King River Resources has accelerated exploration at Mindoolah, completing detailed LiDAR volumetric modelling, a UAV magnetic survey, and systematic RC drilling of historical stockpiles ahead of schedule, revealing significant unreported gold material.
- LiDAR survey identifies 467,659 m³ of historical stockpiles
- RC drilling of stockpiles completed early, assays pending
- Material discrepancy found between historical mining records and surveyed volumes
- UAV magnetic survey finished, interpretation underway
- Strong cash position of $3.68 million with no debt
Operational Progress at Mindoolah Accelerates
King River Resources Ltd (ASX:KRR) has made significant strides at its Mindoolah Gold Project during the June quarter, transitioning rapidly from acquisition to an intensive exploration phase. The company completed detailed LiDAR volumetric modelling and a close-spaced drone magnetic survey, alongside systematic Reverse Circulation (RC) drilling of the primary historical stockpiles ahead of schedule. Managing Director Graham Gadsby highlighted the smooth operational momentum, with the rig now testing shallow extensions beneath historic pits and shafts, aiming to unlock the structural controls governing mineralisation.
Revealing a Discrepancy in Historical Mining Records
The LiDAR survey quantified approximately 467,659 cubic metres of historical waste dump and stockpile material across key tenements, with the largest volume at Excelsior (285,630 m³). When reconciling surveyed excavation volumes and remaining surface material against historical production data, King River Resources uncovered a material discrepancy. The cumulative excavation volume from open pits stands at 595,729 m³, translating to over 1 million tonnes when factoring in assumed densities. This contrasts starkly with the 38,589 tonnes officially reported as mined between 1986 and 1989, implying that only around 11% of the excavated material was accounted for in historical records.
This gap suggests incomplete or ambiguous historical reporting, with an estimated 300,000 tonnes of unaccounted material potentially containing up to 23,500 ounces of gold at the reported grade of 2.44 g/t. The company is systematically drilling and sampling these stockpiles to validate grade distribution and economic potential.
Focused Drilling on Major Stockpiles and Hard-Rock Targets
Phase 1 RC drilling targeted the three largest waste dumps: Excelsior, Cundy, and Mindoolah Main Reef, completing 1,690 metres across 167 holes ahead of schedule. Historical selective grab samples from Excelsior showed grades up to 10 g/t Au, but these were not representative of the overall stockpile. The drilling aims to provide a systematic assessment of grade continuity. At Cundy and Mindoolah Main Reef, which lacked prior systematic sampling, drilling will inform on gold distribution and material variability.
Following completion of the stockpile program, the rig shifted focus to shallow hard-rock drilling beneath historic pits and shafts, with around 1,000 metres planned. Priority targets include testing mineralisation beneath Excelsior’s pit floor, a mineralised corridor at Cundy, structural corridors at Bertram’s with historical grab samples up to 31.7 g/t Au, and validating mineralised positions at Mindoolah Main Reef.
High-Resolution UAV Magnetic Survey Enhances Structural Understanding
To overcome limitations of regional magnetic data affected by strong responses from the Weld Range, KRR commissioned a low-altitude UAV magnetic survey over the mining centre with 25-metre line spacing. This approach improves resolution of shear zones, lithological contacts, faults, and magnetic anomalies potentially linked to alteration and mineralisation. Data acquisition and processing have been completed, with interpretation underway to refine geological models and guide further drilling.
Financial Position and Corporate Activity
King River Resources ended the quarter with a healthy cash balance of $3.68 million and no debt. The company monetised part of its investment in Tivan Limited (ASX:TVN), selling 9.7 million shares and 4 million options for net proceeds of $3.33 million, while retaining a substantial holding valued at $26.55 million. During the quarter, 30 million unquoted performance rights were issued to employees under the company’s incentive plan, with 10 million exercised to ordinary shares. Subsequent to quarter-end, a further 75 million performance rights vested and were converted to shares, potentially impacting share capital.
Exploration expenditure for the quarter was $292,099, supported by tenement rent and rates of $177,212. The company confirmed no substantive mining production or development activities during the period.
Bottom Line?
King River Resources’ systematic approach at Mindoolah is uncovering unreported gold material and refining geological models, but assay results and magnetic interpretations remain critical to confirm economic potential.
Questions in the middle?
- Will upcoming assay results validate the inferred grade and continuity within the historical stockpiles?
- How will the UAV magnetic survey interpretation influence the next phase of drilling and target prioritisation?
- What impact will the recent exercise of performance rights have on the company’s share structure and investor sentiment?