Mining Depletion Shrinks Crown Prince Reserves but Exploration Upside Remains Promising

Mining Milestone and Resource Update

New Murchison Gold Limited (ASX, NMG) has provided a comprehensive update on its Crown Prince Gold Mine following the commencement of mining operations in mid-2025. The company’s latest Mineral Resources and Ore Reserves statement reflects the depletion of ore mined between July and September 2025, marking a significant transition from development to production.

The updated Mineral Resource at Crown Prince now stands at approximately 2.245 million tonnes grading 3.8 grams per tonne gold, containing around 276,900 ounces of gold. Correspondingly, the Ore Reserve estimate, which factors in mining depletion and operational parameters, totals 920,000 tonnes at 4.6 grams per tonne gold, equating to 135,600 ounces. These figures confirm the robustness of the deposit and the effectiveness of the initial mining phase.

Operational Highlights and Processing Strategy

Mining operations officially began on 31 July 2025, with the first blast completed shortly thereafter and ore sales commencing in September. The open pit mining method employs conventional drill and blast techniques with small to medium excavators and haul trucks, focusing on selective extraction to optimize grade control. Notably, additional low-grade ore has been stockpiled from near-surface areas, providing flexibility for future processing.

Ore from Crown Prince is transported to Westgold’s Bluebird processing plant under a commercial Ore Purchase Agreement. This arrangement leverages established infrastructure and processing expertise, eliminating the need for on-site processing facilities and tailings storage. Metallurgical testwork indicates high gold recoveries exceeding 95%, supporting the economic viability of the operation.

Exploration and Growth Prospects

With the initial mining phase underway, New Murchison Gold is intensifying exploration efforts to unlock the underground potential of the Crown Prince deposit. Drilling programs have increased since November 2025, targeting extensions of known mineralisation and prospective nearby tenements, including the Lydia and Abbotts deposits. The company anticipates releasing an updated Mineral Resource estimate in the first quarter of 2026, incorporating new drilling data.

The Crown Prince deposit’s geological setting within the Abbotts Greenstone Belt features steeply plunging quartz vein-hosted gold mineralisation, historically mined underground in the early 20th century. Recent modelling and drilling have refined the understanding of mineralisation continuity and grade distribution, underpinning confidence in future resource growth and mine life extension.

Governance and Compliance

New Murchison Gold maintains rigorous governance and technical standards in its resource and reserve estimation processes. The estimates comply with the JORC Code (2012 edition) and are supported by detailed geological, metallurgical, environmental, and operational studies. Independent competent persons have reviewed and endorsed the data, ensuring transparency and reliability for investors and stakeholders.

Environmental considerations have been addressed with all necessary permits in place, and mitigation measures for groundwater and flood risks implemented. The company’s approach balances operational efficiency with responsible stewardship of the project area.