Metminco share price halves
PERTH (miningweekly.com) – Gold explorer Metminco saw its share prices halved on Tuesday, despite reporting ‘compelling gold opportunities’ following its takeover of Andes Resources earlier this year.
The Metminco board had undertaken a strategic review of all the previous exploration, known targets and existing resources within its Colombian project portfolio, given the strong gold price.
The company told shareholders on Tuesday that the immediate focus would now be a maiden 2 400 m diamond drilling programme at Chuscal, which is expected to start within a matter of weeks.
“Positive drilling results at Chuscal could have an immediate amplified effect, not only demonstrating the appeal of Chuscal in its own right, but also its potential to contribute to the realization of the nearby gold reserve at Miraflores, given the prospects are 2 km apart,” said Metminco MD Jason Stribinskis.
The Miraflores deposit is estimated to host a resource of 877 000 oz, at 2.8 g/t gold and a reserve of 457 000 ounces at 3.29 g/t gold, with Metminco noting that clusters of priority epithermal gold and porphyry gold/copper targets have been identified to complement the existing resource, within the greater Quinchia project.
The review also concluded that the Andes project remained substantially under-explored, with Metminco intending to continue to upgrade and prioritise targets for drill testing.
Metminco shares traded at a low 0.1c a share, down from a high of 0.2c a share.
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