Great Boulder Resources accelerated drilling at its Side Well Gold Project, delivering a jaw-dropping 1.93m intercept grading 574g/t gold, including an extraordinary 0.25m at 4,434g/t, while maintaining a solid $12 million cash position.
- Over 38,000m drilled across Side Well in March quarter
- Deep Mulga Bill hole hits 0.25m at 4,434g/t gold
- New high-grade zones found 90m west of Mulga Bill resource
- Strong cash balance of nearly $12m with no debt
- Exploration spend of $2.6m focused on resource growth
Spectacular Deep High-Grade Gold at Mulga Bill
Great Boulder Resources (ASX:GBR) stunned the market with a phenomenal deep gold intersection at its flagship Side Well Gold Project near Meekatharra, Western Australia. A diamond drill hole punched nearly half a kilometre below surface, returning 1.93 metres at an eye-watering 574.39 grams per tonne (g/t) gold, including a narrow but incredibly rich 0.25m interval assaying 4,434g/t. This intercept lies about 200 metres beneath previous drilling, highlighting the potential for high-grade shoots at depth beneath the Mulga Bill deposit.
These results, first flagged in March, underscore the enormous upside still to be unlocked in the Mulga Bill – Eaglehawk corridor, a 3-kilometre gold system that remains open at depth and along strike. The same deep drilling campaign also uncovered two new mineralised zones 90 metres west of the current Mulga Bill resource, revealing fresh targets in relatively untested ground. Follow-up reverse circulation (RC) drilling is planned to test these promising shallow intersections.
Robust Drilling Activity Across Multiple Targets
During the March quarter, Great Boulder completed over 38,000 metres of drilling across its Side Well tenure, deploying three rigs focused on resource expansion and deeper targets. This included 214 aircore (AC) holes totalling 23,357 metres, 75 RC holes for 13,170 metres, and four diamond holes for 1,564 metres. The bulk of the activity remained concentrated on the Mulga Bill and Eaglehawk deposits, with 13 RC and two diamond holes at Mulga Bill, and 20 RC plus two diamond holes at Eaglehawk.
At Eaglehawk, drilling aimed to infill and extend the resource, with eight holes testing the gap between Mulga Bill and Eaglehawk to assess mineralisation continuity. Assay results for these holes are pending, which could provide further clarity on the system's scale. Meanwhile, diamond drilling at Ironbark continued to yield significant gold intercepts, including a 15.32m hit grading 8.85g/t gold, reinforcing the deposit's high-grade potential at depth.
Operational Challenges and Cost Pressures
Despite a regional fuel shortage triggered by the Strait of Hormuz closure in March, Great Boulder reported minimal disruption to field operations. However, diesel price hikes are expected to add approximately $4 to $5 per metre to RC drilling costs, with less impact on AC and diamond drilling due to lower fuel consumption. The company is addressing assay bottlenecks by establishing core cutting facilities in Meekatharra to accelerate sample processing and reduce freight expenses, an operational upgrade that should improve turnaround times in coming quarters.
Strong Financial Position Supports Aggressive Exploration
Great Boulder ended March with a healthy cash balance of $11.99 million and zero debt, underpinning its aggressive exploration strategy. The company spent $2.6 million on exploration activities during the quarter, including drilling, assays, native title, and consulting fees. It also received $3.47 million from the exercise of unlisted options, bolstering its funding runway. With estimated quarterly expenditure around $3.2 million, the company has roughly 3.75 quarters of funding available, providing a solid buffer as it advances its drilling programs.
The Side Well project now boasts a Mineral Resource of approximately 1.02 million ounces of gold at 2.0g/t, split between Indicated and Inferred categories across multiple deposits including Mulga Bill, Eaglehawk, Ironbark, and others. This resource milestone was achieved after a record drilling campaign in the previous quarter, and the latest deep high-grade hits suggest further growth potential. The company’s multi-rig approach and expanding resource base position it well to capitalise on the Murchison gold field’s prolific geology.
These developments build on Great Boulder’s earlier news of 4434g/t gold intercept at 430m depth and reinforce the company’s narrative of unlocking high-grade gold at depth beyond the established resource envelope.
Tenement Portfolio and Corporate Governance
Great Boulder holds a substantial portfolio of granted and pending tenements around Meekatharra, with ownership stakes ranging from 75% to 100% across the Side Well project and other exploration assets like Polelle, Gnaweeda, and Wellington. Joint ventures with Wanbanna Pty Ltd and Zebina Minerals Pty Ltd cover several tenements, ensuring collaborative exploration efforts. The company maintains a lean board and management team, with exploration led by Managing Director Andrew Paterson, who also serves as the Competent Person for the drilling results.
Corporate governance remains tight, with related party payments of approximately $159,000 during the quarter mainly for director fees and project management. No mining production or development activities took place in the period, consistent with the company’s focus on resource definition and growth.
Bottom Line?
Great Boulder’s extraordinary deep high-grade gold intersections and solid cash position set the stage for potential resource upgrades, but assay delays and rising drilling costs warrant close monitoring.
Questions in the middle?
- How will pending assay results from Eaglehawk influence the overall resource model?
- What impact will rising diesel prices have on drilling efficiency and project economics?
- When will the new core cutting facility be operational, and how much will it improve assay turnaround?