WIN Metals’ Nickel Divestment Fuels Focus on Gold Amid Legal Challenges

Resource Growth Accelerates Butchers Creek Development

WIN Metals Ltd (ASX, WIN) has delivered a compelling update on its flagship Butchers Creek Gold Project, reporting a substantial increase in its mineral resource estimate (MRE). The latest figures reveal a global resource of 5.63 million tonnes grading 1.98 grams per tonne gold, containing 359,000 ounces, with the indicated category swelling by 86% to 3.58 million tonnes at 2.24 g/t for 258,000 ounces. This upgrade marks a pivotal step, enhancing confidence for upcoming economic evaluations and moving the project closer to potential development.

Managing Director Steve Norregaard highlighted the significance of the maiden drilling program and the resource upgrade, underscoring the project's potential for a long-life operation supported by strong stakeholder cooperation and buoyed by a rising Australian dollar gold price.

Exploration Momentum Builds Across Multiple Prospects

Beyond Butchers Creek, WIN Metals is advancing exploration at several promising targets. The Emjay Prospect, located 11 kilometres south of Butchers Creek, has yielded high-grade rock chip samples up to 23.5 grams per tonne gold, validating its prospectivity and guiding future drill targeting. Meanwhile, the Golden Crown area has been assigned an exploration target ranging from 400,000 to 700,000 tonnes grading between 2.4 and 3.2 g/t gold, potentially adding 23,000 to 73,000 ounces beyond the existing inferred resource of 38,000 ounces.

Further exploration support comes from a government Exploration Incentive Scheme (EIS) co-funding award, which will underwrite drilling to test a blind induced polarisation anomaly at the Ganymede Prospect, interpreted as a structural repeat of the Butchers Creek deposit. Preparations including heritage surveys are complete, with drilling planned for the current field season.

Strategic Asset Sale Strengthens Financial Position

In a strategic move to sharpen its focus on gold assets, WIN Metals has divested non-core nickel rights and associated infrastructure at the Munda tenement to Auric Mining Ltd for $1.4 million. The initial payment of $900,000 was received at the end of June, with the balance due shortly. This transaction preserves the majority of nickel resources at the Mt Edwards Nickel Project while unlocking capital to advance gold exploration and development.

The Mt Edwards Nickel Project itself remains a significant asset, with a total resource of 12.7 million tonnes at 1.43% nickel, alongside the Faraday-Trainline Lithium Project, which holds nearly 2 million tonnes of lithium mineral resources. Metallurgical test work continues to explore downstream processing options, potentially enhancing project economics.

Corporate and Legal Landscape

WIN Metals ended the quarter with $2.34 million in cash, maintaining a solid financial footing to support ongoing activities. The company is also actively defending a legal claim related to a lithium royalty deed, which it regards as without merit. The outcome of this litigation remains uncertain but is being vigorously contested.

Overall, WIN Metals is positioning itself as a focused gold developer with a robust resource base, promising exploration pipeline, and prudent capital management, setting the stage for the next phase of growth.