Kavango Resources PLC (LSE:KAV, OTC:KVGOF) announced assay results from the first two holes of its resource drilling programme at Bill’s Luck Gold Mine in Zimbabwe.
The company said drilling has confirmed the main ore body extends to at least 160 metres below surface with multiple high-grade intersections.
"Surface diamond drilling at Bill's Luck continues to exceed our expectations," said chief executive Ben Turney.
"Kavango is now preparing to continue shaft sinking at Bill's Luck to extend current mining operations from 3-level to 4-level.
"We look forward to proving further updates on our plans to increase gold production here in the near future."
In London, Kavango shares climbed 6.8% changing hands at 1.07p.
Drilling detail
Hole BLDD010 returned 8.09 grams per tonne gold over 8.05 metres from 158.62 metres depth. Hole BLDD009 produced 13.66 grams per tonne over 2.75 metres from 134.00 metres.
Additional intersections were reported across hangingwall and footwall reef structures.