Europe-focused exploration company Erris Resources received a share price boost on Thursday, after the company published its interim results, highlighting the high-grade mineralisation of its Abbeytown zinc project, in Ireland, and its strong cash position of €2.59-million at September 26.
Erris, which is also in an exploration joint venture (JV) with Canada’s Centerra Gold in Sweden, reminded investors that its drilling programme at the old Abbeytown mine site had successfully intersected mineralisation with grades of 10.85% zinc and lead combined at 4 m, as well as 54.4 g/t gold from 129 m to 132.5 m.
In parallel with the surface drilling campaign, Erris has been working on regaining access to the historic Abbeytown zinc mine, which last operated in the 1950s. The company has recently reported results from face channel samples taken from eight pillars in the underground workings, which indicated high-grade mineralisation of up to 4 m, grading 18.4% zinc and lead combined, with 116.85 g/t gold from pillar four.
However, despite the progress at the Abbeytown project, the company’s active exploration JV in Sweden and the support of Osisko Gold as shareholder, the junior’s share price performance has been a disappointment for chairperson Jeremy Martin, who described it as “extremely frustrating”.
“It is a challenging time for the junior mining and exploration sector, not least due to the decrease in metals prices, in part due to the US/China trade tariffs resulting in diminished overall investor appetite. Over the course of the coming months, as we report further results from Abbeytown, combined with our aim to identify other projects that fit the company's criteria, the board is confident that the share price will strengthen as we build value,” he said.
Shares in Erris gained 21% to 9.70p a share on Thursday, but remain well below the 52-week high of 28p a share.