MercoPress. South Atlantic News Agency

Drilling update lifts Falkland Gold

Falkland Gold and Minerals found the going better after chairman Richard Linnell gave a rosy update on current drilling prospects.

After an initial period of heavy investment in plant, machinery and operational infrastructure, the Falkland-based miner is well placed to increase drilling productivity in the coming months, he will tell shareholders at today's AGM.

Following its successful commissioning in May, the second drill rig 'Falklands 2' is expected to achieve full output in June.

Linnell also said the sample preparation area is fully operational and core samples are being prepared for despatch to the ALS Chemex analytical laboratories in Perth, with results expected towards the end of June.

The chairman says the company is in a good financial position with over £8.4m of cash reserves available as at 31 March, which will be used to finance the planned 24,000 metre drilling programme covering all 23 targets identified during Stage I.

Interim results for the 6 months to 31 March are due to be released on 14 June