Meeka Metals Reports 6,424oz Gold Production Amid Open Pit Challenges

High-Grade Gold Discovery Deepens Turnberry Potential

Meeka Metals (ASX:MEK) has struck a rich vein of optimism beneath its Turnberry Ore Reserve, reporting a substantial 52.3-metre intersection grading 3.0 grams per tonne gold nearly 200 metres below the existing underground resource. This discovery, highlighted by zones of chalcopyrite and pyrite within strongly sheared dolerite, points to an intermediate-level orogenic gold system with promising depth extensions that could significantly expand the current 690,000-ounce mineral resource.

Notably, hole 26TBRD002 delivered the standout result, including 30.6 metres at 3.4g/t and 10.5 metres at 3.7g/t Au. The mineral assemblage suggests proximity to a hotter, more metal-rich hydrothermal source at depth, prompting Meeka to recommence diamond drilling targeting strike and plunge extensions of these high-grade zones.

Open Pit Mining Curtailment Preserves Valuable Resource

The June 2026 quarter was marked by operational challenges as open pit mining at the Murchison Gold Project fell short of expectations due to persistent contractor productivity issues. These delays restricted vertical pit advancement and deferred access to higher-grade ore, forcing the mill to rely increasingly on lower-grade stockpiles. Consequently, Meeka announced the early cessation of open pit mining in July 2026, leaving approximately 300,000 ounces at 1.4g/t Au in-ground as a preserved resource for potential future extraction.

This strategic pivot reduces reliance on open pit ore and leverages the large existing stockpiles (25,400 ounces at 1.0g/t Au) alongside ramping underground production. The incomplete pits, including Turnberry North and South, are being left ready for potential Stage 2 mining.

Underground Mining Expansion Gains Momentum

Underground operations at Andy Well advanced steadily, with 1,619 metres of development completed in the quarter, reaching a steady pace of around 600 metres per month. Stoping commenced on the Wilber lode, a high-grade zone containing 308,000 ounces at 12.2g/t Au, with production expected to increase materially in the September quarter. Development at the previously unmined Judy North lode (96,000 ounces at 5.4g/t Au) also began, establishing multiple levels with grades aligning well with resource estimates and potential for improvement at depth.

Preparations for a second underground mine at Turnberry are underway, including civil works for surface power infrastructure and portal development scheduled to start in September 2026. This expansion is expected to elevate the proportion of underground ore in the mill feed to around 40% in the upcoming quarter, enhancing head grades and recovered ounces.

Production, Processing, and Financial Highlights

Gold production for the quarter reached 6,424 ounces, slightly up on the previous quarter but still below company targets due to the open pit constraints. Sales totaled 6,242 ounces, generating $38.8 million in revenue at an average realised price of A$6,213 per ounce. Processing throughput increased modestly to 128,000 tonnes, with metallurgical recovery holding steady at 95%.

Significant growth capital expenditure of $17.5 million was invested in mine development, including the final stage 1 open pit stripping at Turnberry North, underground equipment, and processing plant upgrades. The installation of a Steinert multi-sensor ore sorter is progressing, with commissioning planned for September 2026, aiming to boost throughput and grade.

Despite the operational setbacks, Meeka ended the quarter with $38 million in cash, down from $50 million in March, reflecting the heavy capital spend. The company remains unhedged and debt-free aside from equipment financing, positioning it to benefit fully from any future gold price appreciation.

Safety and Environmental Performance

Meeka maintained a strong safety record with no lost time injuries during the quarter. The Lost Time Injury Frequency Rate stood at 1.2, and the Total Recordable Injury Frequency Rate was 12.0. There were no significant environmental incidents reported.