To all: I am sending out the piece below to all OTMN shareholders by snail mail with the hope that it helps to explain the technical news release of June 29th.
(which is at www.otmining.com)
Regards,
Ed
Commentary on the 6/29 News Release
Many investors in mining stocks are minimally familiar with mining terms and therefore not equipped to grasp the significance of certain events. This may be the case regarding the recent news release by OTMN. The fact that within 5 square miles of intense alteration (on the original 7+ square miles of the OT claims) several magnetic anomalies have been identified is of superior interest. The release considers these anomalies “compelling drill targets”.
What does this mean? The release states that these magnetic features “could be” indicative of deep seated sulphide mineralization. Should there be such mineralization, it is not certain that it would contain economic values in assorted metals. But, had there been such intense alteration and no magnetic anomalies then the ground would have to be viewed as barren.
The kicker is the location of these claims. They are on the same geologic structure as the Butte deposits and the Montana tunnels, smack in the middle of both. Both are known to have been (and are still producing or able to produce) prodigious quantities of base and precious metals. What are the chances that with these magnetic anomalies there will not be economic concentrations of metals?
Consider the MMI findings. This is a recently developed technique which measures ions which migrate vertically from metals below surface (as far as 2000 feet ). They appear in parts per billion or sub parts per billion. But they pin point the location of metals and thereby reduce the need for buck shot drilling. They can identify and differentiate a variety of metals including copper, zinc, lead, gold, silver. Results from MMI soil samples over these anomalies “have confirmed the presence of high gold and silver with associated copper and zinc in multiple samples”. Note that the MMI samples confirmed these findings at 500 foot intervals. What does this imply about the size of these anomalies?
So, what does this mean? We have the magnetic anomalies in intense altered zones and we have MMI samples which report that there are “high” values in metals in these anomalies.
Are we surprised? No, not based on the geology and history of the area. What is next? Drilling. So what are the odds that drilling will reveal economic deposits? And what is the likely extension of these deposits should they be demonstrated?
Consider that OTMN presently has about 8 million shares out, fully diluted. At $2.50 per share the capitalization is $20 million. (Butte produced multi billions of dollars worth of metal over its 140 year life and metals prices were lower than they are now.)
Stay tuned. I am working out a comparison of Butte with the Ruby considering the possibility that the Ruby contains both vein type deposits and porphyry deposits which is what characterized the Butte.
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