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Listed explorer Heritage Gold yesterday reported "encouraging" results from its latest drilling programme near Waihi.
Heritage Gold outgoing chief executive Peter Atkinson said the results from the two latest holes to be drilled at the company's Rahu Ridge exploration site could indicate the existence of gold that was of a higher grade than that found so far.
"The results have certainly raised our expectations," said Atkinson.
The area appeared to have strong similarities to the Favona mine in nearby Waihi being developed by US-owned Newmont Gold, he said.
Both holes drilled showed encouraging levels of gold mineralisation in hydrothermal breccias, an incredibly tough rock that the company discovered often indicated the existence of gold and silver below.
"When we hit that we know we've found the right rock type."
The latest results confirmed the company's geological model of the range's mineralised system, Atkinson said.
The next step was to look for feeder vein zones that could contain even higher gold grades.
Heritage Gold is yet to find a replacement for Atkinson who in March announced he would step down as chief executive after 20 years in the job.
Yesterday the company was granted exploration licence applications for three sites in Australia's Northern Territory where it plans to explore for uranium in a joint venture with an Australian syndicate.
Shares in the company rose 0.2c to close at 6.8c yesterday.
