Augustus Minerals finds a high-grade thread at Clifton East

Clifton East delivers high-grade gold signal

Augustus Minerals Limited (ASX:AUG) has used its FY2026 annual report to put Clifton East at the centre of its exploration story, reporting broad gold zones and a high-grade interval from drilling at the Music Well Gold Project, 35km north of Leonora in Western Australia. The strongest result from the June reverse-circulation program was 8m at 3.27g/t gold from 72m, including 1m at 19.5g/t in hole MWRC0019.

The result came from the second of two RC campaigns completed during the year. The first comprised 11 holes for 1,100m and returned 11m at 2.41g/t gold from 32m in MWRC0006, including 1m at 7.90g/t, while a further hole delivered 34m at 0.83g/t from 38m. The June program added 11 holes for about 1,650m and extended testing into fresh rock.

Drilling narrows the geological question

Augustus says gold mineralisation, supported by hematite, chlorite-epidote, silica, carbonate and pyrite alteration, has now been identified over about 400m of strike within a broader 1.2km-long gold-in-soil anomaly. The company compares Clifton East’s geological setting and geochemistry with the Golden Cities group of deposits, described in the report as a 1.4 million-ounce gold system. That comparison is an exploration thesis, not a resource estimate: the prospect has no stated mineral resource, reserve or economic study.

Diamond drilling began shortly after the financial year ended, targeting mineralisation down-dip from the stronger MWRC0006 and MWRC0007 intersections while seeking more information on structure and alteration. Augustus also plans continued soil geochemistry along major structures, follow-up work at Black Cat East and Teutonic East, and further drilling across priority prospects.

Loss narrows while funding remains central

The Group reported a net loss of A$2.65 million for the year, down from A$4.05 million, but operating cash outflow increased to A$1.45 million from A$810,408. Cash and cash equivalents stood at A$1.69 million at 30 June, alongside working capital of A$1.34 million. Exploration and evaluation assets rose to A$10.66 million after A$1.58 million was capitalised, although A$1.01 million of expenditure tied to surrendered tenements was written off.

The directors prepared the accounts on a going-concern basis and said the company expects to raise additional funds as required. The report also acknowledges material uncertainty if funding cannot be secured, with reduced activity and deferred discretionary expenditure identified as possible responses. After year end, Augustus issued 10.91 million shares at A$0.04 and 41.67 million unlisted options exercisable at A$0.07 through August 2029.

PNG applications add scale but not certainty

Beyond Music Well, Augustus continued progressing its second-in-time exploration licence application over the Mt Kare Gold Project in Papua New Guinea, about 15km from the Porgera Gold Mine, while engaging landowners and stakeholders. It also advanced the 1,900-square-kilometre Vanapa River application in Central Province, where the company observed widespread artisanal alluvial gold mining during a site visit. Neither application had become a granted exploration licence at 30 June 2026, and Ti-Tree field activity remained limited as resources were directed to Music Well and PNG.