HGM.L Share News (HGM)

The share price of Highland Gold has been flagging of late but it recovered its momentum on Tuesday after the Russian gold miner announced positive exploration results from its Mnogovershinnoye (MNV) and Lyubov properties.The company said further exploration at Valunistoye, just north of its MNV field in Russia's Khabarovsk territory, indicates potential reserves of 190,000 ounces of shallow, open-pit mineable ore grading between 3.0-5.0 grams per tonne.The new estimate is more than double the originally defined gold reserves for Valunistoye.At Lyubov, positive intermediate results have been received from metallurgical test work on a 320 kilogram composite sample of primary ore taken from the Evgraf target.The results ‘corroborate the positive metallurgical properties for the Evgraf ore which also yielded gold recoveries in excess of 80% utilising gravitational enrichment during previous test work,’ the company said.An in-house resource estimate puts the resource potential of the Evgraft target at 1.6m ounces of gold at an average grade of 1.7 grams per ton, and a cut-off grade of 0.75 grams per ton.‘We are very pleased with the good drilling results at MNV. This underlines that this deposit still holds significant exploration potential which we are determined to fully exploit and turn into value,’ said Valery Oif, chief executive of Highland Gold.‘The metallurgical test work at the Lyubov deposit continues to yield positive results and opens up a number of options for a low cost operation,’ Oif added.