"Step-out drilling has confirmed immediate strike extensions of the Brolga Zone, providing encouraging indications for substantial potential along strike," De Grey said.

"The widths, grades and consistency of mineralisation intersected to date are very pleasing.

"Our geological model is evolving rapidly, and our confidence continues to grow that the strong sulphide rich mineralisation directly relates to gold."

De Grey says it has a large number of drill samples awaiting lab assaying, and drilling (including diamond core) is underway with three rigs in action.

Brolga and Aquila are the two zones thus far partly drilled by De Grey showing broad, sulphide-rich alteration with high grade gold mineralisation.

The zones are seen as representing an "exciting new style of mineralisation in the Pilbara region".

The zones are under 30m of transported cover, with first aircore results emerging in December.

Shares in De Grey were up 9.5% to A23.5c in midday trade, capitalising the company at $244 million.

The stock's 52-week low is 3.9c.