December 2, 2010 / 5:05 PM / 7 years ago

ATW Gold shrs up on positive drill results at Deflector deposit

* Results show assays of higher grade than expected

* Shares jump 21 pct

Dec 2 (Reuters) - Canada's ATW Gold Corp (ATW.V) said it found significantly higher-than-expected grades of gold at more than half of the exploratory holes at a gold-copper project in Australia, sending its shares up 21 percent.

The Vancouver-based company said seven of sixteen holes returned assays of a higher grade than was expected from previous finds in adjacent holes at the Deflector gold-copper deposit on the Gullewa Property in Western Australia.

Shares of the mineral explorer were up 7 percent at 15.5 Canadian cents on Thursday morning on the Toronto Venture Exchange. They touched a high of 17.5 Canadian cents earlier.

In July, ATW agreed to sell a 70 percent stake in the Gullewa project to Australia's Mutiny Gold Ltd MYG.AX for A$9 million.

The Gullewa property hosts several gold deposits with the most significant being the Deflector deposit. The project contains a measured and indicated resource of 369,000 ounces at 6.75 grams per ton (g/t) gold equivalent ounces and an inferred resource of 400,000 ounces at 7.71 g/t gold equivalent ounces. (Reporting by Isheeta Sanghi in Bangalore; Editing by Don Sebastian) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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