An intercept of 58m grading 6.39 grams per tonne gold from 24m at the Outridge prospect set the market alight, with the drilling following up on historic hits nearby of 33m at 1.79gpt from 16m, 21m at 1.36gpt from 15m and 21m at 2.03gpt from 30m.

Outridge is about 500m south of the historic Kiora open cut mine halfway between Kiora and the Mick Adams resource area –1.8 million tonnes at 1.4gpt gold.

While previous drilling at Outridge barely penetrated the primary zone, Cazaly said it was becoming increasingly clear that there was significant gold depletion in the weathering zone in the region.

Placer Dome has clawback rights to the Outridge prospect if a resource of 300,000 ounces is identified.

Cazaly now plans to drill some scissor holes at the prospect to determine the orientation of the mineralised structures.

The company’s managing director Clive Jones said new discovery would not impact on plans to move the Catherwood deposit into production next year.

“We’re of the belief its always vital for juniors to generate cash to keep growing,” he told MiningNews.net.

The Catherwood deposit has an estimated resource of 572,200 tonnes grading 2,4gpt gold for 44,700oz gold.

Jones said the Waddi deposit would also be developed to help fund the exploration and potential development of the Outridge prospect.

Recent optimisation studies at Wadi identified the possibility of developing 88,000t at 4.7gpt gold for 12,090oz gold.

Shares in the company climbed from 27.5c to 68c in morning trade.