OZZ Resources Unveils Positive Scoping Study for Maguires Reward Amid Quiet Quarter
OZZ Resources reports a promising scoping study for its Maguires Reward gold project, highlighting potential positive cash flow despite limited exploration activity during the December 2024 quarter.
- Maguires Reward scoping study indicates potential for profitable open-pit mining
- 312,000 tonnes at 2.15 g/t gold resource estimated at Old Prospect
- No significant on-ground exploration conducted in the quarter
- Company seeking partner to advance Maguires Reward project
- Cash reserves at $194,000 with ongoing discussions for capital raising
Maguires Reward Project: A Foundation for Growth
OZZ Resources' December 2024 quarterly report spotlights the Maguires Reward project in Western Australia's Central Murchison region as a key asset. The project, anchored by a granted prospecting licence covering 200 hectares, benefits from a strategic geological setting within the Archaean Murchison Province. Notably, the area is traversed by a NE-trending regional shear zone, an extension of the Big Bell Fault, known for hosting gold mineralisation.
The highlight from the quarter is the positive outcome of a scoping study conducted by Resolve Mining Solutions. This study evaluated the Old Prospect North and South deposits, revealing the potential to develop multiple open pits capable of generating positive operating cash flow at current gold prices around $3,000 per ounce. The largest pit, approximately 200 meters in diameter and 50 meters deep, alongside others, fits within the existing lease boundaries, underscoring the project's operational feasibility.
Resource Estimate and Operational Outlook
The mineral resource estimate for Old Prospect, derived from a 4,300-meter RC drilling program, stands at 312,000 tonnes grading 2.15 grams per tonne gold, equating to roughly 22,000 ounces. This resource base provides a solid foundation for advancing the project, though OZZ Resources is actively seeking a partner to share the development burden and accelerate progress.
Despite the encouraging study results, the quarter saw no substantial on-ground exploration activity across OZZ's portfolio, including the Leonora projects (Mt Davis and Pinnacle Well), Rabbit Bore, Peterwangy, and Vickers Well. Previous surface sampling and geochemical reviews have identified subtle anomalies and targets, but follow-up work remains pending.
Financial Position and Corporate Developments
Financially, OZZ Resources reported a net cash outflow of $294,000 for the quarter, with cash reserves dwindling to $194,000 by December 31, 2024. Payments to related parties, including director fees and consulting services, accounted for $118,000 of expenditures. The company is currently under a voluntary suspension on the ASX and has requested an extension, signaling ongoing strategic considerations.
Importantly, OZZ has acknowledged the need for additional capital to sustain operations and advance its projects. Discussions are underway regarding a proposed transaction that would include a capital raising, aiming to secure the funding necessary to continue exploration and development activities.
Looking Ahead
While the December quarter was quiet in terms of exploration, the positive scoping study at Maguires Reward offers a glimpse of potential value creation. The company’s ability to secure a partner and additional funding will be critical in translating these early-stage findings into tangible progress. Investors will be watching closely for updates on these fronts as OZZ navigates the challenges of advancing multiple projects in a competitive gold exploration landscape.
Bottom Line?
OZZ Resources’ next moves on funding and partnerships will determine if its promising Maguires Reward project can move from study to production.
Questions in the middle?
- Will OZZ secure a partner to advance the Maguires Reward project, and on what terms?
- How will the company address its limited cash reserves to sustain ongoing exploration?
- What timeline can investors expect for follow-up drilling or development at key projects?
