The company said yesterday it had observed visible gold in 33 of the 50 holes completed so far and highlights from the latest partial assays included 10.13m at 49.06g/t gold.

"The highlighted intersections released today further confirm the robust gold grades and thicknesses within parts of the Chipotle and Naga Viper zones that were selected for this bulk sample programme," exploration vice-president Attila Péntek said.

Wallbridge started ramp development in June and said this was now nearing the second level, in preparation for the remaining bulk sample stopes.

The company said its 35,000 tonne bulk sample programme was designed to test a few stopes in several zones, with an estimated average grade of 18-25 g/t gold, and was expected to produce 19,000-26,000 ounces of gold with close to 50% of the gold priced at C$1,720/oz (US$1,332/oz).

It secured US$8 million for the bulk sampling programme in March and said the expected cash flow, net of all bulk sample costs and including the financing costs, was anticipated to be sufficient to cover the budgeted working capital requirements.

Wallbridge acquired Fenelon, which has seen two previous bulk sampling programmes, for C$3.7 million (US$2.86 million) in late 2016.

It released a positive prefeasibility study last year that outlined an initial capex of $5.24 million (US$4 million) and a post-tax IRR of 60%, for an initial 18-month mine life focused on the top 100m of the deposit.

Wallbridge shares have ranged between C5.5-15c over the past year and closed 11.11% higher to 10c yesterday, valuing it at $32.5 million.