Mining Start at Crown Prince Hinges on Final Approvals Despite Ultra-High Grade Breakthrough

Breakthrough Drilling Results

New Murchison Gold Limited (ASX: NMG) has delivered a significant exploration update from its Crown Prince Gold Project in Western Australia, revealing spectacular ultra-high grade gold mineralisation from its ongoing diamond drilling program. The standout intercept, reported post-quarter, includes a narrow but extraordinarily rich 0.28 metres grading 17,240 grams per tonne (g/t) gold within a broader 1.64 metres at 3,090 g/t Au from 251.36 metres depth. This confirms the presence of exceptional down-plunge extensions beyond the current resource envelope and underpins the potential for an underground mining scenario following the planned open pit.

Robust Resource and Reserve Foundations

Building on these drilling successes, NMG announced a maiden Ore Reserve estimate of 890,000 tonnes at 4.8 g/t Au, containing 140,000 ounces of gold. This complements the previously reported Mineral Resource of 2.205 million tonnes at 3.9 g/t Au for 279,000 ounces. The resource and reserve underpin a positive Feasibility Study released in February 2025, which projects a robust financial outlook with a pre-tax cash flow of $226 million over a 30-month mine life, assuming a spot gold price of A$4,385 per ounce. The study envisages mining from a granted open pit lease and processing ore through Westgold Resources’ Bluebird Mill under an Ore Purchase Agreement (OPA).

Strategic Partnership and Development Progress

Following the quarter, NMG satisfied all conditions precedent to the OPA with Westgold Resources Limited, enabling a near-term processing solution and strengthening operational synergies. The company is advancing pre-development activities including regulatory approvals, tendering for key contracts, dewatering infrastructure, and recruitment of operational personnel. Mining is targeted to commence mid-2025, with ore sales expected from the September quarter. The acquisition of an industrial yard in Meekatharra further supports operational readiness.

Financial Position and Corporate Strengthening

New Murchison Gold closed the quarter with a strong cash balance of $21.5 million, bolstered by a $16.5 million institutional placement and $6.8 million from option exercises. This funding positions the company well to continue technical programs and early development at Crown Prince. Additionally, the appointment of experienced executives Derek Humphry as CFO and Kim Gundersen as General Manager Operations signals a maturing leadership team aligned with the company’s growth ambitions.

Looking Ahead

With grade control drilling ongoing and assay results pending, NMG is poised to update resource estimates and refine mine planning. The company’s methodical approach to approvals and contract awards will be critical to maintaining the development timeline. As the Crown Prince project advances from exploration to production, it represents a compelling opportunity in the Murchison goldfield, leveraging high-grade mineralisation and strategic partnerships to unlock value.