High-Tech Metals has released an updated Mineral Resource Estimate for its Wagtail Gold Deposit, boosting geological confidence and underpinning ongoing development work.
- Updated resource totals 105,000 tonnes at 3.8 g/t Au for 13,000 ounces
- 73% of resource classified as Indicated, improving confidence
- Resource remains open for expansion along strike and down plunge
- Development advanced under Mining and Profit Share Agreement with SSH Mining
- Updated model supports scoping study, mine optimisation, and metallurgical work
Updated Resource Offers Stronger Foundation for Wagtail Development
High-Tech Metals Ltd (ASX:HTM) has delivered a significant update to its Wagtail Gold Deposit Mineral Resource Estimate (MRE), a key step in advancing the project from exploration towards potential mining. The revised JORC 2012-compliant resource now stands at approximately 105,000 tonnes grading 3.8 grams per tonne gold, containing 13,000 ounces. Crucially, 73% of this is classified as Indicated Resources, reflecting improved geological confidence following an extensive 65-hole reverse circulation (RC) drilling campaign completed over 2025 and 2026.
This update marks a departure from the 2022 estimate, which reported a smaller, higher-grade resource without separate open pit and underground classifications. The new model incorporates a refined geological interpretation and updated estimation methodology, providing a more robust basis for mine planning and economic evaluation. While the contained gold ounces are broadly maintained compared to the previous estimate, the resource tonnage has increased by 65%, offset by a lower average grade, illustrating broader but somewhat diluted mineralised zones.
Separate Open Pit and Underground Resources Enhance Development Flexibility
The updated MRE distinctly reports open pit and underground resources based on reasonable prospects for eventual economic extraction. The open pit portion, reported above a 0.5 g/t gold cut-off within an optimised pit shell, accounts for 69,000 tonnes at 4.2 g/t Au for 9,000 ounces. The underground resource, reported above a 1.6 g/t cut-off below the pit shell, comprises 36,000 tonnes at 3.0 g/t Au for 3,000 ounces.
High-Tech Metals CEO James Merrillees highlighted that the revised model "provides a much stronger foundation for mine planning and economic evaluation," while noting that the resource remains open both down plunge beneath historic workings and along strike to the north and south. This openness signals clear opportunities for future resource growth through targeted drilling.
Development Partnership with SSH Mining Accelerates Progress
Wagtail's development is being fast-tracked under a Mining and Profit Share Agreement with SSH Mining Australia Pty Ltd, a subsidiary of SSH Group Ltd (ASX:SSH). SSH has funded and managed the recent drilling and technical programs, allowing High-Tech Metals to retain ownership and significant exposure to future project value.
SSH Group CEO Daniel Cowley-Cooper remarked that the updated resource "greatly improved our understanding of the deposit and substantially de-risked the mine development," enabling confident progression of the Scoping Study. The partnership leverages High-Tech's project ownership with SSH's operational expertise, aiming to accelerate Wagtail's path to production.
Technical Details Support Economic Potential
The updated resource estimate was independently compiled by Rose Mining Geology Consultants and incorporates 3,324 metres of infill RC drilling. The geological model now uses sectional wireframes and ordinary kriging estimation, replacing the previous indicator methodology. Bulk density values are assumed from analogous deposits pending site-specific measurements.
Preliminary metallurgical test work confirms that the ore is free-milling with gold recoveries up to 97.2%, amenable to conventional gravity and cyanide processing. The deposit is located approximately 180 kilometres from the operating Wiluna Gold Plant, with toll treatment arrangements in place via a memorandum of understanding with Wiluna Mining.
Next Steps Focus on Scoping Study and Resource Growth
With the updated MRE in hand, High-Tech Metals plans to complete the Wagtail Scoping Study, including mine optimisation, further metallurgical testing, geotechnical drilling, bulk density determination, and environmental permitting. The company also intends to estimate Ore Reserves and conduct targeted drilling to test extensions beyond the current resource limits.
Wagtail sits within a granted mining lease in a mining-friendly jurisdiction, with ongoing good-faith negotiations addressing native title matters. The broader Mt Fisher Gold Project, including the recently acquired Mt Eureka Project, offers additional exploration upside across a 1,150 square kilometre landholding in Western Australia’s prolific Yilgarn Craton.
While the underground resource assumptions remain preliminary, lacking geotechnical data and relying on analogues for bulk density, the overall update provides a clear technical foundation for advancing Wagtail towards development. The company’s partnership model and staged technical work program aim to de-risk the project and unlock value efficiently.
Bottom Line?
Wagtail’s updated resource and development partnership lay a solid groundwork, but upcoming scoping study results and further drilling will be critical to validate economic potential and expand the resource base.
Questions in the middle?
- How will forthcoming geotechnical and bulk density data refine underground resource confidence?
- What are the timelines and key milestones for the Wagtail Scoping Study completion?
- To what extent can targeted drilling extend the resource along strike and down plunge?