OzAurum Resources has kicked off a diamond drilling program at its Mulgabbie North Gold Project to advance heap leach feasibility and open pit design, supported by recent capital raising and ongoing plant refurbishment.
- Four-hole diamond drilling program underway at Paleochannel and Ben pits
- Drilling to supply metallurgical samples and geotechnical data for heap leach and pit design
- Planned grade control drilling to enhance resource confidence for Stage 2 mining
- Heap leach plant refurbishment progressing alongside drilling activities
- Permitting and resource definition drilling advancing amid rising gold prices
Diamond Drilling Commences at Mulgabbie North
OzAurum Resources Limited (ASX – OZM) has initiated a targeted diamond drilling program at its Mulgabbie North Gold Project in Western Australia, marking a significant step forward in its development timeline. The four-hole program, totalling approximately 230 metres, is focused on the Paleochannel and Ben open pit areas, aiming to gather critical geotechnical data and bulk samples for metallurgical testing.
Supporting Heap Leach Feasibility and Pit Design
This drilling campaign is integral to advancing Stage 2 of the heap leach feasibility study. The samples extracted will feed into column testwork designed to optimise heap leach processing, while the geotechnical information will underpin detailed open pit wall design. These efforts align with OzAurum’s broader strategy to refine mining studies and enhance operational planning.
Grade Control Drilling and Development Flexibility
Complementing the diamond drilling, OzAurum plans a shallow grade control drilling program at the Paleochannel area. This initiative aims to bolster confidence in the resource base for Stage 2 open pit mining and heap leach operations. Notably, the Paleochannel deposit holds potential as a standalone mining target, offering the company flexibility to generate early cash flow independent of the larger heap leach project.
Capital Raising and Project Momentum
The drilling activities follow a recent $4.1 million strategic placement with Forrestania Resources Limited, which has strengthened OzAurum’s balance sheet. Concurrently, the company is progressing a heap leach plant refurbishment program, maintaining strong momentum toward near-term production. CEO Andrew Pumphrey emphasised the disciplined, capital-light approach underpinning these developments amid a favourable gold price environment.
Permitting and Resource Definition Progress
OzAurum is actively advancing permitting for Stage 2 open pit mining and heap leach operations, with open pit design work underway. Rising gold prices have positively influenced economic evaluations, prompting further resource definition drilling within key permitting areas. While no Ore Reserves have yet been defined, the company remains optimistic that ongoing drilling may upgrade resource classifications and support future pit expansions.
Bottom Line?
OzAurum’s drilling and refurbishment efforts signal tangible progress, but upcoming assay results and permitting outcomes will be pivotal for the project’s next phase.
Questions in the middle?
- Will the diamond drilling results confirm sufficient metallurgical and geotechnical parameters to proceed with heap leach optimisation?
- How soon can OzAurum complete permitting approvals to enable Stage 2 mining operations?
- What impact will rising gold prices have on the economic viability and scale of the Mulgabbie North project?