Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Calvista Gold Corp (TSX:CVZ) jumped by as much as 23% on Wednesday on higher than usual trading volumes, after resuming trading at 11:30.
Trade in the Toronto-based explorer was halted earlier after it announced a significantly upgraded resource for its Callejón Blanco and Buenavista prospects in Colombia.
By early afternoon the miner was trading up 16.6% at $0.70 on the Toronto big board building on a massive run-up that started a week ago. The tightly held counter it now worth $36 million – up an astonishing 77% in just the last week. The volatile stock is down slightly from where it was this time last year.
The mining sector was generally flat on the day with the TSX S&P Global Mining index up 0.3%
Calvista’s press release highlights a new combined indicated mineral resource for the Callejón Blanco and Buenavista prospects of more than 450,000 ounces of gold (4.03 million tonnes grading 3.49 grams per tonne) and more than 2 million silver ounces (15.77 grams per tonne).
The company stresses that all its prospects in the California Valley in the province of Santander are located below 3,200 metres and are not affected by the Páramo law. The Páramo ecosystem is located in the northern Andes of South America on is made up of regions above the continuous forest line, but below the permanent snowline.
Calvista raised $1.5 million for its Colombia exploration program privately in July.
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