OzAurum Resources Strikes High-Grade Shallow Gold at Mulgabbie North

OzAurum Drills More High-Grade Shallow Gold at Mulgabbie North — Development Momentum Builds

OzAurum Resources (ASX: OZM) has released another compelling batch of reverse circulation (RC) drilling results from its Mulgabbie North Paleochannel Project in Western Australia's Eastern Goldfields, reinforcing what is shaping up as a genuinely high-grade, near-surface gold system. The OzAurum Resources Mulgabbie North high-grade shallow gold drilling results and civil works underway story represents a clear and capital-efficient development pathway gaining real momentum.

The fourth batch of results — 84 RC holes for 3,024 metres — continues to demonstrate consistent high-grade gold mineralisation at shallow depths, with multiple intercepts exceeding 10 g/t Au at depths between just 22 and 26 metres below surface.

Critically, the company has simultaneously moved from the study phase into early construction, with site civil works for the heap leach pad and agglomeration plant foundations now underway.

CEO and Managing Director Andrew Pumphrey commented: "These latest drill results continue to demonstrate the high-grade nature of the paleochannel's gold mineralisation. Alongside the drilling program, we are now actively onsite undertaking the required civil works around the agglomeration plant foundations and heap leach pad area. We are moving the project forward."

Standout Drill Results: High Grades at Minimal Depth

The intercepts from this latest batch are not isolated anomalies — they reflect a coherent, mineralised system delivering grades that would be the envy of many more mature projects. All headline intercepts sit within a narrow depth window of 22–26 metres, pointing to a low strip ratio, low-cost open-pit scenario.

The recurrence of >10 g/t Au intervals across multiple holes in this batch — combined with similar results from earlier batches — speaks to a mineralised system with genuine grade continuity, not sporadic high-grade spikes.

Understanding Paleochannel Gold Deposits: What Does It Mean for Investors?

A paleochannel is an ancient river system that has since been buried or partially preserved. In the Eastern Goldfields of Western Australia, these ancient channels transported gold eroded from primary hard-rock deposits upstream, concentrating it along the channel floor and within the sandy, gravelly sediments that filled the channel over time.

Why Does Shallow Depth Matter?

• Shallow depth: Paleochannel gold is typically near-surface, reducing the capital cost of mining significantly compared to deep hard-rock operations
• Simple processing: The gold is often free-milling or suitable for heap leach processing, avoiding complex and expensive processing circuits
• Predictable geometry: Ancient channels follow gravity-driven paths, making them geologically logical and drill-targetable systems

At Mulgabbie North, geological interpretation has confirmed a consistent northwest paleo-flow direction with a 30-metre elevation drop across a 4km corridor. Furthermore, these characteristics support a coherent, predictable mineralised trend rather than a patchy or discontinuous deposit.

Technical Terms Glossary

• RC Drilling (Reverse Circulation): A drilling technique where air is pumped down the drill string and returns to surface inside the drill rods, bringing rock chips with it. Efficient and cost-effective for shallow targets
• g/t Au: Grams of gold per tonne of rock — the standard measure of gold grade. Higher g/t = richer ore
• Heap Leach: A gold processing method where crushed ore is stacked on an impermeable pad and a dilute cyanide solution is dripped over it to dissolve and recover gold. Low capital cost versus conventional milling
• JORC: The Joint Ore Reserves Committee code — Australia's standard for reporting mineral resources and reserves
• Mineral Resource: A formally estimated quantity of mineralisation, classified by confidence level (Measured, Indicated, Inferred) under the JORC Code
• Grade Control Drilling: Dense drilling used to define ore boundaries precisely enough for mine scheduling and production planning

The Existing Resource Base and What the Drilling Is Adding

The current grade control programme is drilling within the footprint of the existing Mulgabbie North Mineral Resource, which currently stands at 260,000 ounces across all classification categories.

Reported at 0.30 g/t Au cut-off to 150m depth. Resource reported per JORC Code 2012, as announced 18 July 2023.

The grade control programme — an 18,000-metre programme in total, of which 3,024 metres have been reported in this batch — is designed to convert this resource into the kind of high-resolution, drill-density dataset needed for mine scheduling, pit design, and economic modelling.

In essence, the company is transforming a resource estimate into a mine plan. Importantly, mineralisation remains open along a >4km interpreted paleochannel trend, meaning the existing 260,000oz resource may not represent the full extent of what the system contains.

A Compelling Regional Analogue: The Kanowna Precedent

The nearby Kanowna paleochannel operation produced approximately 70,000 ounces via open-pit and heap leach at gold recoveries exceeding 85% — directly demonstrating the viability of the processing model OzAurum Resources is pursuing for Mulgabbie North.

More significantly for the longer-term investment case, the Kanowna paleochannel ultimately led to the discovery of the ~8 million ounce Kanowna Belle primary gold deposit — one of Australia's major gold mines.

However, while no such outcome is assured at Mulgabbie North, OzAurum has already traced gold sources to at least one primary source southwest of the existing resource, improving drill targeting confidence for potential future primary discovery work.

From Drilling to Construction: Civil Works Commence

One of the most material elements of this announcement is not a drill intercept — it is the confirmation that site civil works for the heap leach pad and agglomeration plant foundations have commenced. This represents the tangible transition from feasibility study to construction activity, a milestone that represents genuine de-risking of the development timeline.

The OzAurum Resources Mulgabbie North high-grade shallow gold drilling results and civil works underway demonstrate a management team executing with purpose. The company is simultaneously:

1. Completing the 18,000-metre grade control drilling programme to support mine planning and scheduling
2. Undertaking column metallurgical testwork on paleochannel ore to validate heap leach recoveries
3. Advancing the feasibility study, directly informed by the grade control data being generated
4. Conducting active site civil works on the heap leach infrastructure footprint

Development Timeline and Upcoming Milestones

The following activities are in progress or anticipated based on current programmes:

The Investment Case: Why OZM Warrants Attention

Several elements converge to make the OzAurum Resources Mulgabbie North high-grade shallow gold drilling results and civil works underway story worth tracking closely.

Exceptional Grade Profile and Capital Efficiency

Exceptional Grade Profile: Multiple intercepts exceeding 10 g/t Au at depths of just 22–26 metres are exceptional in the context of heap leach development targets, where lower grades are typically the norm. High near-surface grades translate directly into stronger economics.

Capital-Efficient Development Model: Heap leach processing is amongst the most capital-efficient gold processing routes available. Combined with shallow, open-pittable mineralisation, Mulgabbie North is structurally positioned as a low-cost operation — important in any gold price environment.

Tangible Progress and Exploration Upside

Tangible Development Progress: The commencement of civil works is not a study milestone — it is physical construction on the ground, tangibly advancing the project toward production.

Resource Expansion Potential: With mineralisation open along a 4km+ trend and a confirmed primary gold source to the southwest, the current resource figure may be a floor rather than a ceiling.

Proven Regional Model: The Kanowna paleochannel provides direct evidence that OzAurum's development model — open pit, heap leach, paleochannel gold — works in this geological setting.

Technical and Economic Advantages

The Mulgabbie North paleochannel system exhibits characteristics that support a low-cost, rapid development scenario:

• Low strip ratios due to near-surface mineralisation (22–26m depth)
• Simple metallurgy suitable for heap leach processing
• Established infrastructure access via sealed roads from Kalgoorlie
• Proven geological model with predictable mineralisation controls

Looking Ahead: What Are the Key Catalysts?

As OzAurum Resources Mulgabbie North high-grade shallow gold drilling results and civil works underway progress continues, investors should watch for several key milestones in the coming months.

Near-term catalysts include completion of the 18,000m grade control programme, column metallurgical testwork results, and feasibility study advancement. The ongoing civil works provide visible progress updates on infrastructure development.

Medium-term catalysts encompass resource expansion drilling along the 4km+ paleochannel trend, potential primary target drilling southwest of the existing resource, and final feasibility study completion.

The combination of high-grade near-surface gold, proven processing technology, active construction work, and substantial exploration upside positions Mulgabbie North as a development project with multiple value creation pathways.

OzAurum Resources (ASX: OZM) is advancing Mulgabbie North at pace, delivering consistent high-grade shallow gold results while simultaneously breaking ground on infrastructure. With a 260,000oz resource base, multiple >10 g/t Au intercepts at depths of just 22–26 metres, active civil works underway, and an 18,000-metre feasibility-grade drilling programme in progress, the company is executing a disciplined, capital-efficient pathway toward production.

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