Aureka jags gold 725m beyond Victorian resource boundary

Victorian gold producer Aureka Limited has struck gold well beyond its existing resource boundary, with a scout drill hole intersecting two distinct zones of mineralisation a whopping 725 metres north of its flagship Irvine project’s Resolution resource, dramatically expanding the project’s known mineralised footprint.

The first-pass diamond hole was designed to test a conceptual exploration target and appears to have hit the mark, returning a 4.25-metre intercept grading 1.42 grams per tonne (g/t) gold from 173m, including a higher-grade 1.5-metre core at 3.16g/t gold.

A second, deeper zone of mineralisation was also intersected, yielding 5.65m at 0.83g/t gold from 341.5m, including a 0.85-metre section at 3.19g/t gold.

The successful step-out significantly extends the Irvine project, which already hosts a JORC-inferred resource of 398,300 ounces of gold across its Resolution and Adventure lodes. The new discovery was made along strike and on trend north of the 358,000-ounce Resolution lode, confirming the geological model. It opens up a significant new stretch of ground for follow-up drilling in addition to the already identified two-kilometre gap between the company’s Adventure and Resolution lodes.

‘Discovering gold mineralisation this far north means the Irvine project is again growing in footprint.’

Aureka Limited managing director James Gurry

Aureka’s exploration crew targeted the area based on favourable geophysics and surface geochem. The mineralisation occurs in a geological setting similar to the main resource, where basalt and sedimentary rocks meet, aligning with an underlying induced polarisation geophysical anomaly. Ongoing drilling is targeting mineralisation associated with emerging second-order structures further from the main Resolution shear zone as well pointing the drill bit at the Irvine project to identify new lodes or lode extensions.

The discovery sits just 500m south of the Stawell granite, a major geological feature that separates Aureka’s Irvine project from the multi-million-ounce Magdala gold deposit at the Stawell Gold Mine, 17km to the north. While the granite itself isn’t mineralised, the company speculates the massive intrusion could have acted as a heat engine, helping to remobilise and concentrate gold in the surrounding rocks.

Aureka Limited managing director James Gurry said: “The growing extent of the Irvine Project solidifies it as one of Victoria’s most significant gold projects. While our flagship project grows in size, its future positioning fits well with the benefits of the already operating Fiddlers Creek Mine, the nearer-term Comstock Project in the pipeline, and the commercial pathway provided by the Wedderburn Mill.”

The latest discovery feeds into Aureka’s clear vision to build an integrated Victorian gold company, a strategy that was turbocharged by its recent acquisition of an operating mine and a strategic processing mill.

In a transformative deal, the company acquired the Fiddlers Creek underground gold mine and the 42,000-tonne-per-annum Wedderburn gold processing mill in a scrip-heavy transaction, with a base consideration of $8.9 million, comprising just $2.5 million in cash and $6.4 million in Aureka shares.

The deal looks like a strategic coup, vaulting Aureka from explorer to producer status by delivering a cashflow-positive mine and, crucially, a processing hub for its growing 454,800-ounce resource base. The Wedderburn mill is one of only six in Victoria licensed for third-party tolling and has significant spare capacity above the current ore feed from Fiddlers Creek.

With its flagship 398,000-ounce Irvine project just 135km from the mill and its 56,500-ounce Comstock project at St Arnaud less than 50km away, the logic of a central processing facility appears compelling.

The acquired ground also comes with its own high-grade pedigree. Aureka recently unveiled a string of spectacular legacy drill hits from Fiddlers Creek, including a stunning 1.19m at 40.48g/t gold featuring a bonanza-grade 0.06-metre section going an eye-watering 786.1g/t gold.

In a savvy move to lock in the operational know-how, Aureka also nominated 30-year industry veteran and metallurgist Marcus Binks to its board. Binks, who has held senior roles at major operations such as the 4.6-million-ounce Fosterville gold mine, knows the Wedderburn facility intimately, having helped establish and run it.

The company’s Victorian assets also include the Jubilee gold exploration project near Ballarat, the Morning Bill gold and base metals project in the Stawell corridor, alongside critical minerals potential in the St Arnaud area.

With this latest discovery, Aureka has not only potentially validated its exploration model but has also thrown a considerable patch of new, prospective ground onto the map at its flagship Irvine project. While it’s still early days for this northern extension, hitting gold on a 725-metre step-out in a first-pass hole is the kind of result that adds serious weight to the company’s burgeoning hub-and-spoke production strategy.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au