November 24, 2010 / 4:48 PM / 8 years ago

Almaden Minerals shares rise on positive drilling results

Nov 24 (Reuters) -Shares of Almaden Minerals Ltd (AMM.TO) rose as much as 10 percent, a day after it reported positive results from drilling at a property in Mexico and added a second rig to the exploration program.

The mineral explorer, which also has property interests in Canada and United States, said the first drilling results from two holes, TU-10-4 and TU-10-5 at its Ixtaca zone property, confirm broad zone of veining.

“We have yet to test the deeper portions of this vein system where high grade feeder zones are interpreted to likely exist,” Chairman J.D. Poliquin said in a statement.

The property, in Puebla State, lies within the Trans Mexican Volcanic Belt, about 120 kilometres southeast of the Pachuca gold/silver deposit, which has reported historic production of 1.4 billion ounces of silver and 7 million ounces of gold.

The company said Hole TU-10-4 at Ixtaca averaged 0.94 grams/ton (g/t) gold and 61.1 g/t silver, while hole TU-10-5 averaged 0.51 g/t gold and 42.0 g/t silver.

Almaden acquires mineral properties and develops them by seeking option agreements with companies, which can buy an interest in a project by making payments and incurring exploration expenditures.

The Vancouver, British Columbia-based company’s shares, which have more than tripled in value in the past one year, were trading up 10 percent at C$3.29 Wednesday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Prem Udayabhanu)

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