Lab tests have confirmed high grade copper and gold at Minotaur Exploration’s Eloise site in north-west Queensland.

Eloise — which lies a short drive east of Mount Isa — is a joint venture between Minotaur and OZ Minerals. OZ is earning up to a 70 per cent stake in the tenements by spending up to $10 million.

Minotaur (ASX:MEP) tested the first two drill holes from a newly defined target at the Eloise site, known as ‘Jericho’.

The holes, 1.3km apart, confirm chalcopyrite and pyrrhotite and validate Minotaur’s iron sulphide copper gold exploration model for the area.

Drill intercepts included 6 metres at 4.2 per cent copper and 0.4 grams of gold per tonne; and 9 metres at 3.8 per cent copper and 1.7 grams of gold.

Minotaur drilling at its Eloise project in Queensland. Pic: Minotaur

“Mineralisation style shares very strong similarities to the high-grade Eloise copper-gold deposit just 5km north,” Minotaur told investors.

Minotaur plans to drill six more holes at Jericho to probe these high-grade zones.

The explorer had $2 million in the bank at the end of September and planned to spend $1.15 million this quarter.

Minotaur’s shares gained 9 per cent to 8.3c on Friday, giving it a market cap of $21 million.