Key Highlights

• Black Horse has a drill rig operating at Mount Egerton in Victoria.

• The company exposed a high-grade gold structure underground.

• The drilling programme totals 4,000 metres.

• Ownership ties to Province Resources are part of the story.

Black Horse Mining (ASX:BHL) has a drill rig turning at Mount Egerton because the company has just exposed a high-grade gold structure underground and now wants to see how far it extends. On 6 October 2026 the explorer said drilling was back underway after a weather delay, as the first stage of a programme of about 4,000 metres across up to 10 holes.

A small explorer with one project

It was spun out of Province Resources, which remains a significant Shareholder and shares some directors.

Its sole asset is the Mount Egerton Gold Project near Ballarat, in the Bendigo-Ballarat Zone of central Victoria. The area is a historical goldfield with old underground workings, and the company's maiden drilling programme there comprised seven diamond holes totalling 618 metres.

What the new sampling showed

On 31 August 2026 the company reported rock-chip results from the Sister Rose adit, an old tunnel it has been refurbishing. Two samples across a newly exposed structure, the Sister Rose No1 Splay, returned 0.60 metres at 10.92 grams per tonne of gold and 0.70 metres at 10.67 grams per tonne, a weighted 1.3 metres at 10.79 grams per tonne.

These are surface and underground samples rather than drill intercepts, and the company said it did not adjust or independently audit the assays. A historical hole, RSE003, intersected 2 metres at 5.13 grams per tonne from 24 metres, about 14 metres below the crosscut, which the company says projects down-dip towards the new face sampling.

The drilling programme

The track-mounted, silenced diamond rig was mobilised in September, but heavy rain pushed the start into October. The first hole is planned to reach about 400 metres and will test a historically recorded structure called Coopers Lode, east of the Sister Rose lodes.

Later holes, which the company says will have their spacing, orientation and depth finalised after target definition, are meant to follow the Sister Rose No1 Splay down-dip and along strike, and to test deeper positions. The company has not given an assay timetable, saying only that it will update shareholders over the coming months.

Funding and cost

For the year to 30 June 2026 Black Horse (ASX:BHL) reported a loss attributable to owners of A$5,873,958 and year-end cash of A$5,231,148, with 64,649,020 shares on issue. Only A$1,160,820 of exploration spending was expensed in the profit and loss statement.

By 30 September 2026 cash had fallen to A$4.41 million, after operating outflows of A$807,000 for the quarter. The Appendix 5B implied 5.46 quarters of funding. Cumulative exploration spending since listing was A$1.757 million, against A$4 million set out in the prospectus.

Risks and ownership terms

Exploration rarely converts a grade into an economic resource, and a few surface samples say little about continuity at depth. Tenure, access, heritage and permitting conditions apply, and legacy mine workings add safety hazards.

The ownership structure also deserves a careful read. The Annual Report describes an 80 per cent interest in Steadfast Mining Services, which holds the tenements, with the vendors keeping 20 per cent. The 31 August announcement, however, describes a 51 per cent holding with the right to earn up to 80 per cent by spending A$4 million over five years. Deferred consideration of up to 20 million shares is tied to resource milestones.

The company plans surveying, mapping and wall sampling in the Sister Rose and Coopers adits during the December 2026 quarter, alongside the drilling. Its Annual General Meeting is expected on or around 26 November 2026, and the first drill assays will be the clearest test of whether the high-grade surface results carry to depth.