Heap Leach Hopes Hinge on OzAurum’s Mulgabbie North Assay and Permitting Progress

Shallow High-Grade Gold Validates Early Development

OzAurum Resources Ltd (ASX – OZM) has unveiled encouraging assay results from its recent reverse circulation (RC) grade control drilling at the James Stage 1 open pit within the Mulgabbie North Gold Project, located in Western Australia's prolific Eastern Goldfields. The initial batch of 45 holes, part of a 91-hole program, has confirmed consistent, shallow, high-grade gold mineralisation that aligns well with the company's proposed open pit design.

The significance of these results lies in their support for a low-strip ratio mining scenario, which is critical for cost-effective open pit operations. Notably, intercepts such as 14 metres at 2.09 grams per tonne (g/t) gold, including 3 metres at 6.38 g/t, and 16 metres at 3.41 g/t from diamond drilling, underscore the potential for a robust early mining inventory.

Heap Leach Potential Gains Momentum

Complementing the drilling success, preliminary metallurgical testwork conducted through column heap leach trials at ALS Metallurgy Balcatta has demonstrated promising gold recoveries exceeding 60% within seven days and surpassing 80% within 21 days. These results suggest that a simple, low-cost heap leach processing route could be viable, aligning with OzAurum's strategy to fast-track development.

While these metallurgical outcomes are preliminary and subject to final confirmation, they provide a compelling case for near-term production potential. The company is actively preparing a Stage 1 Heap Leach Small Mining Proposal, with submission to the Department of Mines, Industry Regulation and Safety (DMIRS) anticipated shortly.

Geological Insights and Regional Context

The Mulgabbie North project benefits from its location along the Relief Shear, a significant gold mineralisation corridor extending approximately 8 kilometres within OzAurum's tenure. The high-grade gold is associated with quartz veining and fault intersections within sandstone host rocks, a geological setting reminiscent of nearby major deposits such as Carosue Dam, operated by Northern Star Limited.

OzAurum's detailed geological logging and sampling have identified mineralisation open at depth, with further drilling planned to test extensions. The presence of pyrite and arsenopyrite mineralisation alongside quartz veins reinforces the prospectivity of the area.

Advancing Toward Production

CEO Andrew Pumphrey emphasised the importance of these results, stating they enhance confidence in the open pit design and support the company's low-cost heap leach development pathway. With drilling complete, metallurgical testwork ongoing, and permitting progressing, OzAurum is making tangible strides toward unlocking value from Mulgabbie North.

The project’s measured, indicated, and inferred mineral resources total approximately 260,000 ounces of gold at an average grade of 0.70 g/t, reported to a depth of 150 metres. This resource base underpins the company's development plans and potential production profile.