Colombian Mines Corp. (CVE:CMJ) Monday said sampling from its new Mercedes contract in Colombia has returned values as high as 49.8 grams per tonne (g/t) gold, 526 g/t silver and 17.05-per-cent copper.
Shares of the miner shot up 12.50 per cent on the news, trading at 45 cents as at about 1:50 p.m. EDT.
The company said the highest silver value of 773 g/t is associated with the highest copper value of 26.47 per cent. The highest grade channel sample, from a different outcrop area, was a 1.3-metre-long channel sample that assayed 28.33 g/t gold, 264 g/t silver and 9.76 per cent copper.
Colombian said additional work will be needed to fully define the width and extent of mineralization, but noted that initial sampling results “clearly indicate high mineral potential” for the Mercedes project.
Plans are underway to better define the nature and extent of mineralization, improve the exploration model and to develop drill targets in 2013.
The company also said its concession contract for the 4,995-hectare property has been issued and registered in the Colombian Registry of Mines in the name of its subsidiary.
The Mercedes property is located near the town of Natagaima, in the Department of Tolima, Colombia.
The area is known to host other intermediate sulfidation epithermal deposits including Kinross Gold's (TSE:K) Fruta del Norte deposit, said Colombian, which reportedly holds more than 11 million ounces of gold and 17 million ounces of silver.
In other news, Colombian Mines will be exhibiting at the Cambridge Resource Investment Conference in Vancouver, B.C., January 20 to 21, 2013.
Colombian Mines is an exploration and development stage company with a “first mover advantage” in Colombia and boasts a large portfolio of 100-per-cent direct owned mineral assets in Colombia.