Orbminco Secures Majestic North Gold Project with 39,700oz JORC Resource

Strategic Acquisition in Eastern Goldfields

Orbminco Limited (ASX: OB1) has taken a significant step forward in its growth strategy by entering into a binding agreement to acquire 100% of the Majestic North Gold Project, located approximately 65 kilometres east-southeast of Kalgoorlie in Western Australia's prolific Eastern Goldfields region. This acquisition aligns with Orbminco’s ambition to build a portfolio of high-quality assets in Tier-1 mining jurisdictions.

The Majestic North Project covers a substantial 127 square kilometres, including a granted mining lease and multiple prospecting licences. The project is strategically positioned near established infrastructure and milling facilities, which could facilitate near-term development and production.

Resource Highlights and Exploration Upside

The project boasts a JORC 2012 compliant mineral resource estimate of 39,700 ounces of gold at an average grade of 1.61 grams per tonne. This resource is predominantly shallow, supergene-enriched mineralisation, offering potential advantages for early mining scenarios. Notably, the resource includes 25,300 ounces classified as Indicated and 14,400 ounces as Inferred, providing a solid foundation for further development.

Historical drilling has largely focused on the upper 40 metres, leaving significant unexplored potential at depth. Orbminco highlights the opportunity to discover primary lode-gold mineralisation beneath the supergene zone, supported by favourable geological structures and limited prior deep drilling. The company also notes multiple regional targets identified through geophysical surveys that remain untested, suggesting considerable upside beyond the current resource footprint.

Funding and Next Steps

To support the acquisition, due diligence, and planned exploration activities, Orbminco is undertaking a share placement to raise approximately A$880,000. This capital raising will fund infill drilling aimed at upgrading the resource confidence, baseline environmental studies, and preparation of mining approval documentation. The placement includes participation from institutional and sophisticated investors, as well as directors subject to shareholder approval.

Following a six-month exclusivity period for due diligence, including a confirmation drilling program, Orbminco has the right to complete the acquisition by paying $1 million in cash, issuing shares valued at $2.4 million, and agreeing to a production payment of $75 per ounce of gold produced. The transaction remains subject to shareholder and regulatory approvals.

Technical Rigor and Historical Data

The mineral resource estimate is based on extensive historical drilling data comprising 618 holes and over 33,000 metres of drilling, with the latest significant update completed in 2020. The resource model was developed using industry-standard geostatistical methods, including ordinary kriging and variography, and classified in accordance with the JORC Code 2012. Orbminco plans to validate and potentially upgrade the resource through targeted infill drilling during due diligence.

Quality assurance and quality control (QAQC) procedures from previous drilling campaigns have been reviewed, revealing some inconsistencies but overall reasonable reliability. The company acknowledges the need for further confirmatory work to independently verify historical estimates.

Positioning for Growth

Orbminco’s Chairman, Ian Gordon, described the acquisition as transformative, significantly enhancing the company’s asset base and providing a near-term pathway to gold production. The existing granted mining lease and proximity to infrastructure underpin the potential for rapid development, while the extensive tenement package offers multiple exploration targets for future growth.

Post-acquisition, Orbminco anticipates a substantial increase in issued capital and intends to seek shareholder approval for a share consolidation to maintain a manageable capital structure. The company’s immediate focus will be on completing due diligence, executing resource drilling, and advancing exploration programs to expand the resource base.