Xtract Resources surges on gold find

Shares in Xtract Resources surged after the company found a new gold reef system at its Colin Mining area in Chile.

The company said its own estimates found the new reef system could quadruple the previous estimates of gold found in the area and as a result could increase the life its mine by more than 20 years.

By 0841 BST, shares in the AIM-listed miner were up by 9.36% to 0.273p.

Xtract Resources said it found the second high grade gold reef at its Chepica Gold and Copper mine in Chile.

The reef system graded 3.9g/t over a 4.1m width, and was in addition to the 4.2g/t over 3.5m width system found earlier in the year.

Xtract chief executive Jan Nelson said once drilling is completed the company would look at increasing its production capacity.