July 30 (Reuters) - Gold miner Jaguar Mining Inc on Monday boosted the estimated measured and indicated resources at its Gurupi Project in northern Brazil by 30 percent, sending its shares up as much as 27 percent in New York.
Recent drilling results showed Gurupi’s measured and indicated resources at 3.2 million ounces of gold, the company said in a statement.
Measured and indicated resources provide an initial estimate of the size of a natural resources deposit and serve as a basis for feasibility studies.
The company said it is working on a revised feasibility study, expected to be completed in the fourth quarter.
Jaguar, which first began commercial gold production in 2005, also has operations in the greenstone belt in Minas Gerais in southeast Brazil.
Shandong Gold Group, the parent of Shandong Gold Mining and a big gold producer, made an unsolicited C$9.30 per share cash offer for Jaguar last November.
Jaguar confirmed it had received offers and was doing a strategic review, but the gold miner failed to find a buyer.
Jaguar shares, which have lost nearly 80 percent of their value in the last three months on both the exchanges, were up 21 percent at 81.15 cents on the New York Stock Exchange.
The stock was up 19 percent at 81 Canadian cents on the Toronto Stock Exchange. (Reporting By Krithika Krishnamurthy in Bangalore; Editing by Sriraj Kalluvila)