Shefa Yamim (ATM) Ltd (LON:SEFA) shares surged in mid-morning trading Thursday after it increased the estimated mineralised tonnage at the Kishon Mid-Reach project following the results of a Note For The Record (NFTR) report.
The Israel-focused precious stones explorer said highlights in the report included Zone 1 of the project hosting around 1.1mln tonnes of mineralised placer (basal) gravels, trebling a previous estimate of 350,000 tonnes.
Across the three zones of the project, the updated estimated exploration targets now totalled around 5mln tonnes.
The NFTR report was completed by the company’s consulting geologist, Dr John Ward, and followed drilling and bulk sampling campaigns at Zone 1 as well as exploration advances in Zone 2 and limited access to the Zone 3 deposit.
The updated estimates were derived from additional field mapping and drilling across the zones.
Avi Taub, chief executive of Shefa Yamim, said the newly estimated tonnages could potentially triple the quantity of the company’s “Gem Box” of precious stones that it will mine from Zone 1, with trial mining expected to begin next year.
In a note, analysts at broker VSA Capital reiterated their ‘Speculative Buy’ rating on the stock saying that while it was “difficult to extrapolate prior results in terms of grade from one zone to another”, the “confirmation of the added potential is positive”.
Shares were up 8.3% at 65p.
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