2nd Jun 2015 08:05
LONDON (Alliance News) - Xtract Resources PLC Tuesday said it has discovered a significant concentration of gold along several gold bearing veins at the Colin prospect at the Chepica gold and copper mine in Chile that could contain around 8,000 ounces of available gold.
The company has recently completed exploration and sampling work targeting prospects where mining is not currently taking place but could be started up to increase flexibility on the mine. The veins outcrop on surface, meaning they are visible on the ground.
The main characteristics of the ore zone targeted shows it has a 150 metre strike-length and is open to depth. To date, the zone from surface to depth of 25 metres represents 100,000 tonnes at sampled grades varying from 2.0 grammes of gold per tonne to 5.5 grammes.
Overall, Xtract believes there is around 8,000 ounces of gold available in the ore zone, but that is an internal estimate as work continues to try and officially define the resource. The metal value of the ore zone is thought to be around USD6 million at a gold price of USD1,200 per ounce.
Gold was trading at around USD1,187 per ounce on Tuesday morning.
Xtract has now approved an additional 1,500 metre drilling programme targeting the underground extension of the major gold bearing zones recently identified on the surface. The drilling work has been contracted out and will commence within a month, it said.
"We are looking forward to drilling these gold bearing zones to depth and believe that we can increase the Life of Mine significantly once the planned drilling programmes are completed," said Chief Executive Jan Nelson.
Xtract shares were up 1.1% to 0.455 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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