GoldArc Resources has locked in A$7.2 million through a placement to fast-track exploration along the largely untested 9km Ursus Fault corridor at Leonora North, aiming to expand its 152,000-ounce resource and advance production plans.
- A$7.2 million placement at A$0.07 per share
- BML Ventures commits A$1.5 million including set-off
- Aggressive 12-month drilling program across Leonora North and South
- Focus on untested 9km Ursus Fault strike with strong soil anomalies
- Directors to subscribe subject to shareholder approval
Placement Raises A$7.2 Million to Fund Exploration
GoldArc Resources (ASX:GA8) has secured firm commitments to raise up to A$7.2 million through a placement of 102.9 million shares priced at A$0.07 each, marking a clear vote of confidence from sophisticated investors. The raise includes a notable A$1.5 million subscription from BML Ventures, with A$1 million of that set off against prior advances under their Profit Cash Advance Facility. This capital injection is earmarked for an accelerated drilling campaign targeting resource growth and new gold discoveries across GoldArc’s 100%-owned Leonora North and South projects in Western Australia.
The placement price represents discounts of 2.78% to the last closing price and up to 19.3% to the 10-day VWAP, reflecting a strategic pricing decision to attract strong investor participation. Directors have also committed to invest A$135,000, pending shareholder approval, underscoring management’s alignment with the company’s growth objectives.
Untapped Potential Along the Ursus Fault at Leonora North
GoldArc’s Leonora North project is the centerpiece of this funding push, boasting a combined JORC resource of 152,000 ounces at 1.7 g/t gold over approximately 3km of the Ursus Fault. Crucially, around 9km of this 12km fault corridor remains largely untested, offering a significant exploration upside. Systematic soil sampling has identified five gold anomalies (S1–S5), with the S4 anomaly standing out as stronger than the soil anomaly that initially led to the Mt Stirling discovery. This anomaly lies within the untested portion of the fault and is slated as a priority drill target in the upcoming reverse circulation (RC) drilling campaign.
The project’s proximity to Vault Minerals’ King of the Hills mill, just 5km away, provides an accessible toll-processing option that could accelerate commercialisation as resources expand. This strategic location enhances the value proposition of any new discoveries along the Ursus Fault corridor.
Comprehensive 12-Month Drilling and Exploration Program
The company’s exploration blueprint for the next 12 months is ambitious and multi-faceted. It includes RC drilling campaigns at Mt Stirling’s S1–S7 prospects starting in July 2026, targeting extensions of the existing resource and new mineralised zones. Subsequent programs will test the Yttria prospect in September and the Chert prospect in November, both located within the Leonora North tenure. Parallel to these, a Cosmopolitan RC program aims to extend the gold system at Leonora South, while extensive soil sampling campaigns across both Leonora North and South will generate new drill targets.
This aggressive approach follows GoldArc’s recent momentum, including the completion of partner-funded drilling and resource definition activities. The company’s strategy balances resource growth with advancing funded development pathways, such as the Mt Stirling mine plan with BML Ventures, targeting mining commencement in the second half of 2026. This integration of exploration and development efforts was highlighted in the company’s recent partner-funded drilling campaigns and aligns with ongoing work at Leonora South, where assay results from a major drilling campaign are expected soon.largest Leonora South drilling campaign
Pathway to Production and Cash Flow
GoldArc’s Managing Director Paul Stephen emphasised that the company’s focus is to leverage the district-scale potential of Leonora North, with the Ursus Fault corridor offering a “genuinely significant exploration corridor in one of the world’s best gold addresses.” The partnership with BML Ventures not only injects capital but also places Mt Stirling on a funded production pathway, meaning exploration dollars are building on a project already advancing towards cash flow.
Mine planning and metallurgical studies are progressing, aiming for a mining start in the third or fourth quarter of 2026. Meanwhile, GoldArc is advancing its maiden Mineral Resource Estimate at the Eclipse discovery and working with Mineral Mining Services to develop Leonora South deposits, targeting production in early 2027.
With a combined JORC Mineral Resource of approximately 200,000 ounces across its Leonora projects, GoldArc’s dual-track strategy of aggressive exploration alongside partner-funded development could unlock substantial value in this Tier-1 gold province.
Bottom Line?
GoldArc’s fresh capital raise fuels an ambitious exploration push along a largely untested gold corridor, setting the stage for potential resource expansion and a production timeline that hinges on upcoming drilling results.
Questions in the middle?
- Will drilling along the untested 9km Ursus Fault confirm significant new gold zones?
- How will assay results from Leonora South influence resource upgrades and development plans?
- What impact will shareholder approval of directors’ participation have on the placement’s momentum?