Xmet shares rally on latest channel sampling results from Duquesne-Ottoman

Xmet (CVE:XME) said Tuesday that additional channel sampling on the Shaft Zone at its Duquesne-Ottoman property in Quebec has confirmed the continuity and quality of mineralization on surface.
The additional trenching and channel sampling on Trench 2 returned up to 3.18 grams per tonne (g/t) of gold over 4.2 metres and 12.25 g/t gold over 1.3 metres.
Investors cheered the news, with shares rising over 10 percent, to trade at $0.105 as of 1:04pm EST Tuesday.
"The additional trenching we carried out on the Shaft Zone confirms our expectations of continuity on the mineralization and gives us confidence that similar continuity is possible in the vertical dimension," said president and COO, Charles Beaudry.
Mineralization on the Shaft Zone has been exposed for over 150 metres along strike and the system is open in both directions, the company said.
"This zone represents an excellent opportunity to outline some near surface ounces which could be accessed from surface or from a shallow ramp," Beaudry added.
Currently, a 7,000 metre diamond drilling program is in progress on the Duquesne-Ottoman property, of which approximately 2,800 metres have been earmarked for shallow drilling on the Shaft zone at a 25 by 25 metre spacing, for 150 metres along strike and down to a depth of 100 metres.
Assays will be released as they become available, Xmet said.
Xmet, through its wholly-owned subsidiary Duquesne-Ottoman Mines, carries out gold resource exploration and development.
In September, the company said the Duquesne-Ottoman property hosts NI 43-101 compliant inferred resources of 4.17 million tonnes at an average grade of 5.42 grams per tonne (g/t) gold (6.36 g/t Au uncut), hosting 727,000 cut ounces of gold and 853,000 uncut ounces of gold.
The project is located approximately 50 kilometres north of Rouyn-Noranda in northwestern Quebec and is immediately adjacent to three past-producing mines held by Clifton Star (CVE:CFO).
Xmet, as operator, can earn a 75% interest in the Duquesne-Ottoman property from Globex Mining Enterprises (TSE:GMX) by investing a total of $8.2 million in exploration and making cash payments totalling $7.08 million over six years.