Glamis Gold Gain More Than 7 Percent


Shares of Glamis Gold Ltd. rose more than 7 per cent Wednesday after the gold miner doubled its reserve estimates at a project in Mexico.

The shares rose $2.43 or 6.9 per cent to $37.70 on the Toronto Stock Exchange.

The company revised its estimates for its Penasquito project in Zacatecas, Mexico, saying proven and probable gold reserves have doubled to 9.98 million ounces while proven and probable silver reserves have grown 86 per cent to 575 million ounces.

“With this update, company-wide gold reserves have nearly tripled in 2006,” said Kevin McArthur, president and chief executive. “Our team is now fully engaged at the site and we are excited to begin work on the ground.”

The revised estimates are based on new results from over 67,000 meters of drilling received since the completion of the original project feasibility study in November 2005, the company said.

An updated feasibility study based on a doubling of mill throughput to 100,000 tonnes per day is expected to be completed in August.