The company said reconnaissance drilling was supporting the potential for “several open pits” to be established along the 2.5km Hopetoun-Endeavour trend, while the 1.2km Daisy Central prospect would become an “important focus for resource drilling during 2017”.

Millennium believes the Nullagine field is immature in exploration terms, and “the more we drill, the more we are likely to find”.

Millennium currently has four RC drill rigs on site, and plans to spend “at least” $A14 million on exploration in 2017.

The debt-free company engineered a strong operational turnaround last year, but needs to add oxide ounces to extend the 80,000-85,000 ounce per annum operation (in its current guise) beyond reserves recently put at 159,000oz.

The company had $28.4 million cash at the end of the December quarter, and is producing gold at all-in sustaining costs of about $1200/oz – versus a recent gold price of about $1600/oz.

Shares in Millennium were up 5.5% to 28.5c in morning trade, capitalising the company at $222 million.

The stock is up more than 500% on levels it was trading at 12 months ago.