Right Resources (ASX:RRE) Limited has begun its first subsurface drilling at the Blue project near Tumbarumba in New South Wales, a step the company describes as the first test of its intrusion-related gold-tungsten model. The update came in the company's quarterly report for the three months to 30 September 2026, which also set out a recent capital raising and a funding position the company says will need to be topped up.

The Blue drilling programme

The maiden aircore programme is planned at about 2,000 metres across roughly 60 holes, focused initially on licence EL9028. Right Resources characterised it as first-pass reconnaissance drilling that is not designed to define a Mineral Resource. Surface exploration to date has outlined a tungsten-bismuth-gold system measuring about 4.7 kilometres by 3.4 kilometres, with rock-chip gold assays reaching 5.16 grams per tonne and gold associated with elevated bismuth.

After the quarter ended, the company ranked four Blue prospects: Aster, Luna, Moonlight and Nova. Aster is the highest-priority gold target and Moonlight the highest-priority tungsten target. Rock-chip results at Aster ranged from below detection to 4.79 grams per tonne gold, and the company said these do not establish continuity of mineralisation. Maiden assays from the drilling are expected in the December quarter.

Laboratory metallurgical work was also reported. Heavy liquid separation produced concentrates of up to 66.5% WO3 with tungsten recoveries up to 81.6%, while flotation produced concentrates up to 27.0% WO3 with recoveries up to 87.3%. The company described these results as preliminary and laboratory-scale.

Other projects

Right Resources holds ten wholly owned exploration licences in New South Wales covering 2,459 square kilometres, eight in the Tumbarumba region and two in New England. At the Pilot gold project, where there is historical underground production, the company reported that testing of historical mullock dump material achieved 89.9 per cent gold extraction after 24 hours, with significant gravity upgrading. In the New England region, a review of historical data lifted the Rising Sun and Midnight Star gold-copper targets in the company's ranking, and field mapping is planned.

Cash and funding

Cash at 30 September was A$3.813 million. Operating outflow for the quarter was A$1.041 million and investing outflow A$1.211 million, mostly exploration and evaluation, offset by financing inflows of A$2.823 million. The Appendix 5B calculated a runway of 1.90 quarters, based on total available funding of A$4.183 million including unused facilities.

The financing inflow came from a placement of A$2.7 million before costs at A$0.09 a share, with one free option for every two shares, exercisable at A$0.09 and expiring after 24 months. A securities purchase plan added A$236,000, and the company said the combined raise was about A$2.94 million, closing on 21 September 2026. Directors contributed a further A$300,000, taking total board investment to about A$1.1 million, the company said.

Debt is also part of the picture. Right Resources has secured loans from Rockford RDF with a facility of A$2.055 million, of which A$1.685 million is drawn and A$370,000 unused. Interest is 17 per cent a year, with maturities on 30 April 2027 and 30 June 2027. The company also received a FY25 research and development tax refund of A$0.72 million. The board said it is considering further capital raises and tax incentive loans and is confident of raising additional funds, but no further raising has been confirmed.

Next milestones and risks

Next steps include assessing the Blue drilling and prioritising follow-up holes, completing metallurgy, and progressing approvals for a possible second-stage programme on licence EL9889. At Pilot the company plans metallurgy on historical waste rock, ground magnetics processing and assay method validation. The company flagged the early-stage nature of exploration, the limited cash runway, the preliminary status of metallurgical work, and commodity price, title and regulatory risks.