Meeka Metals has successfully poured first gold at its Murchison Gold Project, marking a key milestone achieved within nine months of construction start. The company is accelerating both open pit and underground mining operations, supported by expanded capital expenditure and strong drilling results.
- First gold poured on 1 July 2025, on schedule
- Capital expenditure of $68.6m exceeds 2024 DFS estimate due to accelerated mining and infrastructure expansion
- Open pit mining ramp-up with new pits commenced; underground mining development set for September 2025
- Strong safety record with zero lost time injuries during construction
- Completed $60m institutional placement to fund growth initiatives
Milestone Achieved – First Gold Poured on Time
Meeka Metals Limited has reached a significant milestone at its flagship Murchison Gold Project with the successful commissioning of the processing plant and first gold poured on 1 July 2025. This achievement comes exactly nine months after construction commenced, underscoring the company’s ability to deliver on its development timeline despite an expanded scope of work.
The gravity circuit within the processing plant was the source of the initial gold pour, signalling the transition from construction to operational ramp-up. The commissioning phase will continue through the September quarter as the plant optimises throughput and efficiency.
Accelerated Mining and Infrastructure Expansion
Open pit mining operations have intensified, with two new pits, Turnberry Central and South, now underway alongside ore extraction from the St Anne’s North pit. The arrival of a third mining fleet has enabled this acceleration, contributing to steady growth in ore stockpiles.
Meanwhile, underground mining preparations at the Andy Well site are complete, with power, ventilation, and services installed. Development of the underground mine is scheduled to commence in the September quarter, supported by a newly completed underground mining workshop and change house facilities.
Capital expenditure for the fiscal year reached $68.6 million, significantly above the $45.7 million forecast in the December 2024 Definitive Feasibility Study (DFS). This variance reflects the company’s strategic decision to bring forward underground mining by a year, expand open pit operations, and invest in additional infrastructure to support a larger workforce and owner-operator mining model.
Strong Safety and Financial Position
Safety performance remains exemplary, with no lost time injuries (LTIs) reported during the quarter and a Lost Time Injury Frequency Rate (LTIFR) of zero. Over 300,000 hours were worked during construction without incident, highlighting the company’s commitment to health and environmental standards.
Financially, Meeka Metals closed the quarter with $56 million in cash and no debt aside from equipment financing. The company also completed a $60 million institutional placement aimed at funding further growth initiatives, including expanding mining fleets, accelerating drilling programs, and exploring processing plant expansion beyond the current 600,000 tonnes per annum capacity.
Encouraging Drilling Results Signal Resource Growth
Ongoing reverse circulation drilling at the Turnberry open pit area has returned promising results, including high-grade intercepts such as 10 meters at 5.20 grams per tonne gold, with a standout 2-meter interval grading 23.23 grams per tonne. These results suggest potential extensions to the Stage 1 open pit, adding valuable shallow, high-grade oxide ounces to the production plan.
Such drilling success supports Meeka’s strategy to expand resource boundaries and enhance mine life, reinforcing the project’s robust economics outlined in the DFS, which forecast a 10-year production plan averaging 65,000 ounces per annum and an undiscounted pre-tax free cash flow of $1 billion.
Leadership Transition and Next Steps
In a corporate update, Chris Davidson has transitioned from Chief Development Officer to Chief Operating Officer, reflecting the shift from project development to steady-state operations. Managing Director Tim Davidson praised the team’s achievement in delivering first gold on time and emphasised the focus on ramping up production as underground mining commences.
Looking ahead, the company is poised to monitor operational ramp-up closely, with particular attention on underground mining development and ongoing drilling results that could further enhance the project’s resource base.
Bottom Line?
With first gold poured and mining operations accelerating, Meeka Metals is entering a critical phase where operational execution and resource expansion will define its market trajectory.
Questions in the middle?
- How will the accelerated capital expenditure impact long-term project economics and cost control?
- What are the expected production volumes and costs once underground mining at Andy Well commences?
- Can ongoing drilling results at Turnberry translate into a meaningful extension of mine life or production scale?