WAU defines gold targets north of $1.75BN Minerals 260
Our WA gold Investment WA Gold (ASX: WAU) just had results out from its project next door to (and is now surrounded by) $1.75BN capped Minerals 260.
More specifically, from the blocks to the north of Minerals 260’s 6.2M ounce gold deposit:
(source)
WAU drilled 41 shallow RC holes looking for repeat structures similar to Minerals 260’s deposit along the structure that hosts MI6's deposit (The Bullabulling Shear Zone).
One hole hit 2m @ 0.16g/t gold right at the end of the hole and another hole hit 4m @ 0.25g/t gold at end of hole on the ultramafic contact, part of an anomalous gold trend now running over ~2.6km of strike.
So WAU’s found gold (albeit at low grades) with end of hole anomalies.
(source)
WAU also has a SAM (Sub-Audio Magnetics) geophysical survey planned for September, with everything to be combined to refine targets for deeper RC drilling planned for October. (source)
A SAM survey maps both the magnetic and electrical properties under the surface in a single pass and is widely used in gold exploration.
We note WAU is yet to drill its ground directly bordering Minerals 260’s 6.2M ounce deposit.
The drilling in this area is what we would be most excited about, although the land may already be strategic to WAU as it could allow MI6 to mine all of its resource in this area…
Proving that the resource extends into this block would only increase the value to WAU.
WAU set to get drilling its other project, as early as this month
Also in today’s announcement WAU mentioned that the drill planning for the follow up drilling at its 518K ounce gold resource is planned for the end of August:
(source)
It is here that WAU is targeting extensions at depth to its existing resource.
WAU’s working geological theory is that its project could host a Never Never style ductile gold system - where the grades of its resource get bigger as drilling goes deeper.
Never Never was the discovery Spartan Resources made in mid 2024 which led to a ~$2.5BN takeover by Ramelius Resources. (source)
WAU already has a plan in place for processing to, with a Scoping Study released earlier in the year.
Four months ago they released a scoping study showing that for a low pre production capital requirement of $8M, WAU could deliver an NPV of A$205 – A$253 million (pre-tax). (source)
WAU’s assets sit in the famous WA “Northern Goldfields” gold region hosting many, multi-million ounce gold deposits:
(source)
We covered these prior results earlier in the month here: WAU: A Positive Surprise...
What we want to see next from WAU
Abercromby project - WAU’s 518K ounce gold JORC resource estimate
On this project, here are the milestones we are tracking:
- ✅ Phase 1 drilling at Abercromby
- ✅ Phase 1 assay results
- 🔄 Phase 2 drilling at Abercromby (~6,000m of diamond drilling) - awaiting rig to be secured, drilling expected to begin this month (source)
- 🔲 Abercromby resource upgrade (WAU is targeting 1M+ ounces)
- 🔲 Maiden Ore Reserve + feasibility study workstreams
- 🔲 Binding toll treatment deal (converting the Wiluna MoU into something firm)
- 🔲 Final Investment Decision (targeted for 2027)
Bullabulling project (next door to $1.4BN Minerals 260)
Here are the milestones we are tracking for this project:
- ✅ Bullabulling maiden drill program assays (46 holes completed, results due “early August”)
- 🔄 Sub-Audio Magnetics survey at Bullabulling (scheduled September) (source)
