Eastern Goldfields can earn up to 65% at Menzies by spending up to $5.5 million on exploration and studies.
Drilling has been focused on the Lady Irene and Yunndaga prospects.
Eastern Goldfields completed two diamond tail holes and one reverse circulation (RC) hole at the Lady Irene prospect and three diamond tail holes at the Yunndaga prospect.
Historical open pit Lady Irene gold mine
The Lady Irene Gold Mine comprises two shallow abandoned open pits discovered in 1996 and mined in 2001.
It produced around 6,550 ounces from 42,700 tonnes of ore averaging 4.77 g/t gold.
Eastern Goldfields considers the shoots to be under-tested and open at depth to the south.
Yunndaga also under-tested
The Yunndaga deposit is the largest ore body mined in the Menzies area subject to both underground and later open put mining after its discovery in 1894.
Open pit mining from 1995 to 1998 produced 64,300 ounces grading 2.5 g/t, a period when the gold price was between US$300 to US$400 per ounce.
Eastern Goldfields also believes the deposit is under-tested for extensions to ore shoots.
Earlier this week, Intermin received further positive drilling results from its Teal gold project located 11 kilometres northwest of Kalgoorlie-Boulder in Western Australia.
To date, 131 holes for 16,342 metres have been completed at the Jacques Find and Yolande prospects as part of the 2018 drill program.
Geological modelling is underway with a resource update planned for the September quarter.