Orinoco Gold -Catastrophic Value Destruction: WHY?

To the honest and good people of Goias. Do you have information that might help explain what has happened at Orinoco?

There are many people who have lost everything from what appears to be deliberate mismanagement of OGX.

Will you be brave and help them seek justice?

If so, you are welcome to send the information to me anonymously, and I will make contact the relevant authorities.

CONFIDENTIAL EMAIL: gunter.schimmel@protonmail.com

Orinoco Gold Announcement Analysis
To those invested: Many people have lost everything they invest in business and this gets worse when companies do not tell the truth. This blog is about Orinoco Gold LTD (ASX: OGX) whose announcements never seem to agree with gold production. … or get anywhere near it.

This blog begins with reports to ASIC about the analysis of some OGX announcements that simply do not seem to have the “ring of truth”. This is a community service where investors can try to understand what is actually going on. Feel free to send an e-mail if you have additional information that you would like to publish anonymously, regardless of the content. However, this blog is only interested in telling the truth. We can leave the church in the village.

OK, Lets analyze some of the questionable announcements in this ASIC report:

Cover page for Report to ASIC re OGX false announcements

Evidence from ASX reports indicates that the company has been falsifying ASX company reports having a direct impact on shareholders’ investment decisions:

ASX Reports PDF: Download

False Report 1. 100-110 Ounces gold production over a period of two days:

In the Second Quarter 2018 Activities Report, the company under the heading “Near Term” “For Friday 27th and Monday 30th July 2018 the mills produced 100-110 ounces of gold doré and gold in concentrate which is a positive breakthrough.” This was obviously activity that occurred post 2^nd quarter (3^rdquarter).

However, In the 3^rd Quarter 2018Activities Report, the company reported a total gold production of 316.8 ounces for the whole quarter, or an average of approximately 100 ounces of gold per month.

How is it possible for the company to claim gold production of 100-110 Oz in two days, yet the average yearly gold production is under 2 Ounces per day?

How can the company not know that the quantity of 100-110 ounces is more representative of an entire month’s gold production?

This report had two competent persons for exploration, but no competent person for this spurious claim of gold production. Is this also a breach of the JORC code?

This is clearly false reporting and I ask ASIC to investigate by obtaining the following information:

Who authored the reporting of 100-110 Ounces of gold production in two days at the end of July?
What primary information and records did they base this reporting on (please request a copy of this primary information and records)?
What is the QA process involved in reporting gold production?
Statements from management and employees who prepared this report.
Who in management or the board was aware (or has been made aware) that the report was false or misleading?

False Report2. Multiple High-Grade Bulk Samples:

In the ASX Media Release 19^thFebruary 2018, OGX reported on a total of 35 samples (collected over several weeks). The bulk samples totaled 38.55 tonnes and are reported to have returned 36.17 g/t. The bulk samples were not indicated as being hand mining or highly selective manual mining, yet the results obtained are again vastly different from the average grade of mining operations for the year,which are closer to 2-3 g/t. How is it possible for the company to produce gold for months on end, at a grade approximately one tenth of that they have espoused and promoted, without the reports being false (or misleading at best)?

From ASX report 5^th February 2018 “To date our 29 one-tonne samples from different parts of the mine have averaged 36.17 g/t gold as reported … This compares favorably with the initial 40 panel samples that reported an average grade of 47.2 g/t …” However, this does not compare favorably with actual mining results, by more than a factor of 20, again illustrating that the report is deceptive or false.

I ask ASIC to investigate by obtaining the following information:

Who authored the reporting of the 35 bulk samples?
What primary information and records did they base this reporting on (please request a copy of this primary information and records)?
What is the QA process involved in reporting gold production?
Statements from management and employees who prepared this report.
Who in management or the board was aware (or has been made aware) that the report was false or misleading?

False Report 3. CIL Bulk Sample Test Results:

In the ASX Media Release 31 October 2018, OGX reported high grade results, including gold ore from the Mestre Zone. The report advises that the average grade of the ore from Mestre returned 28.75 g/t. The report does not suggest that the ore was as being hand mining or highly selective manual mining, yet the results obtained are again vastly different from the average grade of mining operations for the year, which are under2 g/t. Even allowing for gold recoveries of only 8.75 g/t through the gravity mill, the average grade produced is out by a multiple of over 4, from the average grade of gold production during the year.

This is clearly false reporting and I ask ASIC to investigate by obtaining the following information:

Who authored the reporting of the CIL bulk sample?
What primary information and records did they base this reporting on (please request a copy of this primary information and records)?
What is the QA process involved in reporting gold production?
Statements from management and employees who prepared this report.
Who in management or the board was aware (or has been made aware) that the report was false or misleading?
Why does the report appear show the COO Richard Crew operating the excavator obtaining the samples? Why would this not be the job of an excavator operator? Is this part of (or evidence of) wide-spread malfeasance? Good old-fashioned “gold salting” perhaps?
Why is this report signed off by a member of the board Mr Terry Topping, (apparently not in country) and not by the Geology Manager and qualified geologist ‘name supplied’ (who is in country)?

False Report 4. Waste Rock Stockpile:

In the ASX Media Release 24^thJanuary 2018, OGX announced “Previously stockpiled waste rock returns a surprise sample grade of 15.42 g/t.” Considering that the production average for the year was approximately under 2 g/t, how is it possible to have (supposed) waste rock with such a high sample grade? This is clearly false or misleading.

False Report 5. CIL Alleged Tailings Results:

In the ASX Media Release 5^th February2018, OGX announced “…outstanding Grades of gold in tailings” and “Five one-tonne random samples of tailings recover a total of 46.37 grams of gold in doré” at an “…average grade of 9.27 g/t.

In the ASX Media Release 31^stOctober 2018, OGX announced 22.11 tonnes of tailings produced an average of 6.143 g/t in CIL circuit, and 2.11 g/t in the gravity circuit.

This flies in the face of the 12-month total for gold production average grade of 1.95 g/t.
One may well ask how it is possible to obtain a higher grade for the tailings the second time it goes through the gravity plant.
It is also interesting to note that the grade of gold ore from tailings through gravity plant has been shown to be 2.11 g/t in the latest report (to support the latest convenient theory that CIL is the solution), however this same report refers to an historical tailings bulk sample report of 9.27 g/t (not from CIL but from gravity). It appears that they can’t even tell a consistent lie in the same report.
One may also ask how this report would even contemplate referring to (or giving credence to) an historical report of tailings samples of between 278 g/t and 524 g/t, when the yearly beneficiation grade is under 2 g/t. It is obvious that this ore has been concentrated prior to sampling and bears no resemblance to the reality of production of less than 2 g/t.

False Report 6. “high grade ores”:

Hidden inside the media release dated 20th November 2018 (regarding a funding placement), is a further report containing information relating to gold ore resources:

This report refers to “high grade ores” achieving 16.79 g/t and yet seems to be yet a different story from the bulk samples from later 2077 and early 2018. Is the company now saying that this is the typical grade only achievable from areas of high-grade ore? Because this was not the message that was being portrayed from the earlier bulk sample announcements as quoted in my initial complaint.
Also, this report (20th November) contains information relating to gold ore resources. Why is this report not released under the JORC code and authorised by a registered and suitably qualified professional?

Other Evidence

In addition, other evidence raises questions and suggest that reporting has been fabricated at will:

On two occasions, unrelated ebullient reports accompanied the release of quarterly reports on the same day (Q1/18: Tailings Bulk Samples and Q3/18:Tailings and Ore Bulk Samples). This may be suggestive of falsifying the unrelated reports in an attempt to assuage the negative impact of the quarterly reports.
The report regarding tailings released 31 Jan 18was released with no competent person sign-off and had to be re-released 05Feb 18 with board member and director ‘name supplied’ standing in as competent person (in panic?) from Australia.
Did the in-country qualified geologist ‘name supplied’ refused to consent be the “competent person” to any report that has involved the tailings estimates? If so, this would be highly unusual,considering he is the on-site exploration geologist. Perhaps he was aware that these reports are clearly based on false data?

From this analysis of some of the company’s ASX reports it appears that wildly optimistic reporting of bulk samples from the mine and tailings have never translated into production where the results have been consistently abysmal. This makes a clear case that results and announcements have been repeatedly fabricated at will to suit the prevailing narrative. Is this indicative of wider malfeasance at OGX?

Please investigate and prosecute where necessary to restore confidence in OGX. I intend to share this information with appropriate media organizations for the benefit of the public.

Further Correspondence

Do Not Rely on Unproven Allegations: Prove them first!

Feel free to send an e-mail if you have additional information that you would like to publish anonymously, regardless of the content. However, this blog is only interested in telling the truth. We can leave the church in the village.

English Blog

Orinoco Gold -Catastrophic Value Destruction: WHY?

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