Serabi Mining (AIM:SRB) shares soared over 12 percent after it revealed a significant gold find at the Jardim do Ouro (JDO) project in Brazil.
The company released the results from the first five diamond drill holes from the Piaui geophysical anomaly at the project.
In December last year the company started a 7,500m drilling programme with nine targets. Piaui is the first target.
The company received assays from the first five holes, of seven completed. It said that the style of the mineralization intersected to date appears to have broader widths than the mineral resources identified at JDO to date.
Chief executive Mike Hodgson said: "Piaui, selected first for its relative ease of access, is one of nine targets to be drilled in this campaign and to obtain consistent intersections in all holes drilled to date, in this, our first target, is a great result.
"What is most appealing is the indication that for the first time, we are discovering broader width mineralization extending to surface at JDO.
The apparent structural and grade continuity over the first 200m bodes well for the remainder of the Piaui programme and also gives us confidence of further success on the remaining eight targets".
On AIM Serabi shares rose 4.25 pence, 12.6 percent, changing hands at 38 pence each.