E79 reported 0.6m grading 2430 grams per tonne within a broader 11.1m at 160.45gpt; plus 0.7m at 99gpt gold, from the first two drill holes at the prospect.
Happy Valley is at its previously-mined Myrtleford gold project in Victoria, which E79 says is in similar host rocks to Kirkland Lake Gold's high-grade Fosterville gold deposit.
E79 president and CEO Rory Quinn said the drilling confirmed the extension of mineralised structures substantially below known historical mining levels.
"Confirmation of a section of visible gold assaying at over 78 ounces per tonne (2430gpt) demonstrates the high-grade potential of the Victorian Goldfields," he said.
"The presence of four other intersections assaying greater than 3oz/t demonstrates this is not a ‘one hit wonder' at Happy Valley."
The Happy Valley mining centre was said to have produced about 34,200oz of gold, predominantly between 1866-1875, at an average grade of 31gpt.
E79 acquired the Myrtleford and Beaufort gold projects in November through the all-scrip acquisition of a private Australian company.
It raised C$6 million at 45c per share in December to close the acquisition and fund exploration at Myrtleford and Beaufort.
Drilling was set to start in May at Beaufort, near Ballarat in Victoria.
More assays from Myrtleford are pending.
The company had $4.5 million in cash, according to a presentation this month.
E79 shares, which trade on the Canadian Stock Exchange, which have traded below 40c for the past year, shot up to a one-year high of $1.32 intraday.
They closed up 240.5% to $1.26, capitalising it at about $70 million.