Great Boulder Resources has kicked off a major drilling campaign at its newly acquired Peak Hill Gold Project, aiming to rapidly expand a 481,000oz resource and fast-track capital-light production alongside its flagship Side Well project.
- Peak Hill acquisition adds 481,000oz gold resource
- 40,000m drilling program to start July 2026
- Ore Purchase Agreement enables capital-light production
- Side Well drilling continues with 20,000m planned
- Westgold takes 19.9% strategic stake in GBR
Transformational Acquisition Bolsters Great Boulder’s Gold Portfolio
Great Boulder Resources (ASX:GBR) has officially commenced drilling at its newly acquired Peak Hill Gold Project in Western Australia’s Murchison Goldfield, a move that marks a significant step in the company’s evolution from explorer to producer. The acquisition from Westgold Resources (ASX:WGX) adds a substantial 481,000-ounce gold resource to Great Boulder’s portfolio, complementing its existing 1.02 million-ounce resource at Side Well.
Aggressive Drilling Campaign Targets Rapid Resource Growth
Installation of an exploration camp at Peak Hill is underway, setting the stage for a 40,000-metre drilling program scheduled to begin in early July 2026. This campaign, employing two reverse circulation rigs and one diamond rig alternating between Peak Hill and Side Well, aims to update the Mineral Resource Estimate (MRE) and support a feasibility study targeted for early 2027. Concurrently, Great Boulder plans to complete 20,000 metres of drilling at Side Well, maintaining momentum on its high-grade discoveries there.
Capital-Light Production Enabled by Ore Purchase Agreement
A key feature of the Peak Hill deal is an Ore Purchase Agreement with Westgold, granting Great Boulder access to processing capacity at one of Westgold’s regional mills. This arrangement significantly reduces upfront capital requirements and shortens the timeline to production by sidestepping the need for a standalone mill construction and its associated approvals. The company is targeting mining readiness by the end of 2026, with initial engineering and approval studies set to commence in the first quarter of 2027.
Strategic Backing and Strengthened Leadership
The acquisition was supported by a $40 million capital raise, attracting cornerstone investments from Westgold, which now holds a 19.9% stake, alongside prominent institutional funds including Franklin Templeton and L1 Capital. Great Boulder has bolstered its leadership with the appointment of Chris Tuckwell as Chairman and the addition of experienced geologists to lead the Peak Hill growth program, underscoring its commitment to executing this expansion strategy effectively.
Historic Production and Resource Profile at Peak Hill
Peak Hill is an established high-grade gold district with historic production exceeding 900,000 ounces. The project encompasses seven granted mining leases with a JORC 2012 Mineral Resource Estimate of 9.4 million tonnes at 1.6 grams per tonne gold. The resource includes multiple deposits such as Fiveways, Harmony, Jubilee, Durack, and Enigma, each with defined indicated and inferred categories. Despite no mining activity since 1997, the region’s geology and past mining history provide a strong foundation for Great Boulder’s planned resource expansion.
Bottom Line?
Great Boulder’s rapid drilling and strategic partnerships position it well for a swift transition to production, but the success of resource growth and regulatory approvals will be critical to watch.
Questions in the middle?
- Will drilling at Peak Hill confirm significant resource expansion beyond historical estimates?
- How effectively can Great Boulder leverage the Ore Purchase Agreement to accelerate production timelines?
- What impact will Westgold’s strategic stake have on the operational and commercial collaboration between the two companies?