Australian Gold and Copper Targets Double Depth at Achilles with New Drilling

Drilling Aims to Double Achilles Resource Depth

Australian Gold and Copper Ltd (ASX:AGC) has kicked off a diamond drilling campaign at its Achilles deposit in South Cobar, New South Wales, targeting a significant extension of known mineralisation from surface to more than 550 metres down dip. This program aims to push well beyond the current Mineral Resource Estimate (MRE) depth of 250 metres, effectively doubling the vertical extent of the high-grade zone.

The initial four holes are spaced at 100-metre intervals, stepping out eastward from hole A3RCD089; the deepest hole drilled to date in the northern zone; which returned an impressive 11 metres at 424 grams per tonne (g/t) silver equivalent (AgEq) from 305 metres, including a high-grade 3-metre interval at 1,453 g/t AgEq from 306 metres. This step out drilling is designed to test mineralisation over 200 metres below that deepest hole, with the potential to materially grow the resource base.

Recent Assays Confirm Thick High-Grade Intervals and New Mineralised Horizon

Assay results from three prior diamond holes (A3RCD092-094) drilled late last year have been released, reinforcing the continuity and grade of the northern high-grade zone. Notably, hole A3RCD093 returned 20.8 metres at 99 g/t AgEq from 209 metres, including 7 metres at 190 g/t AgEq from 223 metres. This hole also intercepted a previously unrecognised 1.7-metre-wide semi-massive sulphide interval approximately 70 metres stratigraphically above the main zone, indicating a new upper mineralised horizon that could represent a second discovery within the deposit.

The discovery of this upper zone, characterised by semi-massive sphalerite and galena with elevated lead, zinc, and silver grades, adds a compelling dimension to the exploration upside at Achilles. The mineralisation remains open to the north and at depth, with further drilling planned to delineate its extent.

Resource Base Underpinned by 38.5 Million Ounces Silver Equivalent

The Achilles deposit currently hosts an initial JORC-compliant Mineral Resource Estimate of 10.3 million tonnes at 116 g/t AgEq, equating to 38.5 million ounces silver equivalent. This includes both open pit and underground resources, with the highest grades concentrated in the northern zone. The ongoing drilling program is expected to feed into an updated resource estimate that could materially increase contained ounces.

AGC Managing Director Glen Diemar emphasised the company’s dual focus on rapidly expanding contained ounces and enhancing the quality and value of those ounces through thick, near-surface mineralisation and early-stage de-risking studies. He highlighted that the northern zone is the highest grade area within the deposit, with recent drilling delivering thick intervals such as 42 metres at 266 g/t AgEq near surface, and 20 metres at 809 g/t AgEq at depth. This aggressive step out strategy aligns with the company’s goal to more than double its South Cobar resource base by year-end.

Multiple Drilling Fronts at South Cobar

Alongside the Achilles diamond drilling, AGC is running concurrent programs including 8,000 metres of diamond drilling at the Browns-Evergreen deposit and an 8,000-metre aircore program at Tooronga targeting new discoveries. This multi-pronged approach is designed to rapidly grow the company’s resource inventory across its South Cobar tenure.

The company’s ongoing exploration momentum follows the release of the initial 38.5 million ounce silver-equivalent resource in December 2025, which was itself a culmination of over 10,000 metres of drilling since discovery. The current campaign builds on this foundation, testing deeper extensions and new mineralised horizons to unlock further value.

AGC’s systematic approach to exploration, including detailed geological logging, high-quality sampling, and metallurgical test work underpinning robust recoveries, strengthens confidence in the deposit’s potential. The silver equivalent calculations incorporate recoveries and prices for silver, gold, lead, and zinc, with copper excluded due to metallurgical considerations.

The company’s broader strategy to combine resource growth with quality and early-stage studies reflects a measured approach to maximising shareholder value in a market that rewards both scale and grade.

These developments follow the company’s earlier milestones, including the initial MRE announcement and deep hole results that first revealed the deposit’s high-grade potential at depth. The new drilling results and discovery of a second mineralised horizon add fresh impetus to AGC’s South Cobar exploration story, which is unfolding rapidly this year.

Investors will be watching the assay results from the current step out drilling and the timing of the updated Mineral Resource Estimate, which together will provide a clearer picture of how much further the Achilles deposit can grow vertically and laterally.