It said visible gold was observed in 5 of the 12 underground holes, and in six intersections in the first surface hole, in drilling so far this year.

The underground drilling was designed to extend the known zones below an ongoing 35,000 tonne bulk sampling programme, while the surface hole had targeted the new Area 51 system 300m to the west.

"The Area 51 mineralised corridor is an exciting discovery that confirms the significant potential to expand the mineralised system at Fenelon," president and CEO Marz Kord said.

The 50,000-75,000m drilling programme is designed to update Fenelon's measured and indicated 91,100t resource grading 12.97g/t for 38,000oz and its inferred 6,500t at 9.15g/t for 1,900oz.

Wallbridge said last month it had processed about 25,000t with an average grade of 18.19g/t gold, containing 14,700 ounces, in the bulk sampling programme.

It plans to finish the programme this quarter and said more than 14,000oz had been recovered and sold and the US$8 million loan to Auramet had been repaid.

Mining investment identity Eric Sprott holds about 19.1% of the company.

He invested C$7 million (US$5.2 million) in a placement at 24c per share last month, subject to shareholder approval, and exercised warrants at 20c to garner Wallbridge a further $3.25 million (US$2.4 million).

Wallbridge's share price soared from a low of 5.5c in 2018 to 35c in September, putting it in a list of the top 100 TSX/TSXV miners and juniors for 2018.

Its shares remain close to the high mark, closing up about 13% yesterday to C30.5c to capitalise it at $119 million.