The company said the results from a further 35 underground delineation holes had extended the vertical extent of known mineralisation and continued to return grades higher than the reserve grade of 5.2g/t gold.

Highlights included 4.75m at 20.3g/t gold from 108.5m, including 1.3m at 67.84g/t gold.

Red Eagle said the mineralisation was open in an area with no previous drilling, and outside the current resource and reserve, of 405,000 ounces at 5.2g/t within 250m of surface.

The company has said the mill was continuing to ramp up "according to plan" and had processed 17,008 tonnes at 2.12g/t for 1,100oz in January, and 21,138t at 3.19g/t for 1,974oz in February.

The mill restarted in January, having been stopped since June 2017 to fix production-related issues.

Red Eagle is aiming to produce 45,000-50,000oz in 2018, increasing to 65,000 from 2019.

Shares in the company have ranged between C22.5c-79c over the past 12 months and closed up half a cent yesterday to 27c, capitalising it at $105.6 million.