Paterson Resources Lifts Grace Gold Resource to 200,000 Ounces

Resource Expansion Nearly Triples Gold Inventory

Paterson Resources Limited (ASX:PSL) has significantly upgraded the inferred Mineral Resource Estimate (MRE) at its Grace Gold Project in Western Australia's Paterson Province, boosting contained gold from 69,000 ounces to 200,000 ounces. The updated MRE encompasses 3.46 million tonnes grading 1.79 g/t Au, a marked improvement over the previous 1.59 million tonnes at 1.35 g/t Au. This leap in resource size underscores the success of recent drilling campaigns combined with historical data, revealing a more substantial and higher-grade gold system than previously recognised.

Shallow, High-Grade Mineralisation Supports Open Cut Mining

The resource update highlights a roughly 2-kilometre strike length of mineralisation constrained within an optimised pit shell, reinforcing the potential for open cut mining operations. Notably, the fresh rock zone exhibits grades of 2.12 g/t Au for approximately 69,000 ounces, indicating strong depth potential beyond the oxide and transitional zones. The shallow nature of the mineralisation combined with encouraging grades bodes well for mining economics and operational flexibility.

Metallurgical Testwork Indicates High Gold Recoveries

Preliminary metallurgical testing conducted by Paterson suggests that the gold mineralisation is amenable to conventional processing methods, with indicative recoveries reaching up to 96.7%. While these early results are promising, the company plans further metallurgical studies to confirm recovery rates across the full oxidation profile. The combination of high recoveries and shallow mineralisation strengthens the project's economic prospects.

Next Steps Focus on Resource Upgrade and Economic Assessment

Paterson's board, led by Executive Director Matt Bull, is prioritising a Phase II drilling campaign aimed at infill and extensional drilling to upgrade the resource classification from Inferred to Indicated and test along-strike and down-dip mineralisation extensions. The company is also advancing a Scoping Study leveraging the updated MRE as a foundation for economic evaluation, alongside environmental, geotechnical, and infrastructure assessments to support future mine planning.

Mr Bull emphasised the transformational nature of this resource milestone and the significant exploration upside that remains at Grace, which lies just 25 kilometres from the world-class Telfer gold-copper mine. The project’s location within the prolific Paterson Province adds strategic value, with several large miners actively exploring nearby.

Confidence Still Limited by Inferred Classification and Assumptions

Despite the impressive resource growth, the entire MRE remains classified as Inferred under the JORC Code, reflecting current drill spacing, variable data quality, and assumptions such as bulk density values assigned by oxidation state rather than measured on site. The pit optimisation used a gold price assumption of A$7,000/oz and a metallurgical recovery estimate of 93%, which may evolve with further studies. Investors should note that no detailed mine design, dilution, or recovery factors have yet been applied, and the project remains at an early stage of economic assessment.

Paterson's resource update follows a series of encouraging shallow gold intercepts reported earlier this year, which laid the groundwork for this MRE revision and the upcoming Phase II drilling program. The company’s methodical approach to building confidence in the deposit and testing extensions will be critical to converting this resource into a mineable reserve.