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Feb 10, 2022·edited Feb 10, 2022Author

Chris Virnig

@chrisvirnig

-water rights,

-jurisdiction, see OMEX, It's the ticker for Odyssey Marine, it had a proposal for a mine that was denied by Mexico and is now in NAFTA arbitration. They claim the denial was arbitrary and a political decision by the environmental minister.

-metallurgy: If you have too much of various bad elements in your ore, it can reduce the economic value of the concentrate or even make it unsaleable. I've seen nothing indicating we have these onsite at st but it's a concern until have more data

Not recovery, but impacting the $ you get for the concentrate. Smelters debit you for having certain elements over a thresholds because it costs them money to remove them. Arsenic, bismuth, cadmium, mercury are some of the elements

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Manis

@Manisnoobs

maybe 95% on a couple holes so maybe avg 85-90% is a good enough assumption to use

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"Oroco mgmt team is not experienced in running such a large drilling program (you can see mistakes and delays from Oroco mgmt team)." - Anonymous

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Inflation could also impact cost of production, witch eventually would affect valuation.

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NetNetHunter.com question about nationalization:

While the constitutional change failed, they were gunning for copper:

"Senator Alejandro Armenta, a ruling party lawmaker tasked with shepherding the mining initiative through Congress, told Reuters the list includes copper, as well as other metals Mexico does not currently produce like cobalt and nickel. He said it also includes seven rare earth minerals, including neodymium and praseodymium that are used to make magnets in electronics and weapons."

https://www.mining.com/web/mexico-eyes-strategic-minerals-copper-limits-in-mining-reform/

While it failed to win a 2/3rds majority, they passed the lithium nationalization with a simple majority... and if their focus is on nationalizing metals the country needs to usher in the energy revolution, it's hard to think of a less important metal than copper. Copper might be THE most important metal of the next few decades. And, the fact that they were going to include it in the failed constitutional change tells me that they will likely come for it later.

'It was a very good decision yesterday. Let’s see if it acts as a scolding to those who didn’t finish the job,” he added, referencing opposition lawmakers who “thought by blocking the constitutional reform that it was resolved — no, no, no”, according to media reports.'

https://www.sharecafe.com.au/2022/04/22/lithium-space-abuzz-with-mexican-nationalisation-news/

Ultimately, the investment didn't change, and the factors previously discussed in my posts did not change - the situation in Mexico changed and I slowly realized that fact.

Oroco response:

"We should never purport to be an authority on the intentions of Mexican politicians, but it is obviously important for you to know that we have reviewed the lithium matter quite extensively and have concluded with certainty that there should be no reasonable or practical concern that the Mexican government would attempt to control or withdraw any established rights associated with copper. In fact, the current President of Mexico has openly stated as much."

Other response

Got the message and discussed it with our in-house counsel. We are in agreement that the correct perspective is that ownership is protected in a number of ways. Constitutionally as well as via the NA Free trade Agreement. And, the current legislation regarding lithium DOES NOT include the expropriation of existing and valid mineral concessions... So, aside from the comments by a legislator, there is no real basis for concern based on the newly passed legislation, and there are many reasons why future attempts at expropriation would be unsuccessful (and tremendously costly). Which is likely why the idea has failed to get support so far, except for legislation that would seem to simply deal with the granting of new concessions covering just a single metal... We have all the concessions, validly granted and held, that we require. Any additional surrounding properties that we may acquire are also already validly granted and held by parties we are negotiating with, or with whom we already have rights to acquire the properties from. Concessions are granted up front and allow exploration and exploitation (subject to satisfying construction/operating permit requirements)."

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June 1 (Reuters) - Global copper supply will outpace demand over the next two years, helped by several upcoming large mine projects, RBC Capital Markets analysts said on Wednesday.

The brokerage in a note said it expects the industrial metal’s price to be at $4.32 per pound in 2022, and then drop to $3.75 in 2023 and 2024 on a “small” surplus in the market. - https://www.reuters.com/article/global-copper-rbc-idUKL4N2XO1IY

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https://www.reuters.com/article/global-copper-rbc-idUKL4N2XO1IY

"June 1 (Reuters) - Global copper supply will outpace demand over the next two years, helped by several upcoming large mine projects, RBC Capital Markets analysts said on Wednesday.

The brokerage in a note said it expects the industrial metal’s price to be at $4.32 per pound in 2022, and then drop to $3.75 in 2023 and 2024 on a “small” surplus in the market.

Large untapped copper mining projects like Quellaveco in Peru, Timok in Serbia and Quebrada Blanca Phase 2 in Chile are set to begin production in mid-2022 and in early 2023, normalizing demand growth.

Aggressive U.S. rate hike bets, lockdowns in China and a batch of poor economic readings from major nations have led to slowdown concerns and weighed on industrial metals. "

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https://orocoresourcecorp.com/news/oroco-temporarily-suspends-drilling-activities

VANCOUVER, British Columbia – (June 9, 2022) Oroco Resource Corp. (TSX-V: OCO, OTC: ORRCF) (“Oroco” or “the Company”) announces that it has temporarily suspended its drilling operations at Santo Tomas for safety and security reasons relating to an increase in federal military operations in the region resulting from a dispute between criminal elements.

“Our primary concern at this time is to ensure the safety of our field personnel,” stated Craig Dalziel, Oroco’s Executive Chairman. “While disputes of this nature do not in any way directly affect our overall operations at Santo Tomas, we feel it is very important that the company and its personnel avoid all possible contact with any hostilities which may arise in the general area.”

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