Upbeat results spark surge in African Gold

Shares in African Gold surged 19% yesterday after the gold exploration company delivered an upbeat statement with its half-year results.

The company recorded losses of £222,000 (€320,000) for the six months to September.

This compared with losses of £72,000 in the same period last year and was driven by higher operating costs.

But joint chairman Oliver Baring said the company was on target to prove reserves of up to 1 million ounces of gold in the west African state of Ghana.

The company completed a successful £1.4 million fundraising exercise during the period.