New Murchison Gold Confirms High-Grade Continuity at Cloudkicker with Mining Underway
New Murchison Gold Limited (ASX:NMG) has amended its JORC reporting for the Cloudkicker deposit while confirming strong, shallow high-grade gold intercepts. Mining at Cloudkicker has begun, expected to add about 20,000 ounces to production over the next 12-18 months.
- Amended JORC Table 1 disclosures correct administrative oversights
- Recent drilling confirms higher grades and better widths than prior resource estimates
- Domain 4001 shows increased continuity and confidence
- Mining commenced with immediate production contribution expected
- Further drilling planned to test caprock mineralisation extensions
JORC Amendment Clarifies Drill Data and Reporting
New Murchison Gold Limited (ASX:NMG) has issued an amendment to its previous release concerning high-grade gold intercepts at the Cloudkicker deposit, correcting administrative oversights in the JORC Table 1 Section 2 disclosures. The changes, relating to drill hole information, data aggregation methods, and reporting balance, do not alter the substantive exploration results but ensure compliance with reporting standards.
Drilling Confirms Shallow, High-Grade Gold Mineralisation
The company’s recent grade control and resource definition drilling at Cloudkicker has delivered assay results that outshine the previous resource model, confirming shallow, high-grade gold mineralisation with better grades and widths. Highlights include a 10-metre intercept grading 13.61 g/t Au from 44 metres depth (including 3 metres at 32.17 g/t Au) and a standout 1-metre intercept at 54.8 g/t Au from 58 metres. These results reinforce the significance of domain 4001, the most substantial ore zone at Cloudkicker, which has demonstrated greater continuity and confidence than previously modelled.
Mining Underway with Immediate Production Impact
Cloudkicker, located adjacent to the Crown Prince open pit but treated as a separate deposit, is included in the approved M51/886 mining proposal, enabling immediate mining activity. Mining has commenced, and the company conservatively expects Cloudkicker to contribute approximately 20,000 ounces of gold to production over the next 12 to 18 months. CEO Alex Passmore underscored the project’s high return potential, noting that production can be ramped up with minimal additional resourcing, with first caprock ore scheduled for crushing in September 2026.
Detailed Geological Context and Future Drilling Plans
The Cloudkicker deposit sits within the Garden Gully Gold Project in the Murchison goldfield, Western Australia, a prolific gold-bearing region. The deposit’s mineralisation occurs in structurally controlled quartz carbonate veins within mafic units, with multiple subparallel lodes identified. The recent drilling program comprised 136 grade control holes and 30 resource definition holes, totalling over 8,000 metres. Further drilling is planned to explore the northwestern extent of the caprock mineralisation, aiming to extend the known high-grade zones.
Comprehensive Reporting and Competent Person Endorsements
The announcement includes extensive JORC compliance details, with competent persons certifying the exploration results, mineral resource estimates, and ore reserves. The company confirms no material changes to prior resource estimates beyond the updated drilling data. This thorough approach supports investor confidence in the reported grades and the project’s operational progress.
Bottom Line?
Cloudkicker’s high-grade, shallow mineralisation and immediate mining commencement position New Murchison Gold for near-term production growth, but upcoming resource updates will be critical to confirm the deposit’s full potential.
Questions in the middle?
- How will updated resource modelling affect Cloudkicker’s mine design and production schedule?
- What are the risks and potential rewards of extending caprock mineralisation through further drilling?
- How might Cloudkicker’s contribution influence New Murchison Gold’s overall production profile and valuation?
