The company added the data suggested the presence of a large and extensive sulfide system or systems.

"The IP surveys of Mt Penck, which have greatly enhanced our understanding of the geology and its mineral potential, suggest that a major sulfide system may be present below the general Kavola South, in the Koibua area, and may also be present in other parts within the overall circular feature," Vangold chief executive officer Dal Brynelsen said.

"In light of these results, Vangold plans to commence deep drill testing at Mt Penck in the near future."

New Guinea Gold chief executive officer Bob McNeil said the gold mineralisation partly defined by the drilling of 90 holes over 8000 metres appeared to be peripheral to the main sulfide mineralisation.

"Copper-gold grades of sulfide mineralisation appear to be increasing with depth and it is likely that the chargeability anomaly at or near surface represents peripheral mineralisation within propylitic and quartz sericite alteration that could be peripheral to major porphyry copper-gold mineralisation."

NGG holds a 13% stake in Vangold and has a 5% carried interest in the Mt Penck project.