Like my post on EMC, I am putting this up as the first part of what will likely be the posting of analysis bit by bit over time.

ORD is a gold explorer that is next door to RMS's Mt Magnet project. The asset and management are spin offs from GMD so not only do they have skin in the game, they have a recent history of discovering economic gold. Since listing last year, they have completed two phases of drilling and have another 10km+ planned which will lead into an inaugural MRE mid year. All fo which ORD is funded for.

The image below aims to show that from an exploration perspective, the McNabs prospect can still be something or "nothing". Nothing in this context is that an ultimate economic ore zone is just centred around the red circle. This would be a nice little pit for RMS to feed into their mine (noting RMS is a serial acquirer of gold to keep topping up its mills). This would be the downside risk that likely underpins the current market cap of ~$18m. With follow up drilling and the diamond drilling, alternate orientations showed that this circle area is starting to hang together and identified the dip of the system in this area. Checking open file, the holes to the east drilled by the prior operator appear to have been relatively shallow so it is fair to assume the system remains open down dip here rather than it be spin from the company.

The yellow line notes the extent of the system with the gold being hosted within the granodiorite intrusion. Drilling along this zone has been wide spaced and relatively shallow but I will note to date the results have been mixed being either skinny or light on grade. Whilst this reduces prospectively, the wide spacing means that infill to the east still ahs the potential to have high grade shoots to discover. More broadly, large portions of the intrusion have yet to be tested. Whilst this can be the nothing, it is also the reason there is still something which drives the upside.

At a mcap of ~$18m and with $4m cash, the EV seems undemanding for the upside potential of working out this system and its potential extent. With proven management and a clear monetisation pathway, the odds of success are a little better and the ability to value that success is clearer.