New Murchison Gold Limited's Crown Prince Gold Mine sustained robust production with 15,455 ounces sold in the June quarter, while the Garden Gully Gold Project’s resource estimate jumped 47% to 359,000 ounces. Mining has now commenced at the Cloudkicker open pit, supporting growth and operational flexibility.
- 15,455 ounces gold sold at Crown Prince in June quarter
- 47% increase in Garden Gully Mineral Resource Estimate to 359,000 ounces
- Cloudkicker open pit mining commenced late June 2026
- Strong cash generation with $201.7 million cash and zero debt
- Advancement of Crown Prince Underground feasibility study on track
Crown Prince Delivers Steady Production and Cash Flow
New Murchison Gold Limited (ASX:NMG) reported a solid operational quarter at its Crown Prince Gold Mine, selling 156,367 tonnes of ore grading 3.2 g/t gold, equating to 15,455 ounces sold during the June 2026 quarter. This sustained output contributed to a total of 58,183 ounces sold over the 10 months since ore sales began, underpinning strong cash generation with $46.1 million added during the quarter and a cash balance climbing to $201.7 million. Impressively, the company operates with zero debt and no hedging, reflecting a clean balance sheet amid ongoing growth initiatives.
Mining activities progressed well, with Stage 1 open pit extended approximately 10 metres below the original feasibility plan and Stage 2 waste stripping accelerated. The total material moved increased 6% quarter-on-quarter to nearly 1.7 million bank cubic metres, reflecting the ramp-up in waste removal. Health and safety metrics remained strong, with no lost time injuries recorded and a 12-month rolling total recordable injury frequency rate of 6.83, alongside no significant environmental incidents.
Cloudkicker Pit Starts Production, Adding Flexibility
Mining at Cloudkicker, the company’s second open pit located adjacent to Crown Prince, commenced in late June 2026 following heritage clearance. With an estimated 365,000 tonnes at 1.73 g/t Au for 19,334 ounces in current mining inventory, Cloudkicker is expected to contribute meaningfully to production over the next 12 to 18 months. The pit design carries a strip ratio of 8.1 waste to ore, and recent drilling has returned high-grade intercepts exceeding prior resource estimates, suggesting potential for further growth beyond the current inventory. This operational expansion is anticipated to enhance production flexibility and support a stronger gold output profile in calendar 2027.
Garden Gully Resource Surges 47 Percent
New Murchison’s Mineral Resource Estimate (MRE) for the Garden Gully Gold Project increased by 47% after mining depletion, now standing at 4.42 million tonnes at 2.5 g/t Au for 359,000 ounces of contained gold as of 1 April 2026. This uplift reflects ongoing exploration success across multiple deposits including Crown Prince open pit and underground, Cloudkicker, Lydia, and Abbotts. Notably, 71% of the total resource is classified as Measured and Indicated, providing a robust foundation for future mine planning.
The company is actively progressing technical work to update the Crown Prince resource and reserve estimates, targeting completion by late September 2026. Exploration programs at near-mine prospects such as Airstrip and Abernethy South corridor continue to advance, alongside development studies for Crown Prince Underground and the Lydia open pit project.
Operational Costs and Margins Remain Healthy
New Murchison reported an attributable all-in sustaining cost (AISC) of A$3,448 per ounce for the quarter, measured against an attributable gold bullion price of A$6,349 per ounce under the ore purchase agreement (OPA) with Big Bell Gold Operations. The company’s cash cost was A$3,073 per ounce, with mining, crushing, haulage, and processing costs well managed. The OPA margin represented 17% of the attributable gold price, contributing to a healthy operational margin of A$16.7 million for the quarter.
Advancing Underground and Growth Projects
Feasibility work on the Crown Prince Underground project is progressing on schedule, with studies aiming for completion in September 2026. Preliminary designs include the potential development of a ventilation portal later this year, signaling a strategic move to diversify production sources beyond open pit mining. Concurrently, the Lydia prospect, with a maiden resource of 55,100 ounces at 1.78 g/t Au, is under evaluation for future mining potential, with discrete open pits modelled and further drilling planned to refine resource estimates.
Corporate activity included a $1 million cornerstone investment in Parbo Resources Limited, a nearby explorer focused on the northern Yilgarn Craton margin, offering potential strategic upside. The company also advanced its acquisition of Yoothapina Station, which hosts Crown Prince operations, enhancing operational synergies and community relationships with the Wajarri Yamaji Aboriginal Corporation.
Bottom Line?
New Murchison’s strong production, resource growth, and cash position set a solid base, but upcoming resource updates and underground feasibility results will be critical to sustaining momentum beyond 2027.
Questions in the middle?
- How will the upcoming Crown Prince Underground feasibility study impact production timelines and capital requirements?
- Can Cloudkicker’s recent high-grade drilling results translate into a meaningful resource upgrade and extended mine life?
- What are the potential implications of the Yoothapina Station acquisition for operational efficiency and community engagement?