Tolu Minerals has reported robust new gold intersections from 17 diamond drill holes at its Tolukuma Gold Mine, bolstering a revised geological model and supporting an updated Mineral Resource Estimate due in August 2026.
- Multiple high-grade gold intersections including 3.9m at 42.35 g/t Au
- Revised geological model expands recognised veins from 15 to 44
- 143 drill holes completed with seven rigs active
- Updated Mineral Resource Estimate on track for late August 2026
- Pathway to first production remains targeted for Q1 2027
New High-Grade Intersections Reinforce Tolukuma's Potential
Tolu Minerals Ltd (ASX:TOK) has delivered another tranche of compelling assay results from its Tolukuma Gold Mine in Papua New Guinea, highlighting exceptional high-grade gold mineralisation that continues to validate and expand the company’s geological understanding. Notably, drillhole TUD-26-013 returned 3.9 metres at 42.35 g/t Au from 84.1 metres, ranking among the highest grade-metre intersections in the ongoing program. Another standout, TSD-26-030, yielded two separate zones of 2.0 metres at 32.01 g/t Au and 1.0 metre at 37.54 g/t Au, underscoring the richness of the Fundoot HW splay and main Fundoot vein.
These results come from 17 diamond drill holes and form part of a broader exploration push that has seen 143 holes drilled for nearly 23,000 metres by the end of June 2026, with seven rigs currently operational. The company plans to extend this to approximately 75,000 metres as part of its near-mine growth campaign, aiming to boost resource confidence and size.
Revised Geological Model Expands Vein Count and Volume
The drilling success is underpinned by a significant revision to Tolukuma’s geological model. Over the past year, Tolu Minerals has increased the recognised mineralised veins and splays from 15 to 44, a near tripling that has expanded the interpreted mineralised vein volume by around 15%. This shift moves the deposit from a series of isolated veins to a more interconnected structural system, improving the predictability of mineralisation and drill targeting.
For example, the Fundoot Splay, a previously unrecognised high-grade hanging wall vein, was predicted by the new model before drilling confirmed its existence, with intercepts like 4.67 metres at 40.9 g/t Au from 66 metres. Similarly, the Gulbadi Splay, identified through reinterpretation of historical data, has shown continuity beyond historical open-pit mining limits, revealing more than 240 metres of untested strike and 180 metres down-dip potential.
Resource Growth Focus on Key Vein Systems
Drilling continues to delineate and confirm continuity across multiple vein systems including Fundoot, Gulbadi, Gufinis, and Zine. At Gufinis, high-grade intersections such as 5 metres at 8.16 g/t Au from 166 metres affirm the geological model’s accuracy and support resource classification upgrades. Meanwhile, the Zine vein area has revealed high-grade footwall mineralisation with follow-up drilling planned to test around a 3.9m at 42.35 g/t Au intercept approximately 20 metres west of the known vein.
These efforts aim to convert inferred resources into indicated categories, enhancing the robustness of the upcoming Mineral Resource Estimate (MRE). Independent consultants H&S Consultants and RSC Consulting are progressing the MRE, which remains scheduled for release in late August 2026. This will be the first resource model based on the revised geological framework.
Pathway to Production and Future Catalysts
With drilling ongoing and numerous assay results still pending, Tolu Minerals is positioning itself for a strong news flow ahead of the MRE release. The company remains confident in its pathway to first production by Q1 2027, supported by the expanded drilling program and validated geological model. The scale and intensity of the drilling program, described as the most intensive in Tolukuma’s history, reflects the company’s commitment to unlocking the deposit’s full potential.
Investors will be watching how the updated resource impacts mine planning and capital allocation, particularly given the high-grade intercepts close to surface that could offer early, low-cost production opportunities. The interplay between the newly identified splays and existing veins also raises questions about further resource upside yet to be fully quantified.
Bottom Line?
Tolu Minerals’ latest assays solidify the expanded vein network at Tolukuma, setting the stage for a pivotal resource update and a critical step toward production in early 2027.
Questions in the middle?
- How will the updated Mineral Resource Estimate impact mine planning and production scheduling?
- What is the potential scale of resource growth from the newly identified Fundoot and Gulbadi splays?
- Could early high-grade, shallow intercepts accelerate initial production ramp-up or reduce capital intensity?