ORD had an exploration update out this morning noting the completion of 41 RC holes completed for ~4200m as aprt of the 5000m planned program. The releases included assays for the first 13 RC holes.
In note the remaining 800m will come from 3 diamond holes, noting the original plans was for 2. It appears the 3rd hole (red circle) will step out further down plunge along line 850N as per the image below. The image also shows only 37 RC collars so its seem they may have missed a line down the eastern central part (red oval mark) as that was originally in the plan.
Assays results are decent and confirm the original thinking that an economic resource in the core zone of McNabs East (blue circle). The western side of the structure hit gold, grade is decent but intercepts are a bit thinner. Conclusion is it is pinching off on the west side in line with the interpretation of the intrusion. This makes the drill down plunge of line 850N and broadly along strike of the structure to the east very important for materially expanding the resource potential.
Going forward, 28 more assays to come from the RC + 3 diamond holes to drill and assay + regional AC that may identify further targets to follow up with RC. The company hints at an expectation of drilling more continuously over the year. I have a gut feeling that positive response to these results and/or to pending results may see the Co raise so it can prove it can just keep drilling. In the gold sector the last 6-8mths, raising is actually a positive catalyst that re-rates a stock. This tells you all you need to know about risk appetite in the space.
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.