How AGC’s Browns Reef Deal and Drilling Success Could Reshape South Cobar

Strategic Expansion in South Cobar

Australian Gold and Copper Ltd (ASX, AGC) has taken decisive steps to consolidate its position as a dominant explorer in the South Cobar region of New South Wales. The company executed a binding agreement to acquire the Browns Reef Project from Eastern Metals Limited, adding a substantial 1,269 square kilometres of highly prospective tenements adjacent to its existing South Cobar holdings. This acquisition, combined with a prior purchase of tenement EL9012, expands AGC’s footprint to an impressive 2,600 square kilometres, positioning it as a key player in this mineral-rich district.

The Browns Reef Project is notable for its advanced exploration status, with over 24,000 metres of historical drilling revealing significant silver, gold, and base metal mineralisation along a 6.5-kilometre strike length. The geological characteristics and mineralisation styles show strong synergy with AGC’s Achilles discovery, offering promising avenues for future exploration and resource growth.

Drilling Success at Achilles Deposit

AGC’s exploration efforts at the Achilles deposit have yielded compelling results this quarter. Multiple drilling programs, including reverse circulation (RC), aircore, and diamond drilling, have extended high-grade mineralisation both at depth and along strike. Noteworthy intercepts include 29 metres at 370 grams per tonne silver equivalent (AgEq) from 125 metres depth, featuring a 5-metre interval grading an exceptional 1,204 g/t AgEq. These results confirm the deposit’s robust potential and provide critical data to support the upcoming maiden Mineral Resource Estimate.

Additional aircore drilling on a parallel shear zone has been completed, with assays pending, while oxide aircore holes have revealed near-surface gold-rich zones, such as 5 metres at 19.1 g/t gold and 52 g/t silver from 30 metres. These shallow mineralised zones could add significant value and scale to the resource base.

Metallurgical Testwork and Financial Position

Metallurgical testwork on bulk samples from Achilles has demonstrated robust recoveries of silver, gold, lead, and zinc into a combined concentrate, with recoveries exceeding 83% for silver and 90% for gold. These encouraging results validate the economic potential of the mineralisation and will inform resource reporting and future development plans.

Financially, AGC remains well positioned with $12.5 million in cash reserves, including proceeds from recent option exercises. This strong balance sheet supports ongoing exploration and acquisition activities, underpinning the company’s medium-term growth ambitions in the South Cobar district.

Corporate Developments and Outlook

The company has also strengthened its leadership team with the appointment of Rowan Caren as Chief Financial Officer and Company Secretary, bringing extensive experience in mining finance and strategy. AGC is preparing for its Annual General Meeting in late November and anticipates delivering its maiden Mineral Resource Estimate for Achilles by early 2026.

Looking ahead, AGC plans to continue drilling along the Achilles Shear Zone and newly acquired tenements, integrating Browns Reef data and targeting new discoveries. The company’s expanding tenure and exploration success position it well to unlock significant value in this emerging precious and base metals district.