How Will Zuleika Gold’s Credo Well Resource Upgrade Shape Its Future?
Zuleika Gold Limited has nearly doubled the mineral resource at its Credo Well Gold Project to 22,500 ounces, with mining lease applications underway and detailed mining studies planned for next year.
- Credo Well Mineral Resource upgraded from 12,259 to 22,500 ounces
- Total resource tonnage now 289,000 tonnes at 2.43 g/t gold
- Mining lease application lodged and mining studies to commence in 2026
- Resource remains open for further drilling and expansion
- Potential for open pit mining and nearby toll milling at Paddington Gold Mine
Significant Resource Upgrade
Zuleika Gold Limited (ASX – ZAG) has announced a substantial increase in the mineral resource estimate for its Credo Well Gold Project, located near Kalgoorlie in Western Australia. The updated estimate, prepared by Ashmore Advisory Pty Ltd and compliant with the JORC Code 2012 standards, shows a near doubling of contained gold ounces from 12,259 to 22,500. This upgrade reflects additional drilling completed since 2020, a higher gold price environment, and Zuleika’s consolidation of full ownership of the project in 2024.
Resource Details and Geological Context
The updated resource comprises 289,000 tonnes grading 2.43 grams per tonne gold at a 0.5 g/t cut-off, suitable for potential open pit mining. The mineralisation is hosted within folded gabbro and quartz gabbro sills along major shear zones in the Mt Pleasant district, part of the Norseman-Wiluna Greenstone Belt. The deposit remains open along strike and at depth, with further drilling planned to infill and extend the resource, particularly between the Credo Well Main and North areas.
Advancing Towards Mining
Importantly, Zuleika has lodged a mining lease application over the project area and is preparing to commence mining studies in 2026. These studies will include metallurgical test work, which has not yet been conducted but is benchmarked at 90% recovery based on nearby operations. The proximity of Credo Well to the Paddington Gold Mine and Processing Plant, approximately 5 kilometres away, offers a promising toll milling option that could streamline project development.
Strategic Outlook and Next Steps
Executive Chair Annie Guo emphasised the significance of this resource upgrade as a foundation for focused exploration and development in the Kalgoorlie region. The company is conducting a comprehensive review of all drilling data and advanced prospects to guide future resource growth and regional exploration. With the resource upgrade and mining lease application in place, Zuleika is positioning Credo Well as a core asset with strong potential to deliver shareholder value.
While the resource upgrade is a positive milestone, the project’s economic viability will hinge on forthcoming mining studies and metallurgical results. The open pit mining assumption and early-stage economic assessments provide a reasonable basis for optimism, but detailed technical work remains critical.
Bottom Line?
Zuleika’s Credo Well project is entering a pivotal phase, with resource growth and mining studies setting the stage for potential production in the near future.
Questions in the middle?
- How will upcoming metallurgical test results impact the project’s economic feasibility?
- What timeline does Zuleika anticipate for mining lease approval and commencement of mining?
- To what extent can further drilling expand the resource beyond the current 22,500 ounces?
