21st Jul 2014 08:14
LONDON (Alliance News) - FinnAust Mining PLC Monday said it has found a new high-grade multi-metals region at its Hammaslahti target in Finland following drilling at the site.
The Finnish metals miner, which listed on AIM last December, said its Hole R325 found a sulphide zone of 5.6 metres with 3.2% copper, 2.7% zinc, 0.7% lead, 71 grams per tonne of silver and 0.76 grams per tonne of gold from 196.80 metres in depth.
The company said the lower grade part of the mineralised region was seen in three drill holes 100 metres north of the R325 well, and it is carrying out follow up drilling in hopes of extending the known mineralised zone to the south and north.
FinnAust said the mineralisation is relatively shallow and is close to historic underground mining and its associated mine infrastructure.
It added that the Main Hammaslahti mine structure hosts at least four separate mineralised regions which are now open to the north of an old zinc pit at the site, with a 5.6 metre region at 3.2% copper, and extensions to the south with a 3.5 metre region at 11.5% copper, leading to a total strike length of 1.8 kilometres.
"Drilling at Hammaslahti has now discovered this new lode and extended the zinc lode to the south. Recent work also indicates the potential for further parallel sulphide potential structures to the east of the main lodes. The company has granted and is pending leases over this entire area," Executive Director Alastair Clayton said in a statement.
The company said that planning will now focus on how to best drill the high-grade portions of these new mineralised structures to better define overall grade and tonnes.
FinnAust shares were up 16% to 2.60 pence, putting it second among AIM All-Share risers during early trading on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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