Grace Project Drilling Hits 2,500m Mark; $752k Raised via Share Placement
Paterson Resources has completed the first phase of an extensive drilling campaign at its Grace Gold-Copper Project, raising $752,000 through a rights issue to fund further exploration and resource upgrades.
- Phase I of 8,500m drilling campaign completed with 18 holes
- Rights issue raised $752k, issuing 41.8 million new shares and options
- Assay results pending, with Indicated Mineral Resource Estimate targeted for 1H 2026
- Corporate updates include director placements, performance rights issuance, and chairman change
- Exploration expenditure of $420k focused on Grace Project drilling
Exploration Progress at Grace Gold-Copper Project
Paterson Resources Limited (ASX, PSL) has successfully completed Phase I of its ambitious 8,500-metre reverse circulation drilling campaign at the Grace Gold-Copper Project in Western Australia's Paterson Province. This initial phase comprised 18 drill holes totaling approximately 2,500 metres, targeting extensions of known mineralisation and infill drilling to upgrade the existing resource classification.
The Grace Project is strategically located near world-class deposits such as the Telfer gold mine and the Havieron Gold-Copper Project, underscoring its potential. The recent drilling focused on testing extensions to a high-grade gold lode discovered in previous campaigns, which runs parallel to the current JORC-compliant Inferred Mineral Resource Estimate of 1.59 million tonnes at 1.35 grams per tonne gold, equating to roughly 69,000 ounces.
Funding and Corporate Developments
To support ongoing exploration, Paterson Resources completed a pro-rata non-renounceable entitlement issue during the quarter, raising $752,000 through the issuance of 41.8 million new shares and an equal number of unquoted options exercisable at 2.8 cents. Although this fell short of the $1.09 million target, the funds are sufficient to continue the drilling program and advance a scoping study and mining licence application.
Corporate activity included the issuance of 10 million performance rights to Director Matthew Bull, contingent on share price milestones over the next four years, aligning management incentives with shareholder value creation. Additionally, a leadership change occurred with the resignation of non-executive chairman Ken Banks, succeeded by John Kay, an experienced corporate lawyer and adviser with extensive resources sector expertise.
Looking Ahead, Assays and Resource Upgrade
Samples from the Phase I drilling have been dispatched to SGS Australia in Perth for assay analysis, with initial results expected in early February. These results will be critical in confirming the extent and grade of mineralisation, informing the targeted upgrade to a JORC Indicated Mineral Resource Estimate planned for the first half of 2026. This upgrade is a key step towards completing a scoping study that could pave the way for mining licence approval and eventual development.
Exploration expenditure for the quarter was $420,000, primarily directed towards drilling activities and tenement management. The company reported no substantive mining production or development activities during this period, consistent with its exploration-focused stage.
Paterson Resources remains well-positioned in a mineral-rich province with promising high-grade gold-copper prospects. The coming months will be pivotal as assay results emerge and the company advances its resource definition and feasibility assessments.
Bottom Line?
With assay results imminent and a resource upgrade on the horizon, Paterson Resources is poised for a defining phase at Grace.
Questions in the middle?
- Will the upcoming assay results confirm extensions to the high-grade gold lode?
- How will the shortfall in the entitlement offer impact future funding strategies?
- What timeline can investors expect for mining licence approval and project development?
