New Age Exploration (ASX:NAE) started its maiden reverse circulation drill program at the Wagyu gold project in Western Australia, according to a Monday filing with the Australian bourse.

The 3,000-meter program aims to extend gold mineralization strike and depth, following intercepts of up to 15.6 grams per tonne grade of gold in the recent phase-two air core drilling, the filing stated.

Drilling contractor Strike Drilling agreed to take 50% of its payment in equity.

Assay results are expected between late April and May.

The mining company's shares fell 20% in recent Monday trade.