Patagonia Gold has announced a 24 per cent increase in the indicated resource at its Cap-Oeste Gold-Silver project in the Santa Cruz province of Argentina.
The total "gold equivalent" ounces within the indicated category, is now at 1.197m ounces, an increase of 230,000 ounces.
The grade estimate has also been increased by 30% to 4.78 grams per tonne.
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
Patagonia's Chief Executive Bill Humphries said the firm would "commence pre-feasibility studies in order to advance the project towards production, potentially for 2015."
The stock had gained 0.9% by 11:30 but is still down 32% in 2012.
