OzAurum Eyes Bigger Resource at Mulgabbie North on Strong RC Drilling Results

Why It Matters

The drill results de‑risk the upcoming feasibility study and could substantially increase the mine’s resource base, positioning Mulgabbie North as a low‑cost, scalable gold producer in a market where prices hover around US$4,700 per ounce.

Key Takeaways

• 84 RC holes drilled, confirming high‑grade near‑surface gold
• Mineralisation open over >4 km, enabling potential resource expansion
• Intercepts include 5 m at 5.26 g/t and 1 m at 23.31 g/t
• Feasibility study ties drilling results to heap‑leach plant design
• Gold price ~US$4,700/oz supports low‑cost, scalable production

Pulse Analysis

Paleochannel deposits have long underpinned Western Australia’s gold boom, delivering high‑grade, low‑cost ounces from shallow, easily leachable ore. OzAurum’s Mulgabbie North sits on a 4‑km‑long ancient river system that historically produced the Kanowna Belle mine’s 8 Moz endowment. By targeting this well‑preserved channel, the company taps a proven geological model that favors simple open‑pit mining and heap‑leach processing, a combination prized for rapid cash flow and minimal capital intensity.

The latest RC drilling campaign, the second of an 18,000‑m grade‑control program, delivered 84 holes and highlighted consistent gold grades across multiple intervals. Notable intersections—5 m at 5.26 g/t Au, including a 1 m spike of 23.31 g/t—mirror earlier bonanza grades of up to 162 g/t reported in the area. These results bolster the ongoing feasibility study, providing concrete data to refine the design of a heap‑leach plant that could handle a larger feedstock if the resource expands beyond the current 260,000‑ounce estimate.

With gold trading near US$4,700 per ounce, projects that combine low operating costs with scalable production are especially attractive to investors. OzAurum’s ability to potentially extend the resource and increase plant throughput could translate into higher margins and a longer mine life, enhancing shareholder value. Moreover, the open‑pit, heap‑leach approach aligns with industry trends toward rapid development and reduced environmental footprints, positioning Mulgabbie North as a compelling addition to the portfolio of junior miners targeting near‑term cash‑generating assets.