Valiant Gold has made significant progress toward restarting its Comet mine with dewatering underway and technical studies advancing, while maiden drilling at Reedy reveals gold mineralisation extending over 400 metres below the existing resource.
- Mining services contract signed for Comet dewatering and rehab
- Drilling at Reedy confirms deep gold extensions beyond current resource
- Strong cash position of A$67.7 million supports development plans
- Successful re-entry into Comet underground mine reduces restart risks
- Second drill rig mobilisation planned for Boomerang deposit
Comet Mine Restart Gains Momentum
Valiant Gold Limited (ASX:VAL) is pushing forward with its plan to restart the Comet gold mine, having executed a mining services agreement with Mako Mining Pty Ltd to commence dewatering and rehabilitation activities. These works began in July 2026, marking a key operational milestone in the company’s strategy to revive the underground operation.
Parallel to these site activities, Valiant is advancing mine engineering and technical studies to develop an initial Life of Mine (LOM) design. This design will underpin the operational restart and support budget pricing and scheduling for an underground mining contractor. The company has also secured critical infrastructure items with long lead times to smooth the restart pathway.
Water management is a central focus, with dewatering expected to conclude in the second half of FY27. Water extracted from the Comet and Pinnacles underground mines will be discharged into nearby open pits, which have sufficient capacity to handle the volumes. The recent successful re-entry into the Comet underground mine revealed lower-than-expected water levels, generally dry workings, serviceable infrastructure, and minimal rehabilitation needs; factors that could accelerate the restart timeline.
Reedy Project Drilling Uncovers Significant Gold Extensions
At the Reedy Project, Valiant’s maiden diamond drilling program at South Emu-Triton has delivered promising results, confirming that gold mineralisation extends more than 400 metres below the current Mineral Resource Estimate (MRE). Notable intersections include 34.2 metres at 2.97 grams per tonne (g/t) gold from 1,007.9 metres, including a high-grade 3.6-metre section at 15.55 g/t, and 20.1 metres at 1.92 g/t from 917.7 metres.
The mineralised system remains open both down-dip and along strike and now exceeds 100 metres in horizontal width, highlighting the potential scale of the deposit. Drilling continues, with plans to mobilise a second rig in August to target the Boomerang Gold Deposit, which hosts an existing resource of 5.26 million tonnes at 2.17 g/t for 367,000 ounces of gold. This next phase aims to convert inferred resources to indicated categories and further expand the resource base.
Financial Position and Corporate Developments
Valiant Gold ended the quarter with a strong cash and term deposits balance of A$67.7 million, including A$5 million in longer-term deposits held for yield optimisation but accessible for development funding. Exploration expenditure for the quarter was approximately A$2.27 million, primarily directed towards drilling and associated costs at Reedy.
The company has also secured key technical and operational personnel to bolster its capacity to deliver on growth and development objectives. No substantive mining production or development occurred during the quarter, consistent with the focus on mine restart and exploration.
With an Ore Processing Agreement in place with Westgold Resources, Valiant benefits from access to existing processing infrastructure at the Bluebird and Tuckabianna mills, providing flexible and cost-effective pathways to production.
Looking Ahead
Valiant’s immediate priorities include continuing dewatering, site establishment, and rehabilitation at Comet, alongside awarding the full underground mining services contract to progress the restart. At Reedy, the mobilisation of a second drill rig to the Boomerang Gold Deposit is scheduled to commence high-priority resource drilling in August.
While assay results are still pending for some drill holes, the company’s recent underground re-entry and encouraging drilling outcomes at Reedy position Valiant well to advance its Murchison gold portfolio. The balance of cash reserves and strengthened team provide a solid foundation to pursue near-term production and resource growth goals.
Bottom Line?
Valiant Gold’s combination of operational progress, strong assay results, and robust cash reserves sets the stage for advancing its gold projects, but upcoming drilling results and contract awards will be critical to watch.
Questions in the middle?
- How will upcoming assay results influence resource upgrades at Reedy and Boomerang?
- What is the timeline for awarding the full underground mining contract at Comet?
- How might the lower-than-expected rehabilitation needs at Comet impact restart costs and schedule?