The possibility of a new mine opening at some point in the future in Tasmania's North-East was looking a little more likely on Thursday, after minerals explorer Flynn Gold confirmed two zones of high-grade gold across its tenements near St Helens.
In a statement to the ASX on Thursday, the company said tests of newly drilled core samples from its Trafalgar prospect included one sample that contained a 60-centimetre section with 109 grams per tonne of gold at a depth of 121 metres.
Thursday's statement was the latest in a series of positive results the company has posted about its exploration program around St Helens in recent months.
In December, it published news of a 1.25-metre core section where concentrations were tested at 106.6 grams of gold and 195.1 grams of silver.
The company's shares traded as high as 12.6 per cent higher by midday before closing at at $0.105 per share, about 8 per cent above its previous close.
Chief Executive Officer, Neil Marston, said the recent results showed that significant levels of high-grade gold mineralisation were present at the site, which is just West of St Helens.
"This result demonstrates to us that Trafalgar is a significant gold system that is open in all directions," Mr Marston said.
"With historical gold workings located to the north, south, east and west of the Trafalgar Prospect we see huge potential for this area to yield further exciting results as drilling continues," he said.
He said the latest results also gave laboratory confirmation of high-grade gold mineralisation in at least two vein zones over a strike length of over 200 metres.
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