OzAurum Resources reports exceptional heap leach testwork results at its Mulgabbie North Gold Project, confirming a promising low-cost development path supported by recent high-grade drilling.
- Heap leach percolation rates vastly exceed industry benchmarks
- Shallow high-grade gold intersections at James Prospect
- Stage 1 starter operation design progressing with permitting underway
- Upcoming assays and column testwork to refine gold recovery estimates
- Favourable gold price environment enhances project economics
Heap Leach Breakthrough at Mulgabbie North
OzAurum Resources Limited (ASX – OZM) has unveiled compelling progress at its flagship Mulgabbie North Gold Project in Western Australia. Central to this update is the confirmation of exceptionally high percolation flow rates from heap leach metallurgical testwork at the James Prospect. Averaging nearly 60,000 litres per hour per square metre, these rates dramatically surpass the industry benchmark of 10,000 L/hr/m², signaling a robust potential for a low-cost, scalable heap leach operation.
This hydraulic performance is a critical technical milestone, as it underpins the feasibility of efficiently extracting gold through heap leaching; a process prized for its cost-effectiveness and scalability in gold mining.
Encouraging Drilling Results Support Development
Complementing the metallurgical success, recent drilling at the James Prospect has delivered shallow, high-grade gold intersections. Notably, hole MNORC256 returned 5 metres at 2.68 grams per tonne gold starting from just 17 metres depth, within a broader 19-metre zone averaging nearly 1 gram per tonne. Diamond drilling has also revealed intervals with grades exceeding 4.6 g/t, including spectacular 1-metre hits above 22 g/t.
These results bolster confidence in defining a Stage 1 starter operation targeting near-surface mineralisation amenable to heap leach processing. The company is actively designing this initial phase with a focus on expedited permitting and infrastructure footprint under 10 hectares.
Advancing Towards Production
OzAurum is advancing multiple fronts simultaneously. A recently completed 10-hole reverse circulation drilling program awaits assay results, expected to further delineate the high-grade zones. Additionally, a diamond rig has been secured to obtain core samples for upcoming column testwork, which will provide vital data on gold recovery rates, leach kinetics, and reagent requirements.
Site layout and permitting efforts are progressing with consultancy support from Kappes, Cassiday & Associates Australia, aiming to streamline approvals for both the initial heap leach operation and subsequent expansion stages. The planned Stage 2 and 3 facilities envisage a 2 million tonne heap leach capacity, reflecting a scalable development pathway.
Favourable Market and Technical Backdrop
The project’s economics are further enhanced by the current strong Australian gold price, recently reaching a record A$6150 per ounce. This macro environment, combined with the technical robustness demonstrated by the percolation and drilling results, positions Mulgabbie North as a compelling development opportunity in Western Australia’s premier gold district.
CEO Andrew Pumphrey highlighted the significance of these findings, emphasizing the transition from technical validation to detailed recovery studies and permitting readiness. The company’s integrated approach aims to unlock near-term production potential while laying the groundwork for future expansion.
Bottom Line?
With heap leach feasibility confirmed and high-grade zones defined, OzAurum is poised to transform Mulgabbie North from promising resource to producing mine.
Questions in the middle?
- What will the upcoming column testwork reveal about gold recovery rates and processing costs?
- How will assay results from the recent drilling program impact the definition of the Stage 1 starter pit?
- What is the timeline and likelihood for securing final permits to commence construction?