African Barrick Gold (ABG) has reported a significantly higher mineral resource estimate at its Nyanzaga project in Tanzania.

The FTSE 250 gold mining firm claimed the fourfold estimate increase at the Tusker deposit gives it more confidence that the site will be its next mine in Tanzania.

The deposit is now estimated to hold over four million ounces of gold, including 3.48 million ounces at an indicated grade of 1.47 grams per tonne (g/t) and 0.6 million ounces at an inferred grade of 2.05 g/t.

The increased estimate pushed Barrick’s shares higher this morning, currently trading up 3.78 per cent at 508p at 10.10am after rising over 5 per cent yesterday.

Greg Hawkins, CEO of African Barrick Gold, commented, ‘This confirmation of the potential scale of the Nyanzaga project represents an extremely important step in the development of ABG as one of the leading gold companies in Africa and underpins our confidence in the future growth potential of the company.’

ABG secured 100 per cent of the Nyanzaga project in May 2010 and embarked on an extensive exploration and drilling programme costing £13.8 million.

Its report indicated that there may be higher-grade gold deposits at a greater depth and the firm is embarking on further exploration to confirm this.

It expects this scoping study to be completed by the end of the first quarter or the start of the second quarter this year.

In the meantime, the firm will deliver an update on the Nyanzaga project in its 2011 preliminary results in February.