Heap Leach Success at Mulgabbie North Raises Stakes on Near-Term Production Risks
OzAurum Resources reports exceptional heap leach test results at Mulgabbie North, confirming rapid gold recovery and advancing a low-capex development strategy with near-complete plant refurbishment.
- Up to 90% gold recovery from shallow oxide ore
- Rapid leach kinetics enabling early gold production
- Heap leach plant refurbishment nearly 90% complete
- Low cyanide consumption indicating cost-efficient processing
- Scalable growth potential along 8km mineralised corridor
Exceptional Metallurgical Results
OzAurum Resources Limited (ASX:OZM) has delivered a compelling update on its Mulgabbie North Gold Project in Western Australia, reporting outstanding heap leach metallurgical test results. The highlight is a remarkable 90% gold recovery from shallow oxide ore in the James Stage 1 Open Pit, achieved through column test work. This performance not only confirms the ore’s amenability to heap leaching but also supports a development approach focused on low capital expenditure.
Rapid leach kinetics were demonstrated, with over 60% of gold recovered within just seven days and more than 80% within 14 days. Such swift recovery rates suggest the potential for early revenue generation, a critical factor for project economics and investor confidence.
Advancing Towards Production
The heap leach plant refurbishment, managed by Polaris Engineering Services, is approximately 90% complete. Key equipment including conveyors, cyanide tanks, and carbon columns have been secured and are undergoing necessary modifications. This progress significantly de-risks the transition from exploration to production, positioning OzAurum to capitalise on the metallurgical results.
Low cyanide consumption of around 0.45 kilograms per tonne further underscores the cost-efficiency of the processing method, potentially translating into strong operating margins once production commences.
Robust Geological Setting and Growth Potential
The Mulgabbie North project lies along an 8-kilometre Relief Shear corridor, a significant mineralised structure hosting multiple gold deposits. The company’s geological analysis reveals consistent gold mineralisation across varying oxidation profiles, supported by ongoing column testwork on deeper saprolite and transition ores showing promising recoveries above 75%.
OzAurum’s exploration strategy includes further drilling to extend mineralisation at depth and along strike, with the potential for a Stage 2 expansion. The proximity to established gold operations at Carosue Dam adds regional context and validates the prospectivity of the area.
Looking Ahead
CEO Andrew Pumphrey emphasised the significance of these results, highlighting the rapid gold recovery and advancing plant refurbishment as key milestones. While the second column test results remain preliminary, the overall data set strengthens the case for a near-term, low-cost production pathway.
Investors and analysts will be watching closely as OzAurum moves towards commissioning and production, with the potential to unlock value from a sizeable mineral resource estimated at over 11 million tonnes grading 0.7 grams per tonne gold.
Bottom Line?
OzAurum’s robust heap leach results and near-complete plant refurbishment set the stage for a potentially transformative low-cost gold operation at Mulgabbie North.
Questions in the middle?
- When will final commissioning and first gold production commence?
- How will the preliminary results from deeper ore zones impact overall project economics?
- What are the capital expenditure and operating cost estimates for Stage 1 and potential Stage 2 expansions?
