EMC Gold Reports CAD4.6M Cash, Plans Salave Drilling Campaign

Salave Project Drilling and Industrial Sand Exploration

EMC Gold (ASX:EM3) is gearing up for a drilling campaign at its flagship Salave Gold Project in northern Spain, aiming to sharpen geological understanding and explore industrial applications for inert sands produced during gold recovery. This dual-purpose drilling will inform both resource delineation and the potential commercial use of by-products, signalling a nuanced approach to project optimisation.

Despite facing a procedural ruling from the High Court of Asturias on a municipal urban plan amendment, the company emphasised that the decision neither challenges the technical, environmental, nor economic merits of Salave. The ruling, clarified in a recent update, provides legal certainty but leaves open the path for alternative development strategies. EMC Gold remains engaged with stakeholders to explore these options, underscoring a long-term commitment to the project’s potential. This follows the court’s confirmation of the municipal council’s procedural ruling, which was unrelated to project fundamentals and was detailed in the High Court Upholds Urban Plan Decision earlier this year.

Strategic Surrender of Ivan Well Tenement in Western Australia

In a move reflecting a shift in focus, EMC Gold surrendered its Ivan Well exploration tenement (E69/3818) in Western Australia. The 115km² tenement, located northeast of Wiluna, was acquired in mid-2022 but saw limited exploration activity. The formal surrender process will conclude following the submission of a final mineral exploration report this month, marking a tidy exit from this underutilised asset.

Financial Health and Corporate Governance

The company closed the quarter with a cash balance of CAD$4.625 million, down slightly from CAD$4.836 million at the end of December 2025. Operating cash outflows totalled CAD$424,000, primarily reflecting exploration, staff, and corporate costs. Notably, related party payments for director fees and salaries amounted to CAD$87,000 this quarter. EMC Gold also raised a modest CAD$170,000 from the exercise of options, helping to partially offset operating expenses.

EMC Gold released its 2025 Annual Report alongside the quarterly update, reaffirming the status of the Salave Mineral Resource. The project boasts a combined Measured and Indicated Resource of over 8 million tonnes grading above 4.4 g/t gold, containing more than 1.2 million ounces. The company confirmed no material changes to the assumptions underpinning this resource estimate, originally reported in March 2025 and supported by a full technical report from Bara Consulting. Historical exploration data suggests further mineralisation potential within the tenement portfolio, providing a foundation for the planned drilling campaign and future resource growth.

With exploration activity winding down in Western Australia and a clear focus on advancing Salave, EMC Gold’s strategy appears concentrated on unlocking value from its European flagship. The company’s approach to integrating by-product utilisation with resource expansion reflects an evolving mindset in mineral project development. Investors will be watching how the upcoming drilling results and ongoing regulatory navigation shape the project’s trajectory in the coming months.