Alexandria Minerals (CVE:AZX) has doubled the resources at its Sleep property in Quebec, the company said Wednesday.
In an updated NI 43-101 compliant mineral resource estimate, the company found the asset contains inferred resources of 307,350 ounces of gold at a 3 grams per tonne (g/t) cutoff, which is more than double the 152,000 ounces from the original estimate released in 2009.
The average grade of the resource also increased by 60 percent to 5.1 g/t gold from 3.0 g/t gold, with an increase in cutoff to 3.0 g/t from 2.0 g/t.
Alexandria said that 68 percent of intersections graded more than 3 g/t gold over the width of the zone.
"The project is now approximately the size and grade of average historical mines in Val d'Or, and we believe that it is an opportune time for Sleepy to capitalize on the Val d'Or area infrastructure," said president and chief executive officer, Eric Owens.
Shares of Alexandria surged 25 percent to 5 Canadian cents this morning, pushing year-to-date gains to more than 66 percent.
The junior explorer said it is evaluating its options at the Sleepy deposit, which includes a further expansion of the resource and potential business partners.
The company is also in the midst of a 12,000 metre drill program on its Akasaba and Ducros properties, some 15 and 22 km west of Sleepy, respectively. It is testing geophysical copper-gold targets as part of its efforts to find Akasaba-like gold-copper mineralization, it said.