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Highlights

  • GRL shares surged 27.3% after announcing a major Lewis Ponds Mineral Resource Estimate upgrade in NSW.

  • The updated MRE includes 470Koz gold and 20.9Moz silver, with notable increases in tonnes, gold, and silver content.

  • Open pit and underground studies indicate development potential, with a scoping-level mining study now underway.

 

Godolphin Resources Limited (ASX:GRL) saw its share price jump 27.3% to 1.4 cents on Tuesday morning (12 August) after announcing a transformational Mineral Resource Estimate (MRE) upgrade for its 100%-owned Lewis Ponds gold, silver and base metals project in the Lachlan Fold Belt, New South Wales.

The updated MRE confirms Lewis Ponds as a large, high-grade deposit containing 470,000 ounces of gold and 21 million ounces of silver, marking a 58% increase in tonnes, 18% increase in gold, and 31% increase in silver compared to the previous estimate.

Updated Mineral Resource Highlights

The new global resource, reported in accordance with the JORC Code (2012), stands at 9.83Mt (5.01Mt Indicated, 4.82Mt Inferred) grading 1.49 g/t Au, 66.15 g/t Ag, 2.46% Zn, 1.38% Pb, and 0.15% Cu. This equates to:

  • 470Koz of gold

  • 20.9Moz of silver

  • 241Kt of zinc

  • 15Kt of copper

  • 136Kt of lead

Open Pit & Underground Potential

A Pit Optimisation Study was conducted to assess economic extraction methods.

Open Pit Resource (1.0 g/t AuEq cutoff):

  • 2.88Mt (1.85Mt Indicated, 1.03Mt Inferred) @ 0.52 g/t Au and 41.22 g/t Ag

  • 48Koz gold and 3.8Moz silver

  • 64% classified as Indicated

Underground Resource (3.2 g/t AuEq cutoff):

  • 6.95Mt (3.16Mt Indicated, 3.79Mt Inferred) @ 1.89 g/t Au and 76.48 g/t Ag

  • 422Koz gold and 17.1Moz silver

  • 45% classified as Indicated

This represents a significant confidence upgrade from the previous MRE, which classified the entire resource as Inferred in 2021.

Next Steps in Development

Godolphin is advancing a scoping-level mining study based on the upgraded resource to evaluate near-term development potential. Ongoing metallurgical test work aims to improve gold and silver recoveries, while additional drilling is planned to test both known mineralisation zones and exploration targets for further MRE growth.

Managing Director of Godolphin Resources stated that the Lewis Ponds upgrade represents a step towards transitioning the project into a development-ready asset, capitalising on robust precious metals market conditions.

The market reacted positively to the announcement, with GRL shares surging in early trade as investors responded to the significantly expanded resource base.