Xtract Resources PLC (LON:XTR) shot up almost 20% after it announced production of first gold from sluice boxes has started at its Manica concession.
Contractor Sino Minerals started processing alluvials through their number 1 plant over the weekend.
The smelting of first gold is expected to start today or tomorrow.
READ Xtract expects cash flow to be generated at Manica this month, building up rapidly in October
"I am pleased to be able to report that on Saturday, 7 October 2017, Sino Minerals commenced commercial production on the eastern half of the Manica concession,” said chairman, Colin Bird.
“The company expects to be in receipt of its first gold dore bars by the end of the week. We look forward in further updating the market as production stabilises and optimises," he added.
The shares rose 0.375p to 2.75p.