Rolling Rock Resources (RLL-V) shares nearly doubled in Toronto today after the company released a resource estimate increase for its Monument Bay gold project in northern Manitoba.
Rolling Rock shares surged to 28 apiece from 15 on a trading volume of about 2.9 million shares.
The junior reported that the resource for Monument Bay grew by 35% after nearly 17,000 metres of drilling since July 2006 on the 100%-owned property.
The latest inferred resource for Monument Bay now stands at 4.9 million tonnes grading 6.45 grams gold per tonne for about 944,000 oz. gold. The company used a cut off grade of 3 grams gold per tonne.
Rolling Rock president and CEO Scott Angus says the company has a much better understanding of the deposit on account of the drilling.
“We can now move forward with a scoping study as this project’s next step.” Angus said in a statement.
The increase was mainly concentrated in the Burn zone, the G zone and the main body east extension.
Now the company says it’s time to gain more confidence with the numbers by upgrading the resources.
The only way to do that would be to further develop the underground by drilling closely spaced holes to test the geological and grade continuity of the veins.
Before it begins, Rolling Rock will complete the scoping study to see how economic such development would be. The study would include diagnostic mapping and sampling of the deposit, which would help the company drill more cost-effectively.
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