Resources & Energy Group has reported a standout 9-metre gold intercept at Goodenough as it prepares a fresh resource estimate. The exploration progress arrives alongside an audited warning that further funding is needed to sustain the business.
- 9m at 3.97 g/t gold, including 1m at 25.5 g/t
- Goodenough resource update to incorporate April drilling and LIDAR data
- FY2026 loss narrowed to A$519,548 from A$2.16 million
- A$2.10 million operating cash outflow and A$144,074 net current liabilities
- Auditor flags material uncertainty over going concern
Goodenough drilling delivers its strongest intercept
The most encouraging number in Resources & Energy Group Limited’s (ASX:REZ) latest filings is also the one that best captures the company’s investment tension: 9 metres at 3.97 g/t gold from 141 metres in hole 26GERC031, including a 1-metre interval grading 25.5 g/t.
The result came from a nine-hole, 798-metre reverse-circulation program at the Goodenough prospect in Western Australia’s East Menzies Gold Project. Six holes drilled west-northwest of the existing resource intersected multiple near-surface mineralised zones, including 2 metres at 2.17 g/t gold from 39 metres in 26GERC034.
REZ’s March 2026 Goodenough resource stood at 1.36 million tonnes grading 1.4 g/t for 61,200 ounces, with more than 90% classified as Indicated in the annual report. The company says the new drilling, together with February drilling, August 2023 drilling and a LIDAR survey, will feed an updated JORC 2012 Mineral Resource Estimate.
An old drillhole adds geological interest, not resource ounces
The exploration story contains an unusual subplot. During its database review, REZ located sample piles from an unidentified pre-2012 drillhole and re-assayed them. The hole returned 5 metres at 3.30 g/t gold from 72 metres, including 1 metre at 11.6 g/t.
That result may help REZ interpret a possible link between the Goodenough resource and the Four O’Clock area to the southwest, but the company says the sample quality assurance is insufficient for the intercepts to be included in a future resource estimate. A twin hole is planned instead, while mineralisation remains open at depth and to the south.
Improved loss does not remove the funding problem
The annual report supplies the harder-edged half of the announcement. REZ reduced its FY2026 net loss to A$519,548 from A$2.16 million, helped in part by a A$1.01 million gain on the sale of Mount Mackenzie Mines and a A$297,000 revaluation gain on its 33 million shares in QMines Limited (ASX:QML).
Cash and cash equivalents rose to A$872,675 at 30 June 2026 after capital raisings and the Mount Mackenzie disposal. But the business used A$2.10 million in operating cash during the year, had net current liabilities of A$144,074, and recorded no gold revenue. The auditor, RSM Australia, highlighted a “material uncertainty” that may cast significant doubt on REZ’s ability to continue as a going concern.
The directors say they have reasonable grounds to continue operating, citing the company’s ability to raise capital and reduce discretionary spending if required. That is not a funding solution so much as a description of the options available: REZ’s own accounts state that continued operations and the realisation of exploration assets depend significantly on additional capital.
Maranoa is intended to provide the near-term operating bridge
REZ is also advancing a tribute mining arrangement at Maranoa with Rembrandt Mining, under which Rembrandt is to fund development, mining and processing while REZ retains ownership of the tenement. The annual report says the parties selected a mobile modular mill for the Granny Venn processing site, although it does not provide production timing, projected costs or expected cash flows.
That leaves Goodenough as the longer-term resource-growth story and Maranoa as the proposed route towards operating revenue. The next resource estimate will show whether the latest intercepts translate into more tonnes or confidence; the next funding decision will show how much time REZ has to get there.
Bottom Line?
Goodenough has produced credible exploration momentum, but the updated resource and Maranoa plan must arrive before REZ’s cash position becomes the dominant story.
Questions in the middle?
- How much will the updated Goodenough resource add to tonnes, grade and contained ounces?
- When will the Maranoa arrangement begin generating revenue, and on what disclosed cost and recovery assumptions?
- What size and structure of capital raising will REZ require to fund exploration and corporate overheads?