PC Gold (ASX:PC2) said it found high-grade gold mineralization during a recent drilling at its Spring Hill Gold Project's Main Zone South Extension in Australia's Northern Territory, according to a Thursday Australian bourse filing.

The results were up to 15 meters at 5.1 grams per tonne (g/t) gold from 187 meters down hole, including 1 meter at 64.7 g/t gold from 188 meters down hole, the filing added.

The company said the Main Zone strike has been extended south by 120 meters, beyond the current about 400-meter strike length defined in the mineral resource estimate.

Geological reinterpretation indicated up to 500 meters of additional southern strike potential, of which the majority remains largely untested, with more than 200 meters of the interpreted strike extension lying within the current pit optimization shell, the filing added.

The company approved a budget for a 7,800-meter phase 1 drilling program of 18 holes targeting the southern strike extension of the Main Zone and a recently identified eastern sheeted vein zone, with eight holes completed to date and remaining assays expected in the early second quarter of the year.

The company's shares fell 6% in recent Thursday trade.