Monument Gold Project’s Resource Expansion Raises Questions on Future Development Risks

Significant Step-Out Drilling Success

Verity Resources Limited (ASX:VRL) has announced a major breakthrough at its 100%-owned Monument Gold Project in Western Australia. Recent step-out drilling has extended the confirmed gold mineralisation at the Korong and Waihi deposits by more than one kilometre beyond previous resource boundaries. This expansion includes both along strike and at depth, highlighting the substantial growth potential of these deposits.

At Korong, the mineralised strike has increased from approximately 900 metres within the existing resource envelope to over 1,400 metres, representing a roughly 50% extension. Meanwhile, Waihi’s mineralised strike has more than tripled, expanding from around 150 metres to over 800 metres. Importantly, mineralisation remains open in both deposits, suggesting further upside potential.

High-Grade Intercepts and Near-Surface Potential

The drilling results include several high-grade gold intercepts that reinforce the quality of the mineralisation. Notable intercepts at Waihi include 3.2 metres at 5.27 grams per tonne gold, including a high-grade 0.8 metre section at 21.3 grams per tonne, located approximately 200 metres outside the current resource envelope. At Korong, shallow intercepts such as 2.9 metres at 2.51 grams per tonne from just 8 metres depth indicate that gold grades are maintained near surface, which bodes well for potential open-pit mining scenarios.

Diamond drilling has confirmed mineralisation extending to depths of nearly 320 metres at Korong and 179 metres at Waihi, well beyond the current resource limits. These depth extensions remain open, underscoring the continuity and scale of the mineralised system.

Geological Context and Resource Upgrade Prospects

The Korong and Waihi deposits are hosted within Archaean banded iron formation (BIF) and exhibit replacement-style mineralisation, a well-understood and continuous ore system that reduces geological risk. This style of mineralisation is similar to that found at the nearby 1.4 million ounce Westralia gold deposit, suggesting strong regional prospectivity.

Verity Resources is currently preparing an updated Mineral Resource Estimate (MRE) incorporating all drilling results from the 2025–2026 campaign. This update, expected in April 2026, aims to upgrade portions of the resource classification from JORC Inferred to Indicated, which would enhance confidence in the resource and support further technical studies.

Broader Exploration Upside

Only about 10% of the prospective 20-kilometre BIF corridor at Monument has been drilled in detail to date. Verity has identified approximately 60 additional priority targets along this corridor, indicating significant exploration upside beyond Korong and Waihi. Ongoing drilling and technical work across the project area are expected to further define and expand the resource base.

Director Patrick Volpe highlighted the transformative nature of the drilling results, noting that the current 154,000 ounce resource captures only a fraction of the total mineralised system. The company’s systematic approach to resource expansion and the favourable geological setting position Monument for substantial growth.