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.
Releasing the results of a new engineering study failed to move the markets in a positive direction today for Orko Silver (TSX-V:OK), although the resource-heavy Toronto exchanges were also in the red.
The Vancouver-based company was down about 11% in mid-day trading, while the TSX had lost 110 points (just under 1%) and the venture exchange was off by the same percentage. The S&P/TSX Global Mining Index was down 1.64%.
Orko Silver said a Preliminary Mineability Assessment on its La Preciosa project in Mexico shows ” there is no readily identifiable reason to suppose that both open pit and underground mining could not productively and safely be carried out in the La Preciosa deposit.” Despite “instability potential” that could arise from “persistent joint planes that trend parallel to the average dip and strike of individual veins” Orko says “these structures could readily be controlled through the use of appropriate support types, densities and strategies.”
The company notes the results are preliminary- full results are expected in a new PEA to be released in August or September.
