Highlights

• OzAurum defines an initial Cross Fault resource of 34,000 ounces of gold at Mulgabbie North.

• The new estimate lifts total project mineral resources to approximately 294,000 ounces.

• Cross Fault material is to be included in the project’s heap-leach scoping-study work.

• Mineralisation remains open at depth and to the north along strike, creating targets for further drilling.

A second mineral resource has joined OzAurum Resources Limited’s (ASX:OZM) Mulgabbie North Gold Project in Western Australia. The maiden Cross Fault estimate contains 34,000 ounces of gold, lifting the project’s combined mineral resource to approximately 294,000 ounces. The new figure will be considered in technical work for the proposed heap-leach development concept.

What Did Cross Fault Add?

The initial JORC 2012 resource estimate for Cross Fault is 933,000 tonnes grading 1.14 grams per tonne gold, containing approximately 34,000 ounces. It follows two years of drilling and adds to the previously reported Mulgabbie North resource inventory. Cross Fault is one of a number of prospects along the roughly 7.5-kilometre Relief Shear corridor, alongside James, Ben, Alicia and Demag. Its estimate is a mineral resource, not a declaration of mineable ore reserves.

How Was the Estimate Developed?

The company used reverse-circulation, air-core and diamond drilling to assess the deposit. The resource area was investigated on a nominal 25-metre by 25-metre RC grid, supported by geological logging, geochemical interpretation and three-dimensional modelling of the Relief Shear system. Comparison of different drill methods and repeated assays contributed to the supporting technical dataset. The mineral resource estimate was calculated by BM Geological Services and provides a defined inventory for further project assessment.

Why Is Location Relevant to the Project?

Mulgabbie North lies approximately 135 kilometres north-east of Kalgoorlie in the Eastern Goldfields. The Cross Fault resource occupies the company’s wholly owned tenure, including two Mining Lease applications, and is approximately 3.5 kilometres east of the Northern Star Carosue Dam mill. Existing roads and mining operations form part of the regional setting, but the announcement does not establish a processing or access agreement with neighbouring operators. Project evaluation will need to address its own development requirements.

What Work Follows the New Estimate?

OzAurum plans to incorporate Cross Fault into the heap-leach scoping-study technical work. The deposit also remains open at depth and along strike to the north. Extensions beneath drill holes MNORC251 and MNORC263 have been identified as priority targets for future drilling. The present estimate therefore establishes an initial resource for this deposit while leaving the possible extent of additional mineralisation for further testing. Any increase would require new evidence and updated reporting.

What Comes Next?

Adding Cross Fault to the resource inventory provides another defined deposit for the heap-leach scoping study. Technical work can examine how the 34,000-ounce estimate fits with the existing Mulgabbie North mineral resource and proposed development approach. At the same time, the open depth and northern strike extensions remain exploration opportunities, not additions to the current inventory. Updated drilling or study results would be needed before any further resource or development changes are reported.