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A company targeting gold in Queensland's Torres Strait region has announced an upgraded resource estimate after recent drilling.

Alice Queen has updated the mineral resource estimate for its flagship Horn Island gold project to 7.96 million tonnes at 1.9 g/t gold for 492,000 ounces of gold using a 0.5 g/t gold cut-off grade

This represents a 29 per cent increase in total gold ounces and 30 per cent increase in tonnes.

It follows news in April and May of significant old intercepts at the Southern Silicified Ridge (SSR) prospect at its flagship Horn Island gold project at Horn Island.

The company said drilling completed to date confirmed the gold system remained open, while independent structural studies suggested significant potential extension to this gold system towards the south-west and north-west.

Alice Queen managing Director Andrew Buxton said recently completed detailed geochemistry and metal zonation work indicated they had not yet discovered the main source of the Horn Island gold system.

"Our focus for the next phase of exploration, which is about to commence, will be identifying and testing targets for the source of the Horn Island gold system, whilst continuing to expand our resource at the Horn Island pit," he said.

"Discovering the source of the gold system at Horn Island would elevate the project to the ranks of other multimillion ounce North Queensland IRGS deposits such as Mount Leyshon, Kidston, Mungana and Ravenswood."

Horn Island hosts a known mineral field and abandoned gold mine that was only previously explored to shallow depth.

Island treasure in the Torres Strait