Ballard Mining's hopes of outlining a multi-million-ounce gold district at Mt Ida in WA have been again boosted, this time by an assay of 9m grading 27.1 grams per tonne gold from extension drilling at its West Knell deposit.

The true width of the mineralisation drilled is unclear.

West Knell, which is currently estimated to contain 40,000oz, is seen as a satellite feed source for a future development that is focused on the plus-one-million-ounce at 3.5gpt Baldock resource.

Also seen as noteworthy is that West Knell and other prospects are geologically located within the Ballard Fault Zone, with most focus historically hasving been on the Baldock Thrust that hosts the key 1Moz resource at Mt Ida.

Resource updates for West Knell and other prospects are due this year, as is a maiden reserve estimate.

A definitive feasibility study will be completed next year.

Capital markets firm Canaccord's base case scenario is a plus-eight-year operation targeting circa 100,000oz per annum, comprising about 70–80,000ozpa from Baldock underground and circa 30,000ozpa from satellite open pits via a 1.5Mtpa processing plant.

The Paul Brennan-led Ballard had about $62 million cash at the end of the June quarter.

Shares in Ballard were up 4% to 63c in afternoon trade, capitalising the company at $285 million.

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