September 16, 2024 | Perth

OzAurum Resources Ltd (ASX: OZM or OzAurum or the Company) is pleased to provide shareholders with an update on the Mulgabbie North Gold Project.

HIGHLIGHTS

OZM is pleased to announce the signing of an agreement with Line Hydrogen Pty Ltd and BIM Metals Pty Ltd (together LHBM) to complete the Mulgabbie North Heap Leach Feasibility Study (Study), which will be fully funded by LHBM.

Study expected to take up to 12 months and following completion and, if a decision to commence production is made by the parties, LHBM will operate and be responsible for funding the proposed mining and heap leach operation with net cash after operating costs and capital costs to be split 50-50 between OzAurum and LHBM.
Brendan James, principal of LHBM, is a Hydrometallurgical Engineer with over 25 years’ experience in the design and operation of heap leach mining operations. In recent years his private company BIM Metals has designed, constructed, operated and optimised heap leach operations in Queensland, South Australia and Western Australia.
All aspects of the management of mining and processing of Mulgabbie North Heap Leach ore will be undertaken by LHBM.
Break fee of $4 million for either party to withdraw from the Agreement excluding technical or permitting preventing the project from proceeding.
If the Study economics are acceptable, Line Hydrogen will aim to produce Net Zero Gold from the Mulgabbie North Gold Project as part of its strategy to develop commercial scale green hydrogen for diesel fuel replacement in Australia.
Solid Mineral Resource base at Mulgabbie North of 260,000 ounces of gold, with 64% of the ounces in the Measured and Indicated category following 80,000m of drilling by OZM (see ASX announcement 18th July 2023).
Mulgabbie North project serviced by excellent infrastructure, being 135km northeast of the major mining hub of Kalgoorlie – Boulder in Western Australia.
Gold price at record high of USD$2,577/AUD$3,844 (Source: Kitco.com Exchange rate:1.4916)
Two new cross fault target zones identified at Mulgabbie North as having potential for significant gold
mineralisation and future drilling areas with historic RC drillholes not followed up with further drilling:
Cross Fault 1 Target *MNORC 129 10m @ 1.36 g/t Au from 100m incl 1m @ 6.38 g/t Au
Cross Fault 3 Target *MNORC 180 11m @ 1.90 g/t from 49m incl 1m @ 12.15 g/t Au
*See ASX Announcement 21st April 2023

CEO and Managing Director, Andrew Pumphrey, commented:

“I am very excited that Brendan James from LHBM has selected the Mulgabbie North Gold Project to fully fund the feasibility study and, if the feasibility study economics are acceptable, to obtain funding and operate a potential future heap leach mining operation at Mulgabbie North. Brendan brings a wealth of experience to the table in design, construction and operation of heap leach projects in Australia and overseas which helps in derisking the project for OZM shareholders. The White Dam heap leach in South Australia is an example of a highly successful gold operation that Brendan ran for a number of years. Coupled with his ambition to produce Net Zero Gold we are all excited to see the Mulgabbie North Project move forward and, potentially into gold production. As well we have identified new cross fault targets from the seismic interpretation the Company undertook a while back and I am keen to see us drilling these new areas to see what we can discover.”

Please download the full announcement for more information.

Mulgabbie North Gold Heap Leach 50:50 Profit Share Agreement Signed