Celtic Resources, which this week began trading on London's Alternative Investment Market (AIM), said the latest drilling results from its Suzdal gold mine in Kazakhstan were "encouraging".
Managing director Mr Kevin Foo described the results as "excellent", saying they confirmed high-grade mineralisation and the extension of the ore bodies at depth.
He said Dublin-based Celtic remained on target to complete an internal development plan for the sulphide ores by December, at which time it would also announce revised ore reserve and resource figures.
"Subject to finance, we would then plan to have the sulphide project on stream by 2004, which will produce 130,000 ounces per year for more than 10 years," Mr Foo said.
The mine is 100 per cent owned by Celtic.
Shares in the company closed at 102½ pence sterling (€1.62) on AIM yesterday, up 10 per cent on Monday night's close, as the stock recouped some of the ground lost in its first day's trading.
It fell by more than 30 per cent, from 135 pence to 93 pence, on its AIM debut on Monday.
However, market sources said the drop might have been exacerbated by confusion following the company's decision to consolidate its shares as part of the move to AIM. They now have an underlying value of 100 pence against 10 pence previously.
The exploration group left the Exploration Securities Market (ESM) in Dublin for London's AIM in a bid to raise its profile with investors.
It raised £5 million sterling through a placing with some 20 institutions and private investors on Monday at 135 pence per share. The funds will be used to accelerate gold production at its key project, the Nezhdaninskoye mine in Yakutia, northern Russia, as well as in debt repayment and working capital requirements, it said. The mine has reserves exceeding 28 million ounces of gold and 100 million ounces of silver.
