Grace Project Drilling Yields 20m at 2.25g/t Gold in Initial Assays

Initial Assay Results Signal Strong Gold Potential

Paterson Resources Limited has released initial assay results from Phase I of its extensive 8,500-metre reverse circulation drilling campaign at the Grace Gold-Copper Project in Western Australia's Paterson Province. The assays from five drill holes confirm wide zones of shallow gold mineralisation stretching over a 1.3-kilometre strike length. Notably, intercepts such as 20 metres at 2.25 grams per tonne gold, including 8 metres at 5.67 grams per tonne, underscore the project's promising potential.

These results build on previous drilling campaigns conducted between 2022 and 2023, which identified thick, high-grade gold shoots within the same region. The consistency of mineralisation across multiple drilling phases reinforces the prospectivity of the Grace Project, situated in a highly mineralised province known for significant gold-copper discoveries.

Upcoming Drilling and Resource Upgrade Plans

Paterson Resources is preparing to commence Phase II drilling, targeting approximately 6,000 metres across 32 holes starting in late March or early April. This next phase aims to test extensions of known mineralisation and provide data to potentially upgrade the current Inferred Mineral Resource Estimate, which stands at 1.59 million tonnes grading 1.35 grams per tonne gold for 69,000 ounces.

Executive Director Matt Bull expressed optimism about the project's trajectory, highlighting the shallow nature of the mineralisation and the potential for a simple oxide processing circuit. The company plans to follow up the drilling campaign with a Scoping Study to evaluate the project's full economic potential and determine the optimal path to production, aligning with the current favourable gold market conditions.

Strategic Location in a Mineral-Rich Province

The Grace Gold-Copper Project benefits from its location in the Paterson Province, a region attracting major mining players such as Rio Tinto, Antipa Minerals, and Greatland Gold. Nearby significant deposits include the Havieron gold-copper resource and the world-class Telfer gold-copper mine, located just 25 kilometres northwest of Grace.

This proximity to established mining operations and infrastructure enhances the project's strategic value. Paterson's ongoing exploration efforts, supported by modern geophysical surveys and geological modelling, aim to delineate ore shoots and structural controls that could underpin a substantial resource base.

Looking Ahead

While the initial assay results are encouraging, the market awaits the remaining 13 assay results from Phase I, which are expected in the coming weeks. These will provide further clarity on the extent and grade of mineralisation within the proposed pit shell. The outcomes of Phase II drilling and subsequent studies will be critical in shaping Paterson Resources’ development strategy and potential value creation for shareholders.