Australian Gold and Copper Ltd (ASX: AGC) pushed mineralisation at Achilles beyond 540m, kicked off maiden resource drilling at Browns-Evergreen, and secured the drill-ready Junee Gold Project, supported by a $5 million placement and a near $1 million R&D refund.
- Achilles drilling confirms high-grade mineralisation to 540m depth
- Maiden Evergreen drilling reveals significant copper-gold zones
- Acquisition of Junee Gold Project adds seven drill-ready gold targets
- $5 million placement completed with strong shareholder support
- ATO refunds $987,000 R&D tax offset post quarter
Deepening the Achilles Resource
Australian Gold and Copper Ltd (ASX:AGC) has extended the known mineralisation at its Achilles deposit in New South Wales to at least 540 metres below surface, significantly beyond the 250m depth of the initial resource estimate. The June quarter saw four diamond holes completed, with the deepest hole, A3DD014, returning 26 metres at 102g/t silver equivalent (AgEq) from 433m, including a 2m intercept grading 770g/t AgEq. These results underline the deposit’s potential for underground mining and resource growth, with further shallow reverse circulation (RC) drilling planned to target oxide gold-silver zones closer to surface.
Progress at Browns-Evergreen and Tooronga
AGC’s maiden diamond drilling campaign at the Evergreen prospect, part of the Browns Reef project, delivered promising copper, gold, silver, zinc, and lead mineralisation. Hole 26DDBR006 intersected 35m at 0.5% copper and 6g/t silver from 353m, including higher-grade zones up to 2.5% copper. Another hole, 26DDBR004, returned the highest gold grades to date at Evergreen with 5.1m at 2.7g/t gold. The 6.5km strike length deposit is being rapidly advanced towards an initial Mineral Resource Estimate, with RC drilling expected to commence in late August targeting near-surface oxide mineralisation. Meanwhile, a large-scale aircore program at Tooronga tested a previously unexplored shear zone, with results pending and expected to guide follow-up drilling.
Strategic Acquisition of Junee Gold Project
After quarter-end, AGC completed the acquisition of New South Resources Pty Ltd, owner of the Junee Gold Project, located roughly 230km south of South Cobar. This gold-dominant project boasts seven drill-ready targets, including the high-grade Dobroyde epithermal deposit with multiple intercepts exceeding 100 gram-metres. The deal, approved by shareholders in July, was settled with 30 million AGC shares, of which over half are escrowed. Junee’s proximity to major players like Newmont and its history of over $10 million in exploration expenditure adds strategic depth to AGC’s portfolio, complementing its South Cobar focus.
Funding and Financial Position
AGC raised $5 million through a two-tranche placement, with the second tranche completed post-quarter, anchored by its largest shareholder and Geozen Resources Group Co. Limited. The company ended the quarter with $5.7 million in cash, bolstered by a $987,000 refundable R&D tax offset from the Australian Taxation Office for FY25 activities related to geological model development at Achilles. Exploration expenditure for the quarter was $3.23 million, reflecting the company’s aggressive drill-led growth strategy.
Upcoming Catalysts and Exploration Focus
Looking ahead, AGC plans to continue its resource growth momentum with RC drilling at Evergreen targeting near-surface oxide zones, further shallow drilling at Achilles, and follow-up programs guided by Tooronga aircore results. Field activities at Junee are underway with soil sampling and drill permitting progressing. The company’s strategy hinges on advancing multiple projects simultaneously, aiming to convert exploration success into defined resources and, ultimately, development options.
Bottom Line?
AGC’s expanded drilling footprint and strategic acquisition position it well for resource growth, but upcoming assay results and drilling execution will be critical to sustain momentum.
Questions in the middle?
- Will drilling at Junee confirm multi-million ounce gold potential as anticipated?
- How will the company balance capital allocation across multiple active projects in the near term?
- What impact will evolving commodity prices have on AGC’s resource development priorities?