re: smh business article
I agree with Macrae and Gavin Wendt on this, refer below. Here is an article from the SMH (link - http://www.smh.com.au/news/business/its-no-drill-ord-rockets-after-detailing-historic-copper-find/2006/11/20/1163871339410.html).
I think investors should note the drilling is not anticipated to start until next year, but they sure got everyone's attention in the meantime.
It's no drill: Ord rockets after detailing historic copper find
Email Print Normal font Large font Jamie Freed November 21, 2006
MOVE over CuDeco. Sydney explorer Ord River Resources claims to have made potentially "one of the most significant discoveries in Australian copper mining history" in the East Kimberley region of Western Australia. And after only three days of work on the prospect.
Unlike previous tenement holder CRA (now Rio Tinto), Ord hasn't drilled a single hole at the Copper Flats project. But surface rock chip sampling over a 60-metre area found seven rocks with an average grade of 24.49 per cent copper - including one containing 42.5 per cent copper.
The shares rocketed 65 per cent in high volume yesterday, closing 38c higher at 96c, after touching $1.10.
Ord first announced the results to the market last Thursday before repackaging the release yesterday, complete with the news of the discovery.
"[The claim is] quite outrageous considering there hasn't been a drill hole put down in this project," Fat Prophets resources analyst Gavin Wendt said. "It reminds me of CuDeco. They are talking in the same sort of bullish terms."
In the week leading up to last Thursday's announcement, Ord shares rose from 40c to 60c.
The 50 per cent share price increase caught the eye of the Australian Stock Exchange, which queried the company.
Ord responded that the company had first become aware of the sampling results, which had been approved by the "competent person" needed to give the official sign-off just one hour before it made the announcement to the market.
Ord executive director Jeremy Towner yesterday told the Herald his company had been sitting on the results for about a week before its exploration manager, or "competent person", returned from another Ord exploration site, in Laos, to sign off the announcement.
Ord said it made the discovery at its Copper Flat prospect after "using data from a previous explorer [CRA], which apparently did not recognise the significance of the results". Mr Towner said Ord was unlikely to be able to conduct its own drilling program until sometime next year because the wet season was starting.
Mr Towner and his father, executive chairman John Towner, hold about 56 million shares in Ord, which are due to come out of escrow in March. They received the shares in return for an outlay of $2480, or about 0.00004c each.
At an annual meeting last week which was scheduled in October, Ord approved the issue of 1 million options at a 40c strike price to each director. Based on yesterday's share price, those are well in the money.
END
Good luck to holders.
Cheers SBC
VAN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
