OzAurum Resources has reinforced the potential of its Mulgabbie North Paleochannel Project with robust shallow, high-grade gold results from 112 reverse circulation drill holes, while progressing the commissioning of its heap leach plant to support a scalable, low-capex gold operation.
- 112 RC holes confirm near-surface high-grade gold mineralisation
- Mineralisation open along >4km paleochannel trend
- Heap leach plant refurbishment largely complete
- Feasibility study and mine planning supported by drilling
- Potential for resource growth beyond existing ~260koz
Strong Shallow Gold Intercepts Extend Mulgabbie North Resource
OzAurum Resources (ASX:OZM) has delivered another batch of compelling shallow gold intercepts at its Mulgabbie North Paleochannel Project in Western Australia's Eastern Goldfields. The latest 112 reverse circulation (RC) holes, totaling 4,032 metres, confirm near-surface, high-grade mineralisation within a paleochannel system that remains open along a strike exceeding 4 kilometres. This adds to the existing Mineral Resource of approximately 260,000 ounces and bolsters the project's potential for scalable gold production.
Standout intercepts include 6 metres at 6.31 g/t gold from 25 metres, featuring a 1-metre spike of 32.08 g/t, and multiple other zones with grades above 3 g/t over several metres. These results are part of a larger 18,000-metre grade control drilling program designed to underpin ongoing feasibility studies and mine planning. The consistent shallow high-grade nature of the mineralisation reinforces confidence in expanding the resource base and optimising future mining scenarios.
The drilling results build on earlier findings reported in April, where initial shallow gold continuity was established along the same paleochannel corridor, supporting the view of a coherent mineralised system with significant growth potential shallow gold intercepts. Geological interpretation confirms a northwest paleo flow direction with a 30-metre height drop over the 4-kilometre strike, indicative of an ancient river system transporting gold and providing a robust exploration model for further resource expansion.
Heap Leach Plant Refurbishment Nears Completion
Parallel to drilling, OzAurum is advancing the refurbishment and commissioning of a heap leach processing plant critical to unlocking the project's economics. Major engineering works are substantially complete, with assembly and dry commissioning of plant modules set to commence imminently. The plant refurbishment, led by Polaris Engineering, includes upgrades to the agglomerator drum, conveyors, lime and cement silos, and cyanide mixing tank.
Notably, the agglomerator drum has been redesigned for adjustable angles, enhancing operational flexibility to process varying ore types, a modification that has extended the refurbishment timeline. Additionally, upgrades to meet current Australian safety standards have been incorporated, reflecting evolving regulatory requirements. The plant will be assembled and commissioned in Perth before shipment to the Mulgabbie site, following a low-capital expenditure development strategy aimed at reducing execution risk.
These developments align with OzAurum's earlier reports of near-complete heap leach plant refurbishment and strong heap leach test results demonstrating up to 90% gold recovery, underscoring the project's potential for low-cost, scalable production heap leach plant refurbishment.
Geological Insights and District-Scale Upside
The Mulgabbie North Paleochannel hosts primary gold mineralisation remobilised through erosion, situated west of the Relief Shear within a major trans-lithospheric structure. The paleochannel system's gold is analogous to other Eastern Goldfields deposits, such as the Kanowna paleochannel operations, which historically produced around 70,000 ounces via open pit and heap leach with recoveries exceeding 85%. This provides a credible analogue for Mulgabbie's processing route and economic potential.
Importantly, paleochannel success stories in the region have often preceded significant primary gold discoveries, such as the ~8 million ounce Kanowna Belle deposit, highlighting the broader district-scale exploration upside. OzAurum's interpretation of multiple potential gold sources, including one southwest of the current resource, enhances targeting confidence for future drilling campaigns.
The ongoing drilling and feasibility work at Mulgabbie North complements a broader strategic push, including diamond drilling to support metallurgical and geotechnical studies, as well as environmental approvals secured earlier this year, all contributing to a disciplined, low-capex pathway towards production major drilling campaign.
Bottom Line?
While strong drilling results and plant progress de-risk Mulgabbie North, timelines remain sensitive to refurbishment completion and further resource definition.
Questions in the middle?
- How will upcoming drilling batches refine the mine plan and resource estimates?
- What is the expected timeline for full heap leach plant commissioning and first production?
- Could broader district exploration unlock new primary gold sources beyond the paleochannel?