Reason why ASIC suspended Volt resources

No need to stress about the announcement everyone. Reason for suspension explained below

http://www.theaustralian.com.au/bus...s/news-story/3c151ae2a784627c218f573606cefa53


"Melbourne-based graphite hopeful Volt Resources has become the first company to fall foul of ASIC’s controversial new guidelines on forward-looking statements, with the company suspended from trade after releasing its scoping study yesterday.

While Volt studiously avoided including in the scoping study any sort of economic forecasts following ASIC’s crackdown on the practice, it still managed to stumble on the new regulations by outlining a range of “production scenarios”.

Volt said the study found its Namangale graphite project in Tanzania could support up to 240,000 tonnes a year of graphite production over an initial 20-year mine life.

The new guidelines have stricter rules around the issuing of production targets, particularly if they are overly reliant on so-called inferred resources.

It took just three hours for ASX to step in and suspend Volt, which is now amending its original announcement.
ASIC’s updated guidelines on forward-looking statements have sparked uproar among smaller resources players, which are arguing the changes will lead to a less transparent market and deprive them of a key tool in generating momentum — and, more importantly, funding — for early stage resources projects.

One of the industry’s concerns about the crackdown on the inclusion of economic forecasts in scoping study results is that it could create an information vacuum that would be filled by speculation, and so it was the case yesterday.
It was noted that the project parameters put out by Volt yesterday were very similar to those outlined by its larger Tanzanian graphite rival Magnis Resources before the ASIC crackdown.

Magnis’s pre-feasibility study from December 2014 estimated its Nachu project could support 180,000 tonnes a year graphite production, with margins of $US1600 a tonne and an NPV of just over $US1 billion ($1.4bn). Yesterday many were tipping Volt’s Namangale could also break the $US1bn NPV mark."



Good news in the end!