Shares of New Guinea Gold (NGG-V) and Vangold Resources (VAN-V) both got a hefty lift after announcing results from its jointly owned Mt. Penck project in Papua New Guinea (PNG).
The companies say recent trenching confirms two significant new gold zones at Upper Peni Creek and Kavola South.
Highlights from the Upper Peni Creek zone include: 24 metres at 33.7 grams gold (including 3 metres at 180 grams gold), 12 metres at 4.07 grams gold and 33 metres at 1.73 grams gold.
Highlights from the Kavola South zone include: 30 metres at 4.42 grams gold and 48 metres at 4.01 grams gold.
New Guinea Gold owns 60% of the project while Vangold holds the remaining 40%.
In Toronto on Feb. 21 New Guinea Gold and Vangold shares rose in unison roughly 11% or 5 , with New Guinea closing at 48 on roughly 950,000 shares, and Vangold closing at 55 on 2.9 million shares traded.
Upper Peni Creek is 300 metres west of the Kavola East zone — where most of the 2006 drilling was concentrated — and Kavola South is 100 metres south of Kavola East. The trenches were hand dug with the aim of gaining some idea of the lateral extent of gold grades along strike.
The results indicate an average grade for all samples – using a 0.5 gram gold cutoff — of 9.68 grams gold.
While Upper Peni Creek was discovered in 2005, when an assay returned 1 metre at 38.2 grams gold, the result wasnt followed up on and the area wasn’t deemed a new target until late in 2006.
The companies say the 3 metre intersect of 180 grams gold represents the highest grade ever encountered at Mt Penck.
In addition, New Guinea Gold says the two zones appear to be separate from the already known Kavola East zone. The lateral and strike extent of both zones are currently unknown but, the company says, surface observations suggest they have restricted widths of roughly one metre.
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