OzAurum Resources to push on with Mulgabbie North feasibility study by itself after collapse of partner firm

Junior explorer OzAurum Resources is pushing on with a heap leach feasibility study for the Mulgabbie North gold project by itself after its profit-share agreement partner going into administration. OzAurum told the Australian Securities Exchange this week that Line Hydrogen had sought to withdraw from the study through a deed of release, allowing OzAurum to take full control of the project and the study’s direction. The company said Line Hydrogen had completed only limited metallurgical testwork, with no column leach testing completed. OzAurum said this provided the opportunity to reset the study on a stronger technical foundation. The company said it had engaged a company called Burnt Shirt to oversee the study, ensuring transparent and independent technical management. It had also appointed Randall Pyper of Kappes Cassiday & Associates Australia — “globally recognised leaders in heap leach testwork and design” — to lead inhouse metallurgical testwork and provide ongoing technical input. OzAurum said under KCAA’s guidance, it had begun percolation testing in its own laboratory facilities in Coolgardie at no additional cost to shareholders, with this capability allowing up to five tests per day, accelerating the study’s progress. The company said initial percolation testwork on the highest clay content paleochannel samples had so far delivered excellent outcomes. Across 37 tests, OzAurum said it had achieved an average percolation rate of 57,200L/hr/sqm, exceeding industry benchmarks for successful heap leaching. The company said reverse circulation drilling at the Mulgabbie North Cross Fault was scheduled to start in coming weeks, subject to rig availability, while additional drill holes at the James and Ben prospects would provide samples to support testwork and optimise processing pathways. Mulgabbie North is 130km north-east of Kalgoorlie-Boulder, next to Northern Star Resources’ Carosue Dam operations. It has a mineral resource estimate of 11.6 million tonnes at 0.70g per tonne for 260,000oz of gold, with 64 per cent in the measured and indicated categories. OzAurum managing director and chief executive Andrew Pumphrey said he was looking forward to progressing a potential path to gold production at the Mulgabbie North project with the company now back in full control of the feasibility study. “The withdrawal of Line Hydrogen is a positive outcome, as it enables us to regain responsibility for advancing the project in the best interests of our shareholders without further delays,” he said. “With the support of Randall Pyper from Kappes Cassiday & Associates Australia, who provided the technical advice to the successful Kanowna pug clay paleochannel heap project in 1987, we are building on proven expertise as we advance the Mulgabbie North heap leach feasibility study. “Importantly, by undertaking our own inhouse metallurgical testwork we can move quickly and methodically through this critical phase. “We are currently completing five percolation tests every 24 hours, allowing us to rigorously de-risk the project while maintaining efficiency. “The consistently high percolation flow rates we are seeing from even the most challenging paleochannel clays are extremely encouraging and bode well for the future success of the Mulgabbie North heap leach study. “With these strong foundations in place, OzAurum is well-positioned to deliver a transparent, technically robust, and value-focused pathway to potential gold production.”