South China Resources says it has found an area of hitherto unknown copper, zinc and molybdenum at its Danfeng project.

AIM-quoted South China, chaired by Australian entrepreneur Alastair Clayton, claims the discovery of this new area of mineralisation at Copper Ridge, to the south-east of the main Danfeng area, 'may have a significant impact on the economics of the whole project’. Sampling has returned tempting grades of more than 3.2 per cent copper, eight per cent zinc and 0.53 per cent molybdenum, with silver at more than 23 grammes per tonne of ore in places.

The company has found other indications of 'potentially high-grade' molybdenum, lead, zinc and silver deposits around the six million-tonne 'core' iron, copper and molybdenum resource area at Danfeng. South China says its geologists now believe high-grade underground molybdenum veins there 'may extend over a much larger area than first thought'.

Shares in South China, floated at 5p last April and mentioned here as a speculation earlier this month at 8.88p, gained 1.88p this morning to 15.13p, valuing the company at £17.6 million. Hold on.