Meeka's underground shift gains traction as Fairway heads towards first ore

Gold production rises as underground ore replaces open pits

Meeka Metals Limited (ASX:MEK) produced 7,237 ounces of gold in the September 2026 quarter, up from 6,424oz in the June quarter, as higher-grade underground production at Andy Well gathered pace. The company processed 149,462 tonnes at an average recovery of 95%, with underground ore, low-grade development material and open-pit stockpiles all contributing to mill feed.

“Long section showing Andy Well underground mine, the current mining horizon and the Ore Reserve ounces / grade by 50m level increment.”

The operating shift is becoming clearer. Open-pit mining at Turnberry Central ended in July, leaving roughly 300koz of open-pit Mineral Resource in the ground while reducing the operation's reliance on pit ore. Underground output delivered 4.9koz at 3.9g/t gold to the run-of-mine pad, compared with 3.5koz at 2.8g/t in the prior quarter. That improvement came alongside 1,719 metres of underground development, up from 1,619m.

Andy Well's production also continued to reconcile above the relevant Ore Reserve grade. Since underground mining began across the current 1,400mRL to 1,250mRL horizon, Meeka says it has produced 12.8koz from 129kt at 3.1g/t, against an Ore Reserve estimate of 44.5koz from 477kt at 2.9g/t. The comparison covers a specific mining horizon rather than the whole operation, and remains subject to ongoing production.

Fairway decline adds a second underground production source

“The Fairway decline at Turnberry”

Surface infrastructure and portal establishment for the Fairway decline at Turnberry were completed during September, with decline development beginning in early October. First ore is expected in January 2027 from the mine, located about 20 kilometres from Meeka's processing plant, which has an initial Probable Ore Reserve of 50koz at 2.5g/t gold.

The timing carries operational significance because Fairway is intended to provide another high-grade source alongside Andy Well. The company has already reported Fairway decline development and now says underground drill platforms will be established from the decline to test mineralisation below the current Ore Reserve. Meeka cited 2026 drilling intercepts including 52.3 metres at 3.0g/t and 18.0 metres at 3.0g/t, but any conversion of that mineralisation into Ore Reserves remains prospective.

Cash generation improves while growth spending falls

Gold sales totalled 7,279oz at an average received price of A$6,063 per ounce, producing A$44.1 million in revenue. Meeka reported A$13.5m of mine operating cash flow and A$8.5m of net mine cash flow after A$4.9m of growth capital, while its reported all-in sustaining cost was A$4,147/oz for the quarter.

“Map of Western Australia showing the location of Mt Holland and Meeka’s existing operations in the Murchison.”

Growth capital fell sharply from A$17.5m in the June quarter as construction and development spending eased. Cash nevertheless benefited materially from financing: Meeka received A$30m of net proceeds during the quarter from the first tranche of a roughly A$40m two-tranche placement, taking cash from A$38.0m at June-end to A$51.2m at 30 September. The second tranche, worth about A$9m, remains subject to shareholder approval at the 24 November annual meeting. The company is unhedged and has no debt apart from mining equipment finance.

That capital is earmarked for the Fairway decline, deferred consideration for Mt Holland, growth drilling and working capital. The placement was covered in the earlier two-tranche placement, when the company said the raise would support its underground transition and exploration programme. Approval of the second tranche would increase the pro forma ordinary share count to 3.526 billion, according to the filing.

Mt Holland broadens the exploration pipeline

Meeka also completed its acquisition of Mt Holland in Western Australia's Forrestania greenstone belt. The asset carries an initial Mineral Resource of 270koz at 2.4g/t gold across the Blue Vein, Bushpig and Razorback deposits, all of which remain open at depth according to the company.

“Long section showing Blue Vein gold deposit (left) and the Bounty gold mine (right - not part of the acquisition) which produced ~1.2Moz @ 5.12g/t Au to a depth of 1,000m and…”

“Stage 1 of the new TSF under construction.”

Caption and image © Meeka Metals Limited. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 29 Oct 2026.

The acquisition adds exploration potential rather than immediate production to the quarter's operating performance. Meanwhile, installation of the Steinert multi-sensor ore sorter was completed in early October, with commissioning beginning in mid-October, and construction of a two-stage tailings storage facility with 10 years of capacity is under way. Stage one is expected to be commissioned in the December 2026 quarter.