Miramar Resources has partnered with Topdrill in a drill-for-equity agreement to fund significant drilling at the promising 8 Mile gold target within its Gidji JV Project near Kalgoorlie. Drilling is set to begin in July, aiming to explore extensions of a known gold deposit.
- Drill-for-equity agreement with Topdrill covers 40% of drilling costs up to $500,000
- RC drilling to test high-priority 8 Mile gold target starting July 2025
- 8 Mile target lies near Northern Star’s 8-Mile Dam deposit with 314,000 ounces gold
- Shares issued to Topdrill at 10% discount, subject to six-month escrow
- Gidji JV Project holds strong potential for new gold discoveries in Eastern Goldfields
Strategic Drill-for-Equity Partnership
Miramar Resources Limited (ASX, M2R) has entered a strategic drill-for-equity agreement with Topdrill Pty Ltd, a leading drilling contractor, to advance exploration at the Gidji JV Project in Western Australia. Under the deal, Topdrill will fund 40% of the reverse circulation (RC) drilling costs, capped at $500,000, in exchange for shares issued at a 10% discount to the 20-day volume weighted average price. This arrangement allows Miramar to stretch its exploration budget while accelerating testing of the high-priority 8 Mile gold target.
Targeting Extensions of a Known Gold Deposit
The 8 Mile target is situated approximately 15 kilometres north of Kalgoorlie, adjacent to Northern Star Resources’ prolific 8-Mile Dam deposit, which contains an estimated 7 million tonnes at 1.4 grams per tonne gold, amounting to over 313,000 ounces. Miramar’s recent geophysical surveys, including Induced Polarisation (IP), suggest a potential northern extension of this deposit, offset by northeast-trending faults. The upcoming RC drilling campaign, scheduled to commence in July after current aircore programs conclude, will focus on the shallowest parts of this anomaly to test for new mineralisation.
Maximising Exploration Efficiency Amidst a Competitive Gold Region
Miramar’s Gidji JV Project, where it holds an 80% interest, lies within the world-class Eastern Goldfields Province, a region renowned for its rich gold endowment. Despite being surrounded by established mining operations, Gidji has remained underexplored due to geological complexities such as transported cover and paleochannels. Since 2020, Miramar’s systematic drilling has uncovered multiple new gold discoveries, raising hopes for the emergence of a new gold camp. The drill-for-equity deal with Topdrill not only reflects confidence in Miramar’s exploration approach but also strategically leverages partnerships to advance drilling without immediate cash outlays.
Equity Issuance and Market Implications
Shares issued to Topdrill under this agreement will be subject to a six-month voluntary escrow, providing some assurance to existing shareholders regarding dilution timing. The maximum equity issuance is set at $500,000 but may be increased with mutual consent. This funding mechanism aligns the interests of the drilling contractor with Miramar’s exploration success, potentially accelerating progress toward defining a significant gold resource. Investors will be watching closely for drilling results, which could materially impact Miramar’s valuation and the broader perception of the Gidji JV’s potential.
Looking Ahead
As Miramar prepares to drill the 8 Mile target, the market awaits assay results that could confirm extensions of the nearby 8-Mile Dam deposit or reveal new zones of mineralisation. Success here would reinforce Miramar’s position in a highly prospective gold belt and could catalyse further investment and exploration activity. The coming months will be critical in determining whether Gidji can evolve into a significant new gold camp within the Eastern Goldfields.
Bottom Line?
Miramar’s innovative funding deal with Topdrill sets the stage for a pivotal drilling campaign that could redefine the Gidji JV’s gold potential.
Questions in the middle?
- Will the upcoming drilling confirm a significant extension of the 8-Mile Dam gold deposit?
- How might the equity issuance to Topdrill affect Miramar’s share structure and investor sentiment?
- Could the Gidji JV Project emerge as a new gold camp rivaling established operations nearby?