Tri-Star Resources (LON:TSTR) has expanded the exploration potential of its Goynuk antimony mine in Turkey by acquiring a further licence to cover a massive area around the mine.
The decision comes just a month after the company received positive assay results from rock sampling around the Goynuk mine site.
The results showed antimony grades ranging from 3 parts per million (ppm) to 1,390 ppm, or 0.14 percent. While not economically viable, the grades were highly anomalous and formed a target for exploration stretching far beyond the mine site.
The license extends Tri-Star’s prospecting area at Goynuk by another 685.9 hectares (ha) to 1,469 ha, covering rocks of the same geological sequence as the Goynuk mine. The rights to the area will also give Tri-Star better access to surface zones for mine development.
Under the terms of the license, the company now has to carry out exploration activities on the area and has until November 2013 to apply for an exploitation license.
Just a fortnight ago, Tri-Star hired a contractor to start a drilling programme to define resources at the Goynuk deposit. The drilling campaign will also include exploitation drilling on Tri-Star’s concession license area.
Tri-Star is also active in Canada, where the company plans to set up a joint venture with Portage Minerals.
On Wednesday, Tri-Star announced a letter of intent with Portage to cover C$12.5 million of the exploration and development costs at Portage’s Bald Hill antimony project in New Brunswick. This would allow Tri-Star to earn a stake of up to 50.1 percent in Bald Hill.
Investors were encouraged by today's news, sending shares in Tri-Star up 0.06 pence (7 percent) to 0.83 pence this morning in London. The company currently has a market cap of £41.5 million.