ASX investigates junior mining company
A second junior mining company, Frontier Resources, has come under the scrutiny of the Australian Stock Exchange (ASX) after it released exploration results that doubled its share price.
Shares in Queensland copper explorer Cudeco remain in a trading halt, pending an investigation into drill results.
One of the caveats on explorers releasing information to the market is that results must meet the standards of the joint ore reserve code.
Don Larkin, from the Australian Institute of Mining and Metallurgy, says geologists can be suspended for releasing misleading results to shareholders.
“If there is a breach of the code or if there is some questions on the code the ASX will ask questions behind the scenes,” he said.
“And if it’s a breach of the code of ethics the competent person or the professional can be found guilty and suffer the consequences, which would be no longer being a member of a professional institute.”
