Mineral resource estimates optimistic
Shares in the group rose by 9% from 20 cents to 22 cents following the announcement.
Ormonde has a 70% interest in the project and the estimate is the first to comply with an internationally-recognised reporting standard for underground minerals.
Indicated and inferred resources are estimated to be 6.8 million tonnes, containing 85,000 tonnes of copper, 486,000 ounces of gold and 6.9 million ounces of silver.
As up to 65% of the total resource tonnage is in the indicated category, analysts said that raised the potential of the find down the line as more work is done the deposit.
Research analyst Charles Kernot of London-based Seymour Pierce put a buy recommendation on the shares yesterday following the announcement of the potential reserves.
Because the figures look good, Mr Kernot says he expects the company to proceed with an assessment of the mine’s potential. That assessment is due for completion in the current quarter.
Managing director Kerr Anderson said: “Our resource estimation shows that at La Zarza we have a large copper-gold-silver resource with the potential to become a successful mining operation, which could produce circa 65,000 ounces gold equivalent per year.”
