LONDON (Alliance News) - Metminco Ltd shares spiked Thursday as the South American-focused gold producer "took a material step forward" after its most recent drill hole results at Tesorito in the Quinchia district of Colombia.
Shares in Metminco were up 40% at 0.47 pence each.
The results include 64 metres at 1.67 grammes per tonne gold from 144 metres, within 253.1 metres at 1.01 grammes per tonne gold from 2.9 metres.
These results at Tesorito suggest, according to Metminco, a "significant" near surface porphyry gold target 800 metres from the company's gold resources and reserves defined at the Miraflores deposit.
Metminco said it is now considering a deep drill hole to test the depth extension of the high grade gold zone and to "investigate the depth potential of mineralised porphyry".
Executive Chairman Kevin Wilson said: "The confirmation of a mineralised porphyry with higher grade gold mineralisation at Tesorito is a material step forward for the company.
"We are very excited by the results of this drilling. It demonstrates that there is potential for the company's 880,000 ounce resource at Miraflores to be complemented by this near surface mineralised target at the Tesorito porphyry, only 800 metres to the southeast. Importantly, any near surface, higher grade gold mineralisation delineated at Tesorito has the potential to materially improve the economics of the Miraflores feasibility study though an integrated development plan, sharing mine and process infrastructure. In addition, we have additional targets at Chuscal and Dosquebrados requiring follow-up, all within a potential radius of operation for a centralised plant."