Marindi Metals (ASX:MZN) shares gained 50% today with news from the company’s Newman project in Western Australia, where recent drilling has delivered grades of higher than 50% zinc.
Drilling to test down-dip and down-plunge extensions at the project’s Prairie deposit intersected high-grade sulphide mineralisation, with 1.24 metres at 51.7% zinc, 2.2% lead and 39g/t silver within 3.7 metres at 22.4% zinc, 1.8% lead and 25g/t silver.
Other intersections recorded 0.6 metres at 3.8% zinc and 0.5% lead from 213.05 metres down-hole and 0.3 metres at 12% zinc and 0.2 % lead from 181.8 metres down-hole.
The high-grade sulphide zone remains open down-dip and along strike and will require further drilling.
Prairie resources currently total almost 3 million tonnes at 4.94% zinc, 1.59% lead and 15 parts per million silver. A significant amount of feasibility standard work has been completed at the deposit which potentially could be used in any subsequent mining assessment.
Stock in Marindi was last trading at A$0.015, or about 87.5% up from the start of the year when the company was trading as Brumby Resources.
Prior to today’s assay results, this growth was most recently punctuated by a 30% price spike last month after thick zones of zinc-lead-silver mineralisation were discovered during Newman’s maiden drilling program.
This mineralised zone ranges from 30-50 metres in true width, can be traced for about 500 metres along strike and has been intersected down-dip to about 150 metres vertical depth.
Marindi’s recent exploration work has been supported by a rights issue completed earlier this year for $3.75 million.
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Marindi Metals shares bounce on high-grade zinc hits
Last updated: 04:00 04 Nov 2015 GMT, First published: 03:00 04 Nov 2015 GMT