Godolphin Resources Secures A$2.5M to Accelerate Lewis Ponds Drilling and Development

Placement Raises Funds for Resource Expansion

Godolphin Resources (ASX:GRL) has secured A$2.5 million through a placement of 147.1 million shares priced at $0.017 each, representing an 18.3% discount to the recent VWAP. The capital raise, strongly backed by both new and existing sophisticated investors, is earmarked for advancing exploration and development at the company’s 100%-owned Lewis Ponds project in New South Wales.

The proceeds will primarily fund a 2,500-metre diamond drilling campaign targeting extensions to known mineralisation and priority exploration targets, alongside metallurgical test work designed to optimise processing pathways. This drilling program aims to materially expand the existing JORC 2012 resource, which currently stands at 17.52 million tonnes grading 1.12g/t gold, 53.34g/t silver, and significant base metals including zinc, lead, and copper.

Lewis Ponds Project Economics and Development Pathway

Lewis Ponds is shaping up as a robust development opportunity. The recent Scoping Study, released in February, outlined a combined open pit and underground mine with an initial 12-year life at 1.25Mtpa throughput. Under a conservative base case gold price of US$3,700/oz, the project delivers a pre-tax NPV7.5% of A$481 million and a 24% IRR, with free cash flow forecast at A$1.1 billion. An upside scenario based on spot prices pushes the NPV to A$1.1 billion and IRR to 40%, doubling free cash flow projections.

This strong economic foundation follows a significant resource upgrade announced in December 2025, which increased total tonnage by 78%, underpinning the project's scale and potential. The company’s current drilling, including recent intersections such as a 25.1-metre sulphide zone 350 metres southeast of the deposit, continues to validate exploration targets and resource growth potential. These developments build on the momentum from the Lewis Ponds Scoping Study Unveils AUD$481M NPV and the Lewis Ponds Drilling Update(2924-03084445-6A1322992) announcements.

Technical Work to Unlock Additional Value

Alongside drilling, metallurgical test work is a key focus to refine processing options for the polymetallic orebody. Previous metallurgical results have shown promising recoveries, and recent test work incorporating gravity recoverable gold circuits has boosted gold recovery by 21%, enhancing project economics and processing efficiency.

Managing Director Jeneta Owens highlighted that the strong placement support reflects growing confidence in Lewis Ponds’ quality and value potential. She emphasised the company’s commitment to progressing value creation through targeted drilling and ongoing technical advancements, positioning Lewis Ponds for the next development phase.

Placement Details and Market Impact

The placement will settle on 5 May 2026, with shares issued under ASX Listing Rules 7.1 and 7.1A. Taylor Collison acted as lead manager, receiving fees and 7.5 million unlisted options exercisable at $0.034 over 24 months. The discounted issue price reflects a common practice to incentivise investor participation in development-stage mining projects.

Godolphin’s strategic focus on Lewis Ponds aligns with its broader portfolio in the Lachlan Fold Belt, including rare earth and copper-gold projects, reinforcing its position in a world-class mineral province. The company’s next milestones will hinge on drilling results and metallurgical outcomes that could further de-risk and upscale the project’s development trajectory.