Aureka Limited has reported new high-grade gold intercepts extending mineralisation southwards at its St Arnaud Comstock project, reinforcing plans for near-term production using nearby milling capacity.
- High-grade gold intercepts up to 95.6g/t Au confirmed
- Mineralisation extends within applied production licence area
- Maiden JORC resource of 56,500 ounces at 1.21g/t Au
- Exploration target ranges 3.0-3.5 million tonnes at 1.0-1.2g/t Au
- Toll milling agreement secured with Wedderburn Mill
High-Grade Gold Intercepts Confirmed at Comstock and Walkers
Aureka Limited (ASX:AKA) has unveiled fresh drilling results that bolster the high-grade gold potential of its St Arnaud Comstock project in Victoria. Diamond core hole NED032 returned a standout 0.3 metres at 65.3 grams per tonne (g/t) gold from 106.2 metres, with a duplicate sample hitting 95.6g/t, while nearby hole NED035 delivered 0.35 metres at 34.2g/t Au. These impressive assays extend mineralisation to the south, notably within the production licence area the company has applied for.
Managing Director James Gurry highlighted the significance of these results, noting they support a strategy for smaller scale, opportunistic production from the brownfield site. The proximity to the Wedderburn Mill, where Aureka has a binding processing agreement, offers a practical pathway to near-term gold output amid a favourable gold price environment.
Geological Insights and Exploration Strategy
Exploration Manager Jozef Story emphasised that while the highest grades are associated with narrow hanging wall samples, the entire fault zone exhibits strong mineralisation. The intercepts lie immediately below the current pit surface, reinforcing confidence in legacy drilling and the project's potential to deliver high-grade, low-tonnage production.
The Comstock Shear, a west-dipping fault zone within tightly folded turbidites, remains underexplored down-dip and along strike to the south. Aircore drilling south of hole NED032 has returned encouraging anomalous gold values, and there is a notable gap in diamond drilling between these results and historic Lady Nelson mines, presenting clear targets for further work.
Resource Base and Exploration Targets
Aureka’s maiden JORC Mineral Resource Estimate (MRE) for Comstock, released in June 2025, stands at 1.45 million tonnes grading 1.21g/t Au for 56,500 ounces of gold. Beyond this, an exploration target ranges from 3.0 to 3.5 million tonnes at 1.0-1.2g/t Au, equating to 112,000 to 116,000 ounces of gold, alongside potentially economic silver grades. The company cautions that the exploration target remains conceptual, with further drilling required to confirm resource status.
Drilling programs have addressed previous issues with core loss, improving sample quality and coinciding with the recent surge in high-grade intercepts. The Walkers Zone continues to validate historic drilling, with multiple quartz vein-hosted gold intercepts supporting the geological model and potential for delineating mineralised ore blocks suitable for small-scale production.
Commercialisation and Next Steps
Situated within the historic St Arnaud Goldfields, which produced an estimated 400,000 ounces at around 15g/t Au historically, the Comstock project benefits from a brownfield setting and existing infrastructure. Aureka has applied for a small production licence and is actively engaging with stakeholders and regulators to advance development, starting with the Walkers pit.
The company’s binding toll milling agreement with the Wedderburn Mill, located 45 kilometres from the site, provides an established processing route that could accelerate production timelines. This arrangement complements ongoing infill drilling and resource definition efforts aimed at upgrading confidence and supporting a low-capital, fast-start mining operation.
While the current results are promising, the extent to which these high-grade zones can be economically mined and processed remains to be fully demonstrated. The next phases of drilling and regulatory approvals will be critical in shaping the project’s trajectory towards production.
Bottom Line?
Aureka’s latest high-grade assays and strategic milling partnership position Comstock for potential near-term gold production, but further drilling and approvals will test the project’s economic viability.
Questions in the middle?
- Will further drilling confirm continuity of high-grade shoots along the Comstock Shear?
- How soon can regulatory approvals for the production licence be secured to enable mining?
- What economic thresholds will define the feasibility of small-scale production at Walkers pit?