ECR Minerals PLC (AIM:ECR) shares jumped 14% to 0.21p after the company said underground development at its Maddens gold project in Queensland was now generating ore.
Material is being stockpiled on the run-of-mine pad ahead of processing, a step the board describes as an important milestone in moving from development towards production.
Development has also cut a separate mineralised quartz vein containing visible gold, which early interpretation suggests may be distinct from the main Maddens Reef.
The next phase of the decline, the tunnel driven downwards to reach the ore body, is due to begin shortly.
A Knelson gravity concentrator, which uses centrifugal force to separate gold particles from ore, is expected on site within weeks to improve recovery rates.
ECR holds a 50% interest in the project, acquired earlier this year as part of the Paleogold transaction, which comprises seven mining leases across the historic Maddens Flat group of mines.
The company said a recently completed LiDAR survey, a laser-based mapping technique, had identified features suggesting the mineralised system may extend towards the historic Sisters Mine.
Personnel and equipment are being moved to the neighbouring Brothers mining lease, following the decision in July to redeploy them from the Raglan alluvial operation, with prospecting results supporting a planned trial alluvial mining programme.
Nick Tulloch, chairman, said the company had deliberately redirected people, equipment and technical expertise towards Maddens and Brothers because they represented the most compelling nearer-term opportunities in the portfolio.
Mike Parker, a non-executive director, said the focus was now firmly on execution.
ECR expects to begin processing the stockpiled development ore during the third quarter.
