The company announced a total combined resource of 1.3 million tonnes at 6.3 grams per tonne gold for 260,900 ounces of gold for the project – an upgrade from its maiden resource of 1.3Mt at 5.6gpt gold for 233,900oz.

The Dona Maria prospect has an indicated and inferred resource of 216,300t at 12.7gpt gold for 88,000oz, while Querosene has 219,900t at 16.7gpt gold for 117,800oz.

Together the prospects have an indicated resource of 99,000t at 18.3gpt gold for 58,300oz.

Crusader noted that the grade at the Querosene prospect had increased by 36% to 16.7gpt from 12.3gpt gold in the maiden resource estimate, which Crusader managing director Rob Smakman said was a pleasant surprise.

“We are delighted to have converted a significant portion of the near-surface, high grade resources at both Querosene and Dona Maria into the indicated category,” he said.

“What is also important to note is that there is still significant upside at both Querosene and Dona Maria as they are both open at depth and along strike.”

Crusader said it would work with mining consultancy Global Resource Engineering to prepare a scoping study on overall development of the project for early 2017, with the company having acquired a primary crushing plant for about $A800,000 in November.

The company will consider both open-pit and underground development scenarios as well as a standalone carbon-in-leach processing plant for the project.

It will also look into potential additional resources that might be included in the current estimate early in the new year.

Crusader repaid the last $3.5 million of a $20 million debt facility earlier this month in the lead up to its planned gold production start, which it said would help to give it a much stronger balance sheet.

Shares in Crusader were up 1c or 10.5% to 10.5c at midday, capitalising the group at $31.2 million. The company had $1.8 million in cash at bank at the end of the September quarter.