Alecto Minerals' (LON:ALO) Zambian aspirations have been boosted - as it identified further surface gold resources within its Matala mine project, which could enhance the economics of early operations.
Alecto sampling has validated a 1984 report from the Zambian Industrial and Mining Corporation (ZIMCO), which estimated that an additional 75,000 tonnes of non- compliant resources exist in dumps and tailings adjacent to the Matala deposit.
Chief executive Mark Jones told investors: "Since acquiring the historical Matala and Dunrobin mines in November last year, our team has worked swiftly to understand the full potential of these deposits and progress our exciting Matala mining project, such that our goal of Alecto becoming a medium term cash producer, is becoming increasingly achievable.
"Establishing that we have additional high-grade tonnage sitting on surface that can be processed with minimal mining cost is a real bonus and will be a significant boost to the economics in the early phases."
The ZIMCO work revealed the potential for resources of 75,000 tonnes at a weighted average of 2.83 g/t gold, for around 6,800 ounces of gold.
Alecto conceded that to be classed as a JORC resource, a full audit of the report verified by an independent third party would be needed.
Elsewhere, the firm said it had found high grades in its sampling of the Matala deposit, including 3.87 g/t to 8.37g/t gold at the mill tailings and 0.39 to 7.96 g/t gold from the scree rubble dump.
Alecto shares added 2.22% to 0.07p.