Adelong Gold Confirms High-Grade Gold-Antimony at Lauriston, Completes Challenger Sale

• Lauriston drilling confirms Fosterville-style gold-antimony system
• Emerging antimony discovery at Yankee-Trojan prospect
• Apollo soil sampling extends gold anomalism southwards
• Sale of Challenger Mines stake completed with 10 million GDM shares received
• Dispute ongoing over $1.17 million tax indemnity claim

Lauriston Drilling Validates High-Grade Gold and Antimony Potential

Adelong Gold Limited (ASX:ADG) is making solid progress at its Lauriston Gold and Antimony Project in Victoria, with diamond drilling confirming high-grade gold mineralisation consistent with Fosterville-style epizonal systems. The first six holes at the Comet prospect intersected the Comet Shear zone, revealing well-developed arsenic halos and mineral assemblages including quartz, arsenopyrite, pyrite, and trace stibnite. Highlight assay results include a standout 9.8 metres at 2.76 g/t gold from 90.9 metres in drillhole AC2502, featuring narrow intervals with grades up to 27.1 g/t gold. These results support the geological model of a structurally controlled, high-grade gold-antimony system analogous to the nearby Fosterville mine.

Drilling has also advanced at the nearby Yankee-Trojan prospect, approximately 3 kilometres north along strike, where assays from the first three holes confirm an emerging antimony discovery. Intercepts such as 1.9 metres at 0.48% antimony and 0.88 g/t gold (AY2608) and 0.7 metres at 1.46% antimony (AY2605) highlight a mineralised corridor with strong antimony anomalism extending over 2.2 kilometres. The program remains underway with a twelfth hole in progress and additional step-outs planned before the rig relocates to the Apollo project for winter drilling. Pending assay results for other Yankee-Trojan holes are expected in the coming weeks, with all samples submitted for photon assay to detect coarse gold typical of epizonal deposits, a technique that has proven effective in nearby goldfields. This drilling campaign builds on the company’s earlier high-grade gold confirmed at Comet and represents a critical test of the 4.5-kilometre mineralised corridor.

Apollo Soil Sampling Extends Gold Anomalies and Sets Stage for Drilling

At the Apollo Gold and Antimony Project, a broad-spaced auger soil sampling program has delineated continuous gold-in-soil anomalism south of historic workings at Meade’s and Woolfe’s/Falk’s. The results extend known anomalous zones by approximately 200 metres beyond previous boundaries, identifying new priority targets for follow-up exploration. Historical drilling in the area includes intervals such as 10.9 metres at 3.26 g/t gold, providing context for the soil geochemistry findings. The company plans to commence a drilling program at Apollo in the June quarter, transferring the rig from Lauriston to test these newly defined targets. This systematic approach to exploration is part of Adelong’s strategy to build a pipeline of prospects with bulk-tonnage potential in Victoria’s Melbourne Zone.

Challenger Gold Project Sale Finalised Amid Tax Dispute

Adelong has completed the sale of its remaining 49% interest in Challenger Mines Pty Ltd, owner of the Challenger Gold Project in New South Wales, to Great Divide Mining Limited (ASX:GDM). As consideration, Adelong received 10 million fully paid GDM shares, representing a 16.61% stake at completion, subject to voluntary escrow arrangements. The transaction also includes a 1% net smelter return royalty on future gold production from Challenger, capped at 125,000 ounces. This divestment marks a strategic exit from the joint venture, allowing Adelong to sharpen its focus on its Victorian assets.

However, the company disclosed receipt of a $1.17 million tax indemnity claim related to GST reporting issues at Challenger Mines from 2021 to 2025. Adelong attributes the claim to alleged fraudulent activities by former accountants predating the current management and has stated its intention to dispute the claim vigorously. The dispute remains unresolved and could have financial implications depending on the outcome, adding a layer of risk to the company’s position. This situation underscores the challenges of legacy liabilities in mining joint ventures and the importance of due diligence in corporate transactions, as detailed in the earlier tax claim amid fraud allegations.

Financial Position and Funding Outlook

As at 31 March 2026, Adelong held cash reserves of $1.008 million alongside its 10 million shares in Great Divide Mining, valued at approximately $4.05 million but currently escrowed and not saleable. The company’s expenditure during the quarter included $704,000 on exploration and evaluation, reflecting its active drilling and sampling campaigns. Despite the relatively modest cash balance, the board considers the current funding position, combined with equity holdings and access to capital markets, sufficient to support ongoing exploration activities. The company estimates about 1.18 quarters of funding based on current outgoings but remains confident in its ability to raise additional capital if required.

Payments to related parties during the quarter amounted to $119,000, primarily director fees and arm’s-length reimbursements, consistent with governance standards. The company’s exploration licences remain unchanged, holding 100% interests in the Lauriston and Apollo projects, while maintaining a lithium portfolio in Brazil through its subsidiary.

Bottom Line?

Adelong’s Lauriston drilling confirms promising gold-antimony mineralisation, but the pending assays and unresolved Challenger tax claim inject caution into near-term prospects.

Questions in the middle?

• Will upcoming Yankee-Trojan assay results confirm the scale of the antimony discovery?
• How will the disputed $1.17 million tax claim affect Adelong’s financial flexibility and investor sentiment?
• Can the Apollo drilling program unlock bulk-tonnage potential to complement Lauriston’s high-grade targets?