PERTH (miningweekly.com) – The share price of junior Laconia Resources dropped by 20% on Wednesday on news that the company was facing opposition at its Kimsa Orcoo copper/gold/silver project, in Peru.
Laconia said on Wednesday that it had received notification of an appeal against a drilling approval at Kimsa Orcco. The matter would be heard by the Mining Council, which forms part of the Ministry of Mines, on November 25.
The company told shareholders that it believed the appeal would be dismissed, and has said that it would vigorously defend its position.
The Kimsa Orcco project consists of four Laconia permits, covering 27.65 km2, as well as 11 contiguous permits, which are held through an 80% option agreement, covering a further 56.22 km2.
The project includes the Rasuhuilca deposit, which has a Joint Ore Reserves Committee-compliant inferred mineral resource of 360 000 t, at 1.97 g/t gold and 179 g/t silver.
Laconia shares were trading at a low of 0.4c a share on Wednesday, down from an opening price of 0.5c a share.