Key Highlights

  • All 60 rock-chip samples from Marengo returned anomalous gold, with 20 exceeding 1g/t and a top assay of 12.3g/t.
  • A newly mapped vein system, Reza’s Reef, has about 1.7 kilometres of continuous strike and is now a target for follow-up work.
  • Cash of $3.08 million at 30 September gives an estimated 15.9 quarters of funding, with no Debt facilities.
  • Nowa Nowa remains in the Victorian Environmental Effects Statement approval process, with no timeline for a decision.

Eastern Resources (ASX:EFE) has long been associated with the Nowa Nowa magnetite iron project in East Gippsland, Victoria. Its recent exploration, however, has been at the Marengo Gold Project in north Queensland. The company completed its entry into Marengo through a farm-in agreement in March 2026. According to its September quarter activities report, released on 29 October 2026, the first surface sampling programme there produced its most encouraging results so far. A newly mapped vein system, named Reza's Reef, is now a target for more detailed follow-up work.

Nowa Nowa, meanwhile, remains in the Victorian Environmental Effects Statement (EES) approval process. No fieldwork took place on the company's copper or lithium projects during the quarter. Eastern also has a relatively steady cash position for a company of its size: $3.08 million at 30 September, with an estimated 15.9 quarters of funding.

What Marengo has shown so far

Marengo lies about 35 kilometres southwest of Bowen. It covers the historical Marengo goldfield, where the company says at least 37 old workings date back to the 1870s. Its maiden programme concentrated on locating these workings and tracing veins at surface. The work covered One Mile Mountain, Sulphide Shaft and Seymour's Reef, within a target corridor about nine kilometres long.

As first reported on 9 July 2026, all 60 rock-chip samples returned anomalous gold. Twenty exceeded 1g/t and 13 exceeded 5g/t, with a top assay of 12.3g/t. The fieldwork also identified Reza's Reef, a north-northeast vein system with about 1.7 kilometres of continuous strike, an estimated width of around one metre, and up to two parallel veins. Eighteen samples were taken along it.

Rock chips are selective surface samples. They show that gold is present, but they do not indicate grade or tonnage below surface, and Marengo has no Mineral Resource. Historical drilling by earlier owners was shallow and returned mostly modest grades, including 4 metres at 2.05g/t gold in a 2018 hole. The company mentions the restart of the nearby Mt Carlton mine as a positive regional factor. This is context only and says nothing about Marengo's own potential.

Cash and costs

The September quarter Appendix 5B shows net operating outflows of $75,000 and $119,000 in capitalised exploration. Staff costs were $147,000, partly offset by $46,000 of interest income. Administration and corporate costs were shown as a small net inflow of $26,000. Most of the cash, $2.98 million, is held on call deposit. No shares were issued for cash during the quarter and the company has no debt facilities. The 15.9-quarter estimate reflects a low-activity quarter. A drilling programme would increase spending.

Risks and upcoming events

Eastern is spread across gold, iron ore, copper and lithium with limited funds. The Quarterly Report also says it is reviewing further Acquisition opportunities, in Australia and offshore. Nowa Nowa's progress depends on a lengthy state approvals process, and the commercial terms for any future iron ore development are not set out in the latest report. At Marengo, the main risk is whether surface veins continue at depth with meaningful grades.

The Annual General Meeting will be held at 11:00am (Sydney time) on Wednesday 18 November 2026 in Sydney. Shareholders will vote on performance rights for all three directors, and on a 10% additional Placement capacity that would allow further share issues. The company has not yet announced the timing of any Marengo drilling.