Chesterfield Resources (LSE:CHF) sat at 4.4p on Monday morning after widening its metal exploration programme in Cyprus significantly in response to strong initial drilling results.

The business is in the process of submitting applications to more than double its mineral exploration land package in the volcanic belt surrounding Cyrpus’s Troodos mountain range. The region was actively mined before the Turkish invasion in 1974. However, many brownfield sites and unexplored greenfield targets exist that Chesterfield expects to make attractive exploration targets.

The firm’s decision to expand follows an initial 3,097m drilling programme carried out on its 100pc-owned licences in the Troodos West region. These are located near the large historical Limni open pit mine.

Using archival data, reinterpreted magnetic surveys and geological mapping, Chesterfield tested numerous structures on a series of features around the mine. The work identified additional gold potential alongside the primary target of copper. It also found evidence of epithermal mineralised structures, providing the potential for deposits in two separate styles of mineralisation.

Chesterfield said most of its holes intercepted mineralisation. Highlights including 18.9m at 1.29 g/t gold, 13.18g/t silver, 0.62pc copper, and 0.49pc zinc from 45.1m and 27.93m at 0.96g/t gold from 13.2m. The business added that some prospective mineralised structures on the licences still remain largely untested by modern exploration techniques.

The expansion is also the latest stage in Chesterfield’s recent efforts to bolster its exploration capacity significantly. This began last month with the appointment of Michael Parker as chief operating officer. Parker was taken on to lead an enlarged exploration team in Cyprus. He is a geologist with over 30 years of experience in both exploration and project development and joins from First Quantum Minerals.

In Monday’s update, Chesterfield’s executive chairman Martin French highlighted that the business expects to take on several additional UK and Cypriot geologists over the coming weeks. He added that the company has also commissioned a remote sensing survey and is appraising further ground facilities in Troodos. Finally, he said the firm has been granted three new prospecting permits in Troodos North and has identified a sizeable new target south of its drill area in Troodos West.

‘We anticipate more permits to be granted in the vicinity in the near future. The Company has been prudent in its expenditure, and so remains well funded for the continuation of our drill campaign which will be focussed on making a commercial discovery this year,’ said French.

Author: Daniel Flynn

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