Oropa banks on Pungkut, to shed non-gold assets

Australian exploration from Oropa Limited said on Monday it is transforming into pure gold exploration and development company and would focus to bring its Pungkut gold project in North Sumatra into production.

The company?s new CEO Bruce Tomich said that the company will dispose of non-gold assets.

Tomich said on Monday that based on current market price, the company?s 75 percent stake at Pungkut gold project, which currently has 1 million ounces of JORC-compliant inferred resource was ?persistently? undervalued.

?Oropa?s share in this Inferred Resource, based on its current market capitalization, is valued at approximately A$6/ounce, which the Board considers to be appreciably below the industry average, and reflects poorly on the true potential of mineral resources within the currently outlined Pungkut Contract of Work (CoW).?

?There remains considerable potential to extend the current Inferred Resources through continued focused exploration, and based on previous regional geological work, there is considerable potential at a number of other localities within the Pungkut CoW to host world class gold or porphyry gold/copper projects,? Tomich said.

?The exciting potential at Pungkut and the positive outlook for gold each provide a compelling argument for Oropa to focus on a pure gold future.? He added.

According to Tomich, the Board is reviewing its funding requirements with the new emphasis on gold and Pungkut, and will be seeking to rationalize expenses in all areas of the company?s business.

State miner PT.Aneka Tambang has 25 percent stake at Pungkut. (denny)