Auravelle’s Nuckulla Hill gold trend grows beyond 3km

Nuckulla Hill gold trend stretches beyond 3km

Auravelle Metals Limited (ASX:AUV) has expanded the geological story at its Nuckulla Hill project, confirming a more than 3km-long anomalous gold trend between the Sheoak and Myall prospects in South Australia. The result came from a 34-hole aircore program across Sheoak North, Myall and Sauna, with gold above 0.1g/t recorded in roughly one-third of the holes.

The strongest intersections were reported from four-metre composite samples: 10m at 1.4g/t gold from 56m to end of hole at Sheoak North, and 8m at 1.0g/t from 48m at Myall. Auravelle said the early-stage, shallow program has created priority targets along strike and at depth, with one-metre resampling and a follow-up reverse circulation campaign planned. The results add to the company’s September funding warning, which highlighted the tension between exploration progress and the need for additional capital.

Sheoak testwork points to conventional recovery

Preliminary metallurgical work at Sheoak produced an average gold recovery of 90.5% after a 24-hour leach, with individual recoveries ranging from 81% to 97%. Bureau Veritas tested 22 RC samples representing transitional and fresh material from the central Sheoak area.

Auravelle said the results indicate non-refractory mineralisation that may be amenable to conventional cyanide leaching through a carbon-in-leach process. That remains an initial processing indication rather than a development study: the Sheoak system is described as extending at least 600m along strike, remains open in several directions, and requires further drilling and metallurgical work. The result builds on the earlier Sheoak recovery testwork, which also reported 90.5% average recovery from preliminary bottle-roll testing.

Skye adds a second South Australian exploration front

At the Skye Gold Project, maiden soil sampling identified multiple kilometre-scale gold anomalies. Auravelle said their scale, continuity and orientation align with regional northeast gold trends, and plans to combine the new results with historical geochemical data before a maiden drilling program in 2027.

The company is also awaiting results from about 400 soil samples collected at its Crown Gold Project in Western Australia. Site reconnaissance during the quarter assessed access and topography, while the pending results are intended to support target generation and the next aircore drilling phase.

Cash position leaves little room for delay

Auravelle finished the quarter with $1.326 million in cash and no debt after receiving $1.5 million from a placement of 187.5 million shares at 0.8 cents each. Exploration and evaluation payments totalled $438,000 during the quarter, while net operating cash outflow was $712,000. On the company’s calculation, available funding covered 1.9 quarters of relevant outgoings.

The company said it expects current operating cash flows to continue and that its board is reviewing options to raise more funds. It also agreed to sell the Skeleton Rocks Project to Forrestania Resources Limited (ASX:FRS) for $250,000 in 681,414 Forrestania shares, subject to due diligence. The transaction is intended to narrow the portfolio around South Australian and Western Australian gold assets, but it does not provide the immediate cash proceeds that a cash sale would have delivered. The agreement follows the earlier Skeleton Rocks divestment, which outlined the proposed sale and its conditional status.

The next material tests are practical ones: whether one-metre resampling sharpens the aircore picture, whether RC drilling converts the anomalies into more substantial intersections, and how quickly the company must return to the market for funding. For Auravelle, the exploration results are becoming more encouraging at the same time as the cash timetable becomes less forgiving.