Patronus Resources reports significant drilling successes at its Cardinia and Northern Territory projects, establishing a maiden Exploration Target at Merlin and extending mineralisation at key prospects. The company also announces a selective buyback of nearly 10% of its shares from St Barbara, enhancing its capital structure.
- New high-grade gold shoot discovered at Merlin Prospect with a 450m strike length
- Maiden Exploration Target at Merlin estimated between 50,000 and 500,000 ounces of gold
- Drilling extends strike and depth at Koi, Scallop, and Glencoe prospects
- Selective buyback of 9.66% of shares from St Barbara pending shareholder approval
- Strong cash position of over $80 million supports ongoing exploration and development
Exploration Breakthroughs at Cardinia
Patronus Resources has delivered a robust set of exploration results in the June 2025 quarter, reinforcing the quality and potential of its Cardinia Gold Project in Western Australia. The standout development is the discovery of a new high-grade gold shoot at the Merlin Prospect, where recent reverse circulation drilling has revealed significant shallow intercepts, including 24 meters at 1.16 grams per tonne gold. This discovery has led to the establishment of a maiden Exploration Target ranging from 1 to 4 million tonnes grading between 1.5 and 4.0 grams per tonne, translating to an estimated 50,000 to 500,000 ounces of gold. While still conceptual, this target underscores the prospect’s promising potential and sets the stage for further drilling planned in the coming quarter.
Alongside Merlin, diamond drilling at the Koi Prospect has extended the strike length of a high-grade shoot to 180 meters, with mineralisation remaining open down-plunge and down-dip. These results build on the company’s broader efforts to expand the Mertondale 3-4 Mineral Resource, a key component of the Cardinia portfolio.
Expanding Prospects and Regional Growth
Patronus has also made strides at the Scallop prospect, adjacent to Cardinia East, where reverse circulation drilling has confirmed gold mineralisation over an 800-meter strike length. The prospect remains open along strike and at depth, suggesting a larger mineralised system that could complement nearby resources. Air-core drilling across Cardinia East further supports the continuity of gold mineralisation in this structurally prospective area.
In the Northern Territory, the Fountain Head Gold Project’s Glencoe deposit has seen significant extensions of mineralisation both along strike and down-dip. High-grade intercepts, including a remarkable 1 meter at 28.33 grams per tonne gold near surface, highlight the deposit’s growth potential. Notably, much of the Pine Creek tenure remains underexplored at depth, presenting a substantial opportunity for Patronus to unlock further value through systematic exploration.
Corporate Moves Strengthen Capital Structure
On the corporate front, Patronus has agreed to a selective buyback of approximately 9.66% of its shares from St Barbara Limited, subject to shareholder approval. This transaction will consolidate the share register, removing a significant overhang and potentially enhancing shareholder value. The buyback involves exchanging shares in Geopacific Resources for Patronus shares held by St Barbara, reflecting a strategic realignment of investments.
Patronus remains well capitalised with over $80 million in cash and liquid assets, positioning the company to continue its aggressive exploration and development programs across its portfolio. CEO John Ingram emphasised the company’s confidence in its assets and the positive momentum generated by recent drilling results.
Looking Ahead
With multiple promising targets identified and exploration programs underway, Patronus Resources is poised for further growth. Upcoming drilling campaigns at Merlin and Scallop, along with metallurgical test work scheduled for later in the year, will be critical in advancing these projects toward resource definition and potential development. Meanwhile, the company’s strategic capital management initiatives aim to streamline its shareholder base and enhance market perception.
Bottom Line?
Patronus Resources’ latest drilling successes and strategic buyback set the stage for a potentially transformative phase in its growth trajectory.
Questions in the middle?
- Will further drilling at Merlin convert the Exploration Target into a defined Mineral Resource?
- How will the selective buyback impact Patronus’ share price and investor sentiment post-approval?
- What are the timelines and expected outcomes for metallurgical test work at Merlin and other prospects?