OzAurum Resources reports robust, shallow high-grade gold results from its James Stage 1 open pit drilling, reinforcing confidence in near-term development and hinting at significant expansion potential.
- 46 reverse circulation drill holes confirm consistent high-grade gold near surface
- Grade continuity reduces mining dilution risk and supports current pit design
- High-grade mineralisation extends below Stage 1 pit, indicating Stage 2 expansion potential
- Gold hosted within a 50m-wide, 8km-long Relief Shear corridor
- Project located 2km from Northern Star’s Carosue Dam mining district
Strong Results Reinforce Stage 1 Pit Confidence
OzAurum Resources Limited (ASX – OZM) has delivered a compelling update from its Mulgabbie North Gold Project in Western Australia, reporting consistent, high-grade gold intercepts from 46 reverse circulation (RC) grade control drill holes at the James Stage 1 open pit. These results confirm the continuity of mineralisation at shallow depths, a critical factor that underpins the company’s near-term open pit development strategy.
The drilling program, part of a broader 91-hole campaign, has demonstrated not only robust grades but also a mineralised envelope that is well-defined and predictable. This reduces the risk of ore dilution during mining, a key consideration for operational efficiency and project economics.
Beyond Stage 1 – Expansion Potential Emerges
Notably, several drill holes intersected high-grade gold mineralisation extending below the current Stage 1 pit design. This suggests a strong potential for a Stage 2 pit expansion, offering a pathway to increase the project’s resource base and extend mine life. The mineralisation occurs within the Relief Shear, a substantial 50-metre-wide gold corridor stretching approximately 8 kilometres across OzAurum’s tenure.
Located just 2 kilometres from the prolific Carosue Dam mining district operated by Northern Star Resources, Mulgabbie North benefits from proximity to established infrastructure and a proven gold-producing region. The geological setting, characterised by sandstone-hosted gold with quartz veining and sulphide mineralisation, aligns with other significant deposits in the Eastern Goldfields.
Strategic Implications and Next Steps
CEO Andrew Pumphrey emphasised that these grade control results materially de-risk the company’s development plans and position OzAurum well as it advances toward potential production. The confirmation of shallow, high-grade mineralisation supports the feasibility of a heap leach operation, which could offer a cost-effective processing route.
While the results are encouraging, further drilling and metallurgical testing are planned to refine the resource model and validate the economic potential of the Stage 2 expansion. Investors will be watching closely for updates on these fronts, as well as any guidance on capital expenditure and production timelines.
Bottom Line?
OzAurum’s latest drilling success sharpens the focus on Mulgabbie North’s near-term potential, but the path to production still hinges on confirming expansion and processing viability.
Questions in the middle?
- How will further drilling refine the scale and grade of the Stage 2 pit expansion?
- What metallurgical characteristics will influence processing and recovery rates?
- When might OzAurum provide updated production guidance or a development timeline?