Paterson Resources Triples Grace Gold Project Resource to 200,000 Ounces

Paterson Resources Triples Grace Gold Resource to 200,000 Ounces in a Transformational MRE Update

Paterson Resources Limited (ASX: PSL) has delivered one of the most significant milestones in its history, announcing a major update to the Mineral Resource Estimate (MRE) at its Grace Gold Project in Western Australia's Paterson Province. The Paterson Resources Grace Gold Project resource update to 200,000 ounces now stands at 3.46 million tonnes (Mt) at 1.79 grams per tonne (g/t) gold — nearly tripling the previous estimate of 69,000oz and representing a 190% increase in contained gold.

The resource upgrade was prepared by independent Brisbane-based geological specialists Measured Group and encompasses a circa 2-kilometre strike event constrained within an optimised pit shell, pointing to strong open-cut mining potential. Critically, mineralisation remains open along strike and at depth, setting the stage for further resource growth as the company advances its fully-funded Phase II drilling campaign.

Key headline metrics at a glance:

• +131,000oz increase in contained gold versus the 2020 MRE
• +1.87Mt increase in tonnage
• +0.44 g/t Au improvement in average grade
• Fresh rock zone grades at 2.12 g/t Au for 69,000oz, demonstrating compelling depth potential
• Preliminary metallurgical recoveries of up to 96.7% using conventional processing

A Landmark Upgrade: Breaking Down the Numbers

The scale of this resource upgrade is best understood through a direct comparison with the previous estimate.

Table 1: MRE Comparison — 2020 vs 2026

Notably, this is not simply a tonnage story. The grade has also improved meaningfully — from 1.35 g/t Au to 1.79 g/t Au — reflecting the higher-quality intersections contributed by the recent drilling campaign, layered on top of the historical dataset compiled from Newcrest Mining Limited and predecessor Newmont Mining Australia.

The Paterson Resources Grace Gold Project resource update to 200,000 ounces breaks down across three oxidation zones, each with distinct characteristics for future processing and mining considerations.

Table 2: 2026 MRE by Oxidation State (0.5 g/t Au Cut-Off)

A key observation here is that grade increases with depth — the fresh rock zone carries the highest average grade at 2.12 g/t Au — a strong indicator that the deposit continues to improve as drilling tests deeper targets. The resource currently extends to approximately 150 metres below surface, well within range of conventional open-cut mining.

"This resource updated to 200,000 ounces Au is a transformational milestone for Paterson. Pleasingly, it highlights the significant exploration potential of the underlying gold system at the Grace Gold Project which remains open along strike and at depth. Moreover, the combination of high-grade shallow oxide mineralisation, strong metallurgical recoveries and location in the heart of the Paterson Province — within 25km of the world-class Telfer gold-copper mine — are significant positives." — Executive Director Matt Bull

Understanding the Resource: What Is an Inferred MRE?

For investors less familiar with the technical language of resource estimation, it is worth understanding what an Inferred Mineral Resource Estimate means and why it matters.

What Does "Inferred" Actually Mean?

An Inferred MRE is the lowest confidence category under the JORC 2012 Code — the industry standard for reporting mineral resources in Australia. It means there is sufficient geological evidence from drilling, sampling, and modelling to estimate tonnes and grade with reasonable confidence, but further work is needed before the resource can be upgraded to the higher Indicated or Measured categories.

Why Does It Matter for Investors?

An Inferred resource forms the foundation for a company's economic assessment pathway. Once upgraded through additional drilling to Indicated status, resources can be incorporated into a Scoping Study and ultimately a Pre-Feasibility Study. Furthermore, these steps are critical to attracting project finance, strategic partners, and advancing toward development.

What Makes This One Particularly Compelling?

The 200,000oz MRE is contained within an optimised pit shell — meaning it has already been assessed as having reasonable prospects for eventual economic extraction by open-cut mining methods. This assessment uses preliminary assumptions of a gold price of A$7,000/oz, metallurgical recovery of 93%, mining cost of A$10/t mined, and processing cost of A$90/t processed. That is a meaningful level of economic framing for an Inferred resource.

Glossary of Key Terms

Geology and Location: A Compelling Setting

The Grace Gold Project is situated in the Paterson Province of Western Australia — one of the continent's most prospective mineral corridors. The project sits within Exploration Licence E45/4524 in the Shire of East Pilbara and is strategically located within 25 kilometres of Greatland Gold's world-class Telfer gold-copper mine, which hosts over 30 million ounces of gold.

The region has attracted significant attention from major explorers including Rio Tinto, Antipa Minerals, and Greatland Gold. Notable nearby discoveries include:

• Havieron — Greatland Gold's 8.5 million-ounce gold-copper resource
• Maroochydore — Cyprium Metals' copper prospect to the south
• Telfer — Greatland Gold's 30+ million-ounce gold-copper mine, 25km to the north-west

How Is the Mineralisation Structured?

Gold mineralisation at Grace is structurally controlled, hosted in altered metasedimentary rocks of the Yeneena Supergroup. The deposit consists of stacked, reef-style gold-bearing veins, breccia zones, and lodes associated with sulphides including pyrite, arsenopyrite, and chalcopyrite. This style of mineralisation is well understood in the Paterson Province context and is consistent with the broader district mineralisation model.

The mineralised system presents as a circa 2km strike event, with the most continuous zone extending approximately 1km along strike, up to 200m across strike, and to approximately 150m depth — all within open-cut range and constrained within the optimised pit shell.

Importantly, mineralisation is open along strike and at depth, meaning the current MRE likely understates the total mineralised system.

Metallurgy: A Critical De-Risking Factor

One of the standout elements of this announcement is the preliminary metallurgical test work, which indicates that gold mineralisation at Grace is amenable to conventional processing — specifically cyanide leach recovery — with indicative gold recoveries of up to 96.7%.

This is a significant development that de-risks a critical component of project economics. High metallurgical recoveries reduce processing costs per ounce recovered and support the case for a straightforward processing pathway.

For context, the pit optimisation assumptions used a conservative recovery of 93%, meaning actual recoveries may outperform the modelling assumptions underpinning the MRE. Further metallurgical test work across the full oxidation profile is planned to confirm and extend these results ahead of a Scoping Study.

What Comes Next: The Phase II Drilling Campaign and Development Pathway

The Board has outlined a clear set of priorities following this resource upgrade, with a focus on resource growth, economic assessment, and project de-risking.

Table 3: Planned Next Steps and Objectives

The Phase II drilling campaign is described as fully funded, removing near-term capital risk from the exploration programme. The geology team is currently reformulating high-conviction targets for the next phase, focusing on areas where mineralisation remains open — both along strike and at depth.

The company's stated ambition is clear: to extend and upgrade the MRE through continued drilling, with the longer-term goal of progressing toward economic studies and ultimately a mine development pathway.

Why Investors Should Watch Paterson Resources Closely

Several elements combine to make this announcement a compelling inflection point for Paterson Resources. In addition to the sheer scale of resource growth, the project benefits from a number of de-risking factors that are rarely seen at this stage of development.

1. Scale of resource growth: The Paterson Resources Grace Gold Project resource update to 200,000 ounces — up from 69,000oz — while simultaneously improving average grade represents a meaningful step-change in the project's value proposition.

2. Open-cut potential with shallow, high-grade mineralisation: The resource is constrained within an optimised pit shell and is hosted in a shallow profile, beginning in oxide material near surface and grading upward in quality through transitional to fresh rock zones.

3. Grade improves with depth: The fresh rock zone averaging 2.12 g/t Au — higher than the overall resource average — is an encouraging signal that further drilling at depth could deliver higher-grade material and a more valuable resource profile.

4. Metallurgical upside: Preliminary recoveries of up to 96.7% using conventional processing substantially de-risk the processing assumptions underpinning the project's economic potential.

5. Fully funded Phase II campaign: The company has confirmed the next drilling phase is fully funded, providing investors with a clear, near-term catalyst without the uncertainty of a capital raise.

6. District-scale address: Operating in the Paterson Province — home to Telfer and Havieron — provides both geological validation and optionality in terms of potential strategic interest from larger operators active in the region.

7. Multiple upcoming catalysts: The progression toward a Scoping Study, combined with Phase II drilling results, represents a series of potential re-rating events for the stock.

The Paterson Resources Grace Gold Project resource update to 200,000 ounces represents a transformation of the project's standing from an early-stage exploration prospect to a substantial resource with clear development potential. With mineralisation remaining open along strike and at depth, the 200,000oz MRE appears to be a foundation rather than a ceiling.

The combination of strong metallurgical recoveries, open-cut amenable geometry, and location within Australia's premier gold province creates multiple pathways to value creation. For investors seeking exposure to resource growth stories in established mining jurisdictions, this development provides a compelling proposition with near-term catalysts and longer-term development optionality.

"Paterson Resources has transformed the Grace Gold Project's standing with a near-tripling of its gold resource to 200,000 ounces, stronger grades, high metallurgical recoveries, and a clear growth pathway still ahead. With a fully funded Phase II drill campaign targeting further resource extensions, and a Scoping Study on the horizon, investors have a compelling series of upcoming catalysts to monitor closely."

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