These were the best results of a 12-hole program at the Olgal prospect, with 10 holes successful in hitting mineralisation.
"Olgal is the first of 17 targets drilled and has clearly produced a copperâ€gold porphyry deposit," the explorer said.
"However, to ensure focused target priority is derived from this new porphyry district, Highlands is now planning to drill at least two deep holes in each of a number of
exciting other targets in the region."
Drilling was underway at the Futik prospect of the project and the first 500m-deep hole already landed an intersection of 176m at 0.15% copper and 0.15gpt gold.
Another hole is planned in this area before the rig moves on to two other prospects.
"This is an extremely prospective area, with one copperâ€gold porphyry deposit already being identified and with significant magnetic and surface sampling work highlighting additional target potential in the area."
The project is located about 25km north of the giant Ok Tedi copper-gold mine in Western province and there is potential to link up to this mine's infrastructure.
"We have completed early-stage concept studies on the transport route to the Ok Tedi mine and our target is 200â€400 million tonnes either in one or multiple deposits at a grade of 0.7 per cent copper equivalent," Highlands managing director John Gooding said.
"If we are successful in identifying an economic deposit then, we believe that with Ok Tedi's infrastructure close by that we have a great opportunity to realise value with the Star Mountains area in the short to medium term."
Highlands fully owns the three exploration licences of the project but Xstrata Copper can earn a 72% stake in one of them (EL1312) by producing a feasibility study by 2019.
Shares in Highlands were unchanged at 17.5c by early afternoon (AEST).