- Orminex’s (ONX) latest drilling results at Comet Vale have failed to whet investors’ appetite, with the company’s share price plummeting
- Two of the six holes drilled at the WA gold project encountered water, prompting partner Mineral Ventures to suspend mining operations
- Both companies will conduct a review of the site, while Mineral Ventures will pay any operating costs
- Today’s drilling results have put a dampener on ONX’s stock price, dropping 19.5 per cent at one point on Thursday’s trading session
- Shares in ONX are worth 3.7 cents each at Thursday’s close
Orminex’s (ONX) latest underground drilling results at Comet Vale has failed to whet investors’ appetite, with the company’s share price plummeting.
The company revealed two of the six holes recently drilled at the gold project had to be abandoned as the drilling encountered significant groundwater inflows.
As a result, joint venture partner Mineral Ventures has pulled the pin on mining operations at Comet Vale.
Orminex has a 51 per cent stake in the project, but under the agreement signed with Mineral Ventures, it won’t have to pick up the tab for keeping Comet Vale running.
Both companies remain invested in the project’s future, announcing it’ll use the suspension to conduct a full review of operations at Comet Vale.
“While the initial drilling at Comet Vale was disappointing, the suspension of operations will be used to develop a greater understanding of the geology and allow a thorough review of the operation,” Orminex Director Dean Hely said.
However, today’s news has put a dampener on investor support, with Orminex leaking shareholders at a rapid rate.
At one stage, the company was down 19.5 per cent, wiping 0.8 cents off its share price.
Shares in ONX are now worth 3.7 cents each at market close on September 3.