High-Grade Gold Results at OzAurum Resources Strengthen Mulgabbie Development

OzAurum's High-Grade Gold Results Strengthen Stage 1 Production Confidence at Mulgabbie North

OzAurum Resources (ASX: OZM) has delivered compelling high-grade gold results at OzAurum Resources from its James Stage 1 open pit at the Mulgabbie North Gold Project. The standout intercepts of 7m @ 6.16 g/t Au and 6m @ 4.59 g/t Au significantly de-risk the company's near-term production strategy.

Located just 2km from Northern Star's Carosue Dam operations in Western Australia's prolific Eastern Goldfields, these latest results confirm consistent shallow mineralisation. Furthermore, they highlight clear expansion potential beyond the current pit design.

The second batch of grade control drilling results from 46 RC holes (1,364m) forms part of a comprehensive 91-hole programme (2,490m). These results demonstrate the continuity of high-grade gold mineralisation within the planned mining envelope whilst revealing significant mineralisation extending below the Stage 1 pit shell.

Exceptional Grade Control Results Confirm Mining Confidence

The high-grade gold results at OzAurum Resources have delivered consistently strong results across the James deposit. Multiple high-grade intercepts validate the Stage 1 open pit design and strengthen confidence in the project's viability.

What Makes These Results Outstanding?

The drilling confirms high-grade core zones within broader mineralised envelopes. This enables OzAurum to confidently minimise ore loss and dilution during mining operations—a critical factor for heap leach operations.

"These grade control results materially strengthen confidence in the James Stage 1 open pit, confirming consistent shallow high-grade gold mineralisation within the planned mining area. Importantly, the continuation of high-grade mineralisation below the current pit design highlights clear upside beyond Stage 1," commented CEO Andrew Pumphrey.

Understanding Grade Control Drilling: Why It Matters

Grade control drilling represents the detailed, closely-spaced drilling conducted within a planned open pit to precisely define ore boundaries. Unlike broader exploration drilling, this technique typically uses 5-10m spacing to provide granular data essential for operational success.

Key Benefits of Grade Control Drilling

For mining operations, this drilling method serves several critical functions:

• Mining optimisation: Ensuring high-grade zones are captured whilst avoiding dilution
• Heap leach planning: Critical for operations where grade consistency impacts recovery
• Resource confidence: Converting resources to reserves with higher confidence levels

For investors, successful grade control drilling significantly de-risks production scenarios by confirming that the geological model accurately predicts what will actually be mined. In addition, it provides the detailed information necessary for feasibility studies and production planning.

Stage 2 Expansion Potential Emerges

Multiple intercepts have confirmed that high-grade mineralisation extends below the current Stage 1 pit design. This discovery creates clear expansion opportunities that could significantly enhance the project's long-term value proposition.

Below-Pit Intercepts Highlight Future Potential

The drilling has identified several promising intercepts beneath the planned Stage 1 operations:

• MNORC 364: 6m @ 3.27 g/t Au from 31m depth
• MNORC 370: 6m @ 2.98 g/t Au from 33m depth
• MNORC 375: 5m @ 3.83 g/t Au from 27m depth
• MNORC 376: 6m @ 2.14 g/t Au from 36m depth

This below-pit mineralisation provides natural expansion potential for Stage 2 operations. Consequently, it could extend mine life and improve project economics without requiring additional exploration expenditure.

Relief Shear: An 8km Gold Corridor with District Potential

The Mulgabbie North project sits within the Relief Shear—a 50m-wide gold corridor extending approximately 8km across OzAurum's tenure. This regional structure represents the eastern limb of the Carosue Dam basin syncline, with the western limb hosting Northern Star's active mining operations.

Geological Advantages Support Development

The project benefits from several key geological characteristics:

• Sandstone-hosted mineralisation: Similar to the rocks currently being mined at Carosue Dam
• Brittle host rocks: Ideal for gold deposition and heap leach recovery
• Multiple fault intersections: Creating high-grade zones where structures intersect
• Extensive quartz veining: Associated with pyrite and arsenopyrite mineralisation

The geological setting mirrors that of the Carosue Dam district, where Northern Star has successfully operated multiple open pits. This provides a proven template for development and demonstrates the viability of similar operations in the area.

Project Economics and Development Timeline

Current Resource Base Supports Development

With grade control confirming the geological model, OzAurum is well-positioned to advance toward a Stage 1 open pit and heap leach operation. Moreover, the proximity to existing infrastructure at Carosue Dam and proven heap leach recoveries from similar ore types support the development strategy.

Near-Term Catalysts Drive Value

Several key milestones will drive the project forward:

• Completion of remaining grade control assays
• Updated resource modelling incorporating new drilling
• Feasibility studies for Stage 1 development
• Exploration of the broader 8km Relief Shear corridor

Why Investors Should Follow OzAurum Resources

OzAurum has systematically de-risked its flagship Mulgabbie North project through targeted drilling campaigns that consistently deliver results. The high-grade gold results at OzAurum Resources demonstrate the company's strategic positioning 2km from active gold mining operations provides infrastructure advantages.

Additionally, the Relief Shear corridor offers district-scale potential across 8km of strike length, providing multiple opportunities for resource expansion.

Investment Highlights Support Long-Term Value

Several factors position OzAurum as an attractive investment opportunity:

1. Proven Management: Andrew Pumphrey's technical expertise and industry experience
2. Strategic Location: Proximity to Northern Star's Carosue Dam operations
3. Development-Ready: Grade control results support near-term production scenarios
4. Expansion Potential: 8km of prospective ground with multiple targets identified
5. Favourable Geology: Sandstone-hosted gold similar to producing mines in the district

The high-grade gold results at OzAurum Resources demonstrate the company's ability to consistently deliver on exploration targets. Furthermore, they build a compelling case for near-term gold production in a proven mining district.

What Makes This Opportunity Compelling?

With clear expansion potential beyond Stage 1 and a substantial resource base already established, the company has positioned itself as a significant player in the Eastern Goldfields. However, investors should monitor progress as the company advances through feasibility studies toward production decisions.

OzAurum Resources has validated its Stage 1 development strategy through successful grade control drilling whilst identifying clear expansion opportunities. With 260,000 ounces of resources, proximity to existing infrastructure, and an 8km gold corridor to explore, investors should monitor OzAurum as it advances toward production in one of Australia's premier gold districts.

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