Golden Rim Resources was looking at a “corporate transaction” for its Paguanta zinc, silver and lead project in Chile — but has decided to take a different path.

Investors seemed to like the decision, pushing the shares up 7.7 per cent to close at 4.2c on Thursday.

Golden Rim (ASX:GMR) has now kicked off a scoping study into a smaller 500-tonne-per-day underground mining operation at the Patricia prospect. The proposed operation would produce a lead-silver concentrate and a zinc concentrate.

“We believe Paguanta has significant value and that the scoping study has potential to help unlock this value and to determine the most appropriate pathway forward for the project,” boss Craig Mackay said.

Golden Rim previously flagged a shift in focus to West Africa, specifically its Kouri gold project in Burkina Faso, and mandated Canadian broking firm Eight Capital to secure a deal for the Paguanta project.

During the hunt for a potential buyer or partner for Paguanta, the company continued low cost work on the project.

A new geological model for the Patricia prospect has provided an improved understanding of the continuity of the mineralisation and the structural controls on the high-grade ore shoots, Golden Rim noted.

Also, a new high-grade vein has been identified between the Central and Cathedral veins at the prospect.

“Given the relatively minimal work required to complete the scoping study, we believe that it can deliver a cost effective yet valuable outcome for the company,” Mr Mackay said.

The results of the scoping study are expected in about eight weeks.