The area is targeted for various reason, previous drill holes, soil sampling, aeromagnetic surveys and so on. Then a set of assumptions are made and a model of are is made. From here drilling usually commences to test the models assumptions. If they hold and strengthen the model, more detailed drilling is warranted. This may be repeated a few times to get a more accurate model.
If again the model holds up (generally modified with new data), then stepping up to much larger drilling campaigns occurs with the primary objective to get a general idea of how much stuff is there, and a secondary objective to further refine the model.
What this announcement is alluding to is that their model for the 2 areas has been tested with a couple of holes and seems to backup the original assumptions, hence they are encouraging.
MHM Price at posting:
$1.05 Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)