Rupert Resources Ltd. [RUP-TSXV; R05-FSE] shares rallied Monday September 14 after the company released impressive drill results from at its 100%-owned Pahtavaara gold mine in the Central Lapland Greenstone belt, northern Finland.
Highlights include Hole 120069 which intersected 3.0 g/t gold over 171.2 metres from 19.8 metres (15 metres vertical), including 6.0 g/t gold over 20 metres and 18.1 g/t over 1.0 metre. The same hole targeted near surface mineralization and confirms the high-grade mineralized zone over thick widths.
Rupert shares advanced on the news, rising 23.21% or 65 cents to $3.45 on volume of 345,664. The shares are currently trading in a 52-week range of $3.77 and 53 cents.
Rupert is owned 9.9% by Agnico-Eagle Mines Ltd. [AEM-TSX, NYSE] after Agnico recently made a $13.1 million strategic investment in the junior.
Rupert’s key asset is a 100% interest in a gold mine and related properties adjacent to Agnico’s Kittila gold mining operation in northern Finland. The Pahtavaara gold mine and mill sits on 297 km2 of exploration permits and concessions in the Central Lapland Greenstone Belt.
Pahtavaara previously operated between 1996 and 2014, producing almost 450,000 ounces of gold.
Since acquiring the Pahtavaara mine 2016, Rupert has undertaken extensive new exploration and geological modelling utilizing historical drill data and 35 km of underground tunneling that exists for the deposit.
Rupert says this new approach demonstrated that the mineralized system at Pahtavaara is significantly larger than previously thought. A ground gravity survey over 200 km2 of the licence, new interpretation of existing geophysical data and new drilling culminated in the discovery of new gold mineralization at Area 1, located 25 km from the Pahtavaara mill.
On Monday, the company said it demonstrated further scale to the significant gold-hosting structural zone at the recently identified Ikkari discovery. It said the target area was identified using base of till sampling at Area 1, a 5-km long prospective section of a regional domain-bounding structure, 20 km of which is contained within Rupert’s land holdings.
Two rigs are active at Ikkari, targeting areas that could expand the identified envelope of mineralization. “Ongoing drilling will attempt to further define the extent of the mineralized envelope at Ikkari which remains open in all directions with mineralization shown to commence at surface to a vertical depth of at least 230 metres, the limit of current drilling,” the company said.