REBgold (CVE:RBG) said Tuesday it intersected 9.6 metres grading 10.0 grams per tonne (g/t) gold on its joint venture Osikonmäki gold project, located on the Rantasalmi property in Finland.
The company confirmed the high-grade gold mineralization there, and sending it stock skyrocketing.
On the TSX-Venture, shares of the Toronto-based REBgold spiked 55.56 percent to $0.07 per share, as of 2:35 pm EDT.
results from the drill program include hole BELOSI-78, which
intersected 55.46 metres grading 2.85 g/t gold, including 19.86 metres
at 6.32 g/t gold, which included 9.6 metres at 10.01 g/t gold.
particular hole has delineated the main shear and upper zone for over
80 metres of strike to date. The mineralization is east-west trending,
and continued to the 101.5-metre depth of the hole.
REBgold Chairman Mark Burridge said: "The first drillhole of the 2012 drilling campaign has generated very positive results.
confirms the width and tenor of the previous holes drilled in the area
and, importantly, intersected a large lower grade area below high grade
shear, opening up the potential for a lower grade bulk tonnage target in
the hanging wall of the main shear, improving the potential economics
of potential future mining.
"The presence of copper also highlighted the possibility for developing minor by- product credits.
"Drilling continues to expand the extent of mineralization and assays are pending from additional holes drilled recently."
company begun this 2012 resource expansion drill campaign at Rantasalmi
late last month, intending to test the extents of the current
boundaries of the resource envelope defined in the 2011 drilling.
drilling targeted along strike and down dip extensions of the
Osikonmaki East mineralization, including the high grade shallow
mineralization discovered in the 2011 drilling campaign.
Under the joint venture entered in March last year with Belvedere Resources (CVE:BEL),
REBgold can earn 50 percent of the Rantasalmi and Kiimala projects in
Finland, in return for spending $6 million in exploration and
development over four years.
If it continues with a feasibility
study for the property, REBgold will boost its stake to between 55
percent and 75 percent, and if its bioleaching technology can lead to a
material improvement in the project economics, the company can earn
another five percent stake.
Currently, the Osikonmäki East
prospect has an indicated resource estimate of 1.3 million tonnes
grading 1.7 g/t gold, for 68,000 contained ounces of the yellow metal,
and an inferred resource estimate of 3.5 million tonnes grading 2.09 g/t
gold, for 244,000 ounces of contained gold.
In other news,
REBgold announced earlier this month that it closed a private placement
it announced early November 2011, and raised $1 million before expenses.
It said it plans to use the money to expand the drill program at the
Rantasalmi project, where there are numerous targets along strike and
down dip from existing resources and other areas of identified
mineralization, and for general working capital.
REBgold had issued a total of 20 million units at a price of 5 cents apiece.
unit consists of one common share and one non-transferable share
purchase warrant which entitles the holder to buy a common share for 10
cents 0.10 per share. The warrants expire on November 10, 2016.