Why Hamelin Gold (ASX:HMG) is drilling high-grade lodes near the Telfer mine in Western Australia

Sonal Goyal

03 November 2026 09:09 PM AEDT

Why Hamelin Gold (ASX:HMG) is drilling high-grade lodes near the Telfer mine in Western Australia

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Key Highlights

Hamelin Gold (ASX:HMG) reported that Phase 2 drilling at Day Dawn returned 11 metres at 20.21 g/t gold including 2 metres at 101.54 g/t in hole PDR0049, continuing a high-grade discovery near the Telfer mine.
Gold Fields participated in a A$8 million Placement at A$0.16 per share and is expected to hold about 17.7% of Hamelin after the raising.
Phase 1 drilling had already hit 3 metres at 93.4 g/t gold from 9 metres, and the company is now running a 16-hole maiden diamond programme due to finish in November 2026.
Cash was A$8.96 million at 30 September 2026, up from A$2.48 million at 30 June, giving estimated funding of 8.3 quarters at the current exploration spend rate.

Hamelin Gold is in focus because early drilling at its Day Dawn project in Western Australia's Paterson Province has returned high-grade gold intercepts about 10 kilometres from the Telfer gold-copper mine, and the company has raised fresh money to keep drilling.

The ASX classifies Hamelin in the Materials sector. It is a mineral explorer with no producing assets.

The Day Dawn discovery

Day Dawn covers roughly 20 square kilometres and is wholly owned. Mineralisation sits in Neoproterozoic Sedimentary Rocks of the Lamil Formation, within a folded structure that the company compares with the stratigraphy at Telfer.

On 27 October 2026 Hamelin reported results from its second phase of reverse-circulation drilling, which comprised 35 holes and about 4,000 metres. Assays for 22 holes are in, with 13 still to come in November 2026.

The best result was 11 metres at 20.21 grams per tonne gold from 17 metres in hole PDR0049 at the Altus prospect, including 2 metres at 101.54 grams per tonne. Hole PDR0059 returned 5 metres at 25.11 grams per tonne from 19 metres.

At Aurora, which comprises steeply dipping lodes, hole PDR0045 hit 7 metres at 5.58 grams per tonne from 147 metres. The intervals are downhole lengths, and true widths are not yet reported.

The first phase, of 28 holes, had already returned 3 metres at 93.4 grams per tonne from 9 metres in hole PDR0001, including 2 metres at 128.9 grams per tonne in the Upper Lode.

Funding

On 17 August 2026 the company announced a placement of about A$8 million at A$0.16 a share, issuing 49,575,892 shares. Gold Fields took part, subscribing about A$1.5 million, and was expected to hold about 17.7 per cent afterwards.

Directors also agreed to subscribe for 2,005,709 shares, subject to Shareholder approval. Proceeds are earmarked for exploration at Day Dawn, Venus, West Tanami and the Cue regional projects, plus working capital.

The Quarterly Report lodged on 11 October 2026 showed cash of A$8.96 million at 30 September, up from A$2.48 million at 30 June. Quarterly exploration spending was A$863,000, and the company estimated 8.3 quarters of funding.

For the year to 30 June 2026 it reported a net loss of A$1.67 million, compared with A$7.27 million a year earlier, with A$2.85 million spent on exploration. Shares on issue rose from 198,303,571 to 247,879,463 after the placement.

Beyond Day Dawn

Hamelin also holds the Venus project in the Murchison, about 15 kilometres south-east of Cue, where about 130 aircore holes are planned across three prospects in early 2027. Its West Tanami ground covers about 100 kilometres of strike in the Trans-Tanami gold corridor, where the Jazz programme comprised 21 holes totalling 3,041 metres and Fremlins South shows gold anomalism above 1 gram per tonne over more than 400 metres of strike.

Risks

Exploration is inherently uncertain, and early high-grade intercepts often do not translate into a viable mineral resource. Nuggety gold can distort individual assays, and the company has not declared a Mineral Resource at Day Dawn.

The company has no Operating Revenue and depends on Equity markets for funding. Its cash balance, while healthier than in June, supports a limited drilling schedule across several projects. Capitalised exploration and evaluation was A$15.28 million at 30 June 2026.

What to watch

A maiden diamond drilling programme of 16 holes, about 1,500 metres, is due to finish in November 2026, with results expected in January 2027. The remaining 13 reverse-circulation assays are also due in November 2026.

A government-co-funded deep diamond hole is scheduled to start in March 2027 to test the Telfer Formation at depth, supported by a grant of up to A$180,000. The Annual General Meeting notice was lodged on 27 October 2026.

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