Piece by Tim Treadgold a writer for several broking houses/newsletters. Possibly has contributed to strong interest in ORN. Orion. When trading as Goldstar, this business showed great promise as the owner of the historic, and high-grade, Walhalla goldfield. Like previous owners, Goldstar failed to restore the field to its glory days of a century ago, and ran out of capital as the global financial crisis hit.
Many investors will be wary of the Victorian goldfields, which often seem to have more in common with a minefield (of the military variety).
The re-vamped Goldstar/Orion has $9 million in the bank, a new management team led by Dennis Waddell, who cut his teeth on an even tougher gold project in the remote Tanami desert where WA bumps into the NT, and a long history of past Victorian gold failures as guide of what not to do.
A technical review of Walhalla is under way. If Orion can complete what Goldstar started, it has the potential to emerge as a profitable mine operator. Historically, the Walhalla field has yielded 1.5 million ounces of gold from ore grading more than one troy ounce (31.1 grams) to the tonne.
On the market, Orion has risen from a low of 1.7¢ to 5¢, capitalising the company at $37 million.
ORN Price at posting:
$1.92 Sentiment: None Disclosure: Not Held
