Great Southern Copper PLC (LSE:GSCU) told investors that scout drilling at its Viuda Negra prospect in Chile has confirmed a potentially large porphyry gold system.
All four diamond drill holes intersected mineralisation, with best intervals including 121.5 metres at 0.11 grams per tonne gold and 0.05% copper from 6.5 metres depth.
The company said the gold is hosted in stockworks of quartz veinlets typical of porphyry deposits in Chile’s Maricunga Belt.
"These scout drilling results, at shallow depths and close to infrastructure, are therefore very significant, clearly demonstrating that the Viuda prospect hosts the potential for a large porphyry gold system and confirming the importance of Especularita within an emerging copper-gold district," said chief executive Sam Garrett.
"These scout drilling results, at shallow depths and close to infrastructure, are therefore very significant, clearly demonstrating that the Viuda prospect hosts the potential for a large porphyry gold system and confirming the importance of Especularita within an emerging copper-gold district.
"Importantly, the drilling has provided strong exploration vectors toward a potentially higher-grade centre of the system, which will guide our follow-up work, and we are excited to advance to the next stage of exploration.
The mineralised zone now measures 1.2 by 0.8 kilometres and remains open.
Garrett added: "With gold prices at historic highs we are looking forward to advance this exciting asset alongside our high-grade copper-silver project at Cerro Negro."
In early trading, the shares were up 4%.