Dreadnought Resources (ASX:DRE) said reverse circulation drilling at Steve's Reward, part of the Mangaroon gold project in Western Australia, delivered high-grade intercepts, according to a Monday Australian bourse filing.

The firm encountered intercepts of one meter at 10.3 grams-per-tonne grade of gold from 83 meters, as well as one meter at 5.6 g/t grade of gold from 6 meters.

The drilling saw greater structural complexity than before and produced some unexplained gold in soil anomalies, leading the firm to believe that it could be drilling in a "sub-optimal orientation" and that greater structural understanding is needed, the firm's Managing Director, Dean Tuck, said.

It is planning a diamond drilling program.

Its shares fell 3% in recent trading on Monday.