OzAurum Resources Confirms High-Grade Shallow Gold at Mulgabbie North

OzAurum Resources Drills More High-Grade Shallow Gold at Mulgabbie North, Advancing Feasibility Study

OzAurum Resources (ASX: OZM) has released the second batch of results from its reverse circulation (RC) grade control drilling programme at the Paleochannel Project within its Mulgabbie North Gold Project in Western Australia's Eastern Goldfields — and the OzAurum Resources Mulgabbie North high grade shallow gold drilling results continue to impress. The latest 84 holes spanning 3,024 metres have returned multiple high-grade, near-surface gold intercepts, reinforcing the quality and consistency of the paleochannel system whilst directly feeding into an ongoing feasibility study targeting a potential heap leach development.

With mineralisation remaining open along a greater than 4 kilometre interpreted paleochannel trend, and an existing ~260,000 ounce Mineral Resource already in place, these results position Mulgabbie North as a project with compelling near-term development potential and meaningful resource growth upside.

What the Drilling Found: High Grades, Shallow Depths

The second batch of results (holes MNORC 461–544) forms part of a planned 18,000 metre grade control programme designed to test the continuity and widths of high-grade gold mineralisation within the paleochannel system. The results are consistent with — and in several cases rival — previously reported standout intercepts from the same system.

Standout Intercepts from Batch 2

All intercepts are shallow, sitting at depths commencing between approximately 24 and 27 metres below surface — a characteristic that has significant practical implications for the economics of any future open pit and heap leach operation.

The high-grade "inclusion" results within broader intercepts are particularly noteworthy. Furthermore, individual 1-metre samples reaching 23.31 g/t Au, 20.10 g/t Au, and 18.10 g/t Au in this batch alone underscore the exceptional grade profile of the system.

CEO & Managing Director Andrew Pumphrey commented: "These results continue to demonstrate the strong grade profile and near-surface nature of the paleochannel system at Mulgabbie North. Importantly, this drilling is directly supporting our ongoing feasibility study and is increasing confidence in the early development schedule as we move toward commissioning of the Mulgabbie heap leach plant. With mineralisation remaining open along a 4km trend, we see significant potential to grow the resource base and further enhance potential plant throughput. This positions Mulgabbie as a scalable operation with potential for strong upside beyond initial development and existing resources."

Understanding Paleochannel Gold: What It Means for Investors

For investors less familiar with the geology, understanding what a paleochannel gold deposit is — and why it matters — is key to appreciating the significance of these results.

What Is a Paleochannel Gold Deposit?

A paleochannel is an ancient river system that has since been buried or fossilised. When gold-bearing rocks erode over millions of years, gold particles can be transported and deposited by these ancient river systems, becoming concentrated in specific zones along the channel.

At Mulgabbie North, geological interpretation has confirmed a northwest paleo flow direction, with a 30 metre height drop over the 4 kilometre channel length — supporting the interpretation of a coherent, continuous mineralised system.

Why Does This Matter to Investors?

Paleochannel gold deposits in Australia's Eastern Goldfields have historically been associated with several important characteristics:

• High-grade, near-surface mineralisation — reducing mining costs relative to deep underground operations
• Simple processing characteristics — making heap leach a technically appropriate and potentially low-cost extraction method
• Scalability — channel systems can be extended along strike as exploration continues

A strong regional analogue exists in the Kanowna paleochannel operations, which historically produced approximately 70,000 ounces via open pit and heap leach with recoveries exceeding 85%, demonstrating the suitability of this deposit style for straightforward, cost-effective processing.

Notably, continued exploration success in paleochannel systems has historically led to significant primary gold discoveries in the surrounding district — as demonstrated by the approximately 8 million ounce Kanowna Belle deposit.

Glossary of Key Terms

The Mulgabbie North Mineral Resource: A Solid Foundation

The current grade control drilling sits within the boundaries of the existing 260,000 ounce Mulgabbie North Mineral Resource, reported in accordance with the 2012 JORC Code on 18 July 2023.

Mulgabbie North Mineral Resource Estimate (JORC 2012)

Reported at a 0.30 g/t Au cut-off to a depth of 150m. Source: OzAurum ASX announcement, 18 July 2023.

Critically, the current drilling confirms that mineralisation remains open along the greater than 4 kilometre paleochannel trend, meaning the resource is not constrained by existing drill data. In addition, further exploration success along this trend could expand the resource base well beyond the current 260,000 ounces.

What Comes Next: Feasibility Study and Development Pathway

The grade control programme is part of a structured, staged development process. The current batch of results represents the second of what is planned to be an 18,000 metre total grade control programme — meaning a significant amount of additional data is yet to be collected and reported.

Key Upcoming Milestones and Activities

1. Continuation of the 18,000m grade control programme — further batches of RC results expected as the programme progresses
2. Ongoing feasibility study — results from the grade control programme are being used to directly inform mine planning and development scenario evaluation
3. Evaluation of development scenarios in the context of the proposed commissioning of the Mulgabbie heap leach plant
4. Further diamond and RC drilling planned to test extensions of the mineralised system
5. Exploration along the open 4km+ paleochannel trend — targeting resource growth beyond the existing 260,000 ounce base

The company has previously released indicative and preliminary column leach test results to assess heap leach ore characteristics (ASX release, 16 September 2025), which underpin the heap leach development pathway currently under study.

The Investment Case: Why Mulgabbie North Deserves Attention

Several attributes combine to make the Mulgabbie North Paleochannel Project a compelling development story.

High-Grade, Shallow Mineralisation

The OzAurum Resources Mulgabbie North high grade shallow gold drilling results consistently commence at depths of approximately 24–27 metres, with grades frequently exceeding 3 g/t Au over multiple metres and high-grade cores reaching more than 20 g/t Au — pointing to a system with strong economic characteristics for open pit extraction.

Consistent with Historically Bonanza-Grade Results

Previously reported intercepts from the paleochannel system include 1m @ 162 g/t Au (ASX release, 24 May 2021), one of the highest single-metre gold grades reported from the broader system. However, this latest batch adds further confidence that high-grade pockets are a recurring feature of the channel.

Resource Growth Potential and Scalable Processing

Mineralisation remains open along the greater than 4 kilometre paleochannel trend, and the current 260,000 ounce resource represents what has been drilled to date — not the full extent of the system. Moreover, the heap leach pathway under study is well suited to paleochannel-style deposits. The Kanowna analogue, which achieved recoveries exceeding 85%, provides a real-world benchmark for what this deposit style can deliver.

Geological Understanding and Location

The confirmed northwest paleo flow direction and 30 metre elevation drop over 4 kilometres materially improve targeting confidence, reducing exploration risk on future drill campaigns. Furthermore, Mulgabbie North sits 130 km northeast of Kalgoorlie, in one of the world's most established and infrastructure-rich gold mining jurisdictions.

Mulgabbie North at a Glance

Why Investors Should Keep Watching OzAurum Resources

OzAurum Resources is at an inflection point — transitioning from an explorer with a defined resource to a company actively working through the technical groundwork required to make a development decision. The grade control drilling programme is not speculative exploration; it is purpose-built work feeding directly into a feasibility study.

The OzAurum Resources Mulgabbie North high grade shallow gold drilling results continue to validate the quality and consistency of the paleochannel system. The combination of a high-grade, shallow, open-ended gold system, a straightforward potential processing route, a supportive geological framework, and a growing body of drill data creates a foundation that investors in the gold development space would be well served to monitor closely.

With multiple additional batches of grade control results still to be reported from the 18,000 metre programme, and a feasibility study progressing in parallel, OzAurum is set to deliver a series of data points in the months ahead that will progressively de-risk and define the Mulgabbie North development opportunity.

Key Takeaway: "OzAurum Resources has confirmed, for a second consecutive batch, that the Mulgabbie North Paleochannel system is delivering consistent, high-grade, near-surface gold results. With an open 4km+ mineralised trend, an existing 260,000 ounce resource base, and a feasibility study underway targeting a heap leach development, the upcoming series of milestones — further drilling results, feasibility outputs, and plant commissioning progress — make OZM a project to follow closely in 2026."

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