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Orosur Mining (OMI) Shares Rallied 26% on the Colombia Update

Simon Mugo trader
Updated 21 Oct 2022

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Key points:

  • Orosur Mining shares rallied 26.4% on the Colombia mining update.
  • The company’s drilling campaign uncovered substantial gold deposits.
  • Investors cheered the news as they awaited more assay results.

The Orosur Mining Inc (LON: OMI) share price rallied 26.4% after issuing an update about its operations in Colombia, where its flagship Anzá Project is located. In addition, the company released the assay results for four drill holes, which were better than expected, triggering a rally in its share price.

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Today’s assay results covered three holes drilled at the Pepas prospect and one at the Pupino prospect. Holes PEP004, PEP005 and PEP007 were drilled at Pepas, while hole PUP001 was drilled at Pupino.

Also read: The Best Gold And Gold Mining Stocks To Buy Right Now.

The company did not encounter any significant mineralisation at holes PEP004 and PUP001, which led it to suspend drilling operations at the Pupino prospect due to the rugged terrain and logistics challenges facing its employees who have to walk a significant distance from their camp to the drilling location daily.

Orosur Mining revealed some promising intercepts uncovered in hole PEP005 include 2.00m @ 12.70g/t Au, 4.25m @ 6.30g/t Au, and 36.85m @ 2.13g/t Au. Other crucial gold deposits were discovered in hole PEP007, with the best being 80.55m @ 3.05g/t Au including 41.75m @ 5.24g/t Au.

Investors cheered today’s announcement, as evidenced by the rally in OMI shares. However, one should remember that Orosur Mining has a venture agreement with Minera Monte Águila (MMA), a Colombian mining company that operates the Anzá Project.

Minera Monte Águila (MMA) is a 50:50 joint venture between Newmont Corporation and Agnico Eagle Mines Limited. The Colombian entity through which the two mining companies exercise their rights over the Anzá Project.

Orosur Mining further noted that it had completed more holes at Pepas and was waiting for the assay results from the independent laboratories to which they sent samples for analysis. The company is also currently drilling the PEP008 and PEP009 holes at Pepas.

OMI shares had given up some of their gains at writing. So, would I buy Orosur Mining shares? The short answer is it depends on my investment goals.

*This is not investment advice.

Orosur Mining share price.

Orosur Mining share price 21-10-2022
Source: IG

The Orosur Mining share price rallied 26.4% to trade at 12.64p, rising from Thursday’s closing price of 10.00p.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading