New Murchison Gold Limited (ASX:NMG) has boosted its Garden Gully Gold Project mineral resource by 47%, adding maiden resources for Lydia and Abbotts and lifting total contained gold to 359,000 ounces.
- 47% increase in Garden Gully Mineral Resource Estimate
- Maiden resource estimates for Lydia and Abbotts deposits
- Measured and Indicated resources make up 71% of total ounces
- Crown Prince remains core with open pit and underground resources
- Plans underway for feasibility studies and further drilling
Resource Surge at Garden Gully Boosts Production Pipeline
New Murchison Gold Limited (ASX:NMG) has unveiled a substantial upgrade to its Garden Gully Gold Project near Meekatharra, Western Australia, with a 47% increase in its Mineral Resource Estimate (MRE). The updated JORC-compliant resource now stands at 4.42 million tonnes grading 2.5 grams per tonne gold, containing 359,000 ounces of gold. This figure reflects a 29% increase over the November 2024 estimate and includes reconciled production mining up to April 2026.
Significantly, this update incorporates maiden resource estimates for the Lydia and Abbotts deposits, adding 55,100 ounces and 44,500 ounces of gold respectively. These additions broaden the company’s production pipeline and highlight the scaling potential of the Garden Gully goldfield beyond its established assets.
Core Assets Show Strong Grade and Confidence
The Crown Prince deposit remains the cornerstone of the project, contributing 228,400 ounces across open pit and underground resources. The open pit Measured Resource alone accounts for 39,000 ounces at a robust 3.83 g/t Au, offering immediate, low-risk mill feed. Underground resources at Crown Prince are estimated at a 1.2 g/t cut-off, reflecting ongoing exploration success and resource confidence.
Cloudkicker adds another 31,300 ounces, with 80% classified as Indicated, supporting near-term mine planning. The combined Measured and Indicated categories now represent 71% of the total contained ounces, underscoring excellent grade predictability for operational decision-making.
Drilling Campaigns and Geological Insights Underpin Upgrade
Since the 2024 MRE, New Murchison has drilled 738 holes across its key deposits, including 44 diamond and 681 reverse circulation holes, leading to expanded and refined geological models. The company’s exploration and mining teams have focused on infill and extensional targets, alongside tighter-spaced grade control drilling, to elevate resource confidence and extend mineralisation boundaries.
The geological setting across the Abbotts Greenstone Belt remains highly prospective, with gold mineralisation hosted in quartz-carbonate veins within altered and sheared mafic units. The proximity of Lydia and Cloudkicker deposits to the Crown Prince hub, within 800 metres, allows them to leverage existing haul roads and site infrastructure, enabling rapid development with minimal capital expenditure.
Path Forward: Feasibility and Resource Expansion
New Murchison plans to use the updated MRE to support feasibility studies and optimise both open pit and underground mining scenarios. The company also intends to continue infill and extensional drilling to expand resources and upgrade classification categories, aiming to convert more inferred resources into the higher-confidence Indicated and Measured categories.
Mining at Crown Prince is already underway, with open pit operations nearing completion of stage 1 and underground mining planned using conventional long hole stoping methods. Ore from the project is processed at Westgold’s Bluebird plant, reflecting an established operational framework.
While the update does not include explicit production guidance or financial forecasts, the scale and quality of the resource upgrade position New Murchison well for advancing its development pipeline. The company’s ability to integrate satellite deposits with existing infrastructure could prove a key driver for efficient project expansion.
Bottom Line?
New Murchison’s expanded resource base at Garden Gully bolsters its production outlook, but upcoming feasibility results and drilling updates will be critical to translating ounces into ounces in the bank.
Questions in the middle?
- How will feasibility studies incorporate the maiden Lydia and Abbotts resources into mine planning?
- What timeline and capital requirements will the underground Crown Prince development entail?
- To what extent can further drilling convert inferred resources into mineable reserves?