Mila Resources said it started drilling at the Kathleen Valley gold project in Western Australia in an effort to boost the existing JORC Inferred Resource.
The programme will total 13,500m (metres) and focus on the existing Coffey Deposit plus two new targets to the north of the current resource.
Kathleen Valley sits in an area containing some of the largest gold deposits in Australia and is adjacent to big discoveries made by Bellevue Gold.
Mila completed the acquisition of 30% of Kathleen Valley on 23 November with the resource currently standing at 21,000oz at 2.1g/t gold equivalent.
Mark Stephenson, executive director and co-founder, said: "I am delighted at the progress on the ground at Kathleen Valley.
“As we have explained before, we believe that the current resource and exploration target represents just the 'tip of the iceberg' as these were delivered from just 2,160m RC drilling to date.
“Kathleen Valley is located in a region which hosts some of the largest gold projects in Australia and with this compelling geological address, I am extremely excited to see the results as they are received from the assay laboratories."