SSH Group has commenced a focused drilling campaign at the Wagtail Gold Deposit to upgrade its high-grade resource and advance development plans under a profit-share agreement.
- High-density infill RC drilling program underway at Wagtail
- Targeting upgrade of 14,600 oz @ 7.11 g/t Au JORC Mineral Resource
- Production Pathway Desktop Study assessing multiple mining scenarios
- SSH Mining holds 25% profit share under binding agreement with HTM
- Historic drilling shows strong high-grade gold intercepts
Drilling Commences at Wagtail
SSH Group Ltd (ASX – SSH) has mobilised its reverse circulation (RC) drill rig to the Wagtail Gold Deposit, part of the Mt Fisher Gold Project in Western Australia's Northern Goldfields. The company has initiated a high-density infill drilling program comprising approximately 3,300 metres across 50 holes. This campaign aims to enhance geological confidence and support upgrading the existing JORC (2012) Mineral Resource of 14,600 ounces at 7.11 grams per tonne gold.
The drilling is designed to convert portions of the resource from an inferred to an indicated classification, a critical step for advancing the deposit towards production. Additionally, the program will collect specific gravity and metallurgical samples to refine geological models and inform future mine planning.
Strategic Development Studies Underway
Alongside drilling, SSH Mining, the company’s wholly owned mining services subsidiary, has launched a Production Pathway Desktop Study. This study is evaluating multiple development scenarios, including a low-disturbance starter open pit, a deeper pit with potential underground transition, and various processing options. These assessments will help determine the most efficient and economically viable approach to bring Wagtail into production.
SSH’s technical and operations teams are actively supporting High-Tech Metals Limited (ASX – HTM), the project holder, to progress the deposit through these critical stages. The collaboration is underpinned by a binding Mining Agreement granting SSH a 25% profit share in the Wagtail mining operations, aligning incentives for both parties.
Wagtail’s High-Grade Potential
The Wagtail Deposit is a quartz-reef–hosted gold system with a strong history of high-grade intercepts, including notable drill results such as 5 metres at 41.13 g/t gold and 3 metres at 55.14 g/t gold. The deposit sits on a granted mining lease and benefits from proximity to existing gold processing facilities, which could facilitate a smoother transition to production.
SSH’s Managing Director Daniel Cowley-Cooper emphasised the significance of this milestone, highlighting the drilling program as the first tangible step toward converting Wagtail’s high-grade resource into a near-term production asset. The company is focused on efficiently advancing technical studies and resource upgrades to inform development decisions.
Looking Ahead
With drilling now underway and development studies progressing, SSH Group is positioning itself to unlock value from the Wagtail Gold Deposit. The coming months will be pivotal as assay results and study outcomes emerge, potentially reshaping the company’s production profile and growth trajectory.
Bottom Line?
SSH’s drilling and studies at Wagtail mark a decisive move toward unlocking a high-grade gold production opportunity.
Questions in the middle?
- When will initial assay results from the infill drilling be released?
- Which development scenario will the Production Pathway Study recommend?
- How will the resource upgrade impact SSH’s near-term production forecasts?