Gold minnow Tyranna Resources believes it may have a Challenger-type resource on its hands at the Greenewood gold prospect in its Jumbuck joint venture in South Australia.

Drilling results at Greenewood returned 22 metres at 4 grams of gold per tonne. The hole also included 1 metre at 20.4 grams and 1 metre at 36.9 grams.

The news saw Tyranna’s (ASX:TYX) share price soar as much as 21 per cent to an intraday high of 1.7c before closing at 1.6c, up 14 per cent.

Greenewood — 75 per cent owned by Tyranna — lies 37km north of the 1.2-million-ounce Challenger gold mine which has been in operation under various owners since 2002, producing 1.2 million ounces of gold.

Challenger is owned by WPG Resources which also owns the other 25 per cent of Greenewood.

The project, along with the huge Olympic Dam copper-gold operation and Prominent Hill copper-gold mine, helped put the Gawler Craton in South Australia on the resources map.

Based on the latest hole, Tyranna managing director Bruno Seneque believes it might have a Challenger-type resource at Greenewood.

“There is a lot of excitement in the Tyranna camp right now because this is what we have been looking for at Greenewood to confirm our confidence that we can identify a Challenger analogue deposit,” he said.

Challenger has produced 1.2 million ounces of gold over its life and it would make geological sense that there are similar deposits nearby.”

Mr Seneque said diamond drilling would now be directed with better geological modelling to increase the resource and test the deeper and higher grade mineralisation down plunge on the structure.

The recent drilling program at Greenewood consisted 23 holes for 1470 metres and there are a further 16 holes with assays pending.

Tyranna is now getting approvals to follow up this discovery with several planned diamond drill holes.

The diamond drilling is planned to begin in late November.

Tyranna has a market cap of $7.7 million.