Tolu Minerals Advances Tolukuma With Record Drilling and High-Grade Discoveries

Record Drilling Campaign Uncovers High-Grade Veins

Tolu Minerals Limited (ASX:TOK) has ramped up its exploration efforts at the Tolukuma Gold Mine (TGM) with a record drilling program that delivered 11,686 metres across 68 holes in the June 2026 quarter alone. This marks the most intense drilling activity in the company’s history and forms part of a broader 75,000+ metre campaign aimed at expanding the mine’s resource base.

The drilling has already yielded two new high-grade gold discoveries: the Fundoot Splay, boasting an impressive 4.67 metres at 40.90 grams per tonne (g/t) gold from 66 metres depth, including a standout 1.3 metres at 82.80 g/t; and the Gulbadi Splay, with 2 metres at 16.94 g/t from 149 metres depth. Further assay results released in late July confirmed exceptional grades, such as 3.9 metres at 42.35 g/t Au in the New Zine FW splay, reinforcing the robust gold endowment of the Tolukuma system.

Expanded Geological Model and Resource Update Imminent

The company’s revised geological model now recognises 44 mineralised veins and splays across an eight-kilometre system; up from 15 previously identified. Notably, only about 1.2 kilometres of this system has been mined to date, suggesting significant upside potential.

Tolu has engaged independent consultants H&S Consultants and RSC Consulting to deliver the most comprehensive Mineral Resource Estimate (MRE) update in the mine’s history. Scheduled for release in late August 2026, this MRE will integrate all historical and recent drilling data and underpin a new mine plan targeting growth across the Southern and Northern Expansion Zones as well as the Central Mine Zone.

Pathway to Production and Operational Progress

With underground development recommenced on the 1560 Level, early face sampling has returned multiple intervals exceeding 30 g/t Au, signalling strong ore grades near the mine infrastructure. The processing plant refurbishment and supporting infrastructure upgrades are progressing steadily, with the company aiming for a staged restart targeting approximately 500 tonnes per day.

Tolu remains confident of achieving first gold production by the first quarter of 2027, a milestone that would mark a significant transition from exploration to revenue generation.

Financial Position and Expenditure

Financially, Tolu holds a robust cash position of approximately A$50 million, bolstered by recent financing activities including a A$23.75 million convertible note and proceeds from equity exercises. Exploration and evaluation expenditure for the quarter totalled A$9.74 million, reflecting the company’s aggressive drilling and resource growth strategy.

Operating cash outflows were modest at A$2.27 million for the quarter, while investing activities, dominated by exploration and property plant and equipment costs, accounted for A$12.96 million in outflows. The company’s capital structure comprises roughly 281 million fully paid ordinary shares and 11.49 million performance rights.

Safety Incident and Corporate Responsibility

Tragically, the quarter was marred by a fatal incident on exploration licence EL2531 involving an employee from Tolu’s services division. The company expressed its deepest condolences and emphasized that safety remains its paramount priority, working closely with authorities and supporting the affected family.