Aureka Limited has completed a Concept Level Study for its Comstock Gold & Silver Project, selecting the Walkers Pit as the preferred site for a low capital, fast-start mining operation. The company has lodged a Prospecting Licence application and is advancing an infill drilling program to upgrade its 56,000-ounce inferred resource.
- Walkers Pit chosen for low-capital restart
- Prospecting Licence application submitted
- Infill diamond drilling underway to upgrade resource
- Concept Study highlights modest pre-production capital
- Comstock resource remains 100% inferred, requiring further work
Walkers Pit Emerges as Fast-Track Mining Focus
Aureka Limited (ASX:AKA) has taken a significant step toward reviving gold production at its Comstock Gold & Silver Project near St Arnaud by completing a Concept Level Study that identifies the Walkers Pit as the preferred mining pathway. Conducted by Measured Group and Minserve with input from Core Prospecting, the study outlines a potentially efficient, low-capital approach leveraging existing infrastructure and previously disturbed ground.
The study’s standout feature is its modest upfront capital estimate, attributed to the use of the existing Walkers Pit and access roads last actively used in the 1990s. This contrasts with the higher costs typically associated with greenfield developments. The capital required is mainly for onsite setup and overheads rather than extensive earthworks or pre-mine development.
Licencing Application Targets Small Footprint, Shallow Mineralisation
Following the study, Aureka has submitted a Prospecting Licence application to regulators, aiming for a small-scale, limited-life operation covering less than 5 hectares entirely within previously disturbed areas. This licence type suits the project’s current profile and supports a low-impact start, with plans for offsite processing through local mill operator Core Prospecting.
The company emphasises that while the licence application is a key milestone, approval is not guaranteed and will depend on regulatory processes and further technical validation.
Infill Drilling to Upgrade Inferred Resource Confidence
An infill diamond drilling program is underway at Walkers Pit, targeting approximately 1,000 metres over six holes. The campaign aims to validate historical drilling data and increase drilling density to potentially upgrade parts of the current 56,500-ounce gold resource from Inferred to a higher confidence category. Historical intercepts at Walkers include notable grades such as 14 metres at 7.2 g/t gold and 2.2 metres at 27.4 g/t gold.
Management underscores that successful infill drilling is a necessary step toward any future scoping or feasibility studies, but substantial additional work remains before production targets or financial forecasts can be published under JORC standards.
Comstock Resource and Regional Context
The Comstock project hosts an Inferred Mineral Resource of 1.45 million tonnes grading 1.21 g/t gold for 56,500 ounces, with an exploration target suggesting potential for up to 116,000 ounces in additional resources. The mineralisation is structurally controlled within quartz reefs associated with the Comstock Shear zone, featuring complex geology typical of the St Arnaud goldfields.
Comstock lies within trucking distance of several Victorian gold processing mills, including the nearby Wedderburn Mill operated by Core Prospecting, facilitating offsite processing plans. This regional infrastructure advantage supports Aureka’s strategy for a low-capital, fast-to-market operation.
Broader Portfolio and Strategic Positioning
Aureka’s portfolio extends beyond Comstock, with the flagship Irvine Gold Project in the Stawell Corridor boasting a 398,000-ounce inferred resource and ongoing drilling programs aimed at resource expansion. The company recently lifted its global JORC gold resource to 455,000 ounces, reflecting successful exploration and modelling efforts. This positions Comstock as a potential first production project within a broader growth strategy focused on Victorian goldfields.
Management remains cautiously optimistic, highlighting the milestone of submitting the first production licence application and the ongoing infill drilling program. They stress that further studies, approvals, and funding are essential before production can commence.
Bottom Line?
Aureka’s Concept Study and licence application mark tangible progress at Comstock, but the project’s economic viability hinges on upcoming drilling results and regulatory approvals.
Questions in the middle?
- Will infill drilling at Walkers Pit confirm a resource upgrade suitable for production planning?
- How swiftly will regulatory authorities process the Prospecting Licence application?
- What funding strategies will Aureka pursue to advance Comstock beyond conceptual studies?