Metal Bank Unveils Maiden 6,300oz Gold Resource, Fast-Tracks 2026 Production
Metal Bank Limited (MBK) has announced its first formal gold resource estimate at the Seven Leaders Starter Pit, marking a pivotal step towards production in 2026. The 6,300-ounce resource underpins a strategy to leverage existing infrastructure and minimise capital costs.
- Maiden JORC 2012 Mineral Resource Estimate of 6,300oz gold at Seven Leaders
- Resource comprises 138,000 tonnes at 1.4 g/t gold, mostly Indicated category
- Recent drilling confirms higher grades and validates historic data
- Plans underway for pit design, mining approvals, and toll treatment agreements
- MBK targets transition from explorer to producer leveraging WA gold assets
A Milestone for Metal Bank
Metal Bank Limited (ASX, MBK) has taken a significant stride towards becoming a gold producer with the announcement of its maiden JORC 2012 Mineral Resource Estimate (MRE) for the Seven Leaders Starter Pit, part of the Whiteheads Gold Project located 80 kilometres northeast of Kalgoorlie, Western Australia. The resource totals 138,000 tonnes grading 1.4 grams per tonne gold, equating to approximately 6,300 ounces, predominantly classified as Indicated.
Validating Historic Data and Unlocking Upside
This maiden resource is underpinned by a comprehensive drilling campaign, including 32 recent Reverse Circulation (RC) holes completed by Hastings Technology Metals Limited, which not only confirmed but exceeded historical grade expectations. Noteworthy drill intersections such as 5 metres at 15.17 g/t gold and 35 metres at 1.94 g/t gold highlight the deposit's potential for higher-grade zones within the broader resource. The integration of new and historic data, validated by independent consultants Entech Pty Ltd, has provided a robust geological model supporting the resource estimate.
Strategic Pathway to Production
MBK’s CEO, Tim Gilbert, emphasised that the Seven Leaders resource forms a strategic foundation for the company’s expedited transition from explorer to producer, targeting production commencement in 2026. By utilising nearby third-party processing infrastructure, MBK aims to minimise upfront capital expenditure. The company is actively progressing pit design, waste dump sterilisation drilling, mining proposal applications, and toll treatment agreements to streamline the pathway to production.
Broader Portfolio and Growth Prospects
Beyond Seven Leaders, MBK holds a portfolio of Western Australian gold assets including the Livingstone Gold Project, Lady Betty, and Lady Geraldine prospects, with ongoing exploration planned for 2026. The company also maintains interests in cobalt, copper, and graphite projects, as well as a strategic joint venture in Saudi Arabia. This diversified portfolio supports MBK’s strategy to self-fund growth through near-term gold production.
Technical and Economic Considerations
The resource estimate is constrained within an optimised open pit shell based on a gold price assumption of AUD 4,500 per ounce and incorporates conservative metallurgical recovery assumptions of 90%, pending further test work. The deposit’s mineralisation is hosted in structurally controlled quartz veins and silicified zones, with a moderate to high level of geological confidence in the Indicated resource category. While the resource includes a small Inferred component, MBK plans further drilling to enhance confidence and potentially expand the resource.
Bottom Line?
Metal Bank’s maiden resource at Seven Leaders sets the stage for a critical transition to production, but execution of approvals and processing agreements will be key to unlocking value.
Questions in the middle?
- How quickly can MBK secure mining approvals and toll treatment contracts to meet its 2026 production target?
- What is the potential for resource expansion and grade improvement with further drilling at Seven Leaders and nearby prospects?
- How will fluctuating gold prices and operational costs impact the economic viability of the Seven Leaders starter pit?
