Shares in Fireweed Zinc Ltd (CVE:FWZ) advanced over 12% on Tuesday as it unveiled positive metallurgical tests, which are part of the preliminary economic assessment (PEA) for its Macmillan Pass project in Yukon.
The findings show the site could potentially produce concentrates for traders and global smelter customers.
Shares in Toronto zoomed up over 17% to C$1.86.
Core was selected from eight drill holes, which were spatially, mineralogically and grade representative of the known deposit zones.
The 'global' composite zinc concentrate graded 58% zinc at 89% zinc recovery, while the "global" lead concentrate contained 61% lead at 75% lead recovery.
The results compare favorably to a 2012 test programme, which resulted in concentrate containing 58% zinc at 80% recovery, the company said.
The high quality, low iron concentrate is expected to be attractive to smelters, it added.
"The results give us confidence that the Macmillan Pass project will produce concentrates desirable to potential traders and global smelter customers," said chief executive of Fireweed Brandon Macdonald.
"These results confirm and improve upon past metallurgical studies and will help inform the economics in our upcoming PEA. We expect to announce PEA results in the coming weeks."
Further metallurgical work is earmarked for 2018, including a bit to develop a full geometallurgical block model to better predict recoveries, concentrate grades and general optimization and coordination of mining and processing operations.
The firm is advancing its large 470 sq km Macmillan Pass Project in Yukon, Canada, which is host to the 100% owned Tom and Jason zinc-lead-silver deposits.