OzAurum Resources lifts Mulgabbie North gold resource to 294,000 ounces

OzAurum Resources Ltd ASXOZM reported on Sunday that a maiden resource at Cross Fault lifted its Mulgabbie North gold inventory to approximately 294,000 ounces. The addition increases the project's resource by about 13.1 per cent from 260,000 ounces and will feed into its heap-leach scoping study.

Google Finance quoted OzAurum shares ASXOZM at A$0.067 on the Australian Securities Exchange as of 12:55 p.m. AEDT on Friday. That price predates the resource announcement.

Cross Fault contains 933,000 tonnes grading 1.14 grams per tonne gold for 34,000 ounces, according to the resource announcement listed by OzAurum on Nov. 8. The deposit adds a second resource to the company's wholly owned Mulgabbie North project, approximately 135 kilometres northeast of Kalgoorlie in Western Australia.

Cross Fault will be included in technical work for the proposed heap-leach development. Delivery remains dependent on site preparation and equipment transport: OzAurum's Oct. 29 quarterly report said heavy September rain had delayed civil works and prevented transport of its agglomeration plant to site.

"Cross Fault is still open at depth and along strike to the north," chief executive and managing director Andrew Pumphrey said in the resource announcement.

The new estimate was calculated by Western Australian consultancy BM Geological Services. OzAurum said reverse-circulation drilling covered the resource area on a nominal grid of 25 metres by 25 metres, supplemented by diamond and aircore drilling undertaken over the preceding two years.

The company identified depth extensions beneath holes MNORC251 and MNORC263 as priorities for future drilling. Cross Fault lies along the 7.5-kilometre Relief Shear, which also hosts the James, Ben, Alicia and Demag deposits and prospects.

The earlier Mulgabbie North estimate, reported in July 2023, contained 39,000 measured ounces, 128,000 indicated ounces and 93,000 inferred ounces. That estimate used a cut-off of 0.3 grams per tonne gold and extended to 150 metres below surface; those parameters relate to the earlier inventory.

OzAurum's quarterly report said construction of two production water bores was complete, while further flow testing would assess water supplies for a second development stage. Five approvals were in place, including a works approval covering crushing and heap-leach processing of 150,000 tonnes annually.

A poisons permit had been lodged with the Western Australian Department of Health. The company said plant transport would proceed once the Pinjin Tropicana road was suitable, while further pad preparation remained part of the civil works.

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OzAurum's next scheduled shareholder meeting is its annual general meeting on Nov. 18 at 11 a.m. WST in Kalgoorlie.