E79 Gold Mines has secured essential tenements at its Cue Gold Project, paving the way for a major drilling campaign targeting over 10,000 metres of gold-bearing structures starting in October 2026.
- Key Cue Gold Project tenements granted
- Heritage survey booked for early October
- Over 250 drill holes planned for 10,000m
- First large-scale drilling in nearly 30 years
- Deferred consideration milestone triggered
Tenement Grants Unlock Major Drilling Program
E79 Gold Mines Limited (ASX:E79) has hit a significant milestone with the grant of multiple prospecting licences at its Cue Gold Project in Western Australia's Murchison region. These newly secured tenements cover the advanced Ada and Chloe exploration targets and clear a critical path for the company’s first large-scale drilling campaign at Cue in almost three decades.
The tenements, granted for an initial term of four years, follow the recent execution of a Heritage Agreement with the Yugunga-Nya Traditional Owners. This agreement underpins the scheduled heritage survey, which is booked for early October 2026 and expected to take around four days. The heritage survey is a prerequisite for the commencement of drilling and environmental approvals, both of which are progressing.
Drilling Plans Target High-Priority Gold Prospects
The upcoming program will involve more than 250 drill holes, comprising a mix of air-core and Reverse Circulation (RC) drilling for over 10,000 metres. RC drilling will focus on the Ada and Chloe prospects, which have historical drill results indicating promising gold mineralisation. For instance, Ada has returned intercepts such as 13 metres at 2.2 grams per tonne (g/t) gold from 112 metres, while Chloe has shown high-grade hits including 4 metres at 6.96 g/t gold from 90 metres.
The drilling aims to test cross-cutting structural corridors within highly prospective host rocks identified through a recent high-resolution gravity survey. This survey delineated over 40 drill targets across the project area, highlighting the potential for significant gold discoveries in proximity to Westgold’s Great Fingall Gold Mine, famed for producing 1.2 million ounces at an average grade of 19.2 g/t gold.
Milestone Triggers Deferred Consideration and Next Steps
The grant of these tenements also satisfies a key milestone under the acquisition agreement for Cue Metals Pty Ltd, triggering the issuance of approximately 14.3 million deferred consideration shares to vendors, subject to shareholder approval. This marks a crucial step in consolidating E79’s ownership and control over the Cue Gold Project.
With statutory approvals advancing, earthworks for drill pad and access track clearing are set to begin after the heritage survey’s completion. Drilling is planned to start in late October 2026, with the entire program scheduled to wrap up before year-end.
CEO Ned Summerhayes emphasised the significance of this progress, noting the rapid advancement since securing the heritage agreement and tenements. He highlighted the potential for the extensive drilling program to unlock substantial value and refine gold targets for follow-up exploration.
Strategic Positioning Within a Rich Gold Province
The Cue Gold Project spans approximately 65 square kilometres within the Murchison Gold Province, a region renowned for high-grade, quartz reef-hosted gold deposits. Situated immediately south of the historical Day Dawn goldfield, the project benefits from geological settings comparable to nearby prolific mines such as Great Fingall, Golden Crown, and Break of Day.
E79’s portfolio extends beyond Cue, including the Laverton South Gold Project and Mountain Home Project in the Northern Territory, positioning the company across some of Australia’s most mineral-endowed provinces. The company’s focused approach on Cue is supported by an earn-in and joint venture agreement for its Murchison Project, allowing it to concentrate resources on advancing these promising gold targets.
Bottom Line?
E79 Gold’s imminent drilling campaign at Cue is a pivotal test of its exploration thesis, with results set to shape the company’s near-term value trajectory.
Questions in the middle?
- Will the October drilling confirm the high-grade potential suggested by historical intercepts at Ada and Chloe?
- How will the outcomes of the heritage survey and environmental approvals affect the drilling schedule?
- What impact will the issuance of deferred consideration shares have on shareholder composition and market perception?