Alkane Resources latest exploration success near Tomingley could extend mine life beyond 2022.
Recent drilling results within Tomingley Gold Operations have intersected "significant" gold mineralisation at the El Paso prospect, seven kilometres south of Tomingley.
Results from two other nearby prospects show a cumulative strike length of 2,500 metres of gold mineralisation within eight kilometres of the mine.
"Back on March 31 we made an announcement that we had found some significant intercepts of gold in an area we call Roswell and San Antonio, about three kilometres south of the existing gold mine," Dubbo-based Alkane Resources general manager NSW Mike Sutherland said.
"There's enough confidence in the results that we got then and now to actually go to a resource drill out."
Tomingley Gold Operations ceased open cut mining in January, with developments now one kilometre underground.
The regional exploration program aims to provide a broader source of ore feed, either at surface or underground, to extend the life of the Tomingley mine.
Alkane expects to continue operating out of Tomingley for another three years, with any new development from the recent results expected to begin within that period.
"We know it takes a couple of years to get through the approvals process, but the first step is to do all this drilling which will take us through to Christmas time or January," Mr Sutherland said.
"Then we'll crunch the numbers and have a good look at where the open cut option would sit, and in the meanwhile we're going to make some big assumptions we know where things are so we'll start to look at some of the environmental constraints for the project, working on what studies will need to be done to do our environmental assessment, all that sort of thing.
"We've given ourselves the time frame to get any new development within three years of now."
Mr Sutherland said Alkane, who also owned and operated the Peak Hill Gold Mine from 1996 through to 2005, used profits from the mine to source Tomingley Gold Operations and have continued to do this to fund other exploration.
"Finding more gold nearby means that we'll need to put in another development application for a new mine, but we'll actually truck the ore back either from an open cut or underground mine, back to the existing gold mine," he said.
"The good thing is we've already spent all the money building the infrastructure, so this just extends the life of the mine.
"Everyone keeps their jobs for longer, the economic activity and multipliers that come from mining just continue to provide benefits not only to the Narromine Shire, but also to the Parkes and Dubbo areas."
Further drill results are anticipated in the coming weeks, which are expected to confirm the potential for substantial mine life extension.