The Independence resource comprises a near-surface measured and indicated 537,300 ounces of gold and 8.1 million ounces of silver, plus an inferred 147,300oz of gold and 1.2Moz of silver; and an inferred underground resource of 796,200oz of gold.

Golden Independence said the project was located "completely within" the Phoenix mine permitted plan of operations and believed a heap-leach operation could be permitted in as little as 18-24 months rather than several years.

"This MRE [mineral resource estimate], the near surface component of which will provide the foundation for a preliminary economic assessment anticipated later this year, represents the first step in a transformational year for the company as we rapidly advance the Independence project towards a production decision," CEO Christos Doulis said.

The near-surface grades ranged from 0.36-0.64g/t gold-equivalent, using a 0.2g/t cut-off, while underground graded 6.53g/t gold with a cut-off grade to be determined.

The junior said earlier this month it had completed remediation work at a site related to historical operations on the property dating back to the mid-20th century, as it was dedicated to "pursuing best practices on all fronts".

The company has the option to acquire up to 75% of the project under an agreement amended in January.

The amendment, which was revised to include shares and a smaller cash component, has prompted a lawsuit given a decline in share price, with the company saying in April it and Doulis intended to "vigorously defend the claim".

Golden Independence is planning to spin out its Champs precious metals project in British Columbia.

It reported a net loss of C$1 million for the year to February 28.

It then raised $2.8 million in April at 25c per unit, repriced from an originally planned 29c.

Its shares (CSE: IGLD) closed up 5.8% but are down 49% year-to-date, with its 27.5c close yesterday valuing it at $12.9 million (US$10.6 million).