Shareholder Approval Key as Australian Mines Eyes Expansion at Boa Vista

New High-Grade Zone Emerges at Boa Vista

Australian Mines Limited (ASX, AUZ) has announced the discovery of a newly identified mineralised zone, the Biota Zone, adjacent to the historical VG1 gold resource at its Boa Vista Gold Project in Brazil. Reconnaissance channel sampling across five horizontal channels revealed significant gold grades, with standout results including 2 meters at 52.10 grams per tonne (g/t) gold, 7 meters at 7.88 g/t, and 4 meters at 9.17 g/t. These findings suggest the presence of high-grade mineralisation beyond previously defined boundaries.

Context Within the Boa Vista Project

The VG1 prospect, the project’s most advanced target, hosts a historical inferred resource estimated at approximately 8.47 million tonnes grading 1.23 g/t gold, equating to around 336,000 ounces. This resource remains open along strike and at depth, with historical drilling intercepts demonstrating multiple high-grade zones exceeding 20 gram-metres, a key metric in assessing gold deposit potential. The Biota Zone discovery adds a new dimension to the project’s exploration upside.

Exploration Strategy and Next Steps

The recent channel sampling was conducted on oxidised, sheared felsic volcanic saprolite in contact with granodiorite, associated with quartz veining; typical host rocks for orogenic gold deposits. Australian Mines is advancing its exploration program with a planned 3,000-meter diamond drilling campaign designed to test the Biota Zone and other targets. However, this drilling program is contingent upon shareholder approval of the Earn-in Option Agreement, which remains pending.

Strategic Implications and Market Potential

CEO Andrew Nesbitt highlighted the significance of these high-grade results, emphasizing their potential to extend mineralisation beyond the historical resource limits and underpin maiden drill targeting. The company’s recent drone magnetics survey and ongoing review of historical data further strengthen the foundation for systematic exploration. Should the drilling confirm these early indications, Boa Vista could support a low-cost, long-life open-pit gold operation, enhancing Australian Mines’ portfolio and market positioning.

Caution and Forward Outlook

While the reconnaissance sampling results are encouraging, they are not yet sufficient for resource estimation. The true widths of mineralisation remain unknown, and the project’s advancement depends on securing shareholder approval for the Earn-in Agreement. Australian Mines’ ability to recover initial exploration expenditures and proceed with drilling hinges on this critical step. Investors will be watching closely as the company moves towards this pivotal milestone.