Crown Prince Resource Grows 16% to 279koz; Ore Purchase Deal Signed with Westgold

Resource Growth and Drilling Success

New Murchison Gold Limited (ASX:NMG) has delivered a robust update on its Crown Prince deposit within the Garden Gully Gold Project near Meekatharra, Western Australia. The company’s recent infill drilling program has not only confirmed existing mineralisation but also uncovered new high-grade zones, particularly in the footwall of the southeastern zone lodes. This drilling success has translated into a substantial 39% increase in the Indicated Mineral Resource Estimate (MRE) for Crown Prince, now standing at 226,000 ounces of gold at an impressive grade of 4.6 grams per tonne (g/t).

Overall, the total Mineral Resource across the deposit has grown by 16% since the February 2024 estimate, reaching 279,000 ounces at 3.9 g/t Au. This uplift reflects the effectiveness of the 7,500-metre, 66-hole reverse circulation drilling campaign completed in late 2024, which targeted inferred zones within the conceptual open pit design. The enhanced resource confidence is a critical milestone as NMG advances towards development.

Strategic Alliance with Westgold

In a significant commercial development, NMG has entered into a binding Ore Purchase Agreement (OPA) with Big Bell Gold Operations Pty Ltd, a wholly owned subsidiary of Westgold Resources Limited. This agreement underpins the planned production from Crown Prince, with mining targeted to commence by mid-2025, subject to final regulatory approvals. The OPA leverages Westgold’s Bluebird processing plant, located approximately 33 kilometres from the Crown Prince site, enabling efficient ore processing and operational synergies.

Westgold’s 18.7% ownership stake in NMG adds a strategic dimension to this partnership, aligning interests and facilitating collaborative risk management. The OPA is contingent on shareholder approval, with a meeting scheduled for 28 February 2025, marking a key upcoming event for investors to watch.

Advancing Towards Production

Alongside resource growth and strategic partnerships, NMG is progressing a detailed feasibility study encompassing environmental, social, mining, metallurgical, geotechnical, and hydrogeological assessments. This comprehensive study aims to solidify the economic case for Crown Prince and support regulatory submissions. The company has already submitted mining proposals and environmental approvals, signaling strong momentum in pre-development activities.

CEO Alex Passmore highlighted the company’s active quarter, noting the material increase in resources and the value anticipated from the Westgold alliance. He emphasized a steady news flow expected in the first half of 2025 as Crown Prince moves closer to commercialisation, reflecting management’s confidence in the project’s trajectory.

Financial Position and Outlook

Financially, NMG ended the December quarter with $2.749 million in cash, bolstered to $3.951 million following the exercise of in-the-money options expiring in March 2025. This strong cash position supports ongoing technical programs and the advancement of Crown Prince towards mining. Exploration and evaluation expenditure for the quarter was $1.983 million, primarily focused on Crown Prince activities.

Looking ahead, the company plans further drilling to test extensions of primary mineralisation at depth, which remains open, potentially adding further resource upside. The combination of resource growth, strategic partnerships, and a solid financial footing positions NMG well to unlock value from its Garden Gully tenure.