BBX rockets 70pc after being reinstated to trading
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BBX Minerals is finally back trading on the ASX after almost five months suspended, driving shares up 70 per cent just after market open.
But the company (ASX:BBX) has been forced to retract the statement that kicked off its suspension in the first place.
“As a consequence of the retraction, the company advises that investors should not be influenced by the 14 August announcement,” BBX told investors.
Shares traded at 20c prior to the suspension and spiked to 34c this morning.
BBX went into a trading halt in August after it was asked by the ASX to clarify an announcement it made regarding “spectacular gold extraction” results from its Ema project in Brazil.
The announcement claimed initial test work yielded extremely high grades of 299.3 grams per tonne (g/t) of gold and 1971.6 g/t silver.
The ASX questioned BBX over the methods used to come up with those results.
Chief Jeff McKenzie would not comment on the matter when contacted by Stockhead on Tuesday.
BBX has been working on a viable extraction technique to recover precious metals from bulk samples at a commercial scale.
The company has now released a replacement announcement of results from follow-up testing on bulk samples that show grades of 68.2 grams per tonne (g/t) of gold and 2099.4 g/t of silver, including 122 g/t of gold from a single bulk sample.
The results were delivered using the same process that was used to produce the August 14 results.