Highlights

  • Odyssey Gold entered into a Toll Milling Agreement for up to 750,000 tonnes from the Tuckanarra Gold Project.
  • A minimum of 600,000 tonnes is scheduled for processing in four quarterly campaigns during calendar 2027.
  • The agreement covers processing at the Kirkalocka Plant in Western Australia.
  • Odyssey is currently completing a Stage 1 Scoping Study focused on starter pits at Tuckanarra.
  • The Tuckanarra Project hosts a Mineral Resource Estimate of 5.14Mt at 2.5g/t for 407,000 ounces of gold.
  • The company plans to follow the Stage 1 study with a Feasibility Study and an expanded Stage 2 Scoping Study.
  • Kirkalocka Plant has a nameplate processing capacity of 2.1 million tonnes per annum.

Odyssey Gold Limited (ASX:ODY) has announced a Toll Milling Agreement (TMA) with Gylden Resources Pty Ltd that could provide near-term processing capacity for material from the company’s Tuckanarra Gold Project in Western Australia. The agreement outlines toll milling services for up to 750,000 tonnes of ore at the Kirkalocka Processing Plant during calendar year 2027.

The update outlines a potential pathway for Odyssey to accelerate development activities at Tuckanarra while utilising an existing processing Facility rather than constructing standalone infrastructure in the initial stages of Mining.

Odyssey Gold shares traded at AUD 0.035 on 20 May 2026, down 2.78% for the session, although the stock remains up 75% over the past year. The company’s latest announcement comes as Odyssey advances technical studies and permitting activities linked to its broader development strategy for the Tuckanarra Project.

Odyssey Gold is focused on the exploration and development of gold Assets within Western Australia’s Murchison region. Its Tuckanarra Gold Project is situated within the Murchison Goldfields, a region associated with more than 35 million ounces of historical production and current gold resources. The project is located approximately 40 kilometres north of Cue and around 680 kilometres north-northeast of Perth.

Toll Milling Agreement Opens Processing Pathway

Under the agreement with Gylden Resources, Odyssey’s Wholly Owned Subsidiary Tuckanarra Resources Pty Ltd will have access to toll milling services at the Kirkalocka Processing Plant.

The arrangement initially covers a minimum of 600,000 dry metric tonnes scheduled to be processed during calendar year 2027 across four quarterly campaigns. In addition, a non-binding side letter provides for the possibility of processing an additional 150,000 tonnes if spare milling capacity becomes available and both parties agree.

According to the company, deliveries are expected to commence from the first quarter of 2027, subject to several conditions precedent being satisfied before 30 September 2026.

The Kirkalocka Plant, operated by Gylden Resources, is currently undergoing refurbishment and recommissioning activities ahead of a planned restart in Q1 2027. The processing facility has a nameplate capacity of 2.1 million tonnes per annum and was last operational in 2022 before entering care and maintenance.

Management described the agreement as a potential lower-Capital development pathway for the Tuckanarra Project while maintaining operational flexibility for future mining and processing Options.

Executive Director Matt Syme stated that the agreement could create an opportunity for near-term production and Cash Flow generation with comparatively lower upfront capital requirements.

Tuckanarra Resource Base Supports Development Plans

The Tuckanarra Gold Project currently hosts a Mineral Resource Estimate of 5.14 million tonnes grading 2.5 grams per tonne gold for approximately 407,000 ounces of contained gold.

Of this total resource, approximately 4.2 million tonnes at 2.3 grams per tonne for 311,000 ounces are located on Mining Lease M20/527.

The company noted that the existing approved 2014 Mining Proposal covering M20/527 may support potential near-term open pit mining activities.

Gold mineralisation at Tuckanarra was initially discovered during the 1890s gold rush period, with the region later hosting several mining operations. In the 1990s, five shallow oxide pits — Cable, Bollard, Maybelle, Bottle Dump and Kohinoor — collectively produced approximately 101,000 ounces at an average grade of 3.9 grams per tonne gold.

In addition, the Kohinoor underground operation historically produced approximately 15,000 ounces at an average grade of 12 grams per tonne gold.

Odyssey stated that historical development activities mainly targeted shallow laterite and oxide mineralisation due to lower gold prices during earlier operating periods.

More recently, the company’s exploration activities have focused on extensions below and around existing deposits, contributing to the current resource estimate.

Stage 1 Scoping Study Nearing Completion

Alongside the toll milling agreement, Odyssey confirmed that it is currently finalising a Stage 1 Scoping Study focused on starter pits at Tuckanarra.

The study is expected to evaluate mining scenarios associated with shallow resources primarily located at the Cable and Bollard deposits within Mining Lease M20/527. Additional shallow resources at Anchor, Lucknow and Maybelle North may also be considered, subject to required approvals.

According to the company, the Stage 1 study is scheduled for completion in the coming weeks and will subsequently be followed by a Stage 1 Feasibility Study.

The planned mining material from these starter pits would potentially be processed at the Kirkalocka Plant under the newly signed TMA.

Odyssey also confirmed that a substantial amount of supporting work associated with the studies is already underway or completed, including preliminary metallurgy, infrastructure assessments, geotechnical work, transport studies and permitting activities.

Expanded Stage 2 Study to Assess Broader Development Potential

Beyond the initial starter pit development concept, Odyssey is also preparing a larger Stage 2 Scoping Study covering the broader Tuckanarra resource base.

This expanded study will evaluate mining and processing options across the entire Mineral Resource Estimate, including deeper portions of existing deposits and additional deposits not included within the current Mining Proposal or outside Mining Lease M20/527.

These include the deeper sections of Cable, Bollard and Maybelle, as well as the Highway, Bottle Dump and Kohinoor deposits.

The company expects the Stage 2 Scoping Study to be completed during the second half of calendar year 2026.

Management indicated that this broader study could help define longer-term development opportunities beyond the initial toll milling arrangement.

Ongoing Drilling Program Supports Resource Expansion Work

Odyssey is also continuing a substantial in-Fill drilling program across deposits located on Mining Lease M20/527.

The company stated that the latest drilling campaign builds upon earlier drilling completed during 2025 and will contribute toward updated Mineral Resource Estimates in the future.

One of the key areas of focus remains the Highway Deposit, which currently contains an estimated 97,000 ounces grading 3.8 grams per tonne gold.

According to Odyssey, the Highway Deposit represents a significant unmined discovery identified through a combination of historical drilling reinterpretation, geological modelling and VTEM geophysical analysis.

The company also noted that many deposits within the broader Tuckanarra Project remain open at depth and may support future exploration targeting deeper primary mineralisation.

Kirkalocka Plant Positioned Along Major Haulage Route

The Kirkalocka Processing Plant is located approximately 191 kilometres south of Tuckanarra, with both sites positioned along the Great Northern Highway.

Odyssey highlighted the favourable haulage route as one of the operational advantages associated with the agreement.

Gylden Resources plans to recommission the carbon-in-leach processing facility to handle both fresh and oxidised ores from regional projects.

The plant infrastructure includes a run-of-mine stockpile with capacity ranging from 500,000 to 700,000 tonnes, alongside crushing, semi-autogenous grinding, gravity concentration and carbon-in-leach processing circuits.

According to the company, ore parcels will be processed separately through discrete campaign runs to maintain circuit separation.

Before processing, all ore material will undergo compatibility assessments and metallurgical testing to evaluate recovery performance and plant configuration requirements.

Key Conditions Must Be Satisfied Before Operations Begin

While the Toll Milling Agreement is binding, several conditions precedent must be satisfied before the arrangement becomes operational.

These include confirmation that the Kirkalocka Plant will be operational and capable of commercial processing activities in accordance with the agreed schedule.

Odyssey must also make a formal positive mining decision for the Tuckanarra Project by 30 September 2026 and secure all necessary permits and approvals for mining operations.

Additional requirements include agreements associated with the Tuckanarra Joint Venture structure and processing rights.

The agreement may also be extended through to 31 December 2028 if both parties agree.

What This Means for Investors?

Odyssey Gold’s latest agreement provides the company with a potential processing solution for material from the Tuckanarra Gold Project without the immediate need for standalone processing infrastructure.

The arrangement may support a comparatively lower-capital development pathway while allowing the company to progress mining studies, resource updates and permitting activities over the coming months.

Investors are likely to monitor the completion of the Stage 1 Scoping Study, upcoming feasibility work and ongoing drilling results as Odyssey continues advancing development plans at Tuckanarra.

The recommissioning progress at the Kirkalocka Plant and satisfaction of the agreement’s conditions precedent by September 2026 may also remain important milestones for the market.