Strategic Energy Resources has reported disappointing results from diamond drilling at the Saxby gold project in north-west Queensland.
The work indicated the prospect was not of sufficient scale to be economic given the depth of cover, the company said.
It has received assays from two out of three holes drilled recently at the project, 165km north-northeast of Cloncurry.
The results were below expectations with best intercept of 1m at 8.37g/t gold from 650m.
However, the Strategic believes the presence of significant high-grade gold intercepts associated with IOCG-style hydrothermal alteration and Williams and Naraku Batholiths confirm the fertility of the region.
The company plans to fully assess the information gained from this drilling campaign to advance understanding of the mineralisation system at Saxby and implications for the broader region.
It was a similar story at Ernest Henry South, where Chase Mining Corporation reported that no significant mineralisation had been observed in any of the holes drilled to date.
Rio Tinto Exploration led the drilling pursuant to an exploration farm-in agreement with Red Fox Resources, in whom Chase holds a 40 per cent shareholding.
Assays are expected back in early December at which time Red Fox and Chase will release further details.
The Ernest Henry South tenement is located between the operations at Ernest Henry and the E1 deposit, operated by Glencore. T