OzAurum Resources has locked in consistent high-grade gold mineralisation along its Mulgabbie North Paleochannel, driving a shift from study to construction with heap leach plant refurbishment near completion and civil works underway.
- 435-hole, 15,646m RC drilling confirms shallow high-grade gold
- Heap leach plant refurbishment by Polaris Engineering nearly complete
- Metallurgical tests show gold recoveries up to 82%
- Site civil works commenced for heap leach pad and infrastructure
- Resource remains open along >4km paleochannel trend
High-Grade Gold Mineralisation Drives Development Momentum
OzAurum Resources Ltd (ASX:OZM) has delivered a significant milestone at its Mulgabbie North Paleochannel Project, confirming continuous, high-grade gold mineralisation across a broad area through an extensive 435-hole, 15,646-metre reverse circulation (RC) drilling program. Multiple intercepts exceeding 10 grams per tonne (g/t) gold at shallow depths underpin a simple, low-cost open-pit mining model that is now transitioning rapidly from study to construction.
Standout results include intervals such as 7 metres at 8.12 g/t Au, including a blistering 1 metre at 49.7 g/t Au, and 6 metres at 11.64 g/t Au from a diamond hole, showcasing the project's geological consistency. This drilling density provides the mine scheduling and economic modelling foundation needed to advance feasibility and bankable mine plans.
Heap Leach Plant Refurbishment Nears Completion
After acquiring a heap leach agglomeration plant, OzAurum engaged Polaris Engineering to undertake refurbishment, including critical upgrades to meet current Australian safety standards. The refurbishment has taken longer than initially expected due to design enhancements allowing operational flexibility and safety compliance, but key components such as the feed bin, conveyors, and agglomeration drum have now completed dry commissioning.
Civil works for the heap leach pad and plant foundations are underway, despite minor weather delays, marking a tangible shift from planning to physical development. The project aims to operate a low-capital expenditure heap leach operation with a campaign mine, crush, screen, agglomerate, and heap leach processing model under an owner-miner operating structure.
Metallurgical Testwork Supports Efficient Gold Recovery
Metallurgical column testwork at ALS Balcatta continues to validate heap leach processing as the preferred method. Finalised results from Column 2 (drill hole MNODH 020) show an impressive 82% gold recovery from lower saprolite/transition ore crushed to -12mm, with potential to increase to 88% recovery at finer crush sizes. Cyanide consumption remains low, indicating cost-effective processing.
Preliminary results from Column 3 (MNODH 022) paleochannel ore are tracking above 75% recovery after 39 days, although these results remain indicative pending further confirmation. These findings bolster confidence in the heap leach approach for Mulgabbie North.
Resource Upside and Environmental Progress
The mineralisation remains open along a paleochannel trend exceeding 4 kilometres, suggesting substantial resource growth potential beyond the current ~260,000-ounce Mineral Resource estimate. Environmental permitting is advancing, with Stage 2 works including geotechnical pit slope design, waste rock characterisation, and heritage and archaeological surveys completed with Senior Wongatha Elders' endorsement.
Open pit optimisations and heap leach cell sequencing for potential future expansion have been scheduled, reflecting a scalable development pathway. The company has received Environmental Approval for Stage 1 mining and heap leach operations, with further regulatory steps underway to enable mining commencement.
Exploration Beyond Mulgabbie North and International Ventures
Beyond Mulgabbie North, OzAurum continues to explore the Patricia Gold Project near Kalgoorlie, identifying new targets at Heysen’s Find with high-grade rock chip samples up to 16.23 g/t Au. Drilling is planned once approvals are secured.
Internationally, the company’s Salitre Niobium and Rare Earth Elements (REE) Projects in Minas Gerais, Brazil, are progressing with soil sampling and ground magnetometer surveys identifying a 1 km2 niobium anomaly consistent with carbonatite intrusion models. Plans for diamond drilling are under review following geophysical data interpretation.
Financial Position and Outlook
During the quarter, OzAurum spent $469,000 on exploration and $80,000 on development, with no substantive mining production yet. The company ended the quarter with $2.03 million in cash, providing an estimated 2.5 quarters of funding at current expenditure levels.
CEO Andrew Pumphrey highlighted the quarter as one of the busiest and most productive in the company’s history, emphasizing the parallel progress in feasibility, permitting, and development activities achieved on a tight budget and minimal staffing. The robust drilling results, strong metallurgical recoveries, and advancing construction works collectively position OzAurum on a clear pathway toward near-term gold production.
Bottom Line?
OzAurum’s consistent high-grade drilling and advancing heap leach construction mark a critical pivot toward production, though metallurgical confirmations and environmental approvals remain key near-term milestones.
Questions in the middle?
- Will upcoming metallurgical results confirm preliminary high gold recoveries from paleochannel ore?
- How quickly can OzAurum transition from construction to commercial gold production at Mulgabbie North?
- What resource growth potential exists beyond the current 260,000-ounce estimate along the open paleochannel?