Silver Stock Report
by Jason Hommel, September 27, 2006
OTMN.PK (O.T. MINING) (I own shares)
email@example.com Jim Hess 514-935-2445
12.6 mil shares fully diluted (spring, 2006)
$34 million market cap
Copper prices have exploded, from $.75/lb., a few years ago to $3.50/lb. recently, surpassing most expert opinions. In my opinion, this is due to China's boom economy embracing many elements of free market capitalism.
At the same time, the U.S. economy is burdened by excessive usury, debt, paper money, stifling regulation, and under investment in base metal production capacity. Nevertheless, the U.S. remains the best jurisdiction politically for mining, as other nations, in my opinion, continue to consider confiscation, from Mongolia, to Honduras, to Bolivia. See the Montana Mining scene to see the governor's recent support for mining.
At the bottom of the bear market in metals, around 1999, when copper was $.75/lb., and when environmentalists were causing problems in Montana, the majors left the state. O.T. Mining was able to stake some nearby prospective properties that were left open for the very first time, staking up to 8 square miles. Last year, O.T. Mining increased their land position to over 21 square miles.
O.T. Mining targeted an area around their Ruby mine, which showed a magnetic low near to two other successful mines. The one to the north is Montana Tunnels.
See the map at http://www.otmining.com/geology.html
To the south, the Butte Mining District (located 14 miles south of the OT’s Ruby Project) is host to the world's fourth largest porphyry copper deposit, and from 1880 to 1974 produced approximately 30 billion pounds of metal, two-thirds of it copper, in addition to 900,000,000 ounces of silver and 3,000,000 ounces of gold. The “Richest Hill On Earth” continues to produce today.
I bought O.T. Mining in late 2003 & early 2004 for the silver potential alone, with exploration potential as high as 900 million ounces, that today, at $12, would be worth $11 billion. However, the potential for copper may be as high as 20 billion pounds, worth $70 billion. That's good potential for such a tiny market cap of just over $30 million. Dividing the market cap by the silver exploration potential alone, gives a price of less than 4 cents per ounce for the chance to find up to 900 million oz. of silver. That's leverage of about 317 to one. If you include the hope to find as much copper (up to $80 billion of metals), and the cost of exploring ($50 million more added to the market cap), the leverage is about 1000 to one.
O.T. Mining has the potential to rival, or surpass, the richest hill on earth, and may be the largest discovery of the last 200 years.
Listen to Jim Hess, interviewed on July 5th, 2006:
This fall, O.T. Mining is drilling one more hole in the high-grade silver/gold area, hoping to hit at least 3 targets, including the Boulder Batholith porphyry at depth.
O.T. Prepares to Drill Test High-Grade Gold and Silver Targets
Thursday September 7
Most of this season was spent doing extensive geophysics and geochemistry to help define drill targets for next year. Next year, O.T. Mining plans to drill from 7 to 12 holes to depths of 2000 to 3000 feet.
To date, O.T. Mining has not drilled a hole that hit any economic ore, but they have proven MMI technology, and they have hit the porphyry system. They expect that larger porphyry systems will contain larger pockets of high-grade economic metals that they are looking to find.
O.T. Mining's property is so large, and the target so big, it may take up to $50 million dollars to drill it and properly explore, before even thinking about starting a feasibility study, or mine construction.
O.T. Mining has continually resisted excessive share dilution throughout this bull market, which substantially protects shareholder value.
O.T.'s management team does not earn a salary, but are shareholders themselves.
O.T Mining: It’s ‘Our Turn’ -- By David Zurbuchen Dec. 2005
Majors Miners Fire at Unknown Elephant Hunter (July 2005)
My report on OTMN from the PDAC in Toronto in March 2005:
Here is a message board for O.T. Mining:
Disclaimer: I own 436,930 shares of OTMN.PK, and I've never sold a single share. O.T. Mining does not have an open private placement in progress, and I'm not being paid to promote the company.
Timing: I send my emails to about 30,000 opt-in email addresses. About half of my readers open this email in 24 hours. Therefore, unless you are prepared to buy at the market’s open on Thursday, September 28th, you may consider doing further research while waiting for a dip in the price. On the other hand, there is no guarantee on what the price may be in the future, and we do live in a world of "first come, first served", and it is a bull market in metals, in my opinion. Markets wait for no one.
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