The company has intercepted a large zone of higher grade gold mineralisation in hole GHD006 at Hobbs Pipe 1.

The drill results also include 178m at 2 grams per tonne gold from 400m and 826m at 1.3g/t gold from surface.

Gossan Hill Hold chief executive Dr Kris Butera said that the results are very significant and show significant deposit of gold grades well above the average grades of other gold-bearing systems in the Lachlan Fold Belt.

"Further intersections of such broad high grade zones could significantly impact the overall grade and contained ounces within the deposit, and potentially enhance the overall project economics," Butera added.

To provide a better model of the overall Hobbs gold deposit, 3D IP survey has been conducted with the results expected next month.