70% of 3,492m Bush Chook Drilling Intersected Significant Gold
Moho Resources has expanded its Bush Chook exploration story with new shallow gold systems, but its auditor has warned that ongoing cash outflows and reliance on future funding create material uncertainty over its ability to continue as a going concern. The company held $1.27 million in cash at 30 June 2026 after raising $2 million and selling Silver Swan North.
- 442km² Bush Chook landholding in the Pilbara
- 70% of Phase One RC holes intersected significant gold mineralisation
- Gage Road and CBco define four shallow lodes over 600m combined strike
- FY2026 loss narrowed to $1.15 million
- Auditor flags material uncertainty over going concern and future funding
Bush Chook progress meets a cash constraint
Moho Resources Limited (ASX:MOH) ended FY2026 with a more focused exploration portfolio, but less financial room for error. Its auditor issued an unmodified opinion while highlighting a material uncertainty over the company’s ability to continue as a going concern, citing a $1.15 million net loss, $705,315 of operating cash outflows and $1.27 million in cash at 30 June 2026.
The uncertainty is not tied to a debt burden. Moho had $412,643 in current liabilities and net working capital of $1.18 million. Rather, the annual report says the company’s ability to continue depends principally on raising additional equity and managing expenditure within available funds. The directors said they had reasonable grounds to believe the company could continue, including through further capital raising or scaling back exploration.
Drilling defines two new gold systems
Operationally, Bush Chook supplied the report’s strongest evidence of progress. Moho has consolidated a 442km², 100%-owned position in Western Australia’s Mosquito Creek Basin and says it is now the largest landholder in the basin. Phase One reverse circulation drilling had completed 3,492 metres of a planned 5,000 metres by the reporting date, with 70% of holes intersecting significant gold mineralisation above 0.5 grams per tonne.
At Gage Road, drilling outlined two shallow gold lodes across 200 metres of strike, including 14 metres at 1.04 grams per tonne gold and 5 metres at 1.53 grams per tonne. At CBco, two further lodes extended across 420 metres, including 15 metres at 0.84 grams per tonne. The four lodes together cover more than 600 metres of combined strike and remain open along strike and down dip. Those results are exploration intersections, not a mineral resource or evidence of economic viability.
Earlier targets produced mixed signals
The drilling record is not uniformly positive. Four maiden RC holes at Swan, totalling 540 metres, intersected alteration considered relevant to the local mineralising system but failed to return significant gold intersections. At Rocky Ridge, subsequent interpretation indicated that the high-grade zone targeted beneath the Southwest Adit 1 had a strike extent of less than 20 metres, prompting Moho to shift near-term attention towards the larger Gage Road and CBco systems.
Surface exploration has nevertheless generated a wide target pipeline. Moho defined 18 priority drill targets, while regional soil sampling collected 4,948 samples, including 19 returning more than 1 gram per tonne gold. Heritage arrangements with the Palyku-Jartayi Aboriginal Corporation established a framework for surveys and access across approximately 80% of the project area, including priority work at Emu and Bright Tank.
Capital raised as exploration spending accelerates
Moho raised $2 million before costs through a two-tranche placement at $0.008 a share during the year. It also sold the non-core Silver Swan North project for $500,000 in cash, with a further $500,000 milestone payment and a 1% gross revenue royalty linked to future outcomes. A deferred $275,000 payment from the sale was received on 31 July 2026.
Despite those inflows, investing cash outflows excluding asset-sale proceeds reached $1.77 million, while exploration and evaluation assets rose to $2.17 million from $782,363. The company’s loss narrowed from $2.94 million in FY2025 to $1.15 million, but the balance sheet remains dependent on the next funding decision. At 30 June, Moho had 1.05 billion ordinary shares on issue, alongside 200 million unlisted options and 79 million performance rights, creating a sizeable potential equity overhang if awards convert.
The next test is conversion, not target count
Moho’s stated strategy is to turn Bush Chook’s large land position into a sequence of disciplined exploration outcomes, with follow-up drilling, mapping, soil geochemistry and heritage work continuing across the project. The immediate question is whether the remaining drilling and future campaigns can expand the Gage Road and CBco systems enough to justify continued capital allocation before the company needs to return to equity markets.
Bottom Line?
Bush Chook has produced encouraging early intersections, but the next drilling results must arrive before Moho’s cash position forces a new funding decision.
Questions in the middle?
- Can follow-up drilling demonstrate continuity and scale at Gage Road and CBco?
- How much additional capital will Moho require to sustain exploration at its planned pace?
- Will heritage approvals and tenement grants unlock the highest-priority targets across the wider Bush Chook landholding?
