OzAurum’s Mulgabbie North Faces Development Risks Amid Resource Expansion Ambitions

High-Grade Gold Confirmed at Mulgabbie North

OzAurum Resources Limited (ASX, OZM) has released compelling assay results from its recent reverse circulation drilling campaign at the Mulgabbie North Gold Project in Western Australia's Eastern Goldfields. The 10-hole, 660-metre program targeted the James, Ben, and Cross Fault prospects, delivering multiple shallow, high-grade gold intersections that bolster the project's resource expansion case.

Noteworthy intercepts include 5 metres at 5.37 grams per tonne (g/t) gold from 25 metres at Cross Fault, and 6 metres at 3.68 g/t gold from 54 metres at Ben, including a standout 1 metre at 10.21 g/t. These results confirm the presence of consistent mineralisation within open-pit depths, particularly at the James Prospect, where all holes returned encouraging grades.

Advancing Towards Development

Building on these promising drill results, OzAurum is actively progressing its staged heap leach development strategy. Metallurgical testwork samples from the James Stage 1 diamond hole are en route to ALS laboratories in Perth for column leach testing, a critical step in validating gold recovery processes. Concurrently, a grade control drilling program is slated for December, designed to underpin pit optimisation and support the transition from exploration to mining.

Site layout and design efforts are nearing completion, with heap leach infrastructure planning well advanced. The company is collaborating with the Kalgoorlie Consolidated Gold Mines (KCGM) and regulatory bodies to expedite permitting under the Department of Mines, Petroleum and Exploration's fast-track criteria.

Expanding Resource Potential Along Relief Shear

The Mulgabbie North project sits along the Relief Shear, a significant gold corridor extending over 8 kilometres within OzAurum's tenure. The Cross Fault discovery, located just 2 kilometres south of the existing 260,000-ounce mineral resource, continues to yield high-grade intercepts, suggesting substantial upside for resource growth. Future drilling campaigns will focus on expanding the mineralised footprint both laterally and at depth, with plans for a maiden resource estimate at Cross Fault.

CEO Andrew Pumphrey highlighted the strategic importance of these results, stating that the continuity of high-grade mineralisation supports their initial development plans and positions OzAurum well for near-term production. The company’s methodical approach, combining exploration success with advancing development activities, signals a pivotal phase in its evolution.

Outlook and Market Implications

While the current resource stands at approximately 260,000 ounces at 0.70 g/t gold, the recent drilling success and ongoing metallurgical work could materially enhance the project's economics. The staged heap leach approach aims to deliver early production with scalability, potentially attracting investor interest as OzAurum transitions from explorer to developer.

Investors and analysts will be watching closely for upcoming grade control drilling results, metallurgical test outcomes, and permitting milestones, which will collectively shape the project's trajectory and valuation.