MB Gold Advances Marble Bar Drilling with Positive Twin Veins Results and Royalty Buyout

• Maiden 6,000m RC drilling program completed
• Encouraging gold assays at Twin Veins prospect
• 0.75% net smelter royalty terminated via share issuance
• Secured $100,000 government co-funding for geophysical survey
• Cash reserves of $5.96 million with $1.186 million exploration spend

Initial Drilling Yields Promising Gold Mineralisation

MB Gold Limited (ASX:MBG) has wrapped up its inaugural ~6,000 metre Reverse Circulation (RC) drilling campaign at the Marble Bar Gold Project in Western Australia’s Pilbara region. The program focused on the Twin Veins and Douglas Find prospects, key structural zones near the Mt Edgar Batholith known for their gold potential. Early assay results from Twin Veins revealed significant gold mineralisation, including intercepts such as 20 metres at 1.7 grams per tonne (g/t) gold from 81 metres depth, featuring a higher-grade 7 metre section at 4.06 g/t. Other notable hits included 8 metres at 2.5 g/t and 5 metres at 1.25 g/t, underscoring the prospect’s potential to host economically viable mineralisation.

These results confirm continuity of mineralisation and support the company’s strategy to expand exploration in this structurally complex corridor. Phase 1 drilling was completed safely and efficiently, with preparations underway for a Phase 2 campaign expected to further test multiple targets across the project area.

Strategic Royalty Termination and Government Support

In a strategic move to enhance project economics, MB Gold terminated an existing 0.75% net smelter royalty (NSR) held by First Au Limited across several tenements within the project area. The buyout was settled through the issuance of approximately 257,000 fully paid shares valued at $50,000, removing a future cost burden and potentially improving the project's attractiveness to investors and partners.

Additionally, the company secured $100,000 in co-funding from the Government Exploration Incentive Scheme to support a detailed geophysical survey at the Murphy Well Prospect. This survey aims to identify intrusive-related gold and base metal systems analogous to the nearby Spinifex Ridge deposit, potentially unlocking new drill targets.

Heritage Survey and Infrastructure Advantages

MB Gold completed a heritage survey at the Razorback Prospect in collaboration with Nyamal Traditional Owners, reflecting its commitment to responsible exploration and community engagement. This survey clears a key hurdle ahead of planned drilling activities in the area.

The Marble Bar Gold Project benefits from strong infrastructure, being only 150 kilometres from Port Hedland via sealed roads and close to existing mining operations. This accessibility supports efficient exploration logistics and potential future development.

Financial Position and Expenditure

At quarter-end, MB Gold held $5.96 million in cash, having spent approximately $1.186 million on exploration activities, primarily on the RC drilling campaign. Administration and corporate costs remained modest, with total expenditure to date well within the two-year budget outlined in the company’s prospectus.

The company also issued 1.44 million Long-term Incentive Performance Rights to senior management and staff, aligning their interests with shareholder value creation. A further 3.4 million Performance Rights are proposed for directors, pending shareholder approval at the upcoming Annual General Meeting.

Bottom Line?

MB Gold’s maiden drilling and royalty termination mark solid early progress, but upcoming Phase 2 results and government survey outcomes will be critical to defining the project’s next growth steps.

Questions in the middle?

• Will Phase 2 drilling confirm and extend the high-grade shoots identified at Twin Veins?
• How will the government co-funded geophysical survey at Murphy Well influence future exploration targeting?
• What impact will the proposed director performance rights have on governance and shareholder alignment?