Gold explorer Breaker Resources is poised for continued growth this year at its Lake Roe project, outside Kalgoorlie in Western Australia.

In late December, Breaker reported a 23% increase in resources at Lake Roe to 31.9 million tonnes at 1.6 grams per tonne gold for 1.7 million ounces of gold.

It was the second update of 2021 and included a further 18 diamond drill holes and eight reverse circulation holes.

Breaker estimates a discovery cost of A$21 an ounce for the additions of 314,000oz, and $40/oz for the project since drilling began in 2016.

The estimate comprised open pit resources of 688,000oz, of which 87% sits in the indicated category, and underground resources of 501,000oz, of which 11% is classified as indicated.

The main Bombora deposit hosts 1.5Moz at an increased grade of 1.8gpt gold.

The Bombora pit area has an average gold endowment of roughly 3800oz per vertical metre.

The updated resource will underpin mining studies at Lake Roe with the company to start making the transition from explorer to developer.

Breaker will ramp up drilling to firm up the best areas for development.

There is also plenty of scope for growth at depth and along the 9km-long system.

The company has discovered a potential syenite contact to the east of Bombora which will be followed up this year.

Just before Christmas, Breaker announced the sale of 80% of its Manna lithium project to Global Lithium Resources.

Manna covers 50sq.km of Breaker's 700sq.km Lake Roe gold project and contains outcropping spodumene-bearing pegmatite dykes up to 18m wide.

Global Lithium has paid A$13 million up-front, comprising $6.5 million in cash and $6.5 million in shares, the latter of which has given Breaker a 7.5% stake in Global Lithium.

Breaker will receive a further $10 million on the definition of a resource containing more than 250,000t of contained lithium and a further $10 million on the production of 100,000t of contained lithium.

Global Lithium will fund all exploration and studies and will be required to complete a bankable feasibility study within five years, or its interest reverts to 50%.

Breaker chairman Peter Cook, who joined the company late last year, said the deal was a fantastic result for shareholders.

"It allows us to up the ante at our flagship Lake Roe gold project without the immediate need for a dilutive capital raising," he said.

Breaker started the December quarter with $7.6 million.