$1.92 million cash supports Orbminco’s 50,300-ounce gold project

Majestic North Becomes Orbminco’s Sole Strategic Focus

Orbminco Limited (ASX:OB1) has completed its transformation into a gold developer, placing the 100%-owned Majestic North project in Western Australia’s Eastern Goldfields at the centre of the business. The project, 65 kilometres east of Kalgoorlie, hosts a JORC 2012 Mineral Resource of 1.375 million tonnes at 1.14 grams per tonne gold for about 50,300 ounces.

The resource includes a higher-grade domain of 249,000 tonnes at 2.42 grams per tonne for roughly 19,300 ounces. About 19,300 ounces is a subset of the broader resource, and the company cautions that the Inferred portion carries a lower level of geological confidence and cannot be treated as an economic reserve.

Low-Capital Mining Concept Still Depends on Third Parties

Orbminco’s proposed Stage 1 pathway is deliberately modest in capital intensity. Rather than building an on-site processing plant, the company intends to mine the shallow, higher-grade portion of Majestic North and sell ore directly to an operating mill or use toll treatment. Discussions with potential ore purchasers and toll-treatment counterparties were continuing at 30 June.

Development work has moved beyond drilling into metallurgy, pit optimisation, geotechnical studies, environmental surveys and approvals. Phase 1 metallurgical testwork confirmed the ore is free-milling, with gold recoverable through conventional cyanide leaching. The company also reported a shallow intercept of two metres at 17.69 grams per tonne gold from 19 metres in a 27-hole program, although further drilling and any resource implications remain subject to verification.

Loss Narrows as Exploration Spending and Impairments Continue

Orbminco’s loss after tax narrowed to $3.42 million from $7.13 million in FY2025, largely because impairment charges fell to $2.05 million from $5.99 million. Corporate and administrative expenses nevertheless rose to $847,557, while share-based payment expense increased to $324,039.

The balance sheet expanded after $5.01 million was raised during the year, including a $3.75 million placement in April at $0.016 a share. Cash increased to $1.92 million at 30 June, while exploration and evaluation assets rose to $6.66 million. The company also exited the Bronze Fox joint venture in Mongolia and completed the sale of its Mt Venn interest, leaving Australia as its only operating segment.

Going Concern Warning Puts the Funding Question First

The improvement in cash does not remove the financing risk. Orbminco used $1.13 million in operating cash during FY2026 and a further $2.93 million on exploration and evaluation assets. Its accounts state that continuing as a going concern is contingent on raising additional capital and/or successfully selling or developing its projects.

BDO issued an unmodified audit opinion but separately highlighted a material uncertainty that may cast significant doubt on the group’s ability to continue in its current form. The report says directors expect further equity funding could be secured subject to market conditions. That leaves the company’s next funding requirement tied to the pace of approvals, drilling, counterpart negotiations and the timing of any Final Investment Decision. A further 47.4 million listed options expired unexercised and out of the money on 31 July 2026, removing one potential source of exercise proceeds.