Carnaby Resources says significant gold mineralisation has been intersected in its drilling program at Tick Hill, 110km south-east of Mount Isa.

The site produced 511,000 oz of gold, with an ore grade of 22.5g/t, when it was mined by MIM Holdings in the 1990s.

Announcing results from its first five completed holes at Tick Hill, Carnaby said it had intersected significant gold mineralisation immediately below the former Tick Hill open pit and adjacent to existing underground development in un-mined positions.

An accelerated drilling program is in progress with two rigs now onsite testing near-mine targets for potential extensions and repetitions of the Tick Hill orebody.

“We are delighted with the results from the initial drilling of the Hangingwall Lode and the Main Lode South positions, which have confirmed the existence of un-mined, high grade sections of the Tick Hill orebody,” managing director Rob Watkins said.

“Only one small stope was historically mined from the Hangingwall Lode, which may have been overlooked in the past.

“Likewise the un-mined Main Lode South position hosts significant high-grade gold immediately below the open pit in very short proximity to existing development.

“While these results are a good start, we are now stepping out to test for the offset location and/or repetition of Tick Hill – which is faulted off at only 235m below surface.

“Our technical team now has a deep understanding of the Tick Hill orebody controls from extensive evaluation and geophysics completed over the last six months and we are well positioned and highly leveraged for success.”