The company, which was known as PanTerra Gold until November, has completed 90 holes for 10,000m to date, and has noted mineralisation within 14 of 17 cores assessed so far.

 

The results were headlined by an intercept of 31.5m at 2.8 grams per tonne, with 2.8m at  29.9gpt, from 133m; and 27.5m at 7.2gpt gold from 146m, including 7m at 16.9gpt, over a deeper zone that assayed 9.5m at 3.77gpt from 188.5m.

 

Silver was noted as being associated with the yellow metal.

 

Several of the holes were terminated early when underground workings were intersected, but did define mineralisation.

 

The results have confirmed historical results from La Demajagua's previous Canadian owners.

 

The company expects to complete 15,000m of drilling in August, with all assays planned to be received by early October.

 

A further 10,000m infill program is scheduled for 2022, with the aim of developing a maiden JORC resource, to support an open pit mine.

 

A bankable feasibility study and development decision on the refractory deposit are expected in late 2022.

 

La Demajagua operated as an underground gold mine until 1959.

 

Shares in the junior spiked 29% in early trade to 8.4c, valuing the company at $16 million.

 

The stock peaked at 10c during the session, and has traded between 3.3-11.3c over the past year.