Shares of Golden Arrow Resources (CVE:GRG) jumped as much as 11% on Thursday after the company unveiled results from the first seven holes of a 6,000 metre drill program at its Chinchillas silver project in Argentina.
Of the highlights, the company intercepted 54 metres at 290 grams per tonne (g/t) silver, 1.8% lead and 0.5% zinc at 130 metres depth.
"We are excited by these initial results from the Phase III exploration program. Some of the targets that have been drilled were based on geophysics," said president and CEO Joseph Grosso.
"The fact that we have had success with this method gives us confidence that we will be able to build on our existing resource at Chinchillas with other similar targets."
The company said management has decided to increase the program to 8,000 metres, with most of the additional drilling directed at new targets.
The campaign is aimed at expanding the existing resource at the project, which currently includes 27.4 million ounces of silver in the indicated category and 53 million ounces in the inferred category.
Golden Arrow says the deposit is still open to expansion in most directions and at depth.
The Vancouver, British Columbia-based junior company's stock advanced to as high as 25 cents, up over 11%. The shares have a 52-week high of 31 cents.