Critical Resources Launches First Drilling at Cap Burn Gold Project in Otago

Exploration Begins at Cap Burn

Critical Resources Limited (ASX, CRR) has officially commenced its inaugural Reverse Circulation (RC) drilling program at the Cap Burn Gold Project, situated in the Otago region of New Zealand’s South Island. This marks a significant milestone for the company as it embarks on a multi-stage exploration campaign in a region known for its rich gold endowment but still underexplored in many areas.

The initial phase involves up to 10 wide-spaced drill holes totaling approximately 1,100 meters. These holes will test a roughly 1-kilometer strike length along the Cap Burn fault structure, focusing on down-plunge extensions beneath a large and well-defined arsenic-in-soil anomaly. This anomaly is considered a key indicator of potential gold mineralisation, based on geological models and analogies to nearby deposits.

Geological Context and Strategic Location

Cap Burn lies on the northern edge of the Otago Schist Belt, a geological corridor that hosts OceanaGold’s Macraes gold camp, which has produced over 10 million ounces of gold, and Santana Minerals’ Rise and Shine deposit, a recent discovery that has reshaped understanding of the region’s gold potential. The project’s geological setting closely mirrors these successful operations, particularly in its structural controls and mineralisation style.

Previous drilling at Cap Burn in 2020 returned encouraging gold intercepts, albeit at lower grades, which resemble early-stage results from the Rise and Shine discovery. The current drilling program aims to leverage these insights and the renewed geological model to unlock the down-plunge potential beneath the arsenic halo, a strategy validated by Santana Minerals’ success.

Program Design and Next Steps

The RC drilling is designed to be rapid and low impact, with an expected duration of 2 to 3 weeks. Samples will be sent to a New Zealand laboratory immediately after drilling, with assay results anticipated by mid-February 2026. These results will guide follow-up drilling and further exploration activities planned across additional permits in the region, including Tokomairiro, Lammerlaw, Croesus, Silver Peaks, and Rock & Pillar.

Critical Resources’ Managing Director, Tim Wither, expressed optimism about the project’s potential, highlighting the underexplored nature of the Otago Schist Belt and the significance of recent discoveries in the area. He emphasized the company’s commitment to efficient and environmentally considerate exploration practices and acknowledged the support of landowners and stakeholders.

Broader Implications for Critical Resources

This drilling campaign represents a strategic entry point for Critical Resources into a prolific gold-producing region with multi-million ounce potential. Success at Cap Burn could significantly enhance the company’s gold portfolio and position it as a key player in New Zealand’s evolving gold exploration landscape. The project’s proximity to established mines and recent discoveries adds a layer of geological confidence to the exploration efforts.