OzAurum Resources has delivered another round of strong near-surface gold intercepts at its Mulgabbie North Paleochannel Project, reinforcing a low-cost heap leach development pathway and progressing site construction.
- High-grade gold confirmed at shallow depths
- 84 new RC holes add 3,024m to 18,000m program
- Mineralisation open along 4km paleochannel trend
- Site civil works for heap leach pad underway
- Results feed into feasibility and mine planning
Shallow Gold Grades Support Low-Cost Mining Model
OzAurum Resources Ltd (ASX:OZM) has reinforced the high-grade nature of its Mulgabbie North Paleochannel gold deposit with fresh reverse circulation (RC) drilling results. The latest batch of 84 holes, totalling 3,024 metres, confirmed multiple shallow intercepts exceeding 10 grams per tonne (g/t) gold, with standout hits including 8 metres at 4.89 g/t Au starting from just 25 metres depth, featuring individual metres grading above 16 and 21 g/t Au.
These results underpin the company’s strategy to develop Mulgabbie North as a low-capital, heap leach operation. The shallow depths of mineralisation, between 22 and 26 metres, are well suited to open-pit mining, which aligns with OzAurum’s plan for a simple, cost-effective extraction route.
Ongoing Drilling Program Bolsters Resource Confidence
The current drilling forms part of a larger 18,000-metre grade control program designed to refine mine scheduling and economic modelling. With mineralisation remaining open along a paleochannel trend exceeding 4 kilometres, there is significant potential to grow the existing Mineral Resource of approximately 260,000 ounces.
Geological interpretation confirms a coherent, northwest-flowing ancient river system with a 30-metre elevation drop, supporting predictable mineralisation continuity. The source of gold has been traced to at least one primary deposit southwest of the resource, enhancing confidence in future drill targeting and resource expansion.
Heap Leach Development Progressing Onsite
Complementing the drilling, OzAurum has commenced civil works for the heap leach pad and agglomeration plant foundations, marking a tangible transition from study to construction. This progress aligns with ongoing metallurgical testwork that supports the heap leach pathway, a proven processing method for paleochannel-style gold deposits in Western Australia's Eastern Goldfields.
The nearby Kanowna paleochannel operation serves as a compelling analogue, having produced around 70,000 ounces via open pit and heap leach with recoveries exceeding 85%. Notably, Kanowna’s paleochannel discovery preceded the ~8 million ounce Kanowna Belle primary gold deposit, highlighting the district-scale potential of paleochannel exploration successes.
Resource Metrics and Next Steps
The Mulgabbie North Mineral Resource stands at 11.6 million tonnes grading 0.70 g/t Au for about 260,000 ounces, classified under the JORC 2012 Code. The current drilling is systematically converting this resource into mineable inventory, feeding directly into the feasibility study and mine planning phases.
CEO Andrew Pumphrey emphasised the significance of the results and site activity: "These latest drill results continue to demonstrate the high-grade nature of the paleochannel’s gold mineralisation. Alongside the drilling program, we are now actively onsite undertaking the required civil works around the agglomeration plant foundations and heap leach pad area. We are moving the project forward."
Further drilling and metallurgical testwork are planned to continue refining the resource and development pathway, with the company aiming to unlock additional resource upside along the extensive paleochannel corridor.
Bottom Line?
OzAurum’s latest drilling and site works solidify Mulgabbie North’s potential as a shallow, high-grade heap leach project, but resource expansion and feasibility milestones remain critical near-term catalysts.
Questions in the middle?
- How will upcoming metallurgical testwork influence heap leach recovery assumptions?
- What timelines does OzAurum envisage for defining Ore Reserves and progressing to production?
- Could further drilling along the 4km paleochannel significantly expand the current resource base?