Ortac Resources (LON:OTC) said rock chip sampling of Ber Gebey prospect in Eritrea have returned some high-grade results.
They include one of 23 grams per tonne and others at 7.55 grams, 5.57 grams and 4.46 grams. Silver grades of up to 31.7 grams per tonne were also recorded.
The mineralisation was found in silica-barite rock (SBR), akin to that found at Yacob Dewar deposit just four kilometres away. AIM-listed Ortact and its partner, Andiamo Exploration, have just begun a 1,400 metre drill programme on Yacob Dewar.
Ortac chief executive Vassilios Carellas said: "The results of the mapping and rock chip sampling programme are very encouraging.
“The identification of the SBR in outcrop to the south of Ber Gebey goes a long way to confirming our theory that the mineralised structure at Yacob Dewar extends four kilometres north east, at least as far as Ber Gebey.
“The fact that this newly discovered SBR is also strongly mineralised on surface is a good indication that a significantly mineralised body is present at depth."