Grandview's Ontario property shows high-grade gold, shares soar
(Reuters) - Grandview Gold Inc GVX.TO said it found more high-grade gold at its property in the Red Lake gold district in Ontario, sending its shares up by 30 percent.
The Dixie Lake property, located about 16 miles south of Goldcorp's (G.TO: Quote) Red Lake mine, showed ores grading 6.90 grammes per ton(g/T) at an 11.3 meter interval.
That included ores grading as much as 30.48 g/T over 1.2 meters at the property, which has an established non-compliant gold resource of 1.1 million tons grading 0.10 ounces of gold per ton.
"Our objectives this summer were to re-drill historic holes as confirmation that the gold zone exist and I think we successfully accomplished that task," says Chief Executive Paul Sarjeant in a statement.
Grandview has an option agreement with Newmont Mining Corp (NEM.N: Quote) and has earned a 67 percent interest in the 1,664 hectare Dixie Lake Project.
The Red Lake Mining district in northwestern Ontario is one of the most prolific gold producing regions in Canada, and has yielded about 30 million ounces of gold since the mid-60s.
Grandview also has a gold project in the Rice Lake Gold District in Manitoba and is developing a gold mine property in Northern Peru.
Shares of the Toronto-based company were trading up 30 percent at C$0.065 Thursday on the Toronto Stock Exchange.
(Reporting by Arnav Das Sharma in Bangalore; Editing by Joyjeet Das)
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