Grace Gold Project Faces Key Test as Paterson Pursues Resource Upgrade
Paterson Resources is set to begin an 8,500-metre drilling campaign at its Grace Gold Project, aiming to upgrade its resource classification and unlock further value in a highly prospective region.
- 8,500m RC drilling program commencing early September
- Focus on upgrading inferred resource to JORC indicated status
- High-grade gold intercepts from previous drilling underpin expansion
- Grace Project located near major gold-copper deposits in Paterson Province
- 15 million performance rights proposed for directors, tied to share price milestones
Strategic Drilling Initiative Underway
Paterson Resources Limited (ASX, PSL) has announced the commencement of an extensive 8,500-metre Reverse Circulation (RC) drilling program at its Grace Gold Project, located in the mineral-rich Paterson Province. Scheduled to begin in early September, this program is designed to extend and infill a high-grade gold lode discovered in prior drilling campaigns, with the goal of upgrading the current inferred mineral resource to a JORC-compliant indicated resource.
Executive Director Matt Bull highlighted the significance of the drilling, noting that the thick, shallow high-grade gold intervals remain open both along strike and at depth. This presents an opportunity to add immediate value to the project and provide a robust resource base for ongoing scoping studies.
Context Within a Highly Prospective Region
The Grace Gold Project sits in the heart of the Paterson Province, a region attracting major exploration players such as Rio Tinto, Newcrest, and Greatland Gold. Nearby significant deposits include the Havieron gold-copper resource and the world-class Telfer gold-copper mine, located just 25 kilometres northwest. Paterson’s drilling program aims to capitalize on this geological setting by expanding a promising high-grade gold shoot identified in recent drilling.
Previous drilling results have revealed impressive intercepts, including intervals such as 15 metres at 4.03 grams per tonne gold and 31 metres at 3.13 grams per tonne gold, with some sections grading as high as 46.2 grams per tonne. These results underpin the confidence in the resource’s potential and the rationale for the upcoming drilling campaign.
Performance Rights and Corporate Incentives
Alongside the drilling announcement, Paterson disclosed plans to issue 15 million performance rights to its directors, subject to shareholder approval. These rights are structured in three tranches, each vesting upon the company’s share price achieving specified 20-day volume-weighted average price (VWAP) milestones over the next four years. This aligns management incentives with shareholder value creation, particularly as the company advances its resource development and scoping studies.
The allocation of performance rights reflects a significant commitment from the board, with Executive Director Matt Bull set to receive the largest portion. This move signals confidence in the project’s upside potential and the company’s strategic direction.
Looking Ahead
Paterson’s drilling program and resource upgrade ambitions come at a time when the Paterson Province continues to attract exploration interest and investment. The results of this campaign will be pivotal in shaping the project’s future development pathway and could influence the company’s valuation and market positioning. Investors will be watching closely for assay results and the subsequent JORC resource update expected in the March quarter.
Bottom Line?
Paterson’s upcoming drilling and resource upgrade could be a defining moment for the Grace Gold Project’s trajectory.
Questions in the middle?
- Will the drilling results confirm the extension of high-grade gold zones at Grace?
- How will the upgraded resource estimate impact Paterson’s scoping study and project economics?
- What market reaction will the proposed performance rights and share price milestones trigger?
