New Murchison adds Cloudkicker reserve to expand Garden Gully growth pipeline
New Murchison Gold has added a maiden 21,000-ounce Ore Reserve at Cloudkicker while reporting a group Mineral Resource of 353,700 ounces. The update also places 150,400 ounces of underground resources beneath Crown Prince, but the reserve base remains relatively short-dated and dependent on continued drilling and operating performance.
- 353,700-ounce group Mineral Resource at 2.4g/t gold
- 90,800-ounce Ore Reserve at 2.5g/t
- Maiden 21,000-ounce Cloudkicker open-pit reserve
- 150,400-ounce Crown Prince underground resource
- Reserve estimate based on A$3,750 per ounce gold
Cloudkicker adds 21,000 ounces to the reserve base
New Murchison Gold Limited (ASX:NMG) has converted Cloudkicker from a resource story into a reserve contributor, reporting a maiden 21,000-ounce open-pit Ore Reserve at the deposit. The addition helps offset depletion from the first year of mining at Crown Prince and takes group Ore Reserves to 90,800 ounces at 2.5g/t gold.
The Garden Gully reserve contains 1.14 million tonnes, comprising 65,000 ounces from the Crown Prince open pit, 21,000 ounces from Cloudkicker and 4,800 ounces in Crown Prince stockpiles. All mining reserves are classified as Probable except the stockpile, which is Proved. The estimate is based on a gold price of A$3,750 an ounce and a 0.70g/t cut-off grade.
Crown Prince underground resource points to the next phase
The larger number in the release is the group Mineral Resource: 353,700 ounces at 2.4g/t across 4.532 million tonnes. Crown Prince remains the centre of gravity, with 72,500 ounces in the open-pit resource and a further 150,400 ounces at 3.2g/t in the underground resource.
That underground inventory is not part of the current Ore Reserve. NMG says pit and stope optimisation and feasibility work are continuing, while deeper drilling is planned to test high-grade domains that remain open at depth. The wider resource also includes 31,300 ounces at Cloudkicker, 55,100 ounces at Lydia and 44,500 ounces at Abbotts, although Abbotts is entirely classified as Inferred.
Operating evidence supports the Cloudkicker study
NMG says the reserve update incorporates Crown Prince mining depletion through 30 June 2026, additional drilling, revised geological models and the Cloudkicker study. Crown Prince Stage 1 was nearing completion at the reporting date, while Stage 2 was progressing according to schedule; Cloudkicker mining was already underway.
The company’s reserve case uses conventional open-pit mining, mobile crushing and road haulage to Westgold’s Bluebird processing plant under an Ore Purchase Agreement. Expected metallurgical recovery is 96% to 97%, and the company says cost, recovery and productivity assumptions are supported by Crown Prince operating performance. For Cloudkicker, however, the estimate still relies on a detailed study rather than a long operating record.
Drilling remains the bridge between resources and production
The resource statement is encouraging in scale, but its commercial value will depend on how much of the inventory can be converted into mineable reserves. NMG plans infill and extensional drilling, additional density data and metallurgical test work. The filing specifically recommends tighter drilling at Cloudkicker and further work at Lydia before deeper or more complex areas are mined.
The reserve statement also carries a notable time horizon: the JORC material says the open-pit reserve mine life is less than two years. That makes the 150,400-ounce Crown Prince underground resource and the near-mine pipeline important future options, rather than current reserve ounces. The next test is whether drilling and feasibility work can turn that geological inventory into a sustained production schedule without weakening the operating assumptions behind the present reserve.
Bottom Line?
The update strengthens New Murchison’s near-term mine plan, but the longer-term growth case still rests on converting Crown Prince underground and other resources into reserves.
Questions in the middle?
- How quickly can Crown Prince’s 150,400-ounce underground resource progress through feasibility and reserve conversion?
- Can Cloudkicker deliver its 21,000-ounce reserve at the assumed dilution, ore-loss and recovery rates?
- Will ongoing drilling replace production depletion at the pace required to extend the open-pit operation beyond the stated sub-two-year reserve life?
