Shares in gold miner Apex Minerals jumped higher after the company announced a resource upgrade at its flagship Wiluna project.
The company, which recently announced details of a deeply discounted $100 million rights issue to repay debt and further develop Wiluna, said its total mineral resources for the project had risen by 83,000 ounces to 1.6 million ounces.
Apex said the increase came despite 90,000 ounces being mined since its last resource estimate.
It said the upgrade represented an 8 per cent rise in grade and a 5 per cent increase in contained gold compared with the previous estimates in October last year.
Apex managing director Mark Ashley said the result was extremely pleasing given the limited amount of exploration and resource drilling undertaken in the past year.
"The additional funds from the rights issue will enable Apex to undertake substantial mine development which will in turn underpin a steady rise in production and an increase in cashflow," he said.
"This improved financial position will give the company significant scope to undertake the drilling needed to grow the resource base and upgrade the existing resources."Apex shares were up 0.5 cents, or 11.36 per cent, to 4.9 cents at 11.45am.
The new magazine for a new generation of West Australians.Click here to download »
All the latest market figures from Australia and the world.Click here »
'The West Australian' is a trademark of West Australian Newspapers Limited 2013.
All rights reserved.
Select your state to see news for your area.