Cory's Insights – Tue 26 Jan, 2016

A major silver discovery announced in Mexico

I am sorry I could not post on this yesterday but I was attending and moderating a panel at the Vancouver Cambridge House show. Tune in to the second hour of the weekend show to hear what people were saying while on the floor.

Back to the major discovery… Orex Minerals (TSX.V : REX) (in full disclosure I own this stock and have owned for a while) released a seriously impressive drill result on the Sandra Escobar property in Mexico which is under an option agreement from Canasil Resources (TSX.V : CLZ). Here is the table from the press release and notes on what it means to me.

Sandra Escobar Project SA-15-001 Drill Hole Intercepts — 2015-2016 Program
Hole From (m) To (m) Core Length (m) True Thick. (m) Ag (g/t)
SA-15-001 1.00 62.00 61.00 43.13 359
  Includes 6.00 24.00 18.00 12.73 748
  Includes 14.00 23.00 9.00 6.36 1,204
  Includes 20.00 23.00 3.00 2.12 2,271
  • High-grade silver over a long distance of 62 metres.
  • The silver starts right at surface with the best grade starting at 4 metres down.
  • With silver grades this close to surface it is important to see what comes out of deeper drilling and step out drilling.

Click here to read the full press release.

While the news release focuses only on the results from the one hole the Company has already stated this is part of a larger drill program. Back on December 10, 2015 Orex issued a release outlining a total of “about 2,000 metres in as many as 12 drill holes”. There is a lot more news to come from Orex in the next couple months.

The weather in Durango State has been on the cold side recently so we should expect to wait at least another few weeks before another hole or two is released. I am sure the markets will be paying close attention.

Clearly the market took notice yesterday popping the stock $0.125 to $0.335 (up almost 60%). Today the stock has pulled back $0.06 to $0.275 on continued high volume. I am not worried about the sell off today. Investors are clearly taking some money off the table and waiting for the next results. This is an inherent problem with exploration, people will sell on the news and wait until just before when they think the next results are to be released to buy back in. These results are too good for me to think that the stock will move significantly down from here.

Looking at Canasil, this stock made an even more impressive jump. Trading at $0.05 and under for the past long time the stock jumped to $0.15 yesterday and had pulled back to $0.125 today. Canasil will continue to ride the coattails of this drilling if the results of this one hole will be confirmed.

Some factors outside of the press release to consider…

A factor that I like about Orex and a reason why I continue to hold is the track record of management. Gary Cope (CEO and President) along with Ben Whiting (VP of Exploration), both of whom I know very well, were the team behind Orko Silver. Orko was a silver exploration company focused in Mexico and sold to Coeur Mining back in 2012. I like when management sticks to locations they are familiar with and metals they have already found as well as management that can get a sale done.

I also like to see insiders buying their company stock out of the open market. It shows that management believes in the company and helps support the overall price in down markets. This is exactly what Gary has been doing for more than a year. Check out CanadianInsider.com to see for yourself.

Let’s take a look at the financials. As at October 31, 2015 Orex had over $4.5 million in the back plus another $2.6 million in receivables. Net this cash (some of which would have been spent) with the very low payables and no debt Orex has more than sufficient funds to carry out this drill program and move the company forward.

While it is impossible to know what the results from the next hole or the full drill program will yield this is the most promising discovery the sector has seen in a while. The company was recently placed back on John Kaiser’s bottom fish list as well as a number of other newsletter writers. There is going to continue to be some buzz around this stock as well as Canasil as we all anxiously await the next few holes. Let’s see what happens next…

** Do not constitute this as investment advice. As stated above I (the author, Cory Fleck) hold shares in Orex and is a personal friend of management. I was not paid for this article in any form. Please do not use this article as a reason to buy or sell any shares. I am working to keep our listeners up to date on major news in the mining industry. Do your own due diligence.

If you have any questions please leave them in the comment section below or email me directly at fleck@kereport.com.


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Comments:
  1. On January 26, 2016 at 2:57 pm,
    Excelsior says:

    Thanks Cory. I saw CFS post on this exploration yesterday and was pleased, because I like the management that took Orko Silver to a successful buyout. Maybe they can do it again….

    • On January 26, 2016 at 6:28 pm,
      Big Al says:

      Gary and his staff are good friends and good people. Brahmin Yamini and his family are truly the salt of the earth.

  2. On January 26, 2016 at 3:18 pm,
    Dan says:

    What is the OTC symbol for OREX…i try ORXIF but get nothing??? anybody??

    • On January 26, 2016 at 3:31 pm,
      Excelsior says:

      Their OTC symbol was (ORXM) at one time, and then recently it was (ORXIF). You’re right, I can’t seem to pull up anything charts on it now.

      http://finance.yahoo.com/q?s=ORXIF&ql=1

      * Their TSXV symbol (REX) is much more liquid and is really the ticker to follow. There doesn’t appear to be a working OTC equivalent for it at present.

      • On January 26, 2016 at 6:34 pm,
        Matthew says:

        I checked Interactive Brokers and nothing came up for either ORXIF or ORXM, fwiw.

        That’s quite a leap…

        http://schrts.co/DkoIHI

        • On January 27, 2016 at 12:52 am,
          Excelsior says:

          Yes. This demonstrates the explosive of percentage gain on small Jr Miners, when a standout discovery is made and when their is quality management with a proven track record. People have no idea if this will be a mine or profitable, but the vision is there for where things could go. I would also argue that this is the value of fundamental analysis, as well as technical analysis. I’m not sure the technical indicators would have indicated such a swift and large move.

          • On January 27, 2016 at 12:55 am,
            Excelsior says:

            …..”This demonstrates the explosive nature and potential for large percentage gains..”

            ….”when there (not their) is quality management…”

        • On January 27, 2016 at 7:08 am,
          Frank from moscow CCF says:

          ditto on the quality management……..

    • On January 26, 2016 at 6:30 pm,
      Big Al says:

      Go to http://www.stockwatch.com and type in Orex as a U.S. Company and you will get the symbol or do the same at http://www.avoidance.com

      • On January 27, 2016 at 12:48 am,
        Excelsior says:

        Big Al – I even tried going to stockwatch and Orex Minerals old tickers are Defunct.

        Your search results for ‘OREX MINERALS’ 03:46:35 EST
        Sym-X Bid – Ask Last Chg %Ch Vol $Vol #Tr Open-Hi-Lo Year Hi-Lo Last Tr
        ORXID – Q – OREX MINERALS NEW DEFUNCT 1.7025 0.267 Nov 18/10 Aug 06 15 min RT 2¢
        ORXIF – Q – OREX MINERALS INC DEFUNCT 0.1455 0.29 0.0999 Sep 28 15:25:43 Aug 06 15 min RT 2¢
        ORXM – Q – OREX MINERALS CORPOR no orders 0.05 0.0001 Jun 20/14 Apr 19/00 15 min RT 2¢

  3. On January 26, 2016 at 3:37 pm,
    CFS says:

    I’m not sure if they still have a US listing.
    I want to add a word of caution. That is to check their warrant situation if you are thinking of speculating. My memory carries a flag of over 3 million warrants until 2017, which will imply, as far as I am concerned, a potential for Canadian scum-brokers to play shorting games with the stock.

    • On January 26, 2016 at 3:42 pm,
      Excelsior says:

      Thanks CFS. Definitely something to consider.

  4. On January 26, 2016 at 3:45 pm,
    Dan says:

    thanks all! much appreciated!

  5. On January 26, 2016 at 3:53 pm,
    CFS says:

    http://www.orexminerals.com/i/pdf/presentation.pdf

    They have more warrants than I remembered, and on their website are still citing ORXIF on OTC.

  6. On January 26, 2016 at 4:49 pm,
    CFS says:
    • On January 26, 2016 at 11:38 pm,
      Frank from moscow CCF says:

      Sorry, I posted below, before reading yours………….THANKS FOR POSTING

  7. On January 26, 2016 at 5:45 pm,
    CFS says:

    OFF TOPIC:
    http://www.zerohedge.com/news/2016-01-26/frances-highways-descend-chaos-lawlessness

    The immigrant situation in Europe will come to a climax, but when?

    Denmark just quickly passed a law allowing a search oif all asylum seekers and temporary confiscation of assets in excess of $1500 approx to be used to offset cost of benefits; housing, clothing, food, etc.

    UK wants to delay benefits for 4 years, but the EU will not allow it. This will cause Brexit if/when citizens are allowed to vote. (Cameron has waited too long and polls have now swung heavily towards Brexit!)

    I am told that during these autumn/winter months up to and possibly over 50% of those claiming refugee status are, in fact, immigrants from Morocco, Algeria, Tunisia and Libya, travelling on forged Syrian passports. (ISIS is obtaining considerable financing!) It is clear that Moroccans have no cause to claim any refugee status. I am also told that quasi-government organizations seem to be funding some of the trans-mediterranean crossings and that several sources have pointed to Soros are partly backing this. No one could explain why.

    • On January 26, 2016 at 6:33 pm,
      Big Al says:

      That suite than just a bit interesting, Professor. Thank you.

    • On January 26, 2016 at 9:44 pm,
      bb says:

      With Open Gates: The forced collective suicide of European nations – Extended Cinematic 1080p Thats a related u tube. about 20 mins.

      Its the invasion that Russia was saying was going to happen some years ago now, isis was saying it too of course. Well, its here.
      Islam is now going to become the dominant religion in Europe.

      Getting rid of Saddam and Gadaffi did the trick.
      Wonder how it will affect markets?

    • On January 26, 2016 at 6:39 pm,
      Big Al says:

      Interesting article. Just read it.

  8. On January 26, 2016 at 6:43 pm,
    Matthew says:

    Silver is up 3.2% vs gold since the 7th and will continue to outperform.

    http://schrts.co/iqK3DV

  9. On January 26, 2016 at 7:50 pm,
    Peter R says:

    Very very far from a major discovery! A good hole.

    • On January 27, 2016 at 12:57 am,
      Excelsior says:

      Agreed. It just goes to show how far a positive news blip can move a small speculative Jr explorer. There is no promise of a major resource, mine, or a profitable future, but….. markets are run on emotional over-reaction to the upside and downside.

  10. On January 26, 2016 at 9:14 pm,
    Matthew says:

    Copper is going up…

    http://schrts.co/1ezZoi

  11. On January 26, 2016 at 9:19 pm,
    Matthew says:

    Oil looks wimpy…

    http://schrts.co/cp28hW

  12. On January 26, 2016 at 9:23 pm,
    Matthew says:

    Gold hit 39 barrels of oil per ounce the other day (the highest in many decades) and is now due for a break…

    http://schrts.co/CHZYgC

  13. On January 26, 2016 at 9:35 pm,
    Mark says:

    *** CHARTSTER YOU ARE DEAD WRONG, THE SHANGHAI INDEX HAS NOT DOUBLE BOTTOMED!
    Shanghai market is now down more than 4% now, these markets are going lower!

    • On January 27, 2016 at 5:01 am,
      Chartster says:

      Yesterday when it hit the August lows, it was a double bottom.
      Get it?

  14. On January 26, 2016 at 9:37 pm,
    Chris in Thailand says:

    Yep Chartster NO double bottom.

  15. On January 26, 2016 at 9:38 pm,
    Chris in Thailand says:

    Headed much lower…..MUCH lower. I live and work in Asia. Big issues everywhere.

    • On January 26, 2016 at 9:44 pm,
      Mark says:

      Agree!

  16. On January 26, 2016 at 10:20 pm,
    Matthew says:

    Gold entering resistance zone…

    http://schrts.co/4f9fJP

    • On January 27, 2016 at 1:07 am,
      Excelsior says:

      When gold broke through $1111-$1112, then came back and tested it, there was a floor there and it rallied well yesterday. I really don’t want Gold to close below that level if there is any juice left on this rally.

      First resistance target that I was watching was $1122-$1123, and this is where Gold stalled out and retreated. Chartster pointed out the 200 day MA was at $1134 (so that is next resistance higher), and I expect the top target for this rally to be in the $1142 (top of trend line in descending wedge) or $1146.30 (prior peak from Sept 25, 2015).

  17. On January 26, 2016 at 10:27 pm,
    Matthew says:

    At the moment, gold is backtesting the bearish breakout of a huge modified Schiff fork. We’ll know soon if this is a significant resistance….

    http://schrts.co/bZ1VXQ

  18. On January 26, 2016 at 10:38 pm,
    Frank from moscow CCF says:

    COMEX…………SOMETHING SNAPPED………..541 to 1……..zerohedge…gold for delivery going bye bye.

    • On January 26, 2016 at 11:09 pm,
      Mark says:

      I commented on that earlier………..this is really going to get interesting going forward!
      I will be reading that COT Gold Report on Friday!

      • On January 26, 2016 at 11:24 pm,
        Frank from moscow CCF says:

        Thanks….sorry, I did not see, but, you are correct on it getting interesting.
        Noticed the physical delivery ozs. are only 72K…..which is nothing. 72,000oz x 2000oz ton x $1118 = $169million value for delivery. (might want to check the math, it is 2am where I am)……………………

        • On January 27, 2016 at 4:03 am,
          Dragonite says:

          Can it go negative? ☺

          • On January 27, 2016 at 6:52 am,
            Frank from moscow CCF says:

            Paper fiat settlement……and spot price is invalid……….. 🙂

      • On January 26, 2016 at 11:26 pm,
        Mark says:

        That is just ridiculous, 541 fools for every one ounce in house!
        This is nothing but a very sad and sorry fake house of mirrors, they have no more credibility at all.

        • On January 26, 2016 at 11:31 pm,
          Mark says:

          I talked about this on ” The Daily Wrap ”
          Something has got to give soon………………….it can’t be long now, there’s nothing there!

          • On January 26, 2016 at 11:33 pm,
            Mark says:

            After reading that, somebody has to be eyeing a major purchase!

          • On January 26, 2016 at 11:34 pm,
            Frank from moscow CCF says:

            I would think so…………..the number of $169mill is chump change….

          • On January 27, 2016 at 12:14 am,
            Mark says:

            Yes Holter will comment on it!

        • On January 26, 2016 at 11:33 pm,
          Frank from moscow CCF says:

          ditto………….

          • On January 26, 2016 at 11:39 pm,
            Mark says:

            541 damn fools………………unreal!

          • On January 26, 2016 at 11:43 pm,
            Frank from moscow CCF says:

            THIS could be the PLAY OF THE DAY………………..COMEX goes no bid………or COMEX CLOSES due to no inventory………………Fiat gold for everyone.

          • On January 26, 2016 at 11:44 pm,
            Frank from moscow CCF says:

            I bet BILL HOLTER…………is going to put out a special report…….wait and see…..jmho

          • On January 26, 2016 at 11:45 pm,
            Frank from moscow CCF says:

            Heck even Avi Esquire may mention it……..lol

          • On January 26, 2016 at 11:57 pm,
            Frank from moscow CCF says:

            Update………just zipped over to jdsmineset, and Holter did mention it in his report.

    • On January 26, 2016 at 11:36 pm,
      Frank from moscow CCF says:

      I see CFS………POST ALSO………SORRY……….

  19. On January 26, 2016 at 10:39 pm,
    Matthew says:

    Dow:Oil hit a 16.5 year high this month…

    http://schrts.co/sijxwz

    • On January 26, 2016 at 10:56 pm,
      Frank from moscow CCF says:

      thanks for the chart.

  20. On January 26, 2016 at 11:15 pm,
    Mark says:

    *** Shanghai markets did bounce back big but it has no ways neared a double bottom!
    We will see what it closes at on Friday morning!

    • On January 26, 2016 at 11:26 pm,
      Frank from moscow CCF says:

      Wed. , midweek is generally a PPT day……………………can’t let it get out of hand , ya know……………………………………..lol

      • On January 26, 2016 at 11:38 pm,
        Mark says:

        Yeah and don’t forget the fed……..will they or wont they continue to raise!
        Markets are waiting and watching and the Fed knows it!
        Dove or Hawk?

        • On January 26, 2016 at 11:48 pm,
          Frank from moscow CCF says:

          The PPT………..is backed by the ESF………which is the control at the treasury that no one wants to admit exist. SO, anything is possible at this time.

    • On January 26, 2016 at 11:29 pm,
      Frank from moscow CCF says:

      Wait and see what European markets do………..there is a lot of turmoil going on in France, Germany, Italy……you name it…..the immigration problem is out of hand, I would think that the Europeans are getting a bit excited.

      • On January 26, 2016 at 11:45 pm,
        Mark says:

        A bit mad! Any fool knows that the whole adjective of Islam is to rule the world by demographics!

        • On January 26, 2016 at 11:50 pm,
          Frank from moscow CCF says:

          America and the world is full of none believers……and have never read anything on the subject of Islam ….even the So called Christians are out of the loop.

    • On January 27, 2016 at 4:06 am,
      Dragonite says:

      Average Chinese considers stock market casino.

      • On January 27, 2016 at 6:54 am,
        Frank from moscow CCF says:

        as they should……….. Chinese saying ….”him who go to broker, is going broke” Wenlo 200am…. 🙂

  21. On January 26, 2016 at 11:50 pm,
    Mark says:

    *** BALTIC DRY INDEX CONTINUES TO CRASH NOW DOWN 345 PTS!
    http://www.bloomberg.com/quote/BDIY:IND
    Shipping halted……………world on edge! lol….lol

    • On January 26, 2016 at 11:53 pm,
      Mark says:

      You got to just laugh at this point………this sh#t is so sad!

    • On January 26, 2016 at 11:53 pm,
      Frank from moscow CCF says:

      Bloomberg………must have been reading your notes……..lol

      • On January 27, 2016 at 12:08 am,
        Mark says:

        WOW………..I’m getting a moderation notice on all of my post!

        • On January 27, 2016 at 12:16 am,
          Mark says:

          They had my name spelled wrong that’s why……..

        • On January 27, 2016 at 12:19 am,
          Frank from moscow CCF says:

          Hang in there………I’m off to dream land……it is 3AM here…..catch ya in a few……cheers

          • On January 27, 2016 at 12:37 am,
            Mark says:

            Me too! That was a great read by Bill Holter on the Comex!
            This is going to be fun!

          • On January 27, 2016 at 6:59 am,
            Frank from moscow CCF says:

            London fix was not much…………they must have read the report on the COMEX…. lol

          • On January 27, 2016 at 7:00 am,
            Frank from moscow CCF says:

            Actually gold ups up in British pounds, and Indian rupies…….

          • On January 27, 2016 at 7:03 am,
            Frank from moscow CCF says:

            Have to check all the currencies now……jmho

  22. On January 27, 2016 at 12:46 am,
    Mark says:

    * Bill Holter would be a good guess for the weekend show Big Al.

  23. On January 27, 2016 at 3:14 am,
    Excelsior says:

    After reading this recent editorial on Seeking Alpha, I am wondering if I should consider Hecla a Gold company more than a Silver company now. It seems that through their different acquisitions over the last few years that their Gold profile has increased to be the primary driver over the Silver, and base metals.

    It is odd because it tracks Silver pricing more than Gold. Maybe most investors don’t realize how much of Hecla’s asset base is not tied to Gold more so than Silver.
    _________________________________________________________________________

    “…apart from gold, which accounts for 42% of Hecla’s revenue, silver is another key segment that investors need to focus upon. This is because Hecla gets 29% of its revenue from the silver market….”

    Hecla Mining: More Reasons To Buy
    Jan. 27, 2016

    http://seekingalpha.com/article/3837166-hecla-mining-reasons-buy?auth_param=5c0rl:1bagsb6:cb528f458cb5a657c1e305d1a5cfcc1b&uprof=51

    • On January 27, 2016 at 3:16 am,
      Excelsior says:

      That should have said “Hecla’s asset base is NOW (vs not) tied to Gold more than Silver”

    • On January 27, 2016 at 7:10 am,
      Frank from moscow CCF says:

      thanks for the post…………

  24. On January 27, 2016 at 5:46 am,
    Chartster says:

    Hecla will certainly be interesting to keep an eye on.
    Thanks

  25. On January 27, 2016 at 7:03 am,
    CFS says:

    Doc was correct in mentioning NAT a while ago:

    http://seekingalpha.com/article/3834356-will-increasing-iranian-crude-exports-impact-crude-tanker-market

    Note the amount of Iranian oil supply projected.

  26. On January 27, 2016 at 7:31 am,
    CFS says:

    Merkel is beginning to realize she will be voted out of power.
    The attack on her opposition from the “right” begins.

    BERLIN (AP) — The German government on Wednesday banned a far-right Internet platform that it accused of spreading “racist, xenophobic, anti-Semitic, homophobic and anti-Islamic content,” and federal prosecutors said two people were arrested.

    The ban on the Altermedia Deutschland platform is “a clear sign that the rule of law doesn’t allow hate crime,” Interior Minister Thomas de Maiziere said.

    The prosecutors’ office said that two Germans, identified only as Jutta V. and Ralph Thomas K. in line with German privacy rules, were arrested on suspicion of founding a criminal organization and incitement. Three other suspects weren’t arrested.

    Raids were conducted in homes in four German states and the northeastern Spanish town of Lloret de Mar.

    ONE further comment from me, CFS:
    Intermedia Deutschland actually uses a server system in Russia, which it thought would provide safety from attack.
    Thia may have implications to broadcasters like Rush Limbaugh, Glenn Beck, etc., who have mentioned broadcasting from Mexico as US freedom of speech rules are tightened.