PC Gold (ASX:PC2) said recent drilling has extended the strike of the Main Zone of its Spring Hill gold project in Australia by 80 meters, according to a Tuesday Australian bourse filing.

The company said it intersected 14.9 meters at 3.84 grams per tonne grade gold from 143.1 meters, including 0.98 meters at 30.6 g/t gold from 147.9 meters. Visible gold has been identified 40 meters immediately along strike and down plunge of this hole, the company added.

Geological reinterpretation indicates up to 500 meters of additional southern strike potential, of which the majority remains largely untested, and more than 200 meters of this interpreted strike extension lies within the current pit optimisation shell, the filing said.

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

The company's shares fell 2% in recent Tuesday trade.