After almost a week with no price change, yesterday Orsu Metals Corporation (TSE:OSU), (PINK:ORSUF) stock started its gold rush, long before the gold discovery.
OSU stock jumped 20% up on the released by the company positive results of a scoping study on the Tadybulak Gold-Copper-Molybdenum Porphyry Deposit.
On the news, the shares of Orsu Metals Corporation became one of the most demanded goods on the Toronto Stock Exchange. OSU closed the trading session at $0.30 per share and had a volume exceeding almost fourteen times the average for the company.
The gold rush for the company’s shares started also even on the American Pink sheets market. There, the positive news led to a 29.36% price soar for ORSUF.
It is maybe strange that the stock rush exploded just yesterday, since Orsu Metals Corporation reported its interim results for the period ended September 30, 2010 already on Wednesday. The results presented not only strong cash balance, which guarantees the further development of the company’s projects. The highlights in the latest OSU operations were also as positive as the company’s financials. Still, on the same day OSU stock closed the market with no change in its price and with a weak trading volume.
At the same time, on the released preliminary assessment results yesterday the shares of Orsu Metals Corporation exploded. The company announced the positive results of a so called “scoping study”.
Some experts are of the opinion that the “scoping study” is often used for the term “preliminary assessment”, since it is not included as a term in the National Instrument 43-101.
According to the National Instrument 43-101, “preliminary assessment” means a study that includes an economic analysis of the potential viability of mineral resources taken at an early stage of the project prior to the completion of a preliminary feasibility study.[BANNER]
The most often mentioned main differences between a scoping study and a feasibility study are:
- the stage of the project – the scoping study is limited to early stage projects and
- the usage of inferred resources – a scoping study with strict disclosure requirements may use inferred resources. A feasibility study is restricted to proven and probable reserves plus measured and indicated resources.
Maybe, yesterday the shares of Orsu Metals Corporation had such brilliant performance not only because of the scoping study results, since they have a much higher degree of uncertainty than the results of a feasibility study.
And, maybe one of the main factors of the stock rush were the released one day earlier financial and operational results of the company, based on real and not on estimated data.
