WAU now 7 holes into drilling at 518k Oz WA gold project - assays due this month
Our WA gold Investment WA Gold (ASX: WAU) just completed the first phase of drilling at its 518,000oz gold project in WA.
WAU drilled seven diamond holes for 3,277m testing for at depth extensions to its current resource.
Assay results from the first five holes are expected this month.
The key takeaway for us was that all seven holes intersected the structure that hosts the existing resource.
WAU’s drill program is from the project where WAU put out a scoping study in April, showing a pre-tax NPV of $205-253M from just ~$8M in upfront capital. (source)
We are hoping drilling confirms and extends the existing resource so WAU can progress its development plan for the project.
WAU also confirmed that a geotechnical review was being done which would ultimately go into the project's mine planning.
WAU is targeting being "shovel-ready" by late 2027/early 2028.
WAU also has another ~6,000m of diamond and RC drilling set to resume at Abercromby this quarter, looking to extend the resource and firm up reserves for the feasibility study. (source)
These points in today’s announcement are why we think that this project could support WAU’s development plan in the short term:
(source)
WAU is also drilling next door to $1.5BN Minerals 260
WAU also has its Bullabulling gold project, next door to $1.5BN Minerals 260's (ASX: MI6) 4.5Moz gold deposit in WA's Eastern Goldfields.
Today MI6 announced a resource update, now sitting at 6.2Moz of gold at 1.0g/t up from 4.5Moz (source) and PFS showing a NPV of A$2.3BN (source).
MI6's mineralisation here appears to trend towards WAU's ground, and WAU started its maiden aircore drill program in the northern blocks there earlier this month.
MI6 has been consolidating almost every other piece of ground in the district, leaving WAU as the only significant independent tenement holder left in the region:
(source)
We went deep on what MI6 (and Franco Nevada) moving in next door means for WAU here: Surrounded. The 2nd biggest gold company in the world is pushing money into WAU's neighbourhood
What’s next for WAU?
🔄 Drilling at the 518k ounce Abercromby project
This is now the first time Abercromby has had a large (10,000m) drill program on it since the maiden resource on the project back in 2023. (source)
The first phase of the drill program has been completed. We are hoping to see WAU hit extensions to the existing resource and more drilling is expected this quarter (source)
In today’s announcement it mentioned that the first 5 of 7 assays are at the lab from the phase 1 drilling and are expected this month. (source)
Here are the milestones we will be tracking:
✅ Drilling started
🔄 Assay results (first assays expected “in July”)
🔲 Resource upgrade
🔄 Drilling at the Bullabulling project (next door to $1.6BN Minerals 260)
WAU has a 10,000m drill program planned on the Bullabulling asset. (source)
WAU also has some more geophysical surveys planned for the project (also this month).
Here are the milestones we will be tracking:
✅ Drilling started (today)
🔲 Assay results
🔄 Geophysical surveys
🔄 Updates on Wiluna processing MoU
WAU has an MoU with the Wiluna processing plant operators to treat the ore from its project which sits nearby (~20km), well within trucking distance.
Progress on this to lock in a processing agreement will allow WAU to be able to confirm its processing plan.
