Drilling by Collective Mining (TSX: CNL; NYSE: CNL) at its Guayabales project in Colombia’s central Caldas department has uncovered an extension to the Apollo system, bringing the potential for major expansion growth there.

Drill hole APC100-D1 cut 150.5 metres grading 1.46 grams gold per tonne, 18 grams silver, 0.06% copper and 0.03% zinc from 189.2 metres depth, the company reported Wednesday. The hole included 42 metres at 3.6 grams gold, 31 grams silver, 0.09% copper and 0.05% zinc. The mineralization it pierced was outside but contiguous with the northeastern boundary of Apollo.

“Apollo continues to expand and deliver excellent results,” Collective’s executive chair Ari Sussman said in a release. “Drill hole APC100-D1 confirms that the small surface outcrops and shallowly drilled fingers of poorly mineralized breccia at surface can transition into broad and high-grade mineralized zones at depth.”

‘Creating shareholder value’
BMO Capital Markets analyst Andrew Mikitchook said in a note on Wednesday that the extension of Apollo’s high-grade core “creates value for shareholders” and he awaits follow-up drilling that can define the size of the extension.

“Expanding the scale of the high-grade core is positive for shareholders as in our opinion it represents most of the economic value of the discovery and remains open,” he said.

Pending assays from drilling at the high-grade and recently discovered Ramp zone — just west of hole APC100-D1 — are also important, he added. Collective reported the Ramp find in October.

Collective shares gained 2.2% to C$5.13 apiece on Wednesday at mid-day in Toronto, valuing the company at C$398 million. Its shares traded in a 52-week range of C$3.02 to C$5.50.

‘Confirms geological hypothesis’
Another noteworthy hole at Apollo was APC-98D3, which cut 3.6 metres at 1.29 grams gold, 15 grams silver, 0.02% copper and 0.25% zinc from 1.5 metres depth. The intercept included 24.1 metres at 2.95 grams gold, 29 grams silver, 0.08% copper and 0.27% zinc from 335.5 metres depth; and 16.5 metres at 2.08 grams gold, 20 grams silver, 0.07% copper and 0.06% zinc from 404.2 metres depth.

That hole further confirms the company’s geological hypothesis mentioned by Sussman, Collective said.

The results are from five operating drill rigs, part of Collective’s 40,000-metre program for this year. Three rigs are targeting the Ramp zone.

A fully funded, 60,000-metre program is planned for next year, which will be the largest drill campaign in the Toronto-based company’s history.

About 101,000 metres of diamond drilling have been completed so far at Guayabales, including 67,000 metres at Apollo.

Assays are pending for 25 drill holes, and results are expected before the end of the year.

The Guayabales project is adjacent to the Pan American Highway and to Aris Mining’s (TSX: ARIS; NYSE-AM: ARMN) Marmato mine. Agnico Eagle Mines (TSX: AEM; NYSE: AEM) holds a 7.5% stake in Collective.