G50 (ASX:G50) said positive Phase 2 metallurgical test results from samples taken from the surface oxide zone at the Little Jimmy area of its Golconda project in Arizona showed the potential to produce gallium and precious metal concentrates using conventional, low-cost processing methods, according to a Wednesday Australian bourse filing.

The company said gallium is concentrated within the fine-grained fraction of the oxide material, with gold and silver broadly distributed across the size range, with test work giving options to recover either a combined gallium, gold, and silver concentrate or separate gallium and precious metal concentrates.

The results are consistent with April test work on unoxidized samples and continue to support the potential to develop a strategic domestic gallium supply integrated within a larger precious metals project, it added.

The company's shares rose 7% in recent Wednesday trade.