Connemara Mining Company PLC (LON:CON) saw its shares rise on Wednesday as it announced the commencement of a new drill programme at the Oldcastle Zinc project located in the counties of Cavan and Meath in Ireland.
The AIM-listed firm said the costs of the drilling programme will be borne by joint venture partner and operator Teck Ireland Ltd, which has the option to increase its interest in the project to 75% from 65%.
READ: Connemara Mining identifies new mineralised zone at Mine River
Connemara said recent work by Teck indicates the presence of a hydrothermal system and basin bounding fault. The company added that approximately 1,800 metres of drilling has been planned over two to three holes.
Patrick Cullen, Connemara's chief executive officer commented: "Teck have completed comprehensive technical work leading to this decision, integrating data derived from previous drilling, geophysics and 2D seismic to refine the targets.”
He added: “The target is compelling, focused on the Pale Beds within an interpreted fault system that Teck consider may present a Navan analogue. We look forward to results over the coming months."
In a note to clients, analysts at 'house' broker Northland Capital said: “It is positive to see work re-commencing at the Oldcastle Zinc Project. Connemara Mining is free-carried for this phase of work, with Teck Ireland required to spend an additional €400,000 to take its interest up to 75%.”
“The drilling is focusing on the potential of the Pale Beds, located in the vicinity of an interpreted fault system that could contain a similar style of mineralisation to that at Navan,” the analysts said.
In late morning trading, Connemara’s shares were up 1.7% to 2.92p.
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