Mertondale Gold Resource Upgraded: 480,000oz at 1.4g/t Au, Indicated Ounces Up 28%

Resource Upgrade Highlights

Patronus Resources (ASX: PTN) has announced a significant upgrade to its Mertondale Gold Project in Western Australia, with the total open pit gold resource now estimated at 480,000 ounces. This represents a 5% increase in contained ounces compared to previous estimates, but more notably, an 18% improvement in overall grade to 1.4 grams per tonne (g/t) gold and a 28% increase in the higher-confidence Indicated Resource category to 303,000 ounces.

The updated Mineral Resource Estimate (MRE) consolidates data from multiple deposits within the project, including Merton's Reward, Mertondale 3-4, and Mertondale 5, all fully permitted and 100% owned by Patronus. The upgrade follows a successful drilling campaign in 2024, which included nearly 10,000 meters of Reverse Circulation drilling and diamond core sampling, enhancing geological understanding and resource confidence.

Geological Insights and Methodology

The resource upgrade was underpinned by a detailed structural study completed last year, which refined the understanding of controls on high-grade mineralisation. This structural insight allowed the team to better target and model mineralised zones, resulting in improved grade estimates and resource classification. The mineralisation remains open both at depth and along strike to the north, indicating potential for further resource growth through upcoming drill programs.

Estimation techniques employed included Ordinary Kriging with dynamic anisotropy, supported by robust variography and statistical analysis. The resource is reported within an optimised pit shell based on a gold price of A$3,500 per ounce, a significant increase from the previous A$2,700 per ounce assumption, reflecting current market conditions and improving project economics.

Strategic Implications and Next Steps

Patronus Resources' Managing Director and CEO John Ingram described the results as "fantastic," highlighting the increased contained ounces and grade as validation of the team's geological models. The upgraded resource provides a strong foundation for the forthcoming Scoping Study, scheduled for completion in the June 2025 quarter. This study will evaluate various development options for the Mertondale and nearby Cardinia East projects, which together hold over 1 million ounces of gold resources and are amenable to open pit mining.

Further exploration is planned to test high-grade shoots down-dip at Mertondale 3-4, with assays from recent diamond drilling at the Koi prospect nearing completion. Confirmatory metallurgical test work is also underway to support the Scoping Study.

Broader Portfolio and Market Position

Beyond Mertondale, Patronus holds a diversified portfolio including the Cardinia Gold Project with 475,000oz, and base metals projects in the Northern Territory. The company maintains a strong balance sheet with approximately A$79 million in cash and liquid investments as of December 2024, positioning it well to advance its development pipeline.

With the Mertondale resource upgrade and ongoing exploration success, Patronus Resources is poised to enhance its standing in the competitive Western Australian gold sector, offering investors exposure to a growing, high-grade resource base supported by a clear development pathway.