Xtract Resources (LON:XTR) has intersected a second high grade gold reef system at the Colin target at Chepica in Chile.
This new find, Reef System B, follows the earlier discovery of a system that graded at 4.2 grams per tonne (g/t) over a 3.5 metre (m) width and may significantly extend the area’s mine life.
The new system is 150m below ground (level 5) and so far has shown grades of 3.9 g/t over a 4.1m width.
Xtract added it has only explored 10m along the strike but from this has projected it extends for 250m.
This could quadruple the previous estimates of contained gold in the area and increase the life of a mine at Colin to over 20 years.
Jan Nelson, chief executive, said: "The discovery of the two reef systems at the Colin Mining area is changing the way in which we are looking at the long term development of the Chepica.
He added drilling will commence within the week at Colin, and comprise eight surface bore holes representing 1,500m to define all the reef systems in the Colin Mining area.”
Once this programme is complete, Xtract consider will look at boosting capacity at Chepica, he added.