The BAM East prospect is rapidly developing into a significant new gold discovery, Landore Resources Ltd (LON:LND) told investors, as it started drilling again at the Ontario site.
The work will comprise 17 diamond drill holes to expand the newly defined central zone down-dip and along strike and to test prospective targets along the remaining 2.7 km MM-7 geophysical trend.
Significantly, the first two holes completed hit the same lithology as the higher holes with visible gold sighted.
Work shows the central zone plunging to the west with the width and gold content improving at depth, the firm said.
Meanwhile, sampling 700 metres to the west and along trend to the central zone, has intersected the same lithology with gold mineralisation up to 0.66 grams per tonne (g/t).
In April this year, Landore confirmed the zone as a "significant discovery"
It has said the style of mineralisation has many corollaries with similar commercial gold deposits in the Canadian Shield, such as Kirkland Lake, Hollinger-McIntyre, Kerr-Adison and Sigma-Lamarque.
Landore chief executive Bill Humphries said: "The BAM East Gold Prospect is rapidly developing into a significant new gold discovery for Landore Resources, enjoying very low discovery costs per ounce, favourable mineralogy potentially providing a simple processing path with maximum recoveries and low capex/opex costs."
Shares gained over 6% to stand at 3.525p.