How Accelerate Resources Is Unlocking Gold Potential Near Kalgoorlie
Accelerate Resources has secured a major earn-in agreement for the Balagundi Gold Project near Kalgoorlie and reported promising maiden drilling results at Kanowna East, while strategically divesting its Comet Gold Project stake.
- Earn-in agreement to acquire up to 80% of Balagundi Gold Project consolidates 27 km² near Kalgoorlie
- Maiden RC drilling at Kanowna East confirms gold mineralisation including 11m @ 1.05 g/t Au
- Identification of a 3km sulphide-rich redox front at Western Tiger prospect
- Divestment of 75% interest in Comet Gold Project to Caprice Resources with retained 25% free-carried interest
- Exploration spend of $557,000 and cash balance of $1.987 million at quarter end
Strategic Expansion in Eastern Goldfields
Accelerate Resources Limited (ASX – AX8) has taken a significant step forward in its gold exploration strategy by executing a binding earn-in agreement to acquire up to an 80% interest in the Balagundi Gold Project. Located just 15 kilometres east of Kalgoorlie, this acquisition consolidates a contiguous 27 square kilometre landholding within a prolific gold corridor, enhancing Accelerate’s presence in the Norseman–Wiluna greenstone belt.
The Balagundi Project is notable for its historical gold intercepts, including a standout 37 metres at 1.45 grams per tonne gold from drilling in 1999. Despite its proximity to established mining operations, much of the area has seen limited modern exploration, presenting considerable upside potential. Accelerate plans to commence targeted drilling in early December 2025, following detailed geological and geophysical assessments.
Encouraging Maiden Drilling at Kanowna East
Complementing the Balagundi expansion, Accelerate’s maiden reverse circulation (RC) drilling program at the Kanowna East Gold Project has yielded promising results. The program confirmed gold mineralisation within intrusive rocks and paleochannels at the Little Lake prospect, highlighted by an 11-metre intercept grading 1.05 grams per tonne gold. This includes higher-grade zones, such as 1 metre at 4.1 grams per tonne.
Additionally, at the Western Tiger prospect, drilling intersected a sulphide-rich horizon with strong arsenic anomalies, interpreted as a redox front extending over 3 kilometres. This geological feature is considered highly prospective for gold mineralisation, and follow-up drilling is planned to test structural intersections along this zone.
Portfolio Optimization Through Divestment
In a strategic move to streamline its asset base, Accelerate has divested a 75% interest in the Comet Gold Project in the Murchison region to Caprice Resources (ASX – CRS). The deal provides Accelerate with immediate cash and equity consideration while retaining a 25% free-carried interest through to the completion of a Pre-Feasibility Study. This arrangement allows Accelerate to maintain exposure to potential upside from ongoing exploration without the operational burden.
The divestment aligns with Accelerate’s focus on its core gold projects in the Kalgoorlie region, enabling the company to concentrate resources on advancing Balagundi and Kanowna East. Meanwhile, the company continues to evaluate opportunities in its Karratha Lithium and Woodie Woodie North Manganese projects, with ongoing discussions for strategic partnerships.
Financial Position and Outlook
During the September quarter, Accelerate invested $557,000 in exploration and evaluation activities, reflecting its commitment to advancing its projects. The company ended the quarter with a healthy cash balance of $1.987 million, providing a solid financial foundation for upcoming drilling campaigns and corporate initiatives.
Looking ahead, the integration of historical data with new geological insights positions Accelerate to refine its exploration targets effectively. The upcoming drilling programs at Balagundi and Kanowna East will be critical in defining the scale and continuity of mineralisation, potentially unlocking significant value for shareholders.
Bottom Line?
Accelerate Resources is poised for a pivotal year as it advances exploration in proven gold belts while optimizing its portfolio for growth.
Questions in the middle?
- Will upcoming drilling at Balagundi confirm a substantial JORC-compliant gold resource?
- How will the divestment of Comet Gold Project impact Accelerate’s financial flexibility and focus?
- What potential partnerships could accelerate development of the Karratha Lithium and Woodie Woodie North Manganese projects?