Xmet Inc. (CVE:XME) (PINK:XMTTF) finally received mineral resource estimate for their phase 1 drilling program done in spring 2011. The favorable results sent the share price flying.
The buying pressure was an all-out reaction to the news. The company announced on Sep. 9 to have received NI 43-101 compliant mineral resource estimate for the Duquesne-Ottoman property in Quebec. Highlights include estimated inferred resources of 4.17 million tons of gold at an average grade of 5.43 g/t, which calculates to 727 thousand ounces of pure gold.
The results are for phase 1 drilling program completed in April this year. Phase 2 drilling should commence in the near future and will target to further expand resources on the property.
The company has $3.3 million in working capital with over $1 million in cash, thus they have the funds to initiate the program without raising additional capital. However, the common practice of XME shows they are paying bills with money received from stock sales and thus a larger than usual amount might be offered during the next round.
