Accelerate Secures 80% Earn-In on 27km² Balagundi Gold Project with Historic High Grades

Strategic Expansion in the Eastern Goldfields

Accelerate Resources Limited (ASX, AX8) has taken a decisive step to bolster its presence in Western Australia’s prolific Eastern Goldfields by securing an earn-in agreement for up to 80% of the Balagundi Gold Project. Situated approximately 20 kilometres east of Kalgoorlie’s famed Superpit and just 10 kilometres from Accelerate’s Kanowna East Project, Balagundi offers a contiguous 27 square kilometre tenure with granted mining leases and a rich history of gold production.

The project’s location within the Norseman–Wiluna greenstone belt places it in a structurally complex and highly prospective geological setting known for hosting high-grade orogenic gold deposits. Historical mining at Balagundi, including the Queen Balagundi and Mt Bellew mines, produced around 4,000 ounces of gold from narrow, high-grade quartz veins, with grades commonly ranging between 5 and 30 grams per tonne.

Compelling Historical and Recent Drilling Results

Historic drilling within the Balagundi tenure has revealed significant gold intercepts, such as 37 metres at 1.45 g/t gold from 32 metres depth and 6 metres at 1.86 g/t gold from 30 metres. More recent exploration by SensOre in 2021 confirmed broad zones of mineralisation, including a 34-metre intercept at 0.54 g/t gold, with elevated pathfinder elements and coincident gravity anomalies suggesting a larger mineralised system.

Adjacent drilling by Great Boulder Resources on the Mt Bellew trend has also delivered high-grade results, including 27 metres at 1.42 g/t gold and 4 metres at 5.64 g/t gold, underscoring the potential for substantial shoots of high-grade mineralisation within the project area. These results, combined with extensive historic workings and untested targets, position Balagundi as a discovery-ready project.

Synergies and Forward Exploration Plans

Accelerate’s acquisition of Balagundi complements its Kanowna East Project, creating a prospective gold exploration hub within 20 kilometres of Kalgoorlie. This proximity allows the company to leverage existing geological data, infrastructure, and operational synergies to potentially fast-track discoveries with relatively low capital expenditure.

Looking ahead, Accelerate plans to initiate detailed structural mapping, high-resolution geophysical surveys, and geochemical programs to refine exploration targets. A LiDAR survey is scheduled to enhance surface modelling and identify subtle geological features obscured by historic artisanal workings. Subject to data interpretation, targeted drilling is expected to commence between late 2025 and early 2026, aiming to test high-grade vein and shear-hosted systems highlighted by historical data.

Earn-In Agreement Terms and Strategic Implications

The earn-in agreement requires Accelerate to spend $3.48 million over 48 months to earn an 80% interest, with upfront cash and share payments to the vendor. The deal includes annual fees, milestone payments tied to JORC-compliant resource estimates, and a free-carry provision for the vendor until a 500,000-ounce resource is defined. This structure aligns incentives for Accelerate to advance exploration and resource definition efficiently.

CEO Luke Meter emphasised the strategic value of the transaction, highlighting Balagundi’s numerous historic high-grade zones and shallow workings that have seen little modern exploration. The combined projects aim to establish a robust exploration hub capable of delivering low-capex, fast-tracked gold discoveries in one of Australia’s most renowned goldfields.