Grace Project’s Future Hinges on Drilling Success and Mining Lease Progress
Paterson Resources has secured heritage clearance and reported promising metallurgical results at its Grace Gold-Copper Project, setting the stage for a significant drilling campaign to upgrade its resource estimate.
- Heritage clearance obtained for full Grace project strike length
- Metallurgical tests show gold recoveries above 93%, indicating free milling gold
- Detailed geological interpretation highlights multiple high-grade gold intercepts
- Plans underway for infill and extensional drilling to upgrade resource classification
- Mining lease application progressing alongside ongoing scoping study
Heritage Clearance Unlocks Drilling Potential
Paterson Resources Limited has cleared a significant regulatory hurdle by obtaining heritage clearance for the entire strike length of its Grace Gold-Copper Project in Western Australia's Paterson Province. This clearance removes a key obstacle, enabling the company to proceed with a comprehensive drilling program aimed at expanding and upgrading its mineral resource base.
Promising Metallurgical Test Results
Recent geochemical test work conducted at ALS Chemex Australia on representative diamond core samples has delivered encouraging results. Cyanide leach tests returned gold recoveries of 93.4% and 96.7% for samples grading 0.76g/t and 0.91g/t gold respectively. These figures suggest the gold mineralization at Grace is likely free milling and non-refractory, a positive indicator for future processing and extraction efficiency.
Robust Geological Interpretation and High-Grade Intercepts
Paterson has completed detailed 3D geological modelling and wireframing, incorporating recent drilling results that include multiple high-grade gold intercepts. Notable intersections include 15m at 4.03g/t gold and 31m at 3.13g/t gold, with some intervals featuring grades exceeding 9g/t. These results reinforce the project's potential and provide a strong foundation for resource expansion.
Next Steps – Drilling and Mining Lease Progress
Looking ahead, Paterson plans to finalize contracts with drilling suppliers and commence infill and extensional drilling during the September quarter. This work aims to upgrade the mineral resource estimate to the Indicated category, a critical step toward development. Concurrently, the company is advancing documentation for a mining lease application, signaling its intent to move toward production.
Financial Position and Regional Context
Exploration expenditure for the quarter was modest at $37,000, primarily covering tenement administration. The company reported no mining production activities during the period. Cash flow statements reveal a net cash decrease due to operating and investing activities, with a healthy cash balance of $1.92 million at quarter end. The Grace Project sits in a highly prospective region near world-class deposits such as Newmont’s Telfer mine and Greatland Gold’s Havieron project, placing Paterson in a competitive and resource-rich environment.
Bottom Line?
With heritage clearance secured and strong metallurgical data in hand, Paterson Resources is poised for a pivotal drilling phase that could redefine the Grace Project’s resource profile.
Questions in the middle?
- How will upcoming drilling results impact the size and classification of the Grace resource?
- What timeline does Paterson envision for mining lease approval and potential development?
- How does Paterson plan to finance the next stages of exploration and development given current cash flows?
