OzAurum Resources has lodged a key mining proposal for its Mulgabbie North Gold Project, outlining a low-capital, staged heap leach development with strong metallurgical recoveries and an owner-operator model to control costs amid record gold prices.
- Stage 1 Mining Development & Closure Proposal lodged with WA regulators
- Low-CAPEX heap leach design using 2 of 32 planned cells for early cash flow
- Gold recoveries exceeding 80% in ongoing metallurgical testwork
- Owner-operator mining model to maintain tight cost control
- Environmental permitting underway for Stage 2 expansion
A Milestone in Staged Development
OzAurum Resources Ltd (ASX – OZM) has taken a significant step forward in advancing its Mulgabbie North Gold Project by lodging the Stage 1 Mining Development & Closure Proposal (MDCP) with Western Australia's Department of Mines, Petroleum and Exploration. This move signals the company’s commitment to a capital-light, staged development strategy designed to bring the project into production efficiently and cost-effectively.
The Stage 1 plan focuses on a small mining operation utilising two heap leach cells from a larger, scalable 32-cell design. This approach aims to generate early cash flow while preserving substantial upside potential for future expansions. The proposal benefits from an expedited approval pathway, reflecting the project's relatively modest footprint of less than 10 hectares for infrastructure.
Strong Metallurgical Performance and Cost Control
Central to the project’s economics is the heap leach metallurgical testwork, with the first column leach test delivering gold recoveries exceeding 80%. A second test has commenced on ore from an adjacent area, reinforcing confidence in the processing strategy. The metallurgical design leverages existing infrastructure and supports a dynamic heap leach operation that could evolve through Stages 2 and 3, including backfilling of processed ore to enable continuous stacking.
OzAurum’s owner-operator model is a strategic choice to tightly manage both capital and operating costs. By conducting mining, processing, and civil works largely in-house, the company expects to maintain low operating expenses and capital efficiency. Notably, the key agglomeration plant infrastructure has been secured at minimal capital cost, further reducing upfront expenditure.
Environmental and Resource Outlook
Environmental permitting for Stage 2 is already underway, including open pit designs and finalising the expanded site layout. This forward momentum is critical as the company prepares for a potential scale-up to a 2 million tonne heap leach facility. Meanwhile, grade control drilling results for Stage 1 are expected shortly, which will support near-term mine planning and de-risk the operation.
The Mulgabbie North Gold Project holds a JORC 2012 Mineral Resource estimate of approximately 260,000 ounces of gold across measured, indicated, and inferred categories. While no Ore Reserves have yet been defined, the resource base provides a solid foundation for the staged development approach.
Market Context and Strategic Implications
The timing of this development is particularly favourable given the record Australian dollar gold price of around A$7,200 per ounce. This strong price environment materially enhances the project’s economics and provides greater optionality for advancing through the development stages. CEO Andrew Pumphrey emphasises that the disciplined, capital-efficient strategy combined with the owner-miner model positions OzAurum well to capitalise on current market conditions.
Looking ahead, the company’s ability to execute on its staged development plan, secure environmental approvals, and deliver on metallurgical and drilling milestones will be closely watched by investors seeking exposure to low-cost Australian gold projects.
Bottom Line?
OzAurum’s low-capex, owner-operated approach at Mulgabbie North positions it well to unlock value amid record gold prices; but key drilling and permitting milestones lie ahead.
Questions in the middle?
- Will forthcoming grade control drilling confirm the resource continuity needed for Stage 1 mining?
- How quickly can OzAurum secure environmental approvals for Stage 2 to enable expansion?
- Can the owner-operator model deliver the anticipated cost savings without operational delays?