15th Jul 2015 09:45
LONDON (Alliance News) - Xtract Resources PLC Wednesday said it has intersected a new reef system which is open along strike and depth at the Colin mining area of the Chepica gold and copper mine in Chile.
The company has been conducting work on the Colin mining area, and said it has discovered a previously unknown reef system which grades at 4.2 grammes per tonne over a 3.5 metre width. The reef remains open along strike and at depth.
The new intersected reef system requires no additional off reef development and potentially will "significantly reduce" the company's mining cost in the area, it said.
It could potentially double the previous in-house company estimates of in-house contained gold estimates in the area and, as a result, could also increase the life of mine.
On June 18, Xtract said it thought the Colin mining area could contain around 100,000 ounces of gold.
"Whilst we continue to drive development to the main reef system in the Colin mining area, we will now drive two additional prospect development ends on the newly discovered reef system. This will impact positively on not only the grade but also the tonnage profile of the mine," said Chief executive Jan Nelson.
Xtract shares were up 3.7% to 0.280 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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