South China Resources claims it has found a 'new high-grade copper and molybdenum zone' at Danfeng in Shaanxi Province.

AIM-quoted South China says the new zone has been identified in the south-west licence area at Danfeng, where copper intercepts include 21.4 metres at 1.02 per cent copper and 1.6 metres at 2.35 per cent copper. The company, chaired by Australian entrepreneur Alastair Clayton, has also begun drilling at the north-eastern zone of Danfeng, where Chinese drilling encountered 'significant mineralisation' 30 years ago and its first drill hole has already intersected '109 metres of pervasive molybdenite mineralisation'.

South China shares have been volatile since it floated last year, swinging between 7.13p and 29.25p. Recommended here as a speculation at 8.8p earlier this year, they are 0.25p up today at 17p, where partial profit-taking might be prudent, though they could bounce much further before the music stops.

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