Pure Gold Mining Inc (LON:PUR) (CVE:PGM) shares shined in London on Tuesday after the dual-listed Canadian miner hit high-grade gold intersections during exploration drilling at its Red Lake mine in Ontario.
The company said the results suggested “strong mine continuity and the potential for mining stope expansion” and will be integrated into short-term mine planning.
"The Pure Gold Red Lake Mine continues to produce significant, high-grade gold drill intercepts and today's results from areas planned for mining this year highlight local opportunities for mine expansion", said Pure Gold president and chief executive Darin Labrenz in a statement.
"Similar to the 2018 test mining program where the discovery of a new hanging wall zone resulted in 56% more ounces than predicted, these drill holes have identified both potential extensions to mine stopes and opportunities to test and develop new stopes”, he added.
The Red Lake mine is currently under construction with underground development four months ahead of schedule and first gold pour expected in the fourth quarter of 2020.
Pure Gold shares jumped 6.7% to 48p in late-morning trade in London.