The company said sample assays from the Atenea vein on the 3430 sublevel, over a strike length of 130m with an average width of 4.2m, averaged 9.22g/t gold equivalent, higher than the estimated 8.12g/t AuEq.

President and CEO Will Ansley said the results from the newly constructed sublevel demonstrated the continuity of the Atenea mineralisation up-dip from the 3400 level and along strike.

"Having learned the hanging wall split merges with the footwall zone is an important geological discovery and provides an opportunity to improve on our conceptual mine development costs and dilution assumptions in the PEA," he said.

The March PEA outlined a low capex of US$4.3 million, a payback of less than one year and a six-year mine life producing about 185,000oz AuEq at an all-in sustaining cost of $575/oz AuEq.  

It was based on the Atenea vein, close to the project's existing infrastructure, with the aim to generate cash flow, reinvest and further evaluate the deposit to potentially expand production.

The company had C$5.9 million (US$4.5 million) in cash and equivalents at the end of March, having secured the funding for the mine's development earlier this year.

Shares in the company have climbed from C11c in November to reach 29c in early March and last traded at 20c, capitalising Lupaka at $24.3 million.