Australian Gold and Copper Ltd (AGC) has released an amended initial Mineral Resource Estimate for its Achilles deposit, reporting 38.5 million ounces silver-equivalent and confirming the deposit’s potential as a significant new mineral district in New South Wales.
- Initial MRE of 10.3Mt at 116g/t AgEq for 38.5Moz silver-equivalent
- Resource split, 5.0Mt indicated at 141g/t AgEq, 5.3Mt inferred at 93g/t AgEq
- Open pit and underground resources with cut-offs of 40g/t and 80g/t AgEq respectively
- Estimate based on over 10,800m of drilling since April 2024 discovery
- Further drilling underway with new MRE planned for Browns Reef – Evergreen deposit
A Significant Milestone for Achilles
Australian Gold and Copper Ltd (ASX – AGC) has announced an amended initial Mineral Resource Estimate (MRE) for its Achilles deposit, located in the southern Cobar mining district of New South Wales. The updated resource quantifies 10.3 million tonnes at an average grade of 116 grams per tonne silver equivalent (AgEq), translating to a substantial 38.5 million ounces of silver-equivalent metal. This maiden MRE marks a pivotal moment for AGC, underpinning its strategy to establish a major precious and base metals presence in the South Cobar region.
Resource Breakdown and Mining Potential
The resource is divided into 5.0 million tonnes of Indicated Resources at 141g/t AgEq (22.5Moz) and 5.3 million tonnes of Inferred Resources at 93g/t AgEq (16.0Moz). The deposit supports both open pit and underground mining scenarios, with cut-off grades set at 40g/t AgEq for shallow open pit resources and 80g/t AgEq for deeper underground resources. Open pit resources account for 7.9Mt at 114g/t AgEq, while underground resources comprise 2.4Mt at 125g/t AgEq.
Robust Drilling and Methodology
This MRE is the result of over 10,800 metres of reverse circulation and diamond drilling since the deposit’s discovery in April 2024. The estimate incorporates updated geological interpretations and estimation methodologies, including ordinary kriging and rigorous quality control measures. Notably, 19% of the resource is based on extrapolated data up to 100 metres beyond nominal drilling, a factor that introduces some geological uncertainty but is supported by recent drilling confirming mineralisation continuity.
Exploration Upside and Future Plans
The deposit remains open at depth, with 23 recent drill holes pending assay results that are expected to add to the underground resource base. AGC is also preparing to commence a 10,000-metre resource definition drilling program at the Browns Reef – Evergreen deposit in March 2026, aiming to deliver a new MRE for this promising target. The company highlights the discovery of Achilles as the emergence of a new mineral district, with significant exploration upside across its consolidated landholdings in the South Cobar belt.
Environmental and Regulatory Context
The Achilles project is situated within five exploration licences with no known environmental or tenure impediments. AGC has conducted preliminary environmental surveys and is committed to responsible mining and waste management practices. Metallurgical test work supports robust recoveries for silver, gold, lead, and zinc, reinforcing the economic potential of the resource.
Bottom Line?
AGC’s Achilles resource sets a strong foundation, but upcoming assays and Browns Reef drilling will be key to unlocking further value.
Questions in the middle?
- How will pending assay results from recent drill holes impact the underground resource estimate?
- What are the implications of the 19% extrapolated inferred resource for project risk and confidence?
- How will the Browns Reef – Evergreen drilling program influence AGC’s regional resource portfolio?