Paterson Resources Commences 9,200m Drilling at Grace Gold Project
Key Takeaways
- Paterson Resources has secured all regulatory approvals and is about to commence a 40-hole, 9,200m drilling campaign at the Grace Gold-Copper Project in Western Australia's Paterson Province.
- The diamond drilling component — six holes for 1,200m with FORACO Australia — is specifically designed to convert part of the current 200,000oz Inferred resource to the higher-confidence Indicated classification under the JORC Code.
- The RC program — 34 holes for 8,000m with Stark Drilling — targets strike and depth extensions along a 1.3km mineralised corridor, with shallow high-grade gold the primary objective.
- The existing MRE of 3.46Mt at 1.79 g/t Au for 200,000oz Au was itself a tripling of the prior resource, meaning this campaign builds on an already-upgraded foundation.
- The Grace Gold Project sits 25km south-east of the Telfer mine (30-plus million ounces) and adjacent to Greatland Gold's Havieron project (8.5 million ounces), in one of Australia's most credentialled gold-copper exploration addresses.
Drilling set to commence at Grace Gold as Paterson targets MRE upgrade and resource growth
Paterson Resources (ASX: PSL) has secured all necessary regulatory approvals and is set to shortly commence a comprehensive drilling campaign at its Grace Gold-Copper Project in the Paterson Province. The existing Inferred Mineral Resource Estimate (MRE) stands at 3.46Mt @ 1.79 g/t Au for 200,000oz Au (as reported 3 June 2026). The campaign runs two programs — diamond drilling and reverse circulation (RC) — each targeting a distinct strategic objective.
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Q1 FY27 drilling program — what Paterson is putting in the ground
The two-component campaign deploys diamond drilling and RC drilling, with two separate contractors appointed to execute each program.
Diamond drilling — upgrading resource confidence
The diamond program comprises six drill-holes for 1,200m in total, with contractor FORACO Australia appointed to carry out the work. The program is designed to enable a partial upgrade of the current Inferred MRE to Indicated status under the JORC Code, while simultaneously providing samples for ongoing metallurgical test-work. Converting a portion of the resource to Indicated classification is a meaningful step for any project’s development and financing pathway.
RC drilling — chasing strike and depth extensions
The RC program is the larger of the two, comprising 34 drill-holes for 8,000m in total, with Stark Drilling appointed as contractor. The twin objectives are to extend known shallow, high-grade mineralisation along the 1.3km strike event and to evaluate down-dip extensions of interpreted mineralised structures. Shallow, high-grade mineralisation is a commercially attractive characteristic — it typically reduces the capital intensity required to bring ore to surface, which improves project economics at the feasibility stage.
| Program Type | Contractor | Drill-Holes | Total Metres | Primary Objective |
|---|---|---|---|---|
| Diamond Drilling | FORACO Australia | 6 | 1,200m | Partial upgrade of Inferred MRE to Indicated status; metallurgical test-work samples |
| RC Drilling | Stark Drilling | 34 | 8,000m | Extend shallow, high-grade mineralisation along 1.3km strike; evaluate down-dip extensions |
Understanding the MRE upgrade pathway — what Inferred to Indicated means for investors
The JORC Code — the Australasian standard for reporting mineral resources — classifies resources on a confidence ladder with three rungs: Inferred, Indicated, and Measured.
Inferred is the lowest rung. It means the geological evidence exists, but drill spacing is wide and continuity is assumed rather than demonstrated. Indicated requires tighter drill spacing and greater geological continuity, making the resource estimate more reliable. Measured sits at the top, where the geometry and grade of the mineralisation is known with a high degree of confidence.
Why does this matter to you as an investor? A resource sitting entirely in the Inferred category carries more geological uncertainty, which makes it harder to use in economic studies and harder to finance. Upgrading even a portion to Indicated status adds credibility to the project’s economics and can directly influence how the market values the asset.
The diamond drilling program at Grace Gold is specifically designed to do exactly that — convert part of the current 200,000oz Inferred resource, de-risking the project in a tangible, measurable way.
Paterson Resources tripled the Grace Gold resource to its current 3.46Mt at 1.79 g/t Au for 200,000oz Au earlier in 2026, making the upcoming drilling campaign a direct attempt to build on that upgraded foundation rather than start from a thin base.
The Paterson Province — why location amplifies the investment case
The Grace Gold-Copper Project sits in the Paterson Province of Western Australia, one of the country’s premier gold-copper exploration addresses. The neighbourhood is exceptionally well credentialled.
Greatland Gold’s Havieron project hosts an 8.5-million-ounce gold-copper resource, while the Telfer gold-copper mine sits just 25km to the north-west and carries a 30-plus million-ounce resource endowment. Rio Tinto and Antipa Minerals are among the major groups actively exploring the region. Cyprium Metals’ Maroochydore copper prospect adds further copper context to the south.
Matt Bull, Executive Director, Paterson Resources
“The Board is optimistic the upcoming drilling campaign can deliver another transformational milestone, with the potential to create incremental value for shareholders. Key drivers will be an upgrade in the quality of the MRE, coupled with significant extensions to known mineralisation along the strike event and down-dip. Regardless, the Grace Gold Project is located in the world class Paterson Province, hosts shallow high-grade gold mineralisation with excellent metallurgy and definable pathways to market.”
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What to watch — upcoming catalysts for PSL investors
Paterson has committed to releasing regular updates, assay results, and geological interpretations as information materialises, giving investors a defined news flow pipeline over the coming months.
Key near-term catalysts to monitor include:
- Diamond drill assay results and geological interpretation updates
- RC assay results along the 1.3km strike corridor
- Any MRE upgrade announcement (Inferred to Indicated conversion)
- Metallurgical test-work progress updates
The Board’s stated expectation is that the campaign will further de-risk the Grace Gold Project while highlighting its significant exploration upside — and the dual-program structure gives investors multiple result windows through which that thesis can be tested.
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