Can Accelerate Resources’ New Drilling and Funding Secure Its Growth Path?

Exploration Momentum at Kanowna Gold East

Accelerate Resources Limited (ASX – AX8) has marked a significant milestone in its June 2025 quarterly report by initiating its first reverse circulation (RC) drilling program at the Kanowna Gold East Project, located near Kalgoorlie in Western Australia. This inaugural drilling effort targets basement-hosted gold systems, a primary focus area refined through a comprehensive reinterpretation of historical gravity and geochemical datasets.

The company’s geoscience team has leveraged advanced processing techniques on gravity survey data spanning nearly two decades, revealing a complex network of northeast-trending shears intersecting with northwest faults. These structural insights have sharpened drill targeting, particularly at the Little Lake and Tiger prospects, where historic gold intercepts align with these geological features.

Strategic Financial Positioning

Financially, Accelerate Resources has strengthened its position by securing a $2 million non-dilutive cash injection through the sale of a non-core asset. This transaction has bolstered the company’s cash reserves to approximately $2.87 million as of June 30, 2025, underpinning ongoing and future exploration activities. The non-dilutive nature of this funding is particularly noteworthy, as it preserves shareholder equity while providing essential capital for advancing the Kanowna drilling program and other projects.

Exploration expenditure during the quarter totaled around $294,000, reflecting the company’s commitment to advancing its pipeline of gold prospects. The cash flow statement also indicates prudent financial management, balancing investment in exploration with operational costs.

Broader Project Portfolio and Corporate Developments

Beyond Kanowna, Accelerate continues to evaluate its Comet Gold Project in the Murchison region and the Karratha Lithium Projects in the Pilbara, although no on-ground exploration occurred at these sites during the quarter. The Woodie Woodie North Manganese Project remains under commercial evaluation, highlighting the company’s diversified mineral interests.

Corporate governance updates include the appointment of HLB Mann Judd as the new company auditor, following the resignation of Chadwick Audit Ltd. Additionally, the company announced the resignation of Ms. Zhan as Company Secretary, with Mr. Grant Mooney stepping into the role. These changes reflect ongoing efforts to strengthen governance structures as Accelerate advances its exploration agenda.

Looking Ahead

With assay results from the initial drilling campaign expected in the coming weeks, the market will be watching closely for confirmation of the geological model’s promise. Accelerate plans to expand its drilling activities in Q3 2025, including aircore drilling to further test the Western Tiger paleochannel and early-stage pipeline projects such as Perkolilli and Dingo Dam.

The company’s methodical approach to integrating historical data with modern exploration techniques, combined with a solid financial footing, positions it well to unlock value from its Western Australian assets.