Kairos Minerals has boosted its Mt York Gold Project resource estimate to 2.08 million ounces, marking a 50% increase in contained gold and setting the stage for an aggressive 2026 drilling and feasibility campaign.
- Updated resource totals 61.7Mt at 1.05 g/t Au for 2.08Moz
- Indicated resources now 66% of total, improving project confidence
- 2025 drilling at $13.40/oz discovery cost underpins growth
- Resource remains open at depth and along 4.2km strike
- 2026 drilling program of 50,000m underway with $35M cash backing
Resource Surge Positions Mt York Among Australia's Largest Undeveloped Gold Projects
Kairos Minerals Ltd (ASX:KAI) has delivered a substantial upgrade to its Mt York Gold Project in Western Australia's Pilbara, lifting the Mineral Resource Estimate (MRE) by 50% to 2.08 million ounces of gold contained within 61.7 million tonnes at 1.05 g/t. This leap from the 2023 resource of 1.38 million ounces is anchored by 27,000 metres of drilling completed during 2025, which not only expanded the resource but also enhanced confidence levels, with Indicated resources now comprising 66% of the total.
Managing Director Dr Peter Turner highlighted that Mt York has evolved into one of Australia's largest undeveloped gold projects, with the company gearing up for the largest drilling campaign in its history. "We plan to have four rigs turning at Mt York for most of the year," Turner said, emphasizing the focus on resource extension and infill drilling to underpin a Prefeasibility Study (PFS) targeted for completion by early 2027.
Resource Growth Driven by Infill and Extension Drilling at Attractive Discovery Cost
The 2026 MRE update incorporates 128 new drill holes, predominantly targeting extensions at depth and along strike to the northwest. The resource now optimises within a single pit shell extending over 4,200 metres in strike and up to 350 metres deep, with pit optimisation work indicating the deposit remains open at depth beyond current drilling. Notably, the discovery cost for the 700,000-ounce resource increase was a modest A$13.40 per ounce, underscoring efficient capital deployment.
The increase in Indicated resources, from 690,000 ounces to 1.38 million ounces, reflects successful infill drilling converting previously Inferred material. The resource grade also nudged up 5% due to denser drilling and recognition of continuous higher-grade zones, improving the project's economic outlook.
These developments follow Kairos’s recent final drill results that confirmed robust mineralisation supporting the resource upgrade and the ambitious 2026 drilling program.
Strong Metallurgical Profile and Mining Assumptions Support Open Pit Economics
Metallurgical test work from Independent Metallurgical Operations and GR Engineering Services indicates gold recoveries averaging around 91%, with conservative assumptions of 88% recovery used in scoping studies. The gold mineralisation is non-refractory and amenable to a conventional carbon-in-leach (CIL) processing route following crushing and milling.
The MRE is reported within an optimised pit shell based on a gold price of A$5,500 per ounce, which is a 22% discount to the recent six-month volume-weighted average price, reflecting prudent economic assumptions. Mining factors assume standard open pit methods with no dilution or ore loss factored into the resource estimate, and pit slopes of 42.5 degrees derived from scoping study data.
Resource Remains Open and Poised for Further Growth in 2026
Despite the significant resource increase, Kairos emphasises the deposit remains open at depth and along strike, with deeper drilling planned to test mineralisation below the current pit shell. For example, drill hole 25MYDD031 intersected 53 metres at 1.45 g/t gold from 212 metres, including a 10-metre interval at 2.95 g/t, illustrating the potential for high-grade zones at depth.
In addition to Mt York, Kairos is progressing exploration at satellite targets including Carlindi, Gilt Dragon, Lucky 13, Zakanaka, and Hazelby, as well as advancing its Roe Hills Project in the Eastern Goldfields. The company’s cash balance of A$35 million, bolstered by recent payments from Pilbara Minerals, provides a solid foundation to fund the 50,000-metre drilling program and feasibility studies through 2026.
Kairos’s recent cash boost from Pilbara Minerals underpins this aggressive exploration and development push, positioning the company well ahead of its Final Investment Decision.
Regulatory and Development Milestones on the Horizon
Alongside drilling and resource expansion, Kairos plans to submit regulatory approvals to enable construction and mining activities. The company has also signed a mining agreement with the Nyamal Aboriginal Corporation, securing a framework to respect cultural heritage and facilitate project advancement.
The PFS is expected to be completed by the first quarter of 2027, incorporating updated resource models, metallurgical data, and mine planning. Meanwhile, the company is expanding its development and mining teams in preparation for potential rapid project progression.
Bottom Line?
Kairos’s resource upgrade and robust cash position set Mt York on a fast track, but the untested deeper mineralisation and regulatory steps remain key hurdles.
Questions in the middle?
- How much further can the Mt York resource grow with ongoing 2026 drilling?
- Will metallurgical recoveries improve beyond current conservative estimates?
- How swiftly can Kairos navigate regulatory approvals to meet its development timeline?