Shares in African Eagle Resources rose after the firm's joint venture partner BrightStar Resources announced high grade gold results from its drilling programme at Miyabi gold project in Tanzania.
The results represent a new high grade zone with untested strike potential of more than 1km. Many of the drill holes ended in mineralisation.
BrightStar has said that the successful programme has discovered multiple extensive resource grade gold mineralised structures, which are very likely to add significantly to the existing 520,000oz Joint Ore Reserves Committee resource.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
BrightStar has also said that reverse circulation (RC) drilling has been completed at priority targets beneath the best RAB results within the granite contact zone, with assay results expected in late December 2011 and January 2012.
The results also confirmed that the mineralised zones identified by the RAB drilling extend into fresh rock.
BrightStar is now planning an extensive programme of RC and diamond drilling is now set to begin around April 2012.
The share price rose 8.9% to 6.12p by 08:49.
NR
