Metal Bank gives Homestead the lead in its WA gold production push

Homestead becomes Metal Bank’s preferred route to production

Metal Bank Limited (ASX:MBK) is putting its larger Homestead deposit ahead of the smaller Seven Leaders project as it works towards first gold production in Western Australia. The company is targeting production from Homestead in 2027, after comparing the potential of a Seven Leaders starter pit with the greater scale available at Livingstone.

The decision makes Homestead the centrepiece of MBK’s WA strategy. The deposit contains a JORC 2012 resource of 1.00 million tonnes at 1.35 grams per tonne gold for 43.4 thousand ounces, including 83% in the Indicated category. The shift builds on the Homestead production pivot, which had already moved the company’s initial production focus towards Livingstone.

Drilling will test mine planning and recovery assumptions

MBK’s mining lease application for Homestead and the nearby Winja deposit remains in progress. A targeted diamond drilling program, originally scheduled for September, is now due to begin in October 2026 and is intended to generate geotechnical information for mine planning as well as metallurgical samples for recovery testing.

The company is also progressing mine planning and processing studies, sterilisation drilling around potential infrastructure areas, and preparation of a Mine Development and Closure Plan. Those steps are important because the 2027 production date is a target rather than a committed outcome, with the project still requiring technical work and regulatory approvals.

Kingsley adds scale while Seven Leaders moves into the background

Livingstone’s broader resource base totals 2.81 million tonnes at 1.36 grams per tonne gold for 122.6 thousand ounces, with 70% classified as Inferred and 30% as Indicated. The near-surface resources are within trucking distance of existing gold processing centres, according to MBK, although the report does not provide a completed mine plan or production economics.

MBK lodged a separate mining lease application for Kingsley during the quarter. Kingsley carries an Inferred resource of 1.68 million tonnes at 1.35 grams per tonne gold for 73,000 ounces, with further conceptual exploration potential to the east and at Livingstone North. The company cautions that the Exploration Target at Kingsley is conceptual and should not be treated as a Mineral Resource.

At Whiteheads, MBK is continuing exploration across the broader tenement package and advancing the Seven Leaders deposit, which contains 6,300 ounces of gold. The company said traditional recovery methods were more suitable after a value engineering study did not confirm initial gravity recovery results, and it is assessing potential third-party processing options rather than prioritising Seven Leaders for first production.

Fresh equity supports a multi-project portfolio

MBK completed a $1.2 million placement in July at $0.017 a share, a 30% premium to the company’s closing price before the placement was announced. The July $1.2 million placement was described in earlier coverage as supporting accelerated development across the WA portfolio.

After the quarter, the company completed a further placement to JAG Capital Equity SDN BHD, issuing 60 million shares at $0.01254 to raise $752,400. MBK spent $272,000 on exploration during the quarter and $228,000 on administration, while also continuing to advance its Millennium copper-cobalt-gold and graphite project in Queensland. The next test for the WA strategy is whether the October drilling and approval process can turn a larger resource base into a financeable mine development plan.