Crown Prince Mining Launches: Can NMG Deliver on Production Promises?
New Murchison Gold Limited has transitioned from explorer to producer with mining underway at its Crown Prince project, backed by a $12 million capital raise and promising high-grade drilling results.
- Received mining approvals and commenced development at Crown Prince
- Completed first blast on 30 June 2025, marking start of mining operations
- Raised $12 million via two-tranche equity placement and launched share purchase plan
- High-grade drilling confirms potential for underground expansion beyond open pit
- Strong cash position of $14.5 million supports ongoing development and operations
Transition to Production
New Murchison Gold Limited (ASX, NMG) has reached a pivotal milestone, moving from exploration to active gold mining at its Crown Prince project near Meekatharra, Western Australia. Following the receipt of key mining approvals during the June quarter, the company executed its first blast on 30 June 2025, officially commencing mining activities. This rapid progression underscores the board’s confidence in the project’s viability and the company’s operational readiness.
Capital Raising and Financial Position
To underpin the development phase, NMG successfully raised $12 million through a two-tranche equity placement priced at $0.017 per share, with $8 million received in early July and the remaining $4 million pending shareholder approval in August. Complementing this, a share purchase plan was launched to allow existing shareholders to participate. The company ended the quarter with a robust cash balance of $14.5 million, positioning it well to fund ongoing technical programs and the transition to production.
Exploration Success Fuels Growth Prospects
Exploration drilling during the quarter delivered impressive high-grade gold intercepts, including a standout result of 0.28 meters at 17,240 grams per tonne gold within a broader intersection of 1.64 meters at 3,090 grams per tonne. These results extend mineralisation well below the planned open pit, supporting the company’s plans to study an underground mining scenario. Grade control drilling beneath the caprock zone also confirmed continuity and high grades, suggesting the mineable material may outperform earlier expectations.
Operational Progress and Strategic Partnerships
Site mobilisation and operational preparations advanced swiftly, with critical equipment and workforce deployed late in the quarter. The company has awarded major contracts for development, drilling, mining, and infrastructure to experienced contractors, ensuring efficient project delivery. Ore is on track for first sales to Westgold Resources’ Bluebird Mill in September 2025, leveraging a strategic ore purchase agreement that optimises processing synergies and reduces technical risks.
Leadership and Outlook
New Murchison Gold strengthened its executive team with key appointments in finance and operations, aligning leadership with its growth ambitions. CEO Alex Passmore highlighted the significance of the first blast and the company’s schedule for ore deliveries, signalling confidence in meeting production targets. As mining ramps up, the company is poised to deliver on its promise of becoming a gold producer, while exploration results hint at a longer mine life through potential underground development.
Bottom Line?
With mining underway and strong financial backing, New Murchison Gold is set to prove its mettle as a new gold producer, but investors will watch closely for execution on production ramp-up and underground development plans.
Questions in the middle?
- Will shareholder approval for the second tranche of the placement proceed smoothly in August?
- How quickly can production ramp up to steady-state levels and generate consistent cash flow?
- What timeline and capital requirements will the underground development studies reveal?
