What is a step-out hole?

A step-out hole is collared a deliberate distance — often 25 to 100+ metres — from a previous successful hole, to test whether the mineralised zone extends laterally or at depth. Where a discovery hole proves something is there, step-outs prove how big it might be.

Investors watch step-outs closely because they convert a single intercept into a body with size. A successful step-out that returns similar grade over similar width suggests continuity; a barren or weak step-out can cap the market's size expectations. Stepping out too far and missing, then drilling back in (infill), is normal as a company maps the envelope.

Two things to judge: the distance stepped out (a 200 m step-out that hits is more valuable than a 20 m one) and whether grade and width hold up. Continuity over many step-outs is what underpins a future resource estimate.