Shares in Ashanti Gold Corp (CVE:AGZ) ticked up in Toronto as it updated on activity, saying work was progressing well on its resource estimate at the Kossanto East project in Mali.
Meanwhile, in Ghana, Ashanti continues to work on its properties, it said.
At Anumso, a four-hole drill program has been designed to test the soil sample anomaly to the north of the historical resource estimate, Ashanti said.
As the rainy season is just over, the firm aims to begin the drill program shortly, it said.
"The resource report on Kossanto East will change the profile of Ashanti and allow the market to benchmark our metrics with our peers active in West Africa," said Tim McCutcheon, chief executive of Ashanti.
"Given current peer group and historic M&A valuations, management believes Ashanti is deeply undervalued."
In recent months, the firm has posted positive drill results and positive metallurgical testing from Kossanto East
This includes 105 holes for a total of 12,283 metres of drilling, which will be combined in the resource estimate with 144 historical holes for 16,192 metres.
On September 18, it reported more encouraging drill results from the Gourbassi West area of the Kossanto East project in Mali, which showed the potential to expand a resource.
Gourbassi West is the second of two main areas being investigated by the company at Kossanto East.
The target consists of gold mineralization associated with silicified, brecciated felsic volcanic rocks along a northwest trending structural zone for over 1,200m of strike length.
Highlight assays included 10m (meters) at 1.03 g/t (grams per ton) gold, 31m at 0.81 g/t of the yellow metal in another hole, and one meter at 5.31 g/t gold in another.
Ashanti shares added 6.67% to $0.08 each.