SolGold (LON:SOLG) said the assay results from its latest hole on the Cascabel copper-porphyry project in Ecuador give it confidence it has pinpointed the location of the main mineralised central zone.
It said holes five and seven (the latter being the most recent) appear to have intersected the south-west edge of this higher-grade area.
SolGold said it will now target an area to the north-east.
The assays for hole seven reveal mineralisation of 0.4% copper and 0.17 grams per tonne of gold from 654 metres down to 1,612 metres
This included 0.65% copper and 0.35 grams of gold over 238 metres from 1,056 metres, 134 metres at 0.75% copper and 0.5 grams of gold from 1,160 metres and 94 metres at 0.84% copper and 0.62 grams gold from 1,200 metres.
SolGold revealed drilling began on hole eight on August 15 and also said metallurgical test-work on samples from hole five were “well advanced”.
Managing director Alan Martin said: "The results for hole seven and the detailed magnetic and geological model fit very well and give us confidence about the location of the main mineralised central zone.
“Holes five and seven appear to have intersected the south-west edge of the central zone and we are targeting higher grades to the northeast.
"The central zone looks to be very extensive and we are anticipating that IP results will confirm this."