Connemara Mining (LON:CON) updated investors on drilling in the Limerick Region, where extended zinc-lead mineralisation was discovered in the lower zone of Stonepark North.
Investors cheered the news, sending shares in Connemara up 11 percent in early deals.
Drilling has defined upper and lower zones of zinc-lead mineralisation at approximately 210 meters and 310 meters depth respectively.
The majority of high-grade mineralisation discovered to date is in the upper zone. Recent drilling tested the lower zone.
Hole TC-2638-60, which was drilled 200 metres northwest of earlier holes, intersected intervals of 22.45 metres grading 1.24 percent zinc and 0.07percent lead and 1.4 metres grading 8.05 percent zinc and 0.17 percent lead.
Ten kilometres to the southeast of Stonepark, hole TC-450-009, intersected a 30 meters breccia zone containing 2.9 metres of 0.95 percent zinc and 0.02 percent lead. Visual inspection suggests this zone is very similar to the zones peripheral to Stonepark.
The company said that the extension of zinc-lead mineralisation broadens the scope of the zone.
“The Limerick area continues to grow in significance as a potential zinc province.
“The size, shape and grade of the Stonepark discovery is not yet known so it is important to maintain all of our licences in good standing to allow for an expansion of existing and / or new finds.
“One of the holes drilled 10 kilometres from Stonepark discovered low grade zinc and lead in a similar setting to the areas surrounding Stonepark. This opens up a whole new area,” said chairman of Connemara Mining John Teeling.
Step out drilling is ongoing with nine holes drilled on blocks up to 40 kilometres away from Stonepark in the Newcastlewest area with no significant mineralisation found to date.
Connemara plans to have 4 or 5 rigs drilling up to 50 holes in the Stonepark area in 2011.