OzAurum Launches Major Drilling to Unlock Mulgabbie North Gold Potential

OzAurum Advances Mulgabbie North with Large-Scale Drilling

OzAurum Resources Limited (ASX:OZM) has commenced a significant grade control drilling program at its Mulgabbie North Gold Project in Western Australia. The reverse circulation (RC) campaign, targeting approximately 18,000 metres within the Paleochannel Prospect, is a critical step in advancing the Stage 2 Heap Leach Feasibility Study and refining open pit designs.

The Paleochannel mineralisation, known for its high-grade gold intercepts, has shown promising results in previous drilling campaigns. Notably, intercepts such as 5 metres at 5.87 grams per tonne gold and 3 metres at 7.25 grams per tonne highlight the potential richness of this ancient river system deposit. OzAurum’s drilling aims to increase confidence in these zones, which could support stand-alone mining operations, offering flexibility and potential early cash flow.

Strategic Funding and Operational Momentum

This drilling initiative follows a $4.1 million strategic placement by Forrestania Resources Limited, which not only bolsters OzAurum’s financial position but also aligns it with a cornerstone shareholder focused on advancing Mulgabbie North toward production. The company is concurrently refurbishing its heap leach plant, reinforcing its commitment to a capital-light development pathway amid a favourable gold price environment.

Kalgoorlie-based VM Drilling has been contracted for the program and has accepted payment in fully paid ordinary shares of OzAurum, reflecting confidence in the project’s prospects. The drilling data will feed directly into mine optimisation and feasibility studies, potentially unlocking new development scenarios.

Exploration Upside and Regional Context

The Paleochannel system at Mulgabbie North extends over 4 kilometres and remains open along strike, presenting ongoing exploration opportunities. Historically, similar paleochannel deposits in the Kalgoorlie region, such as Kanowna and Higginsville, have been mined profitably using heap leach methods, underscoring the potential economic viability of OzAurum’s project.

With a current Mineral Resource of 11.6 million tonnes at 0.70 grams per tonne gold for 260,000 ounces, the project is well positioned to enhance its resource base through this drilling program. The company’s Managing Director, Andrew Pumphrey, emphasised the significance of this phase in building momentum toward gold production.

Looking Ahead

While no Ore Reserves have yet been defined, the ongoing drilling and feasibility work will be pivotal in determining the commercial viability of mining at Mulgabbie North. The results could open pathways for early cash flow and flexible development options, critical in today’s competitive gold market.