UPDATE 1-Tiomin stock soars on Peru resource outlook
Thu Oct 25, 2007 1:55pm EDT
reuters.com
(Updates stock movement, adds details; in U.S. dollars unless noted)
TORONTO, Oct 25 (Reuters) - Shares of Tiomin Resources Inc (TIO.TO: Quote, Profile, Research) jumped more than 20 percent on Thursday after the company announced a major increase in measured and indicated resources at its Pukaqaqa copper and gold project in Peru.
The junior miner, which owns 49 percent of the project, said its measured copper resource increased by 36 million pounds, or 1,470 percent, while measured gold increased by 6,700 ounces, or 1,360 percent.
Indicated copper rose by 975 million pounds, or 483 percent, and indicated gold was up 241,500 ounces, or 630 percent.
The news sent Tiomin stock up 22.7 percent, or 2.5 Canadian cents, to 13.5 Canadian cents by early Thursday afternoon. Tiomin was the fifth largest percentage gainer on the Toronto Stock Exchange.
The results came after completion of a 16,218-metre (53,210-foot) Phase 3 drilling program by operator Compania Minera Milpo (MIL.LM: Quote, Profile, Research). The Peruvian mining company owns the other 51 percent of the project.
Tiomin said the increase represents both the upgrading of inferred resources and the addition of new resources. With the new results, inferred resources now make up 37 percent of total resources, down from 87 percent.
At a cutoff of 0.3 percent, this brings total measured resources up to 38 million pounds of copper and 7,200 ounces of gold, and indicated resources to 1,176 million pounds of copper and 279,700 ounces of gold.
The Pukaqaqa project is located 230 km (145 miles) southeast of Lima.
Earlier this year, Toronto-based Tiomin halted development of its Kwale mineral sands project in Kenya, which remains under force majeure. The project has been plagued by delays including a land dispute with farmers and drawn out negotiations with the Kenyan government.
In February, Tiomin said that delays and rising costs had caused the project's lenders to withdraw the $155 million debt facility in place for the project.
Force majeure allows companies to suspend contractual obligations due to circumstances beyond their control. |
