Magnetic Resources (ASX:MAU) reported that if the new holes currently being drilled at its Lady Julie North 4 gold deposit in Western Australia are successful, there is potential to further increase the resource base for the deposit of 23.6 million tonnes at a grade of 2.04 grams-per-tonne of gold for 1.55 million gold ounces, according to a Friday Australian bourse filing.

It also reported intercepts from recent drilling, including 51 meters at 3.48 g/t grade of gold from 444 meters as well as 21 meters at 2.71 g/t grade of gold from 269 meters.

Deeper drilling below the northern end of the deposit's pit design identified the potential to define a significant underground resource in addition to the existing open pit inventory. The firm is currently completing further infill drilling in this area which will contribute to an ongoing feasibility study.

Its shares jumped 13% in recent trading on Friday.