LONDON (ShareCast) - (Sharecast News) - Metals Exploration said in an update on Friday that new sampling results at its La India project in Nicaragua pointed to a significant extension of the planned initial pit, with recent work exposing high-grade mineralisation that could enhance the first phase of mining.
The London-listed miner reported that channel sampling has identified an extension of at least 100 metres, and potentially up to 300 metres, to the Phase 1 North pit.

Fresh outcrops exposed during the construction of new access roads enabled systematic sampling across two structural zones, including the intersection of the La India and Teresa mineralised systems.

Results from that zone defined a 7.08-metre interval grading 3.08 grammes of gold per tonne, including a 2.0-metre massive quartz vein underlain by more than five metres of hydrothermal breccia.

The company said the highest grades coincided with the intersection of the two systems, confirming the area as a priority structural target.

A second zone demonstrated continuity along the north-south La India trend, with a 5.14-metre interval grading 0.94 g/t gold, supporting the potential for further pit enlargement.

Metals Exploration said the newly exposed near-surface mineralisation along the north-west extension of the structure presents a low-cost opportunity to increase recoverable ounces in the initial phase.

If drilling validates continuity along strike and at depth, the final mining area could be expanded further.

Chief executive Darren Bowden said the early findings reinforced the potential to improve project economics.

"We are extremely pleased with these initial results, which highlight the strong potential to grow the Phase 1 North pit both along strike and at depth.

"The discovery of additional near-surface mineralisation provides an immediate opportunity to enhance recoverable ounces and potentially improve phase one economics," he said.

"Our forthcoming drilling programme is designed to rapidly test these new zones and unlock further value from what is shaping up to be a highly prospective epithermal system."

The company said it intended to launch a high-priority drilling programme to confirm the extent of the pit extension, test deeper projections of high-grade intervals and further examine the north-south trend.

It would also undertake structural mapping at the La India-Teresa intersection and assess a secondary breccia system that may control mineralisation. Findings will feed into an updated pit shell and sensitivity scenarios for the planned mine design.

At 0945 GMT, shares in Metals Exploration were up 0.36% at 11.09p.

Reporting by Josh White for Sharecast.com.

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