Vancouver A group of “concerned shareholders” of Orphan Boy Resources (ORS-V) has requisitioned a general meeting of shareholders to remove certain directors of the company and appoint new directors in their place.
The dispute reflects dissenting views about the economic prospects of the company’s key asset, the Willa gold-copper-silver deposit in southeastern British Columbia. The deposit hosts measured resources totaling 496,000 tonnes grading 0.94% copper, 7.18 grams gold and 12.16 grams silver per tonne.
A recently completed technical report initiated by current directors and management concluded that the project was “technically feasible” but not economically viable at current metal prices.
The study examined a 500-tonne-per-day underground mine with ore trucked to the nearby Goldstream mill, which has a capacity of 1,000 tonnes per day. While this wasn’t deemed viable, the report suggested a modular mill could be built at Willa to eliminate the $32-per-tonne trucking charge. Other recommendations were made to improve project economics over the longer-term, including an exploration program to boost resources.
Engineering consultant Hatch reported earlier this year that the erratic nature of mineralization within the Willa deposit would make development of a viable underground mine “challenging.”
Ron Coombes, the founder and director of the company, is leading the effort to remove many of the present directors and replace them with another group. Both groups are comprised of well known, respected industry professionals, albeit ones with potentially different views about the immediate and long-term prospects for the Willa project.
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