Reverse circulation drilling at the T5 electromagnetic anomaly returned encouraging visual results in late May.

The assays are in and returned 8m at 1.11% nickel, 0.36% copper and 507 parts per million cobalt from 129m, including 4m at 1.6% nickel, 0.31% copper and 689ppm cobalt; and 1m at 0.61% nickel, 0.57% copper and 346ppm cobalt from 126m.

Both holes intersected the same basal contact as historical drilling 400m to the south, but with better grades and widths.

The mineralisation extends over 400m strike and open to the north, south and developing at depth.

The company said the results were the most significant encountered outside the Carr Boyd nickel mine area, 1-1.2km so the south-west of T5.

"Having such strong nickel assay results with the initial two holes drilled into this target area is very exciting and I look forward to continuing the exploration in earnest as we try to unlock a world-class discovery," Estrella CEO Chris Daws said.

Down-hole transient electromagnetics confirmed the drilling hit the moving-loop EM target, with modelling indicating a strong target zone to the north.

Deep diamond drilling is planned to test a zone 300m to the north and south, as well as below T5 to a depth of 300-400m below surface.

Shares in Estrella jumped 33.3% to 1.2c, valuing the company at just over $5 million.