Sinclair Gold uncovers more room beyond Mt Henry’s 1.8Moz resource

Mt Henry resource reaches 1.8Moz

Sinclair Gold Ltd (ASX:SGC) has doubled the Mineral Resource at its Mt Henry Gold Project to 48 million tonnes at 1.2g/t gold for 1.8 million ounces, adding about 0.9Moz in six months since acquiring the project. The updated estimate, effective 31 July 2026 for Mt Henry and Selene, includes 1.3Moz in the JORC 2012 Measured and Indicated categories.

The resource also has a shallow profile: Sinclair says about 90% of contained gold is within 200 metres of surface. Mt Henry contributes approximately 885,000 ounces and Selene about 875,000 ounces, while North Scotia and existing stockpiles account for the balance of the 1.792Moz total estimate.

The scale-up has come before the company has completed its planned drilling campaign. Sinclair had finished 32,578 metres by 30 September, but only 20,426 metres, or 41% of the planned 50,000 metres, was included in the resource estimate. The company also reported that both deposits remain open along strike and at depth.

Step-out drilling keeps the growth case alive

Five rigs continue working across Mt Henry and Selene, with assays pending from about 30 holes drilled outside the current resource boundaries. At Mt Henry, drilling has intersected mineralisation more than 480 metres below surface, while the company says new drilling has extended known mineralisation along strike and at depth. The next resource update is planned before the end of FY27.

Several results reported during the period were broad rather than exceptionally high grade, including 18.0 metres at 1.8g/t gold and 23.0 metres at 1.4g/t at Mt Henry, alongside 41.1 metres at 1.1g/t and 16.0 metres at 1.2g/t at Selene. The company also highlighted a 122.7g/t Mt Henry hit, recorded in a 0.4-metre interval within a 5.4-metre intersection grading 15.4g/t.

Those results sit alongside the September resource doubling, when the estimate reached 1.8Moz after 20,426 metres of drilling. The pending assays matter because they could determine whether the latest extensions become part of a future Mineral Resource, rather than remaining exploration results outside the current estimate.

Exploration spending weighs on cash

Sinclair ended the quarter with $24.8 million in cash, down from $38.3 million at 30 June. Underlying quarterly cash outflow was $8.7 million, including $7.4 million spent on Mt Henry exploration, while total net outflow reached $13.5 million after one-off transaction payments.

The company received $4.0 million in the quarter under its royalty transaction with Arc Mineral Royalties, taking total cash consideration for a 1% net smelter royalty over Mt Henry to $5.0 million, alongside 4.0 million Arc shares. It also paid Westgold Resources $5.0 million after completing more than 20,000 metres of drilling, cancelling 7,575,758 performance rights in the process. On the reported quarter’s relevant outgoings, Sinclair calculated estimated funding of 2.88 quarters.

Swedish assets move into partner-funded exploration

Sinclair also executed a binding earn-in agreement with Medaro Mining Corp. for the Sala silver-zinc project in Sweden. The arrangement could provide up to $3.4 million in cash, equity and exploration expenditure funded by Medaro, while Sinclair retains exposure through a net smelter royalty. No exploration or drilling was undertaken in Sweden during the quarter.

The immediate investment question is whether continued drilling can convert the shallow, open mineralisation at Mt Henry and Selene into a larger resource without pushing cash consumption materially higher. Assays from the 30 pending holes and the next resource update will provide the next hard test, while the current balance leaves limited room for an extended exploration sprint without further funding or incoming transaction proceeds.