Shares in Mexico-focused Minera Alamos Inc (CVE:MAI) ticked higher Thursday as the company reported encouraging results from first drilling at the Santana gold project.
Notably, this year's programme of ten holes was the first exploration drilling at the project since 2011.
The first three were sunk near or within the Nicho deposit and were aimed at assessing mineralized extensions of the previous exploration.
Minera said all holes hit zones of disseminated gold mineralization and initial results supported its "long-held belief" that there were numerous exploration targets in the Santana project area.
These could add significantly to the ongoing development plans of a proposed heap leach operation, which is currently awaiting commercial-scale permits from the relevant authorities.
"In addition to near-term production potential, a criterion for all of the projects in the company's development portfolio is that the concession areas contain significant exploration upside," said Darren Koningen, the chief executive at Minera Alamos.
"While we have been aggressively pursuing production permits our exploration team has been working in parallel to expand geological models and target high priority areas for resource expansion potential.
"These very encouraging drill results at the Santana project are the start of an ongoing exploration program designed to demonstrate the significant untapped value contained in our development assets".
Highlight assays included 93.5 m (meters) of 0.65 g/t (grams per ton) gold from the surface in one hole.
There was 17.8m at 0.73 g/t gold in another hole, and 15.5m of 0.27 g/t gold in another hole.
The remaining holes yet to be reported include further testing of the southwest extensions of the Nicho deposit, ahead of mine planning activities in addition to new zones of mineralization located north of the main Nicho deposit.
Shares in Toronto gained 4.17% to $0.125.
Contact Giles at [email protected]