Leeuwin Metals has secured a key mining lease at Evanston, placing all its Marda Gold Project resources on granted leases, while promising drill results and a strategic collaboration set the stage for resource expansion and project development.
- Mining Lease M77/1300 granted over Evanston deposit
- Positive drill results support resource growth at Evanston and Golden Orb
- Significant historical gold intercepts identified at Red Boomerang and Deception Hill
- Collaboration MOU signed with Bain Global Resources and MEGA Resources
- Cash balance of approximately $3.7 million to fund exploration
Mining Lease Grant Advances Development Prospects
Leeuwin Metals Ltd (ASX:LM1) marked a pivotal milestone this quarter with the grant of Mining Lease M77/1300 over its Evanston deposit, a cornerstone of the Marda Gold Project in Western Australia. This lease grant follows a key agreement with the Marlinyu Ghoorlie Native Title Claimant Group, ensuring all current Mineral Resources at Marda now sit on granted mining leases. This development clears a significant hurdle, enabling Leeuwin to progress mine permitting and design activities on secured tenure.
Drilling Results Reinforce Resource Growth Potential
The company's focus on resource expansion at Evanston and Golden Orb continues to bear fruit. Recent drilling returned multiple encouraging intercepts, including 3 metres at 4.2 g/t gold from 12 metres and 19 metres at 1 g/t gold from 20 metres at Evanston, alongside deeper hits at Golden Orb such as 11 metres at 1.4 g/t gold from 176 metres. These results extend known mineralisation along strike and at depth, underpinning a Mineral Resource upgrade underway across Golden Orb, Evanston, and Marda Central. The current resource at Marda totals 342,300 ounces of gold, with Evanston alone accounting for 135,800 ounces.
Exploration Targets Beyond Current Resource Base
Beyond the granted leases, Leeuwin has identified multiple significant historical gold intercepts at Red Boomerang and Deception Hill prospects, with standout results like 24 metres at 1.79 g/t gold from surface and 12 metres at 4.33 g/t gold including a 1-metre interval at 26.4 g/t gold. These prospects lie outside the current Mineral Resource and are slated for drilling in the second half of 2026, adding a fresh pipeline of drill-ready targets to the company's portfolio.
Strategic Collaboration to Unlock Project Value
In a move to accelerate development and funding pathways, Leeuwin executed a non-binding Memorandum of Understanding with Bain Global Resources and MEGA Resources, experienced players in mining operations and project financing. This alliance aims to jointly evaluate options including contract mining, processing infrastructure, and investment capital to advance the Marda Gold Project. The collaboration also contemplates exploration opportunities beyond Marda, potentially broadening Leeuwin’s strategic footprint.
Financial Position Supports Exploration Drive
Leeuwin ended the quarter with approximately $3.7 million in cash, adequately funded to continue its exploration and resource growth programs. The company invested about $1.06 million in exploration activities during the quarter, mainly targeting drilling, assays, and geophysical surveys at Marda. While no mining production or development occurred this period, the secured mining lease and ongoing drilling programs position Leeuwin to transition towards development phases in the near term.
Broader Asset Portfolio Under Strategic Review
Outside Australia, Leeuwin is reviewing its Cross Lake Lithium and William Lake Ni-PGE projects in Manitoba, Canada, to identify optimal pathways for value maximisation, including joint ventures or divestments. Similarly, its West Pilbara Iron Ore Project in Western Australia is under strategic review for potential farm-in, sale, or self-funded exploration. These non-core assets remain on the back burner as the company concentrates capital and operational focus on advancing Marda.
Bottom Line?
With all Marda resources now on granted leases and a strategic collaboration in place, Leeuwin Metals is poised for a critical phase of resource growth and development, but the timing and outcomes of ongoing drilling and resource upgrades will be key to watch.
Questions in the middle?
- How will upcoming drilling at Red Boomerang and Deception Hill impact the overall resource base?
- What specific development scenarios will emerge from the Bain and MEGA collaboration?
- Could strategic reviews of non-core assets lead to capital raises or portfolio reshaping?