Funding Pressure Mounts as Pearl Gull Navigates Seasonal Exploration Limits

Exploration Activity and Strategic Review

Pearl Gull Iron Limited (ASX: PLG) has provided its quarterly update for the period ending 31 March 2025, highlighting a cautious but methodical approach to advancing its high-grade iron ore project on Cockatoo Island. Exploration activities were notably constrained by the wet season, limiting on-ground fieldwork. Nevertheless, the company has leveraged this period to deepen its geological understanding through a strategic review conducted with ERM Sustainable Mining.

This review identified a significant geological gap between the Switch Pit and Magazine deposit areas, prompting a detailed field mapping and structural interpretation program. The insights gained are now informing the next phase of exploration planning, including potential drone-based high-resolution photography and magnetic surveys to map iron bands in otherwise inaccessible pit areas.

Resource and Target Status

Earlier in 2023, Pearl Gull announced a maiden Inferred Mineral Resource estimate for the Magazine deposit, comprising 24.5 million tonnes at 34.3% iron content. Meanwhile, the Switch Pit remains classified as an Exploration Target with estimated tonnages ranging from 0.48 to 8.5 million tonnes at grades between 55% and 66% iron. The company is actively working to upgrade this target to a Mineral Resource through further exploration and metallurgical testing.

Environmental Compliance and Care Activities

During the quarter, Pearl Gull maintained its commitment to environmental stewardship and safety on Cockatoo Island. Site visits included environmental and safety inspections, weed management aligned with a formal survey and management plan, and ongoing liaison with the Department of Mines, Industry Regulation and Safety (DMIRS). These care and maintenance activities ensure compliance with regulatory obligations while exploration is temporarily limited.

Financial Position and Corporate Outlook

Financially, the company’s cash reserves declined by $119,000 to $185,000 by quarter-end. Exploration expenditure was modest at $8,000, reflecting the limited field activity, while payments to related parties, including directors’ fees, totaled $50,000. Pearl Gull acknowledges the tight cash position but remains confident in its ability to raise additional funds if required, supported by a strong shareholder base and available placement capacity under ASX Listing Rules.

Looking ahead, Pearl Gull continues to seek new project opportunities to diversify and strengthen its asset portfolio, focusing on commodities and jurisdictions that align with its strategic objectives. The company’s experienced board and management team are positioned to navigate the challenges of seasonal constraints and funding pressures as they advance the Cockatoo Island project towards commercialisation.