Mineral & Financial Investments Ltd on Thursday said 50% owned Redcorp Empreendimentos Mineiros Lda has mobilised a second drill rig to begin drilling at the Lagoa Salgada project, Portugal.

The Cayman Island-based investment company focused on the natural resources sector said Redcorp has commenced drilling at Anomaly B, a target located about 1 kilometre northeast of the Venda Nova North deposit at Lagoa Salgada.

The company said the exploration programme is being funded by Ascendant Resources Inc, which owns the remaining 50% of Redcorp. The drilling at anomaly B is part of a 5,000 metre step out programme targeting potential massive sulphide deposits near Redcorp’s initial deposit.

Mineral & Financial said the Anomaly B conductive plate has a strike potential of 1,300 metes in length and 600 metres in down dip length.

The firm noted that drilling at Anomaly D - the first hole of the step out programme - has reached a depth of 350 metres. The presence of disseminated sulphides intersected indicates the drilling’s proximity to mineralisation. Mineral & Financial expects to intersect with the boundary of the conductive plate within the next week.

Chief Executive Officer Jacques Vaillancourt said: ‘It is very exciting to see progress on the step out exploration program; not only does Redcorp expect to see a strong development case presented when the Feasibility Study is completed on the existing resource in April, but this program has the capability to expand resources materially to equal other world-class mines on the [Iberian Pyrite Belt].

‘Most mines on the IBP have a cluster of 2 or more deposits, which are largely identified through geophysics. Geophysics from the site give rise to optimism for a similar opportunity.’

Mineral & Financial shares were down 2.9% trading at 17.00 pence per share on Thursday afternoon in London.

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