in its portfolio:
- The Sabodala Exploration Concession in Senegal, West Africa
- The Santa Rosa Dome Prospect in Mendoza Province, Argentina—an oil and gas prospect
- The Carneirinho Gold Project in North-Central Brazil.
Please Review My Two Major Articles on Oromin
I’ve written two major articles on Oromin, one on September 27, 2005 (Introduction to Oromin Explorations; price was about $.60-.70C) and one on December 16, 2005, (Update on Oromin Explorations; price about $.90-$1.00C). These articles can be found in my archives on Goldseek.com. Currently the price is about $1.85 C
Go to the end of any piece that I’ve written on Goldseek.com and follow the dates in the archives to the articles referenced. There is no sense in re-inventing the wheel. I’ve offered significant amounts of information in those pieces about Oromin and now I’d suggest that you review them—once again? Well, I hope so because that means you’ve been over them at least one time!
News on the company might be forthcoming soon:
From an Oromin press release dated March 3, 2006:
Oromin anticipates that analytical results from the initial drilling evaluation along with numerous soil and trench samples being processed at the independently operated sample preparation facility at Sabodala should be available by month-end.
Month end would suggest the end of March or early April of 2006. If gold continues to hold its own within this current trading range of $530 to $560 US, and if the news is encouraging, this might be the last time to find an entry level at these price points.
Listen, I know how this so often works. A company puts out a positive press release and the share price declines. Why does this strange dynamic so frequently occur? Is it expectations not met or investor impatience with the progress of the project? I don’t know and I won’t even venture a guess. I will say that based upon past performance and the overall strength of this company, it just might break the mold and go up if the news is good!
I’ve had interesting conversations with professionals about these particular projects. Is the company ahead of itself, just right, or behind the eight ball in its pricing? Knowing the quality of this Sabodala Concession along with what is occurring in the general geographical area usually leads us to speculate that it is just a bit behind the curve.
That means that given the positive gold market in general, the amount of shares outstanding, the track record of the immediate neighbors, the experienced management team, and the outstanding possibilities that can impact Oromin in Africa, Argentina, and Brazil, we are in a comfort zone that is difficult to beat. In other words, my personal opinion is that the share price has every reason to go higher given the continuing strength in gold, oil, and gas.
Oromin is behaving as though there are some very strong hands involved. The feeling is that they are not being shaken out when subjected to some of the volatility behind spot gold. I believe that they realize the significance surrounding these projects and I’d like you to understand the exact same significance.
If you look at the who’s who of the people involved with this company, you’ll find investors who are informed and sophisticated. You don’t have to look that hard to find out who is involved with this company, nor do you have any wavering attitudes from them. Management is totally on side and there is no wavering in that camp either. This one is “pedal to the metal” all the way.
Very Promising Projects
The Sabodala Exploration Concession is one of the most promising projects on the African continent. The buzz at the PDAC show in Toronto was universally positive, especially as expressed by geologists in the know pertaining to that part of the world.
Oromin has the financial wherewithal to continue aggressively exploring this project in Senegal and complete the stated 10,000 feet of drilling that was initially proposed in the press release dated December 12, 2005
That was the same press release where in Chet Idziszek outlined the results of the assays from six excavator trenches located across a 400 meter strike length at a section of the property known as Golouma. Some of those assays were spectacular and I covered those results in one of my recent articles on the company. Please do refer to that press release dated 12.12.05 for additional clarification.
Oromin is currently priced at about $1.85 Canadian as of March 25, 2006. So yes there is a decent appreciation in a relatively short time frame. I don’t want you to focus on that whether you purchased the company at a dime or a dollar; or if you haven’t purchased any at all. I want you to focus on the idea that this project is so incredibly promising that it could find its way to the double digit price range.
Let’s review the chart and you’ll have a good idea of what is going on.
Buy and Hold
This is one of those companies that we buy and hold, and hold, and hold. However, before we hold and hold we must buy.
I suppose if one is a trader one does develop strategies. You trade for a nickel; you trade for a dime or even a quarter. You trade for a 25% gain or a 50% gain. Of course, that’s if one is successful in their strategies and not trading at losses. I personally believe that Oromin Explorations holds great promise and as such should be purchased and put away until gold finds its highs in this generational bull market.
My point is that Oromin’s Saboda project has been doing quite well over the past year or so and that kind of in and out trading strategy might have you very upset with yourself right about now especially if you “traded” out and didn’t “get back in”. It’s a very easy, very common trap to fall into, you know.
Strategies
We always convince ourselves that there is nothing wrong with taking a profit. However, we also know that it can be gut wrenching to watch a stock keep moving up after we’ve gotten out. Why is it so difficult to get back in? Why do we convince ourselves that if we sold something at a buck, we’re sure as heck not going to get back in at $1.25 or $1.50—even if there is a probability of it reaching $5.00? Ah, such is human nature.
In addition to the gold property in East Africa, there is the oil and gas play in Argentina. With two very high profile projects in this company, I think it behooves us to keep track of it. I think this is a company that I personally would feel very comfortable buying up to $5.00 US. And you know something, when the company is at $5.00, I could see the funds buying it up to $10.00 based upon the quality of the project and upon where I think the price of gold is going. All of this is simply more grist for the mill.
One strategy that I’d like you to consider when some of these quality exploration companies surpass a certain financial level is to acquire a dollar position instead of a share position. So Instead of focusing on how many shares you might purchase, allocate a given amount to a company if you think that company might increase substantially. Yes, I know it is an elementary approach Dear Watson, but there are often times when we can’t see the forest for the trees.
That’s all I’ll say and remember, I’m communicating in generalities. It is simply a strategy and a mindset if you will. We don’t want to become locked into one particular way of doing things.
Why such Enthusiasm?
Why? It goes to the “feel” of this company and the experienced management. It goes to the fact that the Sabodala Exploration Concession being operated by the Mine-Tech Group in Senegal has an immediate neighbor that has proven up a resource of about 1 M ounces of Gold on a land position that is about one-tenth the size of Mine-Tech’s project. It goes to the fact that gold has a real possibility of going far north of $800 in the not too distant future. It goes to the fact that the Santa Rosa Oil and Gas Play in Argentina has the potential to be absolutely huge, and it goes to the fact that that this management group is especially excited about all these possibilities.
I was fortunate to be involved with other companies in this Mine-Tech Exploration group {Madison Minerals (MMRSF-OTC) and Lund Gold (LGD-V)} and so I was learning about Oromin as I was covering Madison. I brought it to your attention as soon as I got a handle on the depth and scope of the projects.
Sometimes it’s just the luck of the draw isn’t it; being in the right place at the right time with the right idea.
Just for the record, I still believe that Madison Minerals is one of those stars in the Mine-Tech stable. Nothing has changed regarding that project. In fact, we’re all waiting for the weather to clear in Nevada so sometime in May, the company can get back to the Lewis property and try to improve upon the half ounce of gold over 105 feet on a property that is contiguous to Newmont’s Phoenix Fortitude Complex.
But in the here and now, the star performer is Oromin. Please put it on your front burner because for some reason, I have a feeling the next time I bring you an update the price will be higher; perhaps significantly higher.
Conclusion
I’ve brought you this story on two previous occasions and that story has done nothing but get better and better. Please review the last two articles I wrote about the company along with the press releases issued by the company.
The plan is that if you haven’t already put aside a small portion of your risk capital into this company, you might consider doing so. If you don’t, you might consider asking someone to examine your head at a later date. Actually, I’d personally do it for you but I’m currently being examined myself because we all have our “issues”. Be honest now, we all have issues, don’t we? But I’ll come over right after they’re finished with me!
Now remember, I own shares in Oromin and I’m extremely biased. I’ve been involved with the Mine-Tech Group for quite some time and have full faith and confidence in all three of their projects. But you also know that I have your best interests at heart as does GoldSeek.com.
The better you look, the better we look. That is our motivation!
That being said, I personally believe that Oromin could be one of the really bright stars of this gold and silver exploration community going forward. And in the words of another star, the beloved Jackie Gleason, “to the moon, Alice, to the moon!”
Until Next time
D. Stewart Armstrong
Posted by D.Stewart Armstrong in Articles