Oremex Resources

Oremex Resources - ORM.V

This company caught my eye when they released news that Sprott Asset Management invested in the company through a private placement at .09.

http://www.oremex.com/News/LatestNews/NewsDetails/2010/Sprott-Asset-Management-Invests-In-Oremex1122754/default.aspx

The company is exploring and developing properties in Mexico. The most advanced project is Tejamin.
As outlined in a Wardrop Engineering Inc. Technical Report dated April 13, 2006, Tejamen has an Inferred mineral resource of 50.8 million ounces of silver in a total of 22.6 million tonnes grading a silver-equivalent of 69.8 grams per tonne (“gpt”).

According to an independent Preliminary Assessment Study conducted by Snowden Mining Industry Consultants Inc. (“Snowden”) (as announced in news release October 3, 2006), Tejamen, a potential open pit heap leach project, has an estimated net present value of US$97.4 million at US$12 per ounce silver and US$155.5 million at US$15 per ounce silver (at a 7% discount).

Current Market Cap is $20.5 million so I think this one has potential, considering the Tejamen project is one of seven - San Luca, Chalchihuites, Santa Catarina, El Sol, Maco, and Navidad.

Technically the stock made a substantial move after the Sprott investment news, but has now consolidated and closed at .25. Major Support exists at .22 (use for stop loss) and Resistance is .28 - .29. The weekly chart shows me this one could do .42 on a .29 breakout. Increased volume over .29 is key.
I've been accumulating from .12 up to .18.

The President and CEO, Mr. Smith is a geologist with significant mining operations experience both in the United States and internationally. Mr. Smith has served as Chief Mine Geologist for Barrick Gold Corp. at the Goldstrike Mine in Nevada. He subsequently became General Manager of Exploration and Development for Barrick Gold in South America. Mr. Smith has managed the design and operational aspects of engineering geology and has been involved in all aspects of ore reserve calculations, parameters and block modeling.
http://www.oremex.com/Corporate/Management/default.aspx

From their website:
With a 50.8 million ounce silver resource at its Tejamen Property and an experienced mine development team, Oremex Resources Inc. is an up and coming silver producer in Mexico. The Company is exploring and developing projects along the highly productive mineralized belt that has made Mexico one of the largest silver producers in the world. In addition to the Company's flagship Tejamen Silver Property, Oremex's portfolio of additional properties offers an opportunity for potential growth. Oremex Resources Inc. is a Canadian-based silver resource company listed on the TSX Venture Exchange (ORM) and the Frankfurt Exchange (OSI).

As always, please do your own due diligence and visit the company website for further information.

http://www.oremex.com/Home/default.aspx