High-Tech Metals Strikes 171g/t Gold Bonanza at Wagtail – What’s Next?

Exceptional Early Drilling Results at Wagtail

High-Tech Metals Ltd (ASX, HTM) has unveiled highly encouraging early assay results from its reverse circulation drilling program at the Wagtail gold deposit, part of its Mt Fisher-Mt Eureka Project in Western Australia. The highlight is a spectacular bonanza-grade intercept of 1 metre at 171.35 grams per tonne (g/t) gold, embedded within 6 metres averaging 28.96 g/t Au. This confirms the presence of robust, high-grade mineralisation close to surface, consistent with the company’s existing resource estimate of 14,600 ounces at 7.11 g/t Au.

The Wagtail deposit is characterised by quartz vein-hosted gold reefs with a history of high-grade production, including historic mining that yielded 2,384 ounces at an extraordinary 66 g/t Au. The recent drilling results reinforce the coarse gold nature and continuity of the mineralisation, underpinning the deposit’s potential as a near-term development opportunity.

Advancing Towards Production with Strategic Partnerships

The drilling program, managed by SSH Mining Australia Pty Ltd under a mining agreement with SSH Group Ltd (ASX, SSH), is progressing steadily with over 1,200 metres completed and further holes planned. The company expects to receive additional assay results shortly, which will help refine the resource and support mine planning.

Importantly, High-Tech Metals has recently signed a memorandum of understanding with Wiluna Mining to toll-treat ore from Wagtail, providing a clear and cost-effective processing pathway. This partnership is a significant step in de-risking the project and advancing it towards a potential final investment decision.

Ongoing Studies and Exploration Upside

Alongside drilling, scoping and pre-feasibility studies are underway, including metallurgical testwork, mine design, permitting, and infrastructure assessments. These efforts aim to solidify the economic case for Wagtail and the broader Mt Fisher-Mt Eureka portfolio, which benefits from established access and proximity to existing processing facilities.

High-Tech Metals is also conducting diamond drilling to obtain bulk samples for metallurgical testing and continuing regional exploration to identify further targets. The company’s strategy focuses on fast-tracking production from existing resources to generate early cash flow, which will fund ongoing exploration across one of Western Australia’s last under-explored greenstone belts.

Leadership Confidence and Market Implications

CEO James Merrillees expressed optimism about the results, highlighting their consistency with the company’s geological model and the potential to de-risk Wagtail as a near-term development project. SSH Group CEO Daniel Cowley-Cooper echoed this sentiment, noting the strong high-grade mineralisation and encouraging economics shaping up as the project advances.

While the results are partial and true widths of mineralisation are yet to be confirmed, the combination of high-grade intercepts, strategic partnerships, and advancing studies positions High-Tech Metals well to unlock value from Wagtail in the near future.