Monday, 05/01/2017 16:44

Trading halted for Emerald Resources

The Australian Securities Exchange (ASX) approved a share trading halt for the mining firm Emerald Resources until May 2, the date that the company is expected to release a definitive feasibility study (DFS) for its Okvau gold project in Mondulkiri province, according to a Friday announcement.

 

The trading halt could end sooner if Emerald Resources releases its study before then, the ASX announcement added.

In a quarterly report released on the same day, the mining firm said it had submitted an environmental and social impact assessment (ESIA) for the Okvau gold project to the Ministry of Environment.

The company added that it was taking part in ongoing discussions with the Ministry of Mines and Energy (MME) to obtain a mining licence for the Okvau project.

Emerald Resources obtained both the Okvau and the adjacent O’Chhung exploration licenses, which cover approximately 400 square kilometres in Mondulkiri province, when it merged with the original license holder Renaissance Minerals in July 2016 for $71 million.

A 2015 pre-feasibility study conducted by Renaissance Minerals estimated that the Okvau project could produce around 91,500 ounces of gold a year for eight years with a capital investment of $120 million. Renaissance previously reported that the Okvau held a total of 1.13 million ounces of gold.

“It is anticipated that the final DFS will demonstrate enhanced project economics when compared to the Renaissance Minerals Pre-Feasibility Study, primarily due to lower waste to ore strip ratio driven by improved geotechnical parameters, slight increase to ‘in pit ounces’ and reduced capital costs,” Emerald Resources said in a statement earlier this month.

According to its latest quarterly report, the firm had a consolidated cash position of $10.7 million as of March 31. A day before the halt was announced, Emerald’s share price was trading at only A$0.047 with a trading volume of over 400,000 shares.

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