Maronan Metals has secured crucial environmental approvals and completed promising drilling and metallurgical work, underpinned by a strong capital raise and rising silver prices.
- Received all environmental approvals supporting Mineral Development Licence application
- Completed surface drilling and geotechnical work to support resource growth and mine planning
- Metallurgical testwork shows improved gold recoveries up to 88%
- Raised $17.6 million through placement and share purchase plan
- Silver price surged over 51% during the quarter, enhancing project economics
Environmental Approvals and Licence Progress
Maronan Metals Limited has marked a significant milestone by securing all environmental approvals necessary to support its Mineral Development Licence (MDL) application for the Maronan Silver Project in Queensland. This approval clears a major regulatory hurdle and positions the company well to obtain the MDL itself, expected in the March 2026 quarter following the government’s end-of-year shutdown. The MDL is critical for advancing feasibility studies and development planning, and Maronan is concurrently updating Native Title and landowner agreements to complete the broader approval framework.
Drilling and Technical Advancements
During the December 2025 quarter, Maronan completed the initial phase of its 2025/26 surface drilling program, including four infill diamond drill holes within the Starter Zone aimed at increasing resource confidence. Additionally, six geotechnical drill holes were drilled at the proposed boxcut and decline path to inform mine design and ground support. While assay results from these holes are pending, the geotechnical observations align with expectations, supporting the project’s engineering plans. The company also continued wet season environmental monitoring, with heavy rainfall not materially impacting site activities.
Metallurgical Testwork Boosts Confidence
Metallurgical testing conducted at the Australian Assay Metallurgy Laboratory has delivered encouraging results, with gold recoveries reaching up to 88% for the primary copper-gold ore types, significantly higher than historical recoveries of 50-70%. Copper recoveries also exceeded 96% in cleaner flotation concentrates. These findings confirm the ore’s amenability to conventional flotation processing and the potential to produce high-quality concentrates with minimal penalty elements. Ongoing testwork will feed into the Definitive Feasibility Study, which has now commenced.
Financial Strength and Leadership Enhancements
Maronan successfully completed a $16 million placement and a $1.6 million share purchase plan, raising a total of $17.6 million before costs. This capital injection strengthens the company’s balance sheet, providing a robust funding position with $15.8 million in cash at quarter-end. The funds will support feasibility and environmental studies, further drilling, early site development, and general working capital. The company also bolstered its leadership team with the appointments of a Chief Financial Officer and a Compliance and Contracts Manager, enhancing governance and operational capabilities as it advances towards mine readiness.
Market Context and Outlook
The quarter saw a remarkable surge in precious metal prices, with silver climbing approximately 51% to around US$71.64 per ounce and gold rising nearly 12% to US$4,322.61 per ounce. These elevated prices significantly exceed the base case assumptions used in Maronan’s Preliminary Economic Assessment and provide a highly supportive backdrop for the project’s economics. Chairman Simon Bird highlighted the company’s strong momentum and readiness to accelerate development activities in 2026, aiming to deliver long-term shareholder value from this high-grade, silver-rich deposit.
Bottom Line?
With approvals secured and funding in place, Maronan Metals is poised to accelerate development, but upcoming assay results and the MDL grant will be critical next steps.
Questions in the middle?
- When exactly will the Mineral Development Licence be granted, and could there be delays?
- What will the pending assay results reveal about resource confidence and potential expansion?
- How will Maronan navigate funding options beyond the recent capital raise to support full-scale development?