(Reuters) - Lake Shore Gold LSG.TO said the prospects of a project in Ontario were raised with the discovery of a new high-grade gold and silver zone, sending its shares up 6 percent.
The Toronto-based company said the latest results raised the overall grade for its Fenn-Gib project to 1.12 gram/tonne of gold from 0.91 gram/tonne.
“The twin holes drilled and check sampling work completed clearly show that past results are holding up very well, with there being some upside potential,” Chief Executive Tony Makuch said in a statement.
The company owns a number of properties in northern Ontario and Quebec as well as in Mexico.
Shares of the company were trading up 4 percent at C$1.67, on the Toronto Stock Exchange. Earlier they touched a high of C$1.71. (Reporting by Aftab Ahmed in Bangalore; Editing by Don Sebastian)