WA Gold finds fresh support for Abercromby development case

Abercromby drilling extends high-grade continuity

WA Gold Limited (ASX:WAU) has added fresh support to the geological model at its Abercromby Gold Project, with all seven diamond holes in the latest phase intersecting the targeted eastern lode at or close to predicted positions. The company says the results confirm mineralisation over at least 500 metres of strike, although the work remains at the resource-development stage rather than establishing an Ore Reserve.

The strongest assays include 9.41 metres at 2.89 grams per tonne gold, including 0.38 metres at 35.21g/t, in hole 26ABDD005; 3 metres at 5.90g/t, including 0.61 metres at 28.85g/t, in 26ABDD006; and 9 metres at 3.07g/t within a broader 31-metre interval grading 1.16g/t in 26ABDD003. The narrow high-grade sections are the attention-grabbers, but the wider intervals and repeat intersections are what WA Gold says support continuity of the eastern lode. The earlier Abercromby diamond drilling had also confirmed continuity across 500 metres.

54-hole campaign targets the Stage 1 mine area

The next step is already under way: 54 reverse-circulation holes covering about 7,200 metres are targeting the planned open-pit component of Abercromby’s Stage 1 mine scenario. WA Gold intends to use the results to update its Mineral Resource Estimate and, alongside technical studies and geotechnical work, assess a maiden Ore Reserve.

The current resource at the Capital Deposit is 11.12 million tonnes at 1.45g/t gold for 518,000 ounces. The scoping study’s Stage 1 scenario envisages roughly 114,000 ounces of production, an upfront capital requirement of about A$8 million and forecast pre-tax cashflow of approximately A$270 million. Those figures are study outputs and production targets, not operating results; the company says a Final Investment Decision is targeted for 2027, subject to further work, approvals and funding.

Bullabulling produces targets, not yet a discovery

At Bullabulling North, 41 reconnaissance RC holes covering 1,897 metres returned low-level gold anomalism across two priority areas. Results included 2 metres at 0.16g/t from the end of hole 26BBRC008 near a historical anomaly, and 4 metres at 0.25g/t at the end of hole 26BBRC027. The company has submitted 34 one-metre resamples from anomalous composite intervals for higher-resolution assays.

The more substantial exploration signal is geophysical. A high-resolution Sub-Audio Magnetics survey defined nine magnetometric conductivity anomalies with more than 4km of combined strike along the Bullabulling Shear Zone and a regional ultramafic contact. WA Gold plans to rank those anomalies against the drilling and geochemical data before deeper RC drilling, while a heritage agreement with the Marlinyu Ghoorlie Native Title Group remains part of the work required to expand exploration.

Cash supports drilling but limits room for delay

WA Gold finished September with $2.511 million in cash and no financing facilities reported. Appendix 5B outgoings relevant to future operations totalled $723,000 for the quarter, producing an estimated 3.47 quarters of funding at that rate. The figure is a snapshot rather than a funding commitment: drilling intensity, development studies and any move toward a Final Investment Decision could alter the cash requirement. The funding question had already featured in the company’s earlier funding warning, which reported that additional working capital was needed to continue as a going concern.