Labyrinth Resources Accelerates Growth with Mulwarrie Acquisition and High-Grade Drilling Success

Strong Drilling Momentum at Comet Vale

Labyrinth Resources Limited (ASX: LRL) has entered 2025 with significant momentum following its December 2024 quarterly activities report. The company’s flagship Comet Vale Project continues to deliver encouraging drilling results, underpinning its strategy to grow a high-grade gold resource base in Western Australia’s prolific Eastern Goldfields region.

Drilling commenced at Comet Vale’s Cheer Prospect in early October 2024 and has since expanded to four rigs operating across Cheer, Sovereign, and Lakeview prospects. Notable intercepts include 8 meters at 9.7 g/t Au from 104 meters at Cheer, extending mineralisation well beyond historic drilling, and 3 meters at 26.8 g/t Au confirming and infilling previous results. These results highlight both the depth and strike extensions of mineralisation, with mineralisation open at depth and along strike, suggesting substantial upside potential.

Strategic Acquisition of Mulwarrie Project

In a move to consolidate its footprint in the Eastern Goldfields, Labyrinth completed the acquisition of the Mulwarrie Project from Genesis Minerals Ltd for $3.75 million in scrip in November 2024. This was complemented by the exercise of an option to acquire surrounding tenements from Olympio Resources Ltd, effectively consolidating tenure and unlocking significant exploration and infrastructure potential.

The Mulwarrie Project, hosting an inferred Mineral Resource Estimate of 78,700 ounces at 2.8 g/t Au, benefits from granted mining leases and proximity to existing milling and transport infrastructure. Historical drilling has revealed high-grade gold mineralisation from surface over a 1 km strike length, with multiple quartz vein lodes steeply dipping east. Labyrinth’s consolidation removes previous tenure constraints, enabling a more aggressive and comprehensive drilling campaign to expand the resource.

Capital Raising Fuels Accelerated Growth

To support its accelerated exploration and development programs, Labyrinth successfully raised $19.5 million through a well-supported placement to institutional and sophisticated investors. The placement, priced at $0.21 per share, a discount to recent trading prices, will fund drilling and resource growth activities across its three key Western Australian projects: Comet Vale, Mulwarrie, and Vivien.

Notably, Labyrinth’s directors participated in the placement, signaling strong internal confidence in the company’s growth trajectory. The capital injection positions Labyrinth to advance multiple drilling programs simultaneously, with permitting approvals already secured for Vivien and Mulwarrie projects.

Vivien Project Drilling Underway

Permitting for drilling at the Vivien Project was granted late in the December quarter, with drilling commencing in early January 2025. Vivien, historically producing over 250,000 ounces at 5.8 g/t Au, offers significant exploration upside given previous operators’ focus on mining the Main Lode and trucking ore to distant mills. Labyrinth aims to rapidly grow the resource base here, with a maiden resource estimate anticipated in February 2025.

Experienced Leadership Strengthens Exploration Team

Labyrinth bolstered its exploration capabilities with the appointment of Matthew Crowe as Exploration Manager in December 2024. Mr. Crowe brings two decades of experience across major and junior mining companies, including leadership roles at BHP and Dreadnought Resources. His track record of discovery and resource definition across multiple commodities is expected to accelerate Labyrinth’s exploration success.

Overall, Labyrinth Resources is executing a clear strategy of consolidating high-grade gold assets in infrastructure-rich regions and aggressively advancing exploration to unlock value. The combination of strong drilling results, strategic acquisitions, and fresh capital places the company in a robust position to deliver growth in 2025.