Miramont said it had identified a new copper target where 55 samples all contained copper with the highest grading 1.08%, and 14 of the samples contained silver of up to 4.2 ounces per tonne.

It also reported samples grading up to 7.5% copper and 18.8oz/t silver from the Carbonate Replacement Zone.

Hennigh, who is also president and chairman of Pilbara conglomerate gold play Novo Resources Corp, was appointed chairman in November as Miramont completed its all-scrip takeover of privately-held Puno Gold Corp.

"Not only do we see potential for a large volume of mineralised breccia within the diatreme complex, we are compelled by potential for replacement style precious and base metal mineralisation within limestone encircling the diatreme and beneath volcanic cover," he said.

"Such a system is seen at the nearby San Gabriel deposit."

The company had C$4.7 million (US$3.6 million) in cash at the end of January.

It is planning a 5,000m drilling programme at Cerro Hermoso and received environmental approval mid-month.

It shares closed unchanged at C35c, capitalising it close to $17.8 million.