OzAurum’s Mulgabbie North Trial Mining Faces Permitting and Resource Uncertainties
OzAurum Resources has made significant strides in its Mulgabbie North Gold Project feasibility study, fully funded by Line Hydrogen Pty Ltd, aiming for a near-term cashflow positive trial operation.
- Feasibility study fully funded by Line Hydrogen Pty Ltd
- Trial open pit and heap leach designs progressing
- Cashflow positive operation targeted in near term
- Water abstraction license lodged with regulatory authorities
- Diamond drilling and environmental surveys underway or completed
Feasibility Study Momentum
OzAurum Resources Ltd (ASX: OZM) has provided a comprehensive update on the ongoing feasibility study for its Mulgabbie North Gold Project, located northeast of Kalgoorlie in Western Australia. The study is fully funded by Line Hydrogen Pty Ltd, enabling accelerated progress on critical design and environmental assessments.
The company is focusing on a trial open pit mining operation combined with heap leach processing, a strategy designed to simplify permitting and fast-track potential production. This approach aims to establish a cashflow positive operation in the near term, a significant milestone for a project still in the feasibility phase.
Key Technical and Environmental Advances
Recent technical activities include the commencement of diamond drilling to gather geotechnical data essential for the trial pit design. This drilling, contracted by Line Hydrogen, supports detailed mine planning and site layout development. Concurrently, environmental compliance is advancing with the completion of a heritage survey and the near-finalisation of a flora and fauna survey report, both critical for regulatory approvals.
Importantly, OzAurum has lodged an application for a water abstraction license with the Department of Water and Environmental Regulation (DWER), a necessary step to secure water resources for heap leach operations. This regulatory progress complements the simplified permitting pathway anticipated for the trial mining phase.
Financial and Strategic Context
CEO and Managing Director Andrew Pumphrey highlighted the strategic advantage of having the feasibility study fully funded by Line Hydrogen, which allows OzAurum to focus its own capital on advancing exploration at its other projects, including the Patricia Gold Project and the Brazil Niobium Project. The company recently completed a $1 million capital raise to support these broader exploration efforts.
While no Ore Reserves have yet been defined at Mulgabbie North, the trial mining and heap leach operation are designed to generate early cash flow and provide valuable data to underpin a final feasibility study. This staged approach reflects a pragmatic balance between advancing project development and managing risk.
Looking Ahead
OzAurum’s progress at Mulgabbie North positions the company well to unlock value from its gold assets in a prolific region. The combination of external funding, technical advancement, and regulatory engagement suggests a disciplined path toward potential production. Investors will be watching closely for the outcomes of the ongoing drilling and environmental studies, as well as updates on permitting and trial operation results.
Bottom Line?
OzAurum’s fully funded feasibility study and trial mining plans mark a pivotal step toward unlocking near-term value at Mulgabbie North.
Questions in the middle?
- When will the trial open pit and heap leach operation commence production?
- What are the expected gold grades and volumes from the trial mining phase?
- How might the final feasibility study outcomes influence broader project development plans?
