3 Apollo holes return broad gold intersections for Amara

Apollo drilling delivers broad gold intersections

Amara Minerals Limited (ASX:AM3) has produced its most substantial Apollo drilling results to date, with three holes in the Dig Fault Zone returning broad gold mineralisation while the system remains open at depth and to the south. Hole AA2603 delivered 102.3 metres at 2.29 g/t gold from 140.5 metres, including 66.8 metres at 3.08 g/t and an 11-metre high-grade section at 12.79 g/t.

The other two reported holes add width and depth to the picture. AA2601 returned 57.5 metres at 2.62 g/t gold from 139.5 metres, including 20 metres at 5.13 g/t, while AA2602 intersected 73.4 metres at 1.31 g/t from 221.5 metres. Amara estimates true widths of approximately 20 metres for the broad AA2601 intersection, 27.3 metres for AA2603 and 18.5 metres for AA2602, based on its interpretation of the mineralised zone.

The results follow the company’s earlier June drilling placement, which raised A$2.2 million to support exploration at its Victorian gold and antimony projects. Amara says the current Apollo holes are intended to help extend the higher-grade core and support geological modelling ahead of a potential maiden Mineral Resource Estimate. No resource has yet been estimated for Apollo.

Further drilling and assays will test the extension

Drilling has moved on to AA2605, targeting mineralisation down-dip of AA2603 and AA2604. A further two holes after AA2606, totalling about 1,000 metres, may also be added to the current program depending on the results received.

AA2604 was completed to 402.3 metres and geological logging recorded fine visible gold at about 276.05 metres and 288 metres downhole. Those observations are not assay results and the company expressly cautions that visible gold is not a substitute for laboratory analysis. Assays are expected in mid-November 2026, subject to laboratory throughput.

Cash position puts exploration progress under pressure

Amara’s exploration progress is paired with a thin funding position. Cash fell from A$2.079 million at the start of the September quarter to A$588,000 at 30 September, after A$566,000 of exploration expenditure, A$500,000 paid toward Lauriston tenements and A$438,000 of operating cash outflows. On the company’s own calculation, that represented 0.59 quarters of available funding.

The company says it expects cash outflows to reduce once Apollo drilling is completed, but is assessing further capital raising options, including a placement under its ASX Listing Rule 7.1 and 7.1A capacity. It also holds 10 million Great Divide Mining shares valued at A$3.2 million at quarter end, although half remain escrowed until February 2027. The funding question is especially relevant after Amara’s going concern warning, which accompanied its A$8.79 million FY2026 loss and a material uncertainty over continued operations.

Court dispute remains an unresolved liability

Amara has also filed a cross-claim against Great Divide Mining (ASX:GDM) and Challenger Mines in the Supreme Court of New South Wales. It alleges that representations made during the parties’ December 2025 settlement dealings may have been misleading or deceptive and seeks relief that would unwind those agreements. Amara also claims Challenger should contribute 50% of any amount it is ultimately required to pay under the disputed indemnity.

Great Divide is seeking A$1.056 million plus interest, penalties and costs over an Australian Taxation Office liability. Amara’s annual report records an A$891,539 expense and liability, excluding accrued interest, as at 30 June 2026. The filing of the cross-claim is procedural, the allegations remain untested and the outcome cannot currently be predicted. The next market-moving evidence is likely to come from AA2604 assays, deeper Apollo drilling and the funding decision needed to keep the program moving.