Emerald Resources NL (ASX: EMR) shares surged in morning trade after the mining company released a progress update on its 100% owned, flagship Okvau gold mine. The company announced it had its maiden gold pour, producing two gold bars weighing a combined 8.6kg.
As a result, the Emerald Resources share price jumped up by more than 12% this morning. Unfortunately for shareholders, the surge was short-lived, with the company’s shares closing flat for the day at 90 cents apiece.
First mover advantage
According to Emerald Resources, it was a first mover in the emerging gold province in Cambodia, securing a mineral investment agreement and an industrial mining licence over the Okvau Gold Project.
The Okvau mine’s gold production is expected to output more than 100,000 ounces of gold per annum. This is in line with the company’s definitive feasibility study released on 1 May 2017 and subsequently updated on 26 November 2019.
What did management say?
The past two months have been busy for Emerald Resources. The company has been focused on the construction of the Okvau substation and connecting the remotely located plant to key utilities.
Today’s update was seen “as a major milestone for the company and Cambodia, as the project becomes the first modern large scale mine to operate in the country”, according to Emerald Resources managing director Morgan Hart.
He further stated that “This marks the creation of a new industry for Cambodia bringing opportunities and benefits for the people of Cambodia”.
Hart also paid kudos to his team which had remained on schedule and on budget for the first gold pour, despite the logistical challenges brought on by the pandemic.
Emerald Resources share price snapshot
Over the last 12 months, the Emerald Resources share price is up over 68%, beating the ASX Materials sector by around 42% over the same time. Based on the current share price, the gold miner has a market capitalisation of around $464 million.