Calvista Gold Corporation(TSX:CVZ, Stock Forum) said that the recent drilling at its Callejón Blanco prospect in Columbia has returned high grade gold intersections, news that sent the stock price up 6% on Tuesday.
The mineral exploration company focuses on the acquisition, exploration and development of properties for the mining of gold and other minerals in the province of Santander, Colombia.
The Phase II program at Callejón Blanco prospect has targeted mineralized zones identified in Phase I drilling program.
Highlights from the Tuesday’s press release include samples of 5.10 grams per tonne gold over 16.17 metres, samples of 6.30 grams per tonne gold over 3.46 metres and 9.70 grams per tonne gold over 4.62 metres.
The Phase II program is expected to be completed next week with results processed during July 2012 in expectation of a resource estimation update in the third quarter of 2012.
A phase III drilling program is also being prepared, which is planned to include 10,000 metres of diamond core drilling, and is expected to commence during the last quarter of this year.
On Tuesday, Calvista was trading for $0.38 a share with a market cap of $18.8 million with $48 million shares outstanding. The 52-week high and low was $0.95 and $0.15 respectively.