REZ Unveils 160k-500k Oz Gold Target at Gigante Grande, Drilling Set for 2026

Exploration Target Highlights Scale and Potential

Resources & Energy Group Limited (ASX:REZ) has released a detailed update on its Gigante Grande Central Domain within the East Menzies Gold Project in Western Australia. The company has defined a JORC-compliant Global Exploration Target estimating between 4 and 5 million tonnes of ore grading 1.3 to 3 grams per tonne of gold. This translates to a potential 160,000 to 500,000 ounces of gold, exclusive of the current 40,000-ounce inferred resource.

This target covers a 900-metre strike length within the central domain, representing only about 14% of the total strike of the Gigante Grande prospect. The scale of this target underscores the significant untapped potential along the broader prospect, which remains open in multiple directions.

Geological Context and Historical Work

The Gigante Grande prospect lies in the eastern portion of the East Menzies Goldfield Project, an area historically underexplored due to thick cover of sheetwash and saprock obscuring outcrops. Initial discovery dates back to the late 1990s, but meaningful follow-up exploration only resumed in 2020 with air core drilling by Menzies Goldfield Pty Ltd. Since then, over 10,000 metres of reverse circulation drilling has confirmed extensive gold mineralisation associated with the Moriarty Shear Zone, a significant structural feature linked to one of the world’s largest orogenic gold systems.

Drilling has revealed broad zones of mineralisation up to 300 metres wide and at least 1,500 metres in strike length, with grades ranging from low to high, including exceptional intercepts such as 27 metres at 3.7 g/t gold and a standout 1 metre at 76.4 g/t.

Upcoming Drilling and Development Plans

To advance the project, REZ plans an 8,750-metre drilling campaign starting in the first quarter of 2026. This program will combine slimline and conventional reverse circulation drilling with diamond drilling to obtain structural and metallurgical data. The goal is to validate and expand the exploration target, upgrade the existing resource, and better understand the mineralisation geometry and metallurgy.

Economic modelling based on conservative assumptions, including a gold price of AUD 6,000 per ounce, a 5 – 1 strip ratio, and processing costs, suggests reasonable prospects for open-cut mining. The presence of near-surface supergene mineralisation offers potential for a low-cost starter pit, enhancing project economics.

Caution and Forward Outlook

While the exploration target is robust and grounded in extensive drilling and geological modelling, it remains conceptual. True widths and continuity of mineralisation require further drilling to confirm. Additionally, regulatory and heritage approvals will be necessary before drilling can proceed, potentially impacting timelines.

Nonetheless, this announcement marks a significant step forward for REZ, positioning the Gigante Grande prospect as a compelling opportunity within the East Menzies Gold Project. Investors will be watching closely as the company moves into its next phase of exploration and resource definition.