29Metals Limited has reported promising high-grade copper, zinc, and gold resource extension drilling results at its Golden Grove mine, revealing potential for significant mine life extensions and a large mineralised system at depth.
- High-grade copper, zinc, and gold intercepts extend Gossan Hill Deposits
- Ozion and Hougoumont Extended may form a single large mineralised system
- Resource extension drilling supports flexible near-term and long-term mine plans
- 2025 drill program budget increased to $10–14 million, continuing underground testing
- Next Mineral Resources and Ore Reserves update planned for March 2026
Golden Grove's Growing Potential
29Metals Limited (ASX – 29M) has released new drilling results from its Golden Grove mine in Western Australia, highlighting high-grade copper, zinc, and gold intercepts that could extend the life of the existing Gossan Hill Deposits. The latest resource extension drilling, conducted underground, suggests that two previously separate zones, Ozion and Hougoumont Extended, may actually be part of a single large mineralised system at depth. This discovery could unlock significant efficiencies in future mining operations through shared infrastructure.
Drilling Highlights and Mineralisation
The drilling program intercepted multiple broad zones of mineralisation. Notable results include intercepts such as 21.6 meters grading 17.6% zinc, 0.3% copper, 1.6 grams per tonne gold, and 49 grams per tonne silver at Hougoumont Extended, and 9.7 meters at 1.5% copper, 2.6% zinc, and 1.0 g/t gold at Ozion. These grades reinforce the potential for both near-term mine plan flexibility and longer-term high-grade ore sources, particularly at Europa and Xantho Extended targets.
Strategic Implications and Ongoing Exploration
With a substantial increase in exploration budget from $4 million in 2024 to $10–14 million in 2025, 29Metals is intensifying its efforts to test priority targets underground. The company’s CEO, James Palmer, emphasized the significance of these findings, noting that the potential unification of Ozion and Hougoumont Extended could markedly improve mining economics. The ongoing drill program, which still has approximately 9,000 meters remaining, also includes surface drilling at Tryall and underground drilling at Cervantes.
Next Steps and Market Outlook
While these results are not yet incorporated into the current Mineral Resources and Ore Reserves estimates as of December 2024, 29Metals plans to update these figures in the March 2026 quarter. Investors and analysts will be watching closely to see how these resource extensions translate into mine life and production forecasts, as well as potential cost efficiencies. The company’s methodical approach to exploration and resource conversion underscores its commitment to sustainable growth in the base metals sector.
Bottom Line?
29Metals’ expanding resource base at Golden Grove sets the stage for a potentially longer, more profitable mine life, with the next resource update due in early 2026.
Questions in the middle?
- How will the potential unification of Ozion and Hougoumont Extended impact mining costs and infrastructure planning?
- What are the expected timelines for incorporating these drilling results into updated Mineral Resources and Ore Reserves?
- Could the high-grade intercepts at Europa and Xantho Extended lead to new standalone mining operations?