Odyssey Gold’s Stage 1 Scoping Study for Tuckanarra outlines a low-capital, near-term production of 79,000 ounces of gold, backed by a toll milling agreement at Kirkalocka and an updated resource base of 451,000 ounces.
- Stage 1 targets 79,000oz gold over 29 months
- Toll Milling Agreement secured at Kirkalocka Plant
- Updated Cable Deposit resource at 158,000oz
- Metallurgical tests confirm 95%+ gold recovery
- Exploration drilling reveals high-grade extensions
Stage 1 Scoping Study Validates Robust Economics
Odyssey Gold Limited (ASX:ODY) has revealed a compelling near-term development pathway for its Tuckanarra Gold Project in Western Australia, with a Stage 1 Scoping Study confirming production of approximately 79,000 ounces of recovered gold over 29 months. The study assumes toll treatment of ore mined from the Cable Pit at the nearby Kirkalocka Processing Plant, delivering operating cash costs of A$3,400 per ounce (pre-tax) and initial capital expenditure of about A$7 million. At an assumed gold price of A$6,000 per ounce, the project is forecast to generate net pre-tax cashflows of around A$180 million.
The study envisages mining 1.35 million tonnes at 1.9 grams per tonne gold with metallurgical recovery of 95%, supported by low infrastructure requirements and an existing approved Mining Proposal that allows for a swift start-up. The mining operation will involve a contractor-managed open pit with a life-of-mine strip ratio of 11.9:1, and ore will be hauled approximately 191 kilometres along the Great Northern Highway to Kirkalocka.
Toll Milling Agreement Secures Processing Capacity
This arrangement offers Odyssey a cost-competitive, low-risk route to production without the need for significant capital investment in processing infrastructure, a notable advantage in today’s capital-constrained environment.
Updated Mineral Resource Estimate Underpins Development
The company also announced an updated Mineral Resource Estimate (MRE) for the Cable Deposit, which now stands at 2.75 million tonnes grading 1.8 grams per tonne gold for 158,000 ounces, comprising both Indicated and Inferred resources. This forms part of the broader Tuckanarra project MRE of 6.3 million tonnes at 2.2 grams per tonne gold for a total 451,000 ounces. Notably, only 19% of the total resource is targeted in Stage 1, highlighting significant upside potential for future development stages.
The updated resource incorporates extensive drilling completed in 2025 and was prepared by Helena Consulting Pty Ltd in accordance with the JORC Code (2012 Edition). Approximately 311,000 ounces of the resource lie within granted mining leases and close to major transport routes, enhancing project accessibility.
Metallurgical Results Confirm High Recoveries
Metallurgical testwork on weathered material from a shallow starter pit within Cable returned gold leach recoveries peaking at 95.9% within eight hours, with low cyanide and lime consumption. Gravity recovery accounted for 18.8% of the gold extracted. Although the Bond Work Index was higher than expected at 20.9 kWh/t, further testwork is underway to refine these findings. These results support the assumptions used in the Stage 1 Scoping Study and bode well for efficient processing.
Exploration Drilling Highlights High-Grade Extensions
Exploration drilling continues to deliver promising results, with new high-grade intercepts at the Shackle Prospect and Bollard Deposit. Shackle, a newly identified target, returned hits including 3 metres at 16.1 grams per tonne gold from 55 metres, confirming a high-grade shoot beneath historical workings that remains open in all directions. This discovery underscores the potential for additional shoots beneath historical mining areas.
At Bollard, infill and extensional drilling confirmed continuity of high-grade plunging shoots over 140 metres of strike, with assays including 5 metres at 14.0 grams per tonne gold and 6 metres at 9.6 grams per tonne. These results support resource upgrades and potential mine life extensions, with future drilling targeting expansions and underground mining potential.
Meanwhile, the Cable Deposit drilling program has focused on upgrading resource confidence and expanding mineralisation adjacent to the current resource. High-grade intersections such as 5 metres at 15.6 grams per tonne gold from 136 metres reinforce the presence of multiple mineralised structures and support ongoing mine development plans.
Financial Position and Next Steps
Odyssey ended the quarter with cash reserves of A$5.8 million. The company’s expenditure during the quarter was primarily focused on drilling, assays, and consulting, totaling A$2.24 million. With no mining or production activities yet, the company is managing its cash prudently while advancing the Stage 2 Scoping Study, which will assess longer-term development options including on-site processing.
The conditional nature of the Toll Milling Agreement and the upcoming mining decision deadline in September add important milestones to watch. The Stage 2 study aims to unlock more of the 451,000-ounce resource, given Stage 1 targets just a fraction of the total resource. Meanwhile, further metallurgical and drilling results will be critical to refining project economics and mine planning.
Bottom Line?
Odyssey Gold’s Tuckanarra project is poised for near-term production via toll milling, but the path hinges on final investment decisions and successful commissioning of the Kirkalocka plant.
Questions in the middle?
- Will Odyssey meet the 30 September mining decision deadline to activate the Toll Milling Agreement?
- How will further metallurgical testwork impact processing cost assumptions and project design?
- What scale of resource growth can be expected from ongoing exploration along the Cable-Bollard corridor?