26th Jan 2015 08:37
LONDON (Alliance News) - Shares in FinnAust Mining PLC dropped in early trade on Monday after the company reported the nickel and copper grades found at its Kelkka nickel sulphide project were below expectations.
The company, which has copper, zinc and nickel projects in Finland and Austria, said hole R306 at the Kelkka project in Finland has intersected nickel and copper sulphides.
But it said the grades found were not at high as hoped, though it contended the results from the drill hole indicate a body capable of hosting the kind of nickel or copper mineralisation it is seeking.
"With R306 we have proven the existence of previously undiscovered horizons of remobilised nickel and copper sulphides. Whilst the grades are lower than first anticipated the fact that both veins and more disseminated mineralisation was discovered is very encouraging," said Alastair Clayton, Executive Director of FinnAust.
Shares in the company were down 17% to 2.40 pence on Monday morning, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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