Pilbara Gold (ASX: PGL) reported a 50% jump in its Mt York gold resource to 2.08 million ounces following 27,000m of drilling in 2025, backed by a $30.5 million cash pile and a 50,000m drilling campaign underway in 2026.
- Mt York gold resource increases 50% to 2.08Moz at 1.05 g/t Au
- 27,000m drilling in 2025 delivered resource growth at $13.40/oz discovery cost
- 50,000m drilling program underway targeting extensions and infill
- Mining lease granted for Mt York, reducing development risk
- Received second $10M payment from PLS Group under tenement sale
Mt York Resource Surges 50% After Extensive Drilling
Pilbara Gold Limited (ASX:PGL) has boosted the Mineral Resource Estimate (MRE) for its flagship Mt York Gold Project in Western Australia’s Pilbara region to 2.08 million ounces of gold, a 50% increase from the previous 1.38 million ounces. This leap follows a substantial 27,000-metre drilling campaign completed in 2025 that not only extended mineralisation but also improved confidence in the resource base at a discovery cost of just A$13.40 per ounce.
The updated MRE, announced in April 2026, now stands at 61.7 million tonnes grading 1.05 g/t gold. Notably, the Indicated category ounces doubled to 1.38 million ounces, reflecting successful infill drilling that converted significant Inferred resources to a higher confidence level. The resource remains open at depth and along strike, with mineralisation confirmed over a strike length of 4.2 kilometres hosted within banded iron formation (BIF).
Robust Economics Underpin Resource Update
The resource update is based on an optimised pit shell using a conservative gold price of A$5,500 per ounce, approximately 22% below the recent six-month volume-weighted average price. The chosen 0.4 g/t Au cut-off grade aligns with industry standards for open-pit projects with reasonable prospects for economic extraction. Higher cut-off grades highlight a resource subset with stronger grades, such as 26 million tonnes at 1.57 g/t Au containing 1.31 million ounces above a 1.0 g/t cut-off.
Importantly, optimisation work suggests the current pit shell bottoms out at the deepest drilled levels, indicating strong potential for resource growth as deeper drilling continues in 2026. Encouraging drill results from late 2025 include wide, consistent mineralisation at depth, such as a standout 53 metres at 1.45 g/t Au including 10 metres at 2.95 g/t Au from the so-called ‘Monster’ zone below Main Hill.
Aggressive 50,000m Drilling Program Underway
Building on last year’s success, Pilbara Gold has launched a 50,000-metre drilling program in 2026 aimed at resource extensions, infill drilling to upgrade confidence, and exploration targeting new zones. The 2025 drilling also opened up the previously untested Main Hill Extension, where results have confirmed continuous high-grade mineralisation, including intercepts like 16 metres at 2.60 g/t Au and 9 metres at 3.92 g/t Au.
This drilling campaign is a critical step towards completing a Prefeasibility Study (PFS) and advancing the project closer to a Final Investment Decision (FID), with metallurgical, geotechnical, and mine scheduling data being collected alongside resource expansion.
Mining Lease Granted and Corporate Moves Boost Development Prospects
February saw Pilbara Gold secure a mining lease (M45/1306) over the Mt York project, a significant milestone that reduces development risk by granting rights to mine, process, and build infrastructure subject to further approvals. This lease covers the core 1.4 million ounce resource area and marks progress towards eventual production.
On the corporate front, the company completed a 1-for-15 share consolidation and rebranded from Kairos Minerals to Pilbara Gold Limited, with the ASX ticker changing to PGL. These moves aim to align the company’s identity with its flagship asset and streamline its capital structure.
Cash Position Strengthened by $10 Million Payment from PLS Group
Financially, Pilbara Gold ended the quarter with a healthy cash balance of $30.5 million, up from $25 million at the start, bolstered by a second $10 million payment from PLS Group Ltd under a 2024 Tenement Sale Agreement. This deal involved the sale of six prospecting licences and an overlying mining lease application, with Pilbara Gold retaining a 2% gross revenue royalty on any minerals produced from the leased area.
The strong cash position supports the ongoing drilling program and feasibility work, positioning Pilbara Gold to capitalise on the growing resource base and advance Mt York towards development.
Bottom Line?
Pilbara Gold’s expanded resource and secured mining lease set the stage for a pivotal year of drilling and feasibility work, but the project’s economics will hinge on upcoming drilling results and gold price movements.
Questions in the middle?
- How will deeper drilling below the current pit shell impact resource size and grade?
- What timeline is Pilbara Gold targeting for completion of the Prefeasibility Study and Final Investment Decision?
- How might the 2% royalty from PLS affect project economics if mineral production expands?