Orinoco Gold makes key operational appointments, reinforces production credentials

Orinoco Gold (ASX: OGX) is an emerging gold producer that we introduced to our Portfolio last week at 7.2c, based on its outstanding Brazilian project fundamentals (the stock has since risen by 22%). Orinoco has just announced a number of key management appointments as it builds its Cascavel gold operations team, including the appointment of Andrew Tunks as General Manager Operations, which further reinforces confidence. I believe the introduction of Orinoco Gold to our Portfolio is well-timed, as its share price has recovered solidly from 12-month lows and has risen steadily on the back of growing trading volumes. The lack of a JORC-compliant resource due to the high ‘nuggety’ nature of the gold mineralisation at its Cascavel project in central Brazil might initially discourage some investors until grade is established and steady-state production achieved; however this presents a real buying opportunity in our view. The rewards far outweigh the risks and we have every confidence that a significant re-rating is taking place ahead of the late 2015 production milestone.

Gavin Wendt
Founding Director

Gavin has been a senior resources analyst following the mining and energy sectors for the past 25 years, working with Intersuisse and Fat Prophets. He is also the Executive Director, Mining & Metals with Independent Investment Research (IIR).

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