LONDON (Alliance News) - Metminco Ltd on Tuesday said it intercepted intensive phyllic alteration in most holes of its Tesorito gold prospect in Colombia, which it said suggested a "major mineralising system".
Despite the positive test result, shares in the company were trading 23% lower at 0.47 pence each Tuesday midday.
Metminco said results from two holes at the gold prospect confirmed the continuation at depth of the gold mineralisation.
Intensive phyllic alteration was intercepted in one of the holes, with increasing base metal mineralisation and potassic alteration with depth, the company said.
Phyllic alteration is a hydrothermal alteration zone in a permeable rock that has been affected by circulation of hydrothermal fluids.
"The intensity of hydrothermal alteration seen at Tesorito together with prolific gold mineralisation already recognised in the Quinchia district and elsewhere in the Cauca belt suggests this to be major mineralising system which offers great potential for exploration success," Chairman Kevin Wilson said.
"In the classic porphyry model, the mineralisation seen at Tesorito could be the gold cap to base metal mineralisation at depth," he added.