AFRICAN Barrick Gold has found greater-than-expected amounts of high-grade gold in its Nyanzaga project in Tanzania, it said yesterday.
The FTSE 100-listed miner said the results of its drilling were “very exciting and increase the potential for Tusker to add to our future growth profile”.
The gold deposits are closer to the surface and a better grade than originally thought by the previous owner Tusker Gold, which declared a deposit of around 4.2m ounces in June 2009.
African Barrick took sole ownership of the site in May after buying out Tusker, and began an intensive hunt for gold in late July.
The miner pledged to accelerate its drilling programme at the project after the good results, and is now moving a third drill to the site. It expects exploration work to continue until 2011.
African Barrick last month suspended some operations and slashed forecasts at its Buzwagi mine in Tanzania after uncovering a fuel theft ring, which knocked 10 per cent from its share price.
Shares closed down 1.56 per cent at 503p, erasing earlier gains of two per cent.
The firm is trading at 12.5 per cent below its float price, after it was spun off from Barrick Gold, the world’s biggest goldminer, in March. Canadian parent Barrick Gold retains a 74 per cent stake in African Barrick.