Xtract Resources (LON:XTR) has found another small area of gold it can mine from the surface at its Chepica mine in Chile.
The gold zone is on the Colin prospect and follows two high grade deposits unearthed recently at Salvadori at Chepica.
Xtract said the new zone is in an area not being mined currently, runs for 150 metres (m), outcrops on surface and is open to depth with grades so far of 2 grams per tonne (g/t) to 5.5 g/t over widths of 15m down to 25m.
Work is being carried out to define the resource, though current internal estimates are that 8,000 oz of gold is available.
Xtract now intends to explore the underground extension of the zones, with drilling to start within a month.
Jan Nelson, chief executive, said: "We have been very successful with our recent systematic exploration approach to defining gold bearing zones on surface.
"We are looking forward to drilling these gold bearing zones to depth and believe that we can increase the Life of Mine significantly once the planned drilling programmes are completed."
Shares were flat at 0.446p.