Gold: Orinoco calls in the administrators
Link copied to
Troubled gold producer Orinoco Gold (ASX:OGX) has called in the administrators.
Pitcher Partners told the market late Monday that two of its representatives had been appointed as administrators of Orinoco.
Orinoco has been in dire straits for some time and investors are not happy.
The Brazil-focused producer faced numerous problems with production at its Cascavel gold mine and was the subject of allegations of poor operating procedures, gold theft and conflicts of interest.
A number of shareholders turned to the ASX and ASIC in the hopes of sparking a shake-up of the current corporate regulations.
Adrian Byass, who was named as the new chairman in mid-February following the departure of Joseph Pinto from the role, told Stockhead last month that Orinoco shareholders had every right to be upset about the “extremely poor performance” of the company.
Since March last year Orinoco’s share price has disintegrated from a 52-week high of 13c to trade at an all-time low of 0.2c. That’s a 98.5 per cent dive.
It once traded at nearly 35c — in late 2012.
One shareholder lost his entire life savings — hundreds of thousands of dollars – while others suffered relationship breakdowns.
Amani Gold (ASX:ANL) has named well known mining personality Klaus Eckhof as chairman of the junior explorer. Amani has projects in the Democratic Republic of the Congo, a region Eckhof knows well. Eckhof replaces YU Qiuming, who has retired from the role.
Tietto Minerals (ASX:TIE) has bolstered its gold resource on the Ivory Coast by 146 per cent to 1.7 million ounces. Managing director Caigen Wang said the Abujar project resource had more than doubled in just over a year.
Orminex (ASX:ONX) is disputing Maximus Resources’ (ASX:MXR) decision to terminate a deal relating to the Burbanks gold treatment plant. In January, GBF Mining, which is processing the gold from Orminex’s Comet Vale project, struck a deal with Maximus to lease the plant for 12 months with an option to buy a 50 per cent stake. But Maximus announced last week it is now selling the Burbanks plant to Adaman Resources.
Gold Mountain (ASX:GMN) has secured a new tenement in Papua New Guinea which the company says effectively doubles the area of gold-prospective ground it holds. It has also been granted a renewal of four other tenements at its Wabag project.
Azumah Resources (ASX:AZM), Nexus Minerals (ASX:NXM) and Predictive Discovery (ASX:PDI) have all reported high-grade gold hits today. Azumah has extended mineralisation at its Wa project in Ghana down to 580m below surface with gold intercepts grading up to 16.85 grams per tonne (g/t). Nexus has reported grades of up to 15.07g/t from drilling at its Wallbrook project in Western Australia and rock chip sampling at Predictive’s Guinea projects as delivered grades of up to 29g/t. Anything above 5g/t is generally considered high-grade, though at the current gold price of over $1800 an ounce in Aussie dollar terms, grades as low as 2g/t can be profitable.