North Queensland Metals Ltd (NQM) says its belief that Conquest Mining Ltd's recent acquisition offer was insufficient has been validated by new mining producing heavy gold results.

Drilling at NQM's 60-per cent owned Pajingo venture in Queensland showed "bonanza grade" intercepts, the mining company said in a statement.

The results included 60.7 grams per tonne of the yellow metal at four metres and 49.9 grams each tonne at 3.8 metres.

"These results comprise the highest grade intercepts made since NQM assumed management of the Pajingo JV from the previous owner," NQM told the stock exchange.

On June 3 Conquest proposed to give NQM shareholders half a Conquest share plus 10 cents in cash for each NQM share held, valuing NQM at about $58 million at the time.

When that move was announced, NQM chairman Neville Thomas said directors without connections to the bid considered the offer inadequate.
After the recent drill results, Mr Thomas said his claim was strongly reaffirmed.

"This result confirms our belief that the characteristic Pajingo mineralisation continues extending east," he said in a statement.

"We have waited for some time now to get the access for this drilling and we won't waste the opportunity."