Mexico focused exploration company Cayden Resources () rallied 5% today after the company reported additional drill results from the Las Calles target at its Morelos Sur Gold property, in Mexico.
The Morelos Sur Gold project rests in the Nukay mining district of central Guerrero State, which currently hosts 15 million gold ounces between two separate projects.
Shares in the company were on the move thanks drill hole LCDD0094 which intercepted 1.02 grams per tonne of gold (g/t), 209 g/t silver and 0.38 percent copper over 41.7 metres
LCDD0094 was drilled deeper than any prior core holes in the area and intercepted a lower zone of mineralization that the company is targeting.
"We are pleased to see the hypothesized deeper zone at our Las Calles target return such significant mineral values between two producing pits," chief executive Ivan Bebek said.
"The success of the holes in the Las Calles target gives room for significant value to be added in the near term. We are also very pleased to see the increasing strength of the La Magnetita target ahead of an initial 6,000 meter drill program."
Cayden said results occur in and at the contact of a fractured and iron oxide-rich diorite sill. It added other drill holes were
completed in the area, but assays are pending.
This hole supports the hypotheses of the existence of a deeper, higher grade lateral extension of the ore body currently being mined on the adjacent property, the company said.
In addition, the company also announced on Friday it received first soil results from the La Magnetita target, which indicate an area of gold mineralization that exceeds 1.4 kilometres in strike length.
Cayden is waiting for approximately four square km of further results on the La Magnetita soil grid. Also the miner has extended the initial La Magnetita trench further into an area of anomalous soils and has cut additional surrounding trenches - results are expected shortly.
The company’s share price rose nine cents, or 5.3 percent, climbing to $1.79 apiece in trade on Toronto’s junior venture exchange.