Striking Gold: High-Grade Intercepts Boost Crown Prince Project Value
New Murchison Gold has announced exceptional high-grade gold results from its recent grade control drilling at the Crown Prince Gold Project, revealing significant potential for early mining gains that could substantially improve the project's economics.
Crown Prince Delivers Outstanding Shallow Gold Grades
Recent drilling focused on the lateritic caprock zone above the Crown Prince ore bodies has returned remarkable high-grade gold intercepts that far exceed previous expectations. The most significant New Murchison Gold Crown Prince drill results include:
- 9m @ 18.71g/t Au from 1m in hole GC00088
- 6m @ 9.44g/t Au from 3m in hole GC00087
- 8m @ 9.99g/t Au from 0m in hole GC00111
- 8m @ 4.45g/t Au from 0m in hole GC00196
- 4m @ 4.07g/t Au from 0m in hole GG00194
- 5m @ 3.44g/t Au from 0m in hole GC00114
- 1m @ 17.68g/t Au from 7m in hole GC00153
These impressive results came from 212 short vertical grade control drill holes designed to better delineate gold grades within the lateritic caprock above the Crown Prince ore bodies.
The highest gold grades were concentrated over the South-Eastern Zone from holes GC00087-88, GC00111, and GC00153, revealing potential for significant early mining returns.
Immediate Impact on Resource Value and Mining Plans
The New Murchison Gold Crown Prince drill results reveal that the mineable material in the caprock zone is likely to substantially outperform earlier expectations. The current caprock resource contains 40,873t @ 1.41g/t Au for 1,858 oz within the Ore Reserve, but these new results suggest considerable upside potential.
CEO Alex Passmore highlighted the significance of these results:
"We are pleased to report shallow high gold grades that far exceed our expectations for gold grades in the caprock zone of the Crown Prince resource. We look forward to updating our resource model, grade control model and short-term mining plans given the high-grade nature of ore likely to be encountered early in the mine plan."
Particularly notable is the change in mining strategy. Passmore added:
"The caprock was planned to be stockpiled early on in our mine plans, however following these grade results is likely to add to material being sent to Westgold under our ore purchase agreement."
This shift could lead to earlier cash flow and improved project economics for New Murchison Gold.
Understanding Caprock in Gold Mining
What is Caprock in Gold Deposits?
Caprock in gold mining refers to the upper lateritic or oxidised zone that sits above the primary ore body. In many Australian gold deposits, weathering processes can concentrate gold in this near-surface layer.
While caprock material is sometimes lower grade than the primary ore body below, in this case, the Crown Prince caprock has revealed exceptional gold grades at very shallow depths.
The significance for investors is substantial – caprock material is:
- Typically easier and cheaper to mine (shallow, near-surface)
- Often has simpler metallurgy for processing
- Can provide early cash flow to fund deeper mining operations
These high-grade intercepts in the caprock could substantially improve the project's potential early economics by providing higher-grade material in the initial mining phase.
Crown Prince Project: Moving Toward Production
The Crown Prince Gold Project sits within New Murchison Gold's larger Garden Gully Project, located 22 kilometres northwest of Meekatharra in Western Australia. The company completed a Feasibility Study for Crown Prince in February 2025, establishing a maiden Ore Reserve and putting New Murchison on track to becoming a gold producer.
The project timeline now looks even more promising with these New Murchison Gold Crown Prince drill results potentially accelerating the path to production and improving early economics. Similar to how high-grade gold stockpiles revealed revenue potential at other sites, these findings could significantly enhance the project's value.
| Project Milestone | Status | Date |
|---|---|---|
| Mineral Resource Update | Completed | November 2024 |
| Maiden Ore Reserve | Completed | February 2025 |
| Feasibility Study | Completed | February 2025 |
| Grade Control Drilling | Current | May 2025 |
| Resource Model Update | Upcoming | Q2/Q3 2025 |
| Mining Commencement | Planned | TBA |
Investment Case: Why New Murchison Gold Deserves Attention
New Murchison Gold presents a compelling investment case based on these latest drill results:
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Near-term production potential with a completed Feasibility Study and now enhanced economics from high-grade caprock material
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Exceptional gold grades in shallow, easily accessible material that could significantly improve early cash flow
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Strategic location in the prolific Murchison goldfield near established infrastructure and processing facilities
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Existing ore purchase agreement with Westgold, providing a clear path to early revenue generation
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Exploration upside across the broader 677km² Garden Gully Project covering the Abbotts Greenstone Belt
For investors seeking exposure to gold with near-term production potential, New Murchison Gold represents an opportunity to participate in a company transitioning from explorer to producer, with the New Murchison Gold Crown Prince drill results suggesting the transition could be more profitable than initially anticipated.
Furthermore, the company's approach mirrors other successful exploration stories where spectacular high-grade gold intercepts have translated into valuable mining opportunities. Additionally, recent drilling campaigns at high-grade gold sites have demonstrated how quality assets can quickly progress from exploration to production.
Key Takeaway
New Murchison Gold's Crown Prince project has revealed exceptional high-grade gold results in shallow caprock drilling, potentially transforming the project economics with higher-grade material available in early mining phases. With a clear path to production already established through its Feasibility Study and ore purchase agreement, these results position the company for potentially stronger early cash flow and enhanced project returns.
The company joins others in the sector that have secured strong investor support for ambitious drilling campaigns, and its success mirrors other recent drilling success stories with high-grade gold discoveries in established mining regions. As the project advances, investors will be watching closely to see how these promising early results translate into production outcomes.
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