How Will Accelerate’s Iron Bound Deal Transform the Balagundi Gold Project?

Strategic Expansion of Balagundi Gold Project

Accelerate Resources Limited (ASX – AX8) has announced a significant expansion of its Balagundi Gold Project through an earn-in agreement to acquire up to 80% interest in the Iron Bound prospect. Located just 15 kilometres east of Kalgoorlie, the Iron Bound area adds a granted mining lease (M25/359) to Accelerate’s portfolio, which includes historic gold workings along a 200-metre strike corridor of iron-rich sediments and mafic outcrops.

This acquisition consolidates Accelerate’s position along a structurally complex and highly prospective gold corridor that extends over 8 kilometres, linking known mineralised trends such as Paris Gift and Bellew. The granted mining lease provides a streamlined pathway for potential near-term drilling and development, a notable advantage in the competitive gold exploration landscape of Western Australia.

Historic Workings and Exploration Potential

The Iron Bound prospect hosts historic shafts and workings that indicate past gold production, with modern exploration having been limited. The corridor’s geology, characterised by folded contacts between dolerite and basalt-sediment units, is considered highly prospective for orogenic gold mineralisation. Accelerate plans to integrate Iron Bound into its upcoming field programs, including detailed soil and rock-chip sampling, structural mapping, and geophysical surveys to refine drill targets.

Drilling is anticipated to commence between late November and early December 2025, subject to contractor availability and regulatory approvals. This timing aligns with Accelerate’s broader strategy to systematically unlock the Balagundi Project’s potential through staged exploration efforts.

Earn-In Agreement Terms and Vendor Partnership

The earn-in agreement with Earth Enterprises Pty Ltd and Kenneth John Hodges includes staged expenditure of $750,000 over 48 months to earn up to 80% interest in the Iron Bound tenement. An upfront cash payment and shares were made at execution, with annual fees payable during the earn-in period. Additionally, milestone payments are structured to reward resource delineation, with cash or shares payable upon the publication of JORC-compliant Mineral Resource Estimates ranging from 10,000 to over 100,000 ounces of gold.

The vendor retains a 20% free-carried interest until Accelerate completes a Pre-Feasibility Study or a JORC-compliant mining decision, after which the parties will contribute proportionally to further development. Should the vendor’s interest dilute below 5%, it converts to a 1.5% net smelter return royalty, ensuring ongoing participation in any future production.

Context Within the Yilgarn Craton Gold Belt

The Balagundi Gold Project is situated within the Norseman–Wiluna belt of the Yilgarn Craton, a prolific gold-producing region that hosts major operations such as Northern Star’s Kanowna Belle and the KCGM Super Pit. Despite its proximity to these tier-one assets, Balagundi remains underexplored, with extensive alluvial cover and limited modern drilling. Accelerate’s acquisition and exploration efforts aim to unlock this underappreciated potential, leveraging multiple milling and tolling options available in the region.

Chief Executive Officer Luke Meter highlighted the strategic value of the Iron Bound earn-in, noting it complements recent acquisitions and strengthens Accelerate’s foothold along a promising gold corridor. The granted mining tenure and historic workings provide a platform to fast-track discovery and potential development, a critical factor in advancing the project’s value proposition.