Highlights

  • OzAurum reported further shallow high-grade gold intercepts from 112 RC holes at Mulgabbie North, reinforcing continuity across a >4km paleochannel system.
  • Drilling forms part of an 18,000m grade control program tied to feasibility work and mine planning for a proposed heap leach operation.
  • Heap leach plant commissioning remains in progress, with modular assembly and refurbishment work advancing across key processing components.

OzAurum Resources Limited (ASX:OZM) has released additional high-grade shallow gold intercepts from its Mulgabbie North Paleochannel Project. Despite muted daily movement, the stock remains closely followed due to recurring drill results showing high-grade mineralisation at shallow depths within a large interpreted system.

Investor attention has been largely concentrated on whether the continuity of mineralisation, combined with advancing processing infrastructure, can support a low-Capital intensity development pathway in Western Australia’s Eastern Goldfields region.

Mulgabbie North Paleochannel System: Geological Setting and Continuity

The Mulgabbie North Project is located within a paleochannel gold system, a geological environment where gold is often concentrated in ancient river channels buried beneath surface sediments. These systems can host variable but sometimes high-grade mineralisation with relatively shallow depths of occurrence.

The latest drilling program, comprising 112 reverse circulation holes for over 4,000 metres, forms part of a broader 18,000-metre grade control initiative. This program is designed to refine continuity, width, and grade distribution of mineralisation across the interpreted channel structure.

The reported mineralisation extends along a strike length exceeding four kilometres and remains open in multiple directions. The current drilling sits within an area already defined within an approximate 260,000-ounce mineral resource base, indicating that the program is largely focused on increasing resolution ahead of potential development planning rather than early-stage exploration.

High-Grade Shallow Intercepts and Grade Distribution

The latest assay results continue to show multiple zones of higher-grade mineralisation within generally shallow depth profiles, typically between 20 and 35 metres below surface.

Notable intercepts include multiple intersections exceeding 5 g/t gold, with select one-metre intervals returning grades above 30 g/t and in isolated cases above 100 g/t from earlier drilling phases.

While such high-grade variability is not uncommon in paleochannel systems, the repetition of mineralised intervals across a large number of drill holes supports the interpretation of a structurally or stratigraphically controlled system rather than isolated pods of mineralisation.

The dataset from this drilling campaign is expected to feed directly into mine planning studies, particularly given its classification as grade control drilling rather than purely exploration-focused work.

Feasibility Context and Development Orientation

A key feature of the current drilling program is its integration into ongoing feasibility work. The data is being used to evaluate potential Mining scenarios, ore scheduling, and feed consistency assumptions for a proposed heap leach operation.

Heap leach processing is typically associated with lower capital intensity compared to conventional milling operations, particularly in near-surface oxide or transitional ore systems. In this context, the continuity and grade distribution of mineralisation are central to determining potential operational viability.

The presence of a relatively continuous paleochannel system over multiple kilometres provides a geological framework that may support staged development approaches, although operational outcomes will depend on reconciliation between modelled and mined grades.

Heap Leach Plant Development and Engineering Progress

Parallel to drilling activities, OzAurum is advancing refurbishment and commissioning of its heap leach agglomeration plant. The company has engaged Polaris Engineering to manage refurbishment works, including conveyors, silos, and supporting processing infrastructure.

The plant design includes multiple modular components, such as feed systems, agglomeration units, lime and cement handling systems, and cyanide mixing infrastructure. These modules are being prepared for staged assembly and dry commissioning in Perth before transport and installation at site.

Engineering modifications have been implemented to improve operational flexibility, including adjustments to the agglomeration drum design to allow variable angle settings. These changes are intended to improve adaptability across different ore types and optimise agglomeration performance.

Additional work has also been undertaken to align the plant with current Australian safety and engineering standards, extending refurbishment timelines but aligning the Facility with modern compliance requirements.

Operational Strategy and Execution Considerations

The company’s development strategy continues to emphasise a relatively low upfront capital approach, with reliance on repurposed and refurbished processing infrastructure. This approach is consistent with many small-to-mid tier gold developers seeking to monetise shallow oxide or near-surface resources.

However, execution risk remains tied to plant commissioning timelines, metallurgical performance at scale, and the consistency of ore feed delivered from the paleochannel system.

The integration of grade control drilling with plant development indicates an effort to align resource definition, mine planning, and processing readiness in parallel, rather than sequentially.

Conclusion

OzAurum Resources continues to advance its Mulgabbie North Project through a combination of high-density grade control drilling and parallel processing infrastructure development. The latest drilling results reinforce the presence of shallow high-grade mineralisation within a multi-kilometre paleochannel system, while ongoing heap leach plant refurbishment signals progression toward potential development readiness.

The project remains in a pre-production stage, with feasibility work and plant commissioning forming the next critical phase in determining whether the geological continuity and grade profile can translate into a consistent operational outcome.