July 19, 2012 / 3:45 PM / in 5 years

Canada's Atico jumps on high-grade gold find

(Reuters) - Shares of Atico Mining Corp ATY.V doubled in value after the Canadian company said it found minerals with a higher-than-average grade at its copper and gold mine in Colombia.

Atico’s shares rose to 80 Canadian cents in early trading on the Toronto Venture Exchange, touching their highest since the company went public in March.

Of the four holes drilled at the company’s El Roble project, one hole yielded gold with a grade of 17.57 grams per tonne (g/t) and another 1.82 g/t.

The average grade of gold over the mine’s 22-year history is estimated to be 2.54 g/t.

The company said the results showed that the 1.5 million tonnes processed at the mine in the 22 years are about half of the mineralization at the property.

Atico, which started drilling in early June, said the results also opened up the possibility of additional discoveries adjacent to the current site.

The company’s shares were up 60 percent at 62 Canadian cents in late-morning trade.

Reporting By Sandhya Vijayan in Bangalore; Editing by Maju Samuel

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