The company said gold mineralization shared characteristics of both Carlin and epithermal type systems and was hosted within fractured, silicified and altered Triassic age calcareous siltstone, sandstones and shales.

Highlights included 86.9m grading 4 grams per tonne of gold from surface, including 45.7m grading 6.7g/t.

Drilling has confirmed historical mineralisation reported by BHP and is said to demonstrate strong continuity along strike with potential for high-grade, near-surface, oxide gold mineralisation. The results are part of a 17-hole, 2,540m programme over a 3km-by-1km area of interest.

"Multiple targets have been identified over a large area at Mojave, and we look forward to reporting the balance of our Phase one results and to planning the second phase of drilling," said K2 Gold chair John Robbins.

With results from an additional 14 reverse circulation drill holes pending, the company is preparing to submit permitting documents for a 30-hole second phase of drilling to the Bureau of Land Management.

Mojave is about 100km to the southwest of the North Bullfrog, Mother Lode and Sterling deposits in the Walker Lane Trend near Beatty, Nevada. K2 Gold is part of the Discovery Group, which sold Sterling to Coeur Mining in 2018.

Shares in K2 Gold are trading at C54c, valuing the company at $28 million.