Lewis Ponds Project Delivers Exceptional Economics for Godolphin Resources

Exceptional Economics Drive Investment Case

The Scoping Study delivers compelling financial metrics that validate lewis ponds project godolphin resources as a tier-one development opportunity across both conservative and upside scenarios.

Base Case Scenario (Conservative Pricing)

• Pre-tax NPV: $481 million at 7.5% discount rate
• Internal Rate of Return: 24% with 6-year payback period
• Free Cash Flow: $1.1 billion over 12-year mine life
• All-In Sustaining Cost: $3,254 per gold equivalent ounce

Upside Case (Current Market Prices)

The study's upside scenario, based on spot prices as of 11 February 2026, demonstrates exceptional leverage to current commodity markets:

• Pre-tax NPV: $1,088 million (126% higher than base case)
• Internal Rate of Return: 40% with 4-year payback period
• Free Cash Flow: $2.2 billion (97% higher than base case)

Key Price Assumptions:

Managing Director Commentary:
"The completion of this Scoping Study marks a major milestone for Godolphin, confirming Lewis Ponds as a technically robust and economically compelling development opportunity within one of Australia's premier mining districts." – Managing Director Jeneta Owens

Production Profile Supports 12-Year Operation

The study outlines a dual-phase mining strategy combining open pit and underground operations to maximise resource extraction over a 12-year mine life. Furthermore, this approach enables the lewis ponds project godolphin resources to optimise capital deployment across different mining phases.

Combined Operations Deliver Significant Metal Production

• Total ore processed: 12.7 million tonnes at 1.25Mtpa throughput
• Gold production: 244,000 ounces at 0.9g/t head grade
• Silver production: 12 million ounces at 40.9g/t head grade
• Base metals: 199,000 tonnes zinc, 78,000 tonnes lead, 9,000 tonnes copper

Phased Mining Approach

Phase 1 – Open Pit (Years 1-4):

• 3.8Mt ore at 7.5:1 strip ratio
• Lower capital intensity and faster cash generation

Phase 2 – Underground (Years 5-12):

• 8.9Mt ore via longitudinal and transverse benching
• Higher grade material extends mine life

Understanding Gold Equivalent Grades: A Key Valuation Metric

Gold equivalent (AuEq) grades provide investors with a simplified method to assess multi-metal deposits like Lewis Ponds. This calculation converts all metals into a single gold-equivalent value based on relative prices and metallurgical recoveries.

Why it matters for investors: AuEq grades enable direct comparison with single-metal gold projects whilst helping assess the total economic value of polymetallic mineralisation. In addition, the lewis ponds project godolphin resources' diverse metal portfolio provides natural hedge against commodity price volatility whilst maximising revenue potential.

Key Technical Terms:

• Cut-off Grade: Minimum AuEq grade required for economic extraction (0.67g/t open pit, 2.0g/t underground)
• Head Grade: Average metal content in ore fed to processing plant
• Recovery Rate: Percentage of metals successfully extracted during processing

The metallurgical recoveries applied in the study reflect recent optimisation work:

• Gold: 65%
• Silver: 72%
• Zinc: 93%
• Lead: 73%
• Copper: 69%

Resource Quality Reduces Development Risk

A critical factor supporting the investment thesis is the high proportion of Indicated Resources in early production years, significantly de-risking the project compared to typical early-stage developments. Consequently, this resource confidence provides substantial advantages for the lewis ponds project godolphin resources compared to projects where Inferred Resources often dominate production schedules.

Resource Classification by Mining Phase

• Payback period (6 years): 74% Indicated, 26% Inferred
• Life of mine (12 years): 70% Indicated, 30% Inferred
• Open pit phase: 78% Indicated, 22% Inferred

Resource Foundation:

• Total Resource: 17.52Mt @ 1.12g/t Au, 53.34g/t Ag
• Indicated: 9.09Mt (52% of total resource)
• Inferred: 8.43Mt (48% of total resource)
• Recent drilling success: 100% conversion from Inferred to Indicated

Key Investment Advantage:
The substantial Indicated Resource classification during the payback period materially reduces geological risk compared to projects heavily dependent on Inferred Resources for early cash generation.

Development Timeline and Capital Requirements

Manageable Capital Investment

The study estimates $268 million in pre-production capital, considered modest for a project of this scale and production profile. However, this represents a competitive advantage for the lewis ponds project godolphin resources when compared to similar-scale developments:

Strategic Location Advantages

Lewis Ponds benefits from proximity to established mining infrastructure:

• 15km from Orange, NSW – major regional centre with skilled workforce
• Existing power, rail, and road infrastructure within 3km
• Proximity to major operations: Cadia, Northparkes, Tomingley within 125km
• Port access: Established concentrate transport routes to Newcastle/Port Kembla

Significant Expansion Potential

The study identifies 2.1Mt of Inferred Resources not included in the production schedule, representing immediate upside opportunities beyond the 12-year mine plan. For instance, these additional resources could extend operations significantly once converted to higher confidence categories.

Near-Term Growth Catalysts

1. Expanded open pit scenarios through further pit optimisation studies
2. Underground mining extensions via systematic infill drilling programs
3. Metallurgical optimisation targeting improved recoveries across all metals
4. Mine scheduling refinements to enhance cash flow profiles

Exploration Upside

• 1,200m strike length with mineralisation open at depth
• Multiple lode systems offering expansion potential across three distinct zones
• Regional exploration targets across 148km² tenement package

The company has demonstrated consistent exploration success, with recent drilling achieving 100% conversion from Inferred to Indicated Resources, supporting confidence in further resource growth potential.

Investment Thesis: Why Lewis Ponds Deserves Attention

Compelling Value Drivers

1. Premier Jurisdiction
New South Wales offers world-class mining infrastructure, stable regulatory environment, and established concentrate markets through nearby major operations including Cadia and Northparkes.

2. Diverse Revenue Streams
Multi-metal production provides natural commodity price hedging whilst maximising revenue per tonne processed. The project's exposure to gold, silver, zinc, lead, and copper offers investors diversified commodity exposure.

3. Scalable Development Pathway
The phased approach enables capital-efficient development with early cash generation from open pit operations funding subsequent underground expansion phases. Furthermore, this strategy allows the lewis ponds project godolphin resources to maintain flexibility as market conditions evolve.

4. Resource Growth Potential
Extensive exploration upside supported by systematic infill drilling success and multiple regional targets across the broader tenement package.

Competitive Positioning

Strategic Development Pathway

Godolphin's Board has approved progression to Pre-Feasibility Study (PFS) stage, reflecting confidence in the project's technical and commercial viability.

Key Investment Catalysts:

• Pre-Feasibility Study commencement targeting completion in 2026
• Continued resource expansion through systematic drilling programs
• Strategic partnership discussions for development funding
• Metallurgical optimisation programs targeting improved recoveries

Strategic Advantages:

• 100% project ownership with no joint venture complications
• Clean capital structure with no debt obligations
• Experienced management team with proven track record in resource development
• Multiple funding pathways including equity, debt, and strategic partnerships

Why Investors Should Monitor This Development

The combination of robust economics, manageable capital requirements, and substantial expansion potential positions Lewis Ponds as a standout development opportunity in Australia's precious and base metals sector.

With current commodity prices significantly above study assumptions, the project offers exceptional leverage to prevailing market conditions whilst maintaining attractive returns under conservative scenarios. The high proportion of Indicated Resources during the payback period materially reduces development risk compared to typical early-stage projects.

The company's systematic approach to resource development, demonstrated through successful drilling campaigns and metallurgical optimisation, provides confidence in management's ability to advance Lewis Ponds towards production whilst continuing to grow the resource base.

Investment Considerations:

• Strong economics across both conservative and upside commodity price scenarios
• Substantial free cash flow generation potential over 12-year mine life
• Strategic location within established mining district
• Multiple expansion opportunities beyond initial mine plan
• Experienced management team with clear development pathway

The progression to Pre-Feasibility Study represents a significant milestone, positioning Godolphin Resources as an emerging developer worth monitoring as the lewis ponds project godolphin resources advances towards potential production decision.

Are You Ready to Explore Godolphin Resources' Development Potential?

With Lewis Ponds delivering exceptional economics, robust cash flow projections, and a clear pathway to production through its upcoming Pre-Feasibility Study, Godolphin Resources presents a compelling investment opportunity in Australia's premier mining jurisdiction. The project's combination of manageable capital requirements, high-confidence resource base, and significant expansion potential positions it as a standout development in the precious and base metals sector. Discover more about Godolphin Resources and the Lewis Ponds project's investment potential here to evaluate how this emerging developer could fit within your portfolio strategy.