New Murchison Gold Limited reports significant high-grade gold intercepts from recent drilling at its Lydia Gold Prospect, expanding mineralisation near its flagship Crown Prince Gold Mine. The results pave the way for resource upgrades and potential rapid development leveraging existing infrastructure.
- High-grade gold intercepts including 3m at 32.9g/t Au and 9.1m at 10.3g/t Au
- Drilling extended depth and strike of Lydia shear zone mineralisation
- Lydia prospect located on granted mining lease near Crown Prince Gold Mine
- Potential to integrate Lydia into existing operations using current infrastructure
- Planned follow-up includes resource modelling, infill, and deeper drilling
Exploration Breakthrough at Lydia Gold Prospect
New Murchison Gold Limited (ASX, NMG) has delivered a promising update from its ongoing exploration at the Lydia Gold Prospect, part of the broader Garden Gully Gold Project near Meekatharra, Western Australia. The company’s recent reverse circulation (RC) and diamond drilling program has revealed multiple high-grade gold intersections, significantly extending the known mineralised strike and depth along the Lydia shear zone.
The drilling campaign, comprising 33 RC holes totaling 2,920 metres and three diamond holes, returned standout results such as 3 metres at 32.9 grams per tonne (g/t) gold from 46 metres depth, and 9.1 metres at 10.3 g/t gold from 89 metres. These intercepts confirm the presence of robust gold mineralisation within a shear zone structurally similar to the nearby Crown Prince deposit, the company’s flagship asset.
Strategic Location and Infrastructure Advantage
Situated on granted mining lease M51/889, Lydia lies approximately 800 metres west of the Crown Prince Gold Mine. This proximity offers New Murchison Gold a strategic advantage, as CEO Alex Passmore highlighted, leveraging existing infrastructure; including offices, maintenance facilities, a crusher, and sampling preparation facilities; could accelerate Lydia’s path to production. The shared Native Title and Heritage Agreement with Crown Prince further streamlines operational integration.
The geological setting of Lydia features a 20-25 metre thick shear zone trending north-northeast and dipping steeply west, hosting gold mineralisation associated with sulphides such as pyrite and arsenopyrite. The recent drilling has delineated steep plunging shoots of high-grade gold, with mineralisation open at depth, suggesting significant upside potential beyond current intercepts.
Comprehensive Exploration and Rigorous Data
The company’s exploration approach adheres to industry best practices and JORC Code standards, with detailed sampling, assay, and geotechnical analysis. Assays were conducted by accredited laboratories using fire assay techniques, supported by quality control measures including duplicates, standards, and blanks. The drilling program also included geotechnical holes to inform pit design, with analysis underway.
Complementary geophysical surveys, including ground gravity, identified prominent features correlating with mineralised zones, guiding targeted drilling. Encouraging results from the Lydia East prospect, though limited in drilling to date, warrant further infill and deeper drilling planned for the next phase.
Next Steps Toward Resource Definition
New Murchison Gold plans to update its mineralisation models incorporating these new results to produce a JORC-compliant resource estimate. Infill drilling along the Lydia South shear zone aims to better define the extent of shallow high-grade mineralisation, while additional drilling at Lydia East will test deeper targets. These efforts are critical to converting exploration success into defined resources and reserves, supporting the company’s trajectory toward gold production.
With a market capitalisation of approximately $552 million and a robust exploration pipeline, New Murchison Gold’s Lydia results add a compelling chapter to its Garden Gully project story. Investors and industry watchers will be keenly observing how these findings translate into resource upgrades and development milestones in the coming months.
Bottom Line?
Lydia’s high-grade gold potential near Crown Prince could fast-track New Murchison Gold’s production ambitions, but further drilling and modelling remain crucial.
Questions in the middle?
- How soon can Lydia’s mineralisation be formally incorporated into New Murchison Gold’s resource and reserve estimates?
- What capital investment will be required to bring Lydia into production leveraging existing infrastructure?
- Could deeper drilling at Lydia uncover even higher-grade zones or extensions beyond current targets?