Tolu Minerals Discovers Two New High-Grade Gold Vein Systems at Tolukuma

Tolu Minerals Discovers Two New High-Grade Gold Vein Systems at Tolukuma

Tolu Minerals Limited (ASX: TOK) has delivered one of its most significant exploration announcements to date, confirming the discovery of two new high-grade gold vein systems at its 100%-owned Tolukuma Gold Mine (TGM) in Papua New Guinea. The Fundoot Splay and Gulbadi Splay represent previously unrecognised mineralised structures sitting within arm's reach of existing mine infrastructure — a combination that could materially reshape the company's near-term production and resource growth trajectory.

Compounding the excitement, early development face sampling from underground mining at TGM's 1560 Level has returned exceptional grades, with multiple intervals exceeding 31 g/t Au, providing early operational validation as the company rebuilds mining momentum.

With dozens of additional assay results still pending and a 75,000+ metre drilling campaign only just getting underway, this announcement marks the opening act of what management believes will be a highly value-accretive growth phase.

"These results represent a pivotal moment in our understanding of Tolukuma's near-term growth potential and reinforce our conviction that substantial additional value remains to be unlocked within the immediate mine environment and across the broader goldfield."

— Dr Chris Muller, MD & CEO, Tolu Minerals Limited

Two New Discoveries That Change the Near-Mine Picture

Fundoot Splay — The Standout High-Grade Hit

The most eye-catching result in this announcement comes from drillhole TMLSDD0002 at the Fundoot target, where a previously unrecognised hanging wall structure was intersected approximately 50 metres into the hanging wall of the established Fundoot vein. This structure, now designated the Fundoot Splay, returned the following headline intercepts:

These are genuinely exceptional grades. To put them in context, 82.8 g/t Au represents nearly 2.66 troy ounces of gold per tonne of rock — a level that falls firmly into the category of bonanza-grade mineralisation for an epithermal vein system.

What elevates this beyond a single exciting intercept is structural continuity. Four additional drillholes originally targeting the main Fundoot structure have also intersected hanging wall veining consistent with the Fundoot Splay, with assay results still pending. Early interpretation outlines the following open extensions:

• More than 250 metres of favourable untested strike extent
• In excess of 150 metres of down-dip potential
• Multiple open extensions requiring systematic follow-up drilling

Gulbadi Splay — Value Unlocked Through Geological Reinterpretation

The second new discovery, the Gulbadi Splay, was not identified through new drilling alone — it emerged from a modern reinterpretation of existing geological and mining data. Fresh analysis of historical datasets revealed a mineralised vein structure running subparallel to the established Gulbadi trend and immediately adjacent to historical shallow mining activity.

The area was previously mined via a shallow open pit to approximately 30 metres depth, but the deeper continuity and broader structural potential had never been fully evaluated. The best supporting intercept from existing drilling includes:

Current interpretation of the Gulbadi Splay suggests:

• More than 240 metres of favourable untested strike potential
• Greater than 180 metres of down-dip extension potential
• Strong structural continuity indicators
• Immediate proximity to historical mining and infrastructure

Underground Mining Restarts — And Face Sampling Delivers Early Encouragement

Separately from the drilling programme, Tolu has also recommenced underground mining on the Tolukuma lode, with ore development now underway on the 1560 Level. Furthermore, the company has been collecting development face samples from the initial mining cuts, and these early results have been highly encouraging.

Selected face sample highlights from the 1560 Ore Drive include:

Multiple intervals exceed 31 g/t Au (1 troy ounce per tonne), with additional fire assay results still pending. These face samples are from the opening cuts of ore development and represent an early but promising signal as mining operations are rebuilt.

Understanding Epithermal Vein Systems — What Makes Tolukuma Special?

Epithermal gold deposits are one of the most important deposit types for high-grade gold mining. The term "epithermal" refers to the geological conditions under which the gold was deposited — specifically, hot mineralising fluids rising from depth and depositing gold and silver in fractures and faults at relatively shallow crustal levels, typically within 1–2 kilometres of the surface.

Why Do Epithermal Systems Matter for Investors?

High-grade potential is perhaps the most compelling characteristic. Epithermal veins tend to be narrow but exceptionally high grade — exactly what the Tolu Minerals discovery at Tolukuma demonstrates, with narrow intervals consistently returning grades well above 10–20 g/t Au, and in some cases exceeding 80–170 g/t Au.

In addition, the poddy nature of these systems means grades can vary significantly over short distances. However, bonanza pockets — such as those seen at the Fundoot Splay — can be extremely high value when encountered.

Infrastructure leverage is equally important. Because these deposits are mined selectively, the economic benefit of finding new veins close to existing mine workings is significant. Discovery-to-production timelines can be compressed substantially compared to greenfields discoveries.

Finally, Tolukuma is a proven epithermal system with decades of mining history, giving exploration teams a strong basis for predicting where new veins may occur.

Key Technical Terms Explained

A Drilling Programme Built for Rapid Resource Growth

The Fundoot Splay and Gulbadi Splay discoveries are not isolated events — they are the first meaningful results from a 75,000+ metre near-mine drilling campaign that is only just getting started. The philosophy underpinning this programme is straightforward: systematically test the ground immediately surrounding Tolukuma's existing mine infrastructure, where any new discovery carries materially lower costs and shorter timeframes to convert into mine inventory.

The campaign is active across multiple targets simultaneously:

Near-Term Catalysts Investors Should Watch For

1. Pending assay results from four additional Fundoot Splay drillholes already intersecting the hanging wall structure
2. Further face sampling results from the 1560 Level ore development
3. Additional drilling results from Gulbadi, Gufinis, and Zine targets
4. Continued step-out and infill drilling to define the lateral and down-dip extent of both new splays
5. Potential resource update as drilling data accumulates and geological models are refined

The Investment Thesis — Infrastructure Leverage Meets High-Grade Discovery

What makes the Fundoot and Gulbadi Splay discoveries particularly compelling from an investment perspective is not just the grade — it is the location. Near-mine discoveries within established mining environments carry a fundamentally different economic profile compared to greenfields exploration.

The mine infrastructure at Tolukuma — including existing drives, ventilation, power, and surface facilities — represents sunk capital that dramatically reduces the incremental cost of bringing new mineralised zones into production. When high-grade gold is found within this envelope, the discovery-to-production pathway can be materially shorter and less capital-intensive.

Key Investment Highlights from This Announcement

• Bonanza-grade intercepts confirmed: 82.8 g/t Au and 42.76 g/t Au weighted over multiple metres — genuinely exceptional for an epithermal system
• Two new structural targets identified: Both the Fundoot Splay and Gulbadi Splay remain open along strike and down-dip, offering significant expansion potential
• Operating mine provides leverage: Discoveries proximal to existing infrastructure may support accelerated pathways from exploration to resource growth
• Large pipeline of pending results: Numerous assays outstanding across Fundoot, Gulbadi, Gufinis, and Zine — sustained news flow expected
• 75,000+ metre campaign in its early stages: Current results represent only the opening phase of a systematic and ambitious programme
• Significant tenement package: Tolu holds a land position totalling over 2,218 km² across Papua New Guinea, including Mining Lease ML104 at Tolukuma

Why Investors Should Keep a Close Eye on Tolu Minerals

Tolu Minerals has moved decisively from care-and-maintenance mode into an active exploration and mining growth phase. The company has not only recommenced underground mining but has simultaneously launched one of the most ambitious near-mine drilling programmes in its history — and within the opening weeks, has already returned two new high-grade structural discoveries.

The geological setting at Tolukuma is well understood from decades of prior exploration and mining. This reduces the technical risk associated with new vein discoveries and increases confidence that systematic drilling will continue to yield meaningful results.

Moreover, the combination of an operating mine, a high-grade discovery pipeline, and a largely untested tenement package positions Tolu as a company with multiple simultaneous growth levers. With a substantial volume of assay results still pending across four active target areas, the near-term news flow could be both continuous and material.

Key Takeaway: Tolu Minerals has confirmed two new high-grade near-mine gold discoveries at Tolukuma — the Fundoot Splay and Gulbadi Splay — with headline grades of 42.76 g/t Au and 16.94 g/t Au respectively, both open along strike and down-dip. With underground mining now underway, a 75,000+ metre drilling campaign in its opening phase, and numerous assays still pending, the company is entering a period of concentrated exploration news flow that could materially reshape its resource inventory. Investors with an appetite for high-grade epithermal gold should be watching TOK closely.

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