Highlights from the tail-end of a now-complete 127-hole programme included 15.6m at 3.26g/t gold and 84.8m at 0.86g/t.

CEO Jonathan Awde hopes to move a significant portion of Pinion's existing inferred resource to measured and indicated now the 2018 development drilling programme has finished.

"Like the Dark Star deposit, Pinion is showing greater depth potential than we expected as well as the potential for further resource expansion to the east," he said.

"We are confident that our upcoming preliminary economic assessment will demonstrate a robust economic return in the current gold price environment."

Gold Standard recently said that "exceptional" results from drilling at Dark Star, 2.1km east, was transforming its understanding of the Railroad-Pinion project which contains five gold deposits.  

Pinion has a current indicated 31.61 million tonnes grading 0.62g/t gold for 630,300 ounces and an inferred 61.08Mt at 0.55g/t for 1.08Moz.

Senior development geologist Don Harris said the company had initiated studies including hydrologic, pit slope and geotechnical, plus baseline permitting activity to "start moving the South Railroad Project towards a viable potential mining scenario".

The company, which is backed by Goldcorp and OceanaGold, is spending US$25.8 million on exploration at Railroad this year.

It had C$30.8 million in working capital at the end of June.

Shares in the company closed C1c higher to $2 yesterday, in the middle of its 52-week range.