Grace Project Shows 93-97% Gold Recovery; Drilling and Scoping Study Underway
Paterson Resources reports strong metallurgical results from its Grace Gold-Copper Project, confirming high gold recoveries and free milling characteristics. The company is progressing a scoping study and preparing for a new drilling campaign and mining lease application.
- Cyanide leach tests show gold recoveries up to 96.7%, indicating free milling gold
- Grace Project located near world-class Telfer and Havieron deposits in Paterson Province
- Scoping study underway with planned JORC resource update
- Infill and extensional drilling scheduled for June 2025 quarter
- Strong cash position of $2.115 million with minimal exploration expenditure
Metallurgical Breakthrough at Grace Project
Paterson Resources Limited has delivered encouraging metallurgical test results from its Grace Gold-Copper Project in Western Australia's Paterson Province. Conducted by ALS Chemex Australia, cyanide leach tests on representative diamond core composite samples returned gold recoveries of 93.4% and 96.7% for samples grading 0.76g/t and 0.91g/t Au respectively. These results strongly suggest the gold mineralization is free milling and non-refractory, a positive indicator for future processing and extraction economics.
The Grace Project's location is strategically significant, situated just 25km south of the world-class Telfer gold deposit, which hosts over 30 million ounces of gold, and 40km southwest of Greatland Gold’s Havieron Gold-Copper Project with a 5.5 million ounce gold resource. This proximity places Paterson Resources in a highly prospective geological corridor attracting major mining players like Rio Tinto, Newmont, and IGO Ltd.
Advancing Towards Resource Update and Mining Lease
Building on these metallurgical successes, Paterson Resources is progressing a scoping study that will incorporate an updated JORC resource estimate for the Grace Project. The company has undertaken detailed 3D geological interpretation and wireframing, integrating recent high-grade gold intersections from drilling campaigns. Notable intercepts include 15m at 4.03g/t Au and 31m at 3.13g/t Au, highlighting the deposit’s potential scale and grade.
Looking ahead, the June 2025 quarter will see planned infill and extensional drilling aimed at refining the resource model and expanding known mineralization. Concurrently, Paterson is advancing documentation for a mining lease application, signaling a clear intent to move the project towards development.
Financial Position and Corporate Updates
Despite limited exploration expenditure of just $4,000 during the quarter, primarily on tenement administration, Paterson Resources maintains a robust cash balance of $2.115 million. No substantive mining production activities occurred during the period. Director fees paid amounted to $92,000, reflecting ongoing corporate governance costs. The company also updated its registered address to Unit 1, 1 Centro Avenue, Subiaco WA.
Paterson’s cautious but steady approach, combining strong metallurgical data with strategic drilling and regulatory progress, positions the Grace Project as a compelling asset in the Paterson Province’s competitive landscape. The upcoming drilling results and resource update will be critical milestones to watch.
Bottom Line?
Paterson Resources’ Grace Project is poised for a pivotal phase as metallurgical success and drilling plans set the stage for resource growth and mining lease progress.
Questions in the middle?
- How will the updated JORC resource estimate impact the project’s valuation and development timeline?
- What are the expected timelines and hurdles for the mining lease application process?
- Will upcoming drilling confirm extensions of high-grade mineralization to support a larger resource base?
