Paterson Resources Nearly Triples Grace Gold Resource to 200,000 Ounces

Resource Estimate Nearly Triples to 200,000 Ounces

Paterson Resources (ASX:PSL) has delivered a significant upgrade to its Grace Gold Project, nearly tripling the Inferred Mineral Resource Estimate (MRE) to 3.46 million tonnes at 1.79 g/t gold for 200,000 ounces of contained gold. This compares with the previous 2020 estimate of 1.59 million tonnes at 1.35 g/t for 69,000 ounces, marking a 131% increase in contained gold. The updated resource now spans a strike length of approximately 2 kilometres and is constrained within an optimised open pit shell, highlighting the project's potential for open cut mining operations.

Shallow, High-Grade Mineralisation with Depth Potential

The gold mineralisation at Grace remains shallow and high-grade, with fresh rock zones reporting grades of 2.12 g/t Au, indicating strong potential for extensions at depth. The resource is entirely classified as Inferred, reflecting current drillhole spacing and data quality, with no Measured or Indicated resources yet defined. Paterson’s geological model incorporates oxide, transitional, and fresh rock zones, with the latter contributing 69,000 ounces at 2.12 g/t Au, underpinning the robust grade profile.

Metallurgical Tests Support Conventional Processing

Preliminary metallurgical testing indicates the Grace gold mineralisation is amenable to conventional processing methods, with gold recoveries reaching an encouraging 96.7%. This bodes well for future economic extraction scenarios and supports the company’s plans to progress a scoping study leveraging the updated resource base. Additional metallurgical work is planned to cover the full oxidation profile and refine processing design.

Next Steps: Drilling, Studies, and Approvals

Paterson intends to follow up the resource upgrade with a targeted infill and extensional drilling campaign aimed at upgrading the resource classification from Inferred to Indicated and testing along-strike and down-dip extensions. Concurrently, environmental, geotechnical, and infrastructure studies are underway to support mine development planning. The company is also advancing a scoping study to assess the project’s economic viability based on the enhanced resource.

Corporate Changes and Legal Dispute

During the quarter, Paterson appointed Samuel Baker as a non-executive director, bringing operational, engineering, and project development expertise, particularly in navigating government and statutory approvals in Western Australia. Greg Entwistle took over as non-executive chairman following John Kay’s resignation. Post-quarter, the company disclosed it is defending a $0.5 million to $0.7 million claim from its former drilling contractor iDrilling Australia Pty Ltd over the Phase I drilling program. Paterson disputes the claim and does not anticipate a material impact on operations.

Financial Position and Exploration Spending

Exploration and evaluation expenditure for the quarter totalled $305,000, mainly directed at drilling activities at Grace. The company ended the quarter with $1.824 million in cash and equivalents, providing an estimated 4.08 quarters of funding at current expenditure levels. There were no mining production activities during the period.

Strategic Location in the Paterson Province

The Grace Gold Project sits in the heart of the Paterson Province, a region renowned for major gold-copper discoveries such as Greatland Gold’s Havieron and Telfer deposits. This proximity underscores the project’s potential within a highly prospective geological setting.