Jangada Mines PLC (AIM:JAN) shares soared around 40% at one point on Wednesday as exploration work kicked off at the Paranaíta gold project, in Brazil’s Alta Floresta-Juruena province.
A fully funded programme will seek to expand the project's 210,000-ounce resource up to a target of around 350,000 ounces.
The programme will include trenching, drilling, geophysical surveys, and sample assays, with results expected in the coming weeks.
A preliminary economic assessment for an open-pit mine producing 20,000 ounces per year is targeted within six months.
“With operatorship now in our hands and fully funded, we have hit the ground running at the Paranaíta gold project," said chief executive Paulo Misk.
"We have launched a focused exploration programme targeting two of the high-grade, open-pittable zones already identified”.
In London, Jangada shares were up 33% changing hands at 0.76p, and at one point saw 0.85p in earlier trade.