WAU starts drilling next to $1.6BN MI6's 4.5Moz gold mine next door

Our WA gold Investment WA Gold (ASX: WAU) just started drilling at its WA gold project next door to $1.6BN Minerals 260's Bullabulling 4.5Moz gold project.

WAU will be drilling 46 aircore holes for ~3,680m across eight drill lines on the blocks to the north of Minerals 260’s big deposit - following up previous hits like:

• 2m @ 18.1g/t gold from 34m,
• 4m @ 10.12g/t gold from 32m and
• 12m @ 2.3g/t gold from 53m.

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Here is a look at the drilling planned and where it sits in relation to Minerals 260’s target areas:

(source)

A big part of why we're Invested in WAU is that this ground could host extensions of the same system feeding MI6's 4.5Moz resource.

And as MI6 takes its project closer toward a development decision - WAU’s ground becomes more valuable - especially if drilling can find gold mineralisation too.

MI6 has also been consolidating just about every other piece of ground in the district (lifting its Bullabulling area from ~130km² to ~1,160km²), which leaves WAU as the only significant independent tenement holder left in the region.

We went deep on what MI6 and Franco Nevada moving in next door means for WAU:Surrounded. The 2nd biggest gold company in the world is pushing money into WAU's neighbourhood.

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WAU also has assays pending from its 518K ounce gold resource too

WAU also had an update out on its 518,000oz Abercromby project, also in WA.

WAU now expects to have assays out from the first three diamond holes on the project in the “first week of July” - so any day now.

This is where WAU put out a scoping study:

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The Scoping Study is also only based around mining the existing, higher confidence indicated resources - just 114k ounces (~22%) of the total 518K ounce JORC resource estimate the project has. (source)

So that $253M NPV number is only based on a fraction of the potential future resource size, and WAU continues to drill.

Here is a quick overview of why we like WAU’s 518K ounce Abercromby project:

• Existing High-Grade Resource: The project already hosts a 518k ounce gold resource, which provides a strong valuation floor.
• Expansion Potential: There is significant "blue sky" upside, with management targeting a resource upgrade to over 1M ounces through upcoming drilling.
• "Never Never" Discovery Potential: WAU’s working theory is that its project could host a high-grade, ductile gold structure similar to the "Never Never" discovery (Spartan Resources), which was taken out for ~$2.5BN.
• Toll Treatment Strategy: WAU has a non-binding MoU with a nearby mill (Wiluna Mining). This could allow for a low-capex, fast-track pathway to production without the need to build a $100M+ processing plant.
• Granted Mining Leases: Unlike many junior explorers, the core resource is already on granted mining leases, significantly reducing the regulatory timeline to start production.
• NPV of $205-253M pre tax: This NPV comes from just an initial $8M start up capital requirement making it a much easier funding hurdle to overcome than most explorers/developers require.
• Tier-1 Location: Situated in the "Northern Goldfields" of Western Australia, it is surrounded by major mines and infrastructure owned by companies like Northern Star and Genesis Minerals.

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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)

Drilling is happening right now. We are hoping to see WAU hit extensions to the existing resource.

In today’s announcement it mentioned that the first assay will land in “the first week of July”. (source)

Here are the milestones we will be tracking:

✅ Drilling started

🔄 Assay results (first assays expected “in early June”)

🔲 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.