Accelerate Resources has reported a new gold discovery at its Balagundi project, strong assay results from multiple prospects, and a significant project expansion, supported by a $2 million capital raise to fund ongoing exploration.
- New gold discovery at Spencers with significant shallow intercepts
- Strong shallow gold results at Fluffy and Paris Gift prospects
- Balagundi project expanded by approximately 78% through Maritana deal
- High-resolution gravity and LiDAR surveys completed at Woodie Woodie North
- $2 million capital raising strengthens balance sheet for exploration
New Gold Discovery at Spencers Strengthens Balagundi Portfolio
Accelerate Resources Limited (ASX:AX8) has defined a compelling new gold discovery at its Balagundi Gold Project near Kalgoorlie, with Phase 2 aircore drilling at the Spencers prospect returning intercepts such as 28 metres at 1.01 grams per tonne (g/t) gold including 9 metres at 1.75 g/t, and 7 metres at 1.85 g/t gold. This north–south mineralised trend extends over approximately 300 metres of strike and remains open for expansion along strike and at depth.
The maiden reverse circulation (RC) drilling program at Spencers, completed in June with nine holes for 1,086 metres, targeted basement structures across this strike length, though assay results remain pending. The program follows up on the encouraging aircore results and aims to validate and extend the mineralisation footprint.
Spencers is rapidly emerging as a priority target within the Balagundi system, complementing other gold prospects in the area and underpinning Accelerate’s strategy to consolidate and expand its presence in this historically productive gold camp.
Shallow Gold Mineralisation Confirmed at Fluffy and Paris Gift
First drilling at the Fluffy prospect in over 30 years has returned strong shallow gold results, with assays confirming multiple significant intersections including 10 metres at 1.05 g/t gold from 24 metres downhole, and high-grade hits up to 8.44 g/t gold over one metre. These results align with historical drilling and widespread arsenic anomalies, supporting the interpretation of a hydrothermal gold system along the eastern margin of the Catrock-textured porphyritic dolerite.
At Paris Gift, further shallow gold mineralisation was confirmed with notable intercepts such as 13 metres at 1.25 g/t gold from surface and 10 metres at 1.34 g/t gold from 48 metres, including a high-grade 1 metre interval at 11.48 g/t gold. These results reinforce the prospectivity of the Paris Gift Trend and highlight potential for higher-grade zones within the broader mineralised system.
Balagundi Project Expanded by Nearly 80%
Accelerate significantly expanded its Balagundi landholding by approximately 78% to around 62 square kilometres through binding agreements with Maritana Minerals Limited. The deal adds roughly 600 metres of prospective strike along the northern extension of the Delta Trend, enhancing the company’s control over the interpreted Balagundi mineralised system.
The transaction involved no net cash outlay and includes the acquisition of a Land Use Agreement to facilitate exploration access. Maritana will retain a five-year right of first refusal on potential toll treatment at the Black Swan processing facility, subject to economic mineralisation and agreed commercial terms. Both parties maintain a 1% net smelter return royalty on divested tenements.
Woodie Woodie North Manganese Project Advances with Geophysical Surveys
At the Woodie Woodie North Manganese Project in the East Pilbara, Accelerate completed a high-resolution ground gravity survey covering approximately 7 square kilometres, collecting 2,440 stations across the Gingarrigan and El Largo manganese corridors. This survey aims to identify density contrasts associated with high-grade manganese mineralisation and to delineate undercover and blind targets.
Complementing the gravity data, detailed drone orthophoto and LiDAR surveys were also completed, providing high-resolution imagery and topographic datasets. These will be integrated with geological mapping and surface geochemistry to refine structural interpretations and guide future drilling.
Historical drilling at Woodie Woodie North has highlighted multiple high-grade manganese intercepts, including 5 metres at 41.6% manganese and 6 metres at 39.8%, supporting the potential for structurally controlled mineralisation beneath shallow cover. A heritage survey with Nyamal representatives is scheduled to commence in late July to facilitate exploration access and drilling.
Capital Raising Bolsters Exploration Funding
Accelerate completed a $2.0 million capital raising before costs through a two-tranche placement priced at $0.005 per share, with $1.2 million settled during the quarter and the remaining $0.8 million post quarter end. The placement attracted strong support from institutional and sophisticated investors, including commitments from existing shareholders.
Proceeds will fund ongoing exploration and drilling at both the Balagundi Gold and Woodie Woodie North Manganese projects, as well as general working capital. At quarter end, the company held approximately $1.677 million in cash and cash equivalents, excluding the tranche 2 settlement and listed investments valued at around $128,000.
Bottom Line?
Pending assay results from Spencers RC drilling and upcoming heritage surveys at Woodie Woodie North will be pivotal in shaping Accelerate’s near-term exploration trajectory.
Questions in the middle?
- Will Spencers RC assays confirm and extend the newly defined gold mineralisation?
- How will the expanded Balagundi tenure influence the scale and economics of the gold system?
- What impact will heritage survey outcomes have on the timing and scope of manganese drilling at Woodie Woodie North?