Great Boulder Resources has reported a fresh wave of high-grade drill results at its Peak Hill Gold Project, reinforcing plans for a significant resource upgrade and near-term production underpinned by an ore purchase deal with Westgold.
- High-grade gold hits extend mineralisation beyond 481,000oz resource
- Durack deposit shows continuous high-grade zone over 300m strike
- Golden Treasure drilling reveals structurally complex veins with visible gold
- 40,000m drilling campaign ongoing with three rigs active
- Low-cost production pathway via ore purchase agreement with Westgold
High-Grade Drilling Accelerates Resource Expansion
Great Boulder Resources (ASX:GBR) continues to hit the sweet spot at its Peak Hill Gold Project in Western Australia's Murchison region, with recent assay results confirming multiple high-grade gold intersections beyond the existing 481,000-ounce resource. The latest drilling campaign, part of an ambitious 40,000-metre program, has uncovered standout hits such as 12m at 8.56g/t Au from 8m at Golden Treasure and 20m at 2.73g/t Au from 90m at Durack, reinforcing the potential for a substantial resource upgrade by year-end.
At Durack, the jewel in Peak Hill’s crown with a current resource of 112,000 ounces, mineralisation now extends over a 300-metre strike length with a well-defined northerly plunge that remains open at depth and to the north. High-grade intercepts including 4m at 37.1g/t Au from 110m and 23m at 2.22g/t Au from surface underline the continuity and quality of this zone. The company’s diamond drilling, though assays remain pending, has confirmed the mineralisation is hosted within silicified shears dipping steeply northeast, adding geological confidence to the model.
Golden Treasure Emerges as a Promising Growth Target
Golden Treasure, located on the periphery of the Jubilee deposit, has delivered its first high-grade intersections, including 8m at 9.00g/t Au from 76m and 1m at 13.15g/t Au from 111m. The area is structurally complex, with diamond drilling revealing at least two mineralised vein orientations and visible gold occurrences, although the company cautions that visual gold estimates are no substitute for laboratory assays. A second phase of RC and diamond drilling is planned to follow up these encouraging results.
Other prospects such as Enigma and Jubilee have also returned significant gold hits, with Enigma delivering broad mineralised intervals including 3m at 5.91g/t Au and 13m at 1.15g/t Au, while Jubilee continues to add to its high-grade tally with hits like 2m at 6.20g/t Au. The ongoing drilling at Five Ways is expected to yield initial assay results shortly, rounding out a comprehensive exploration push across Peak Hill.
Pathway to Production and Cashflow
Beyond exploration, Great Boulder is advancing a low-cost production strategy through an ore purchase agreement with Westgold, its largest shareholder. This arrangement offers a capital-light route to cashflow, leveraging Westgold’s existing infrastructure and milling capacity. The company’s Managing Director, Andrew Paterson, emphasised the synergy: “We have a clear pathway to production and cashflow under our ore purchase agreement with Westgold, which supports our objective to rapidly monetise the growing resource.”
With three rigs currently active; two RC rigs at Enigma and Five Ways and a diamond rig focused on structural drilling; the company is well-positioned to maintain momentum. Further drilling through 2026 will also target resource definition at Harmony and additional exploration at Mt Pleasant and Golden Treasure, all outside the current resource base.
Substantial Resource Base Underpins Growth
The Peak Hill project hosts a total mineral resource estimate of 9.385 million tonnes at 1.6g/t Au for 481,000 ounces, spread across multiple deposits including Five Ways (230,000oz), Durack (112,000oz), Harmony (62,000oz), Enigma (41,000oz), and Jubilee (35,000oz). The ongoing drilling campaign aims to materially increase this figure, with Great Boulder targeting a major upgrade by the end of 2026.
This resource sits within a well-understood geological setting of Proterozoic fold belts and deformed volcanic and sedimentary rocks, with mineralisation often associated with quartz veins and shear zones. The company’s technical approach, including careful structural modelling and multiple indicator kriging estimation techniques, reflects a mature understanding of the deposit architecture.
Bottom Line?
Great Boulder’s expanding high-grade footprint and strategic ore purchase agreement with Westgold set the stage for a potential leap into production, but pending assay results and the scale of resource upgrade remain key near-term catalysts.
Questions in the middle?
- How will pending diamond drilling assays at Golden Treasure and Durack influence the upcoming resource upgrade?
- What are the operational timelines and capital requirements under the ore purchase agreement with Westgold?
- Can Great Boulder sustain its drilling momentum to convert exploration success into a robust production profile by year-end?