The first two years of production could yield 244,000oz at AISC of $545/oz.

A post-tax net present value of $301 million has been estimated, with the internal rate of return put at 59%.

Those metrics use a $1800/oz gold price.

Chesser began a circa 20,000m drill program in January to expand resources, with expectations of more than 1 million ounces seen as being achievable.

Chesser started the current quarter with A$5.4 million cash.

The company is led by ex-Perseus Mining business development executive Andrew Groves, who was appointed managing director last April.

Capital markets firm Argonaut made the comment that Diamba Sud more likely attract funding now (versus the past), given the success of Perseus and West African Resources in delivering projects in West Africa.

The firm also noted the project "sits next to Barrick and Iamgold's undeveloped assets in Senegal with potential for a regional play".

Shares in Chesser were up 9.5% to 11.5c in Australia, capitalising the company at $54 million.