Meeka Metals has unveiled top shelf infill drilling results from its Murchison project in Western Australia, pinpointing high-grade gold at both the Turnberry and St Anne’s open pit mining areas and bolstering the company’s ambitious plans to expand its production schedule.
The latest results from both areas have showcased a wealth of opportunity beneath the surface with key results at Turnberry including 5m at an eye-popping 29.02g/t gold within a 9m section grading 16.83 grams per tonne (g/t) gold. A further 21m at 4.63g/t gold featured a standout 6m slice running at 13.18g/t.
At St Anne’s open pit, the best results included 11m grading 13.01g/t gold, with a sizzling 4m section running at 30.66g/t and 8m at 6.49g/t gold with a “sweet spot” 2m slice grading 15.48g/t.
Since the latest results only account for 20 out of the 145 drill holes completed by mid-December, Meeka’s exploration efforts are far from finished. Assay reports and drilling activities are set to continue well into 2025, as the company aggressively chases more resources to help feed its bigger 750-kilowatt mill.
Meeka Metals managing director Tim Davidson said: “The results continue to bolster the outlook for production from our open pits where mining will commence on schedule in the March 2025 quarter. Drilling will continue into the new year, in advance of mining, as we strengthen and look to further upgrade the production plan ahead of first gold in mid-2025.”
Murchison is shaping up to be a real gem and already hosts a solid 1.2-million-ounce resource. Meeka’s fresh feasibility study, released last week, has made things even sweeter, bumping up ore reserves by 31 per cent to 400,000 ounces at 3.1g/t gold and cranking up production by 40 per cent.
The new numbers mean the company is now looking at 544,000 ounces of production across a 10-year span, averaging 65,000 ounces a year, with sales peaking at an impressive 76,000 ounces in year five.
The project’s economic prospects are equally impressive, with an undiscounted pre-tax free cash flow of $1 billion at an assumed gold price of $4100 per ounce and an all-in sustaining cost of $1982 per ounce.
With Murchison fully funded and only $46m remaining in startup costs, construction risks are diminishing fast, leaving Murchison well-poised to meet its various mining and production timelines next year.
The updated feasibility also shortened the payback period to seven months due to the expanded production profile - increasing the internal rate of return to180 per cent - meaning with a tailwind and a robust timetable, Murchison may well have paid for itself by next Christmas.
Preparations for first production are in full swing with a 20km haul road linking the processing plant to the open pit mining centre now nearly completed.
The relocation and refurbishment of the processing plant, including the enlarged 750kW ball mill, meanwhile, is progressing with new tanks footings and skins in place. The accommodation and administrative facilities are 99 per cent in place and supporting the construction workforce.
Open pit mining is set to kick off in March 2025, with the first gold pour anticipated by mid-2025. Meanwhile, deeper drilling efforts at Turnberry and Andy Well will aim to expand underground production plans.
Meeka Metals’ latest findings appear to have strengthened its near-term production plans and also highlight the long-term value of its exploration initiatives.
The company continues to grow its resource while it marches inexorably closer to first gold pour in mid-2025, with an ever-rising gold price, currently trading at US$2640 (A$4168) per gold being the icing on the cake. It’s a delightful concoction, with every $100 per ounce increase in gold price delivering Meeka an additional $52m in pre-tax cash flows.
Nice work if you can get it.
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By James Pearson
