We present results on the reconstructed image resolution of a position sensitive radiation instrument (COCAE) based on extensive simulation studies. The reconstructed image resolution has been investigated in a wide range of incident photon energies emitted by point-like sources located at different source-to-detector distances on and off the detector’s symmetry axis. The ability of the detector to distinguish multiple radioactive sources observed simultaneously is investigating by simulating point-like sources of different energies located on and off the detector’s symmetry axis and at different positions