Leeuwin’s Marda gold project clears another resource milestone

Marda Resource Moves Towards 400,000 Ounces

Leeuwin Metals Ltd (ASX:LM1) has turned its first full year with the Marda Gold Project into a resource-building exercise, lifting the project’s Mineral Resource from 342,300 ounces at 30 June 2026 to 378,600 ounces in an update released after year end. The increase came mainly from 69 additional drill holes at Evanston, where the resource rose 22% to 165,500 ounces, alongside a maiden 6,600-ounce resource at Dugite.

The December 2025 maiden estimate stood at 10.2 million tonnes grading 1.05 grams per tonne gold. The July 2026 update took the total to 11.4 million tonnes at 1.03 grams per tonne, with Indicated resources increasing from 73,800 ounces to 104,000 ounces. All reported Marda resources are on granted Mining Leases, a useful piece of administrative groundwork as the company advances environmental studies, mine permitting and mine planning.

Evanston remains the centrepiece of that work. Drilling along the 1.6-kilometre trend returned shallow intersections including 9 metres at 5.23 grams per tonne gold, 8 metres at 6.05 grams per tonne and 13 metres at 3.2 grams per tonne, including 3 metres at 10.05 grams per tonne. The company says mineralisation remains open along strike and at depth, but the drilling results are exploration data rather than evidence of an economic mine.

Permitting Begins Before Any Ore Reserve

Leeuwin is pursuing a dual-track development strategy that includes both a standalone operation and third-party milling. Marda’s location, existing haulage routes and proximity to operating processing facilities provide optionality, according to the report, but the company has not declared an Ore Reserve. That distinction matters: the 378,600 ounces are a Mineral Resource, not a mineable inventory supported by a completed feasibility study.

The exploration pipeline is also widening. Historical drilling at Red Boomerang and Deception Hill identified intercepts outside the current resource, including 66 metres at 1.12 grams per tonne gold at Red Boomerang and 12 metres at 4.33 grams per tonne at Deception Hill. Programmes of Work have been submitted, with drilling planned for the second half of 2026. Golden Orb, Mt King and Marda Central are also identified as resource-growth targets.

Cash Supports Exploration, But Funding Remains Part of the Story

Leeuwin reported an A$1.74 million net loss for FY2026, compared with an A$1.12 million loss a year earlier. Cash and cash equivalents increased to A$3.66 million after the company raised A$5.8 million through an October 2025 placement, while exploration and evaluation assets rose to A$9.04 million. Net cash used in operating activities was A$1.08 million and investing cash outflows reached A$3.54 million, largely reflecting exploration expenditure.

The balance sheet is therefore better funded than it was a year earlier, but not self-funding. The report records A$3.77 million of exploration expenditure committed within one year and states that the group will require further funding in the future. Directors have prepared forecasts that contemplate future capital raisings or other transactions, while also pointing to joint ventures, asset sales and tenure rationalisation as possible liquidity tools.

Post year end, Arrow Minerals Limited (ASX:AMD) agreed to fund exploration at the West Pilbara project in exchange for a 70% interest, leaving Leeuwin with a 30% interest free-carried through to a bankable feasibility study and decision to mine. Leeuwin also agreed to acquire about 105 square kilometres of additional Western Australian tenure for shares and a royalty, and appointed Rubei Ma as Chief Development Officer to lead development and commercial strategy, particularly at Marda.

The next test is whether Leeuwin can convert a growing resource and encouraging intercepts into a credible development case without outrunning its capital base. Red Boomerang drilling, further Evanston and Marda resource work, permitting milestones and the eventual funding structure will determine how much of the exploration story can become a mine plan.