In total the current resource stands at 56 million tonnes grading 1.2 grams per tonne gold for 2.16 million ounces.

Ausgold said the resource, located in Western Australia's Wheatbelt country southeast of Perth, supports a standalone operation with the majority of the resource above 220m depth.

The gold is contained in multiple deposits over an 8km resource strike length.

Ausgold raised A$16.6 million cash last quarter when it issued new shares priced at 4c each.

Shares in Ausgold were unchanged at 5.7c in morning trade, capitalising the company at $115 million.

Canadian firm Dundee is a 13% shareholder in Ausgold.