NQ Minerals PLC (AQSE:NQMI) said surface trenching (costeaning) at the Beaconsfield Gold Mine in Tasmania, Australia hit strong indications of gold in two areas.
At the base of the Cabbage Tree Hill target, trench samples returned a best result of 8m at 3.61 grams per tonne of gold while at the footwall of the Tasmanian Reef one sample showed 2.02g/t over 2m.
Both sites are next to the haul road to the Beaconsfield processing plant, NQ added.
David Lenigas, chairman, said: "There has been little recorded exploration at surface at Beaconsfield area, with the majority of previous exploration and mining efforts concentrated on the rich underground mine as it continued to mine to deeper depths.
“NQ considers that the surface potential at Beaconsfield remains un-tapped and has the potential to add significant resources to Beaconsfield gold inventory.
“These results, albeit early days, are seen as very encouraging indeed. The company now plans a follow up trenching programme prior to embarking on a drilling programme."