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WA Gold Ltd (ASX:WAU) has published its June 2026 quarterly activities report, revealing a robust Scoping Study for the Abercromby Gold Project in Western Australia that estimates Stage 1 Mine net cashflow between A$243 million and A$297 million pre-tax. The company has advanced drilling programs at both Abercromby and Bullabulling, with assay results anticipated shortly. WA Gold maintains a cash balance of A$3.2 million to support exploration and development efforts leading up to a Financial Investment Decision targeted for 2027.
Key Highlights
- WA Gold Ltd (ASX:WAU) focuses on gold exploration and development at Abercromby and Bullabulling projects within Western Australia's Wiluna Greenstone Belt.
- The Abercromby Scoping Study forecasts Stage 1 production of around 114,000 ounces of gold, requiring only A$8 million in pre-production capital.
- Stage 1 Mine is projected to generate approximately A$243–A$297 million in total net cashflow and A$205–A$253 million NPV (pre-tax), based on a 518,000-ounce gold Mineral Resource Estimate.
- Seven diamond drill holes completed at Abercromby in early 2026; an additional ~6,000 metres of drilling planned for Q3 2026 to explore resource extensions and support mine design.
- Reconnaissance drilling at Bullabulling included 46 aircore holes targeting the northern extension of the Bullabulling Shear Zone, with results expected in early August 2026.
- Cash reserves stood at A$3.2 million as of 30 June 2026, fully funding planned drilling and advancing toward a 2027 Financial Investment Decision.
Abercromby Scoping Study Highlights Low-Cost Gold Production Pathway
WA Gold's April 2026 Scoping Study for the Abercromby Gold Project outlines a swift, capital-efficient route to gold production. Stage 1 Mine anticipates producing approximately 114,000 ounces via combined open-pit and underground mining. The study forecasts pre-tax net cashflow between A$243 million and A$297 million, and a pre-tax NPV7 ranging from A$205 million to A$253 million, strengthening the project's investment appeal.
A key advantage is the minimal pre-production capital of roughly A$8 million, significantly lowering financial risk and accelerating cashflow compared to typical gold projects. This low upfront investment, coupled with strong projected returns, positions Abercromby as an attractive development opportunity. WA Gold’s multidisciplinary consultant team is actively progressing the project toward shovel-ready status by late 2027 or early 2028, aiming for a Financial Investment Decision in 2027.
518,000-Ounce Mineral Resource Underpins Abercromby with Favorable Metallurgical and Mining Traits
The Abercromby Gold Project hosts a 518,000-ounce Mineral Resource Estimate, including 4.15 million tonnes at 1.23 g/t indicated and 6.96 million tonnes at 1.58 g/t inferred gold. Located on a granted Mining Lease in the Wiluna Greenstone Belt—one of Western Australia’s premier gold regions with over 40 million ounces produced—the project benefits from established mining infrastructure facilitating expedited development.
Metallurgical testing confirms free-milling gold across all ore zones, achieving 93–95% recovery via conventional carbon-in-leach processing. WA Gold has signed a Memorandum of Understanding with Wiluna Mining to evaluate toll processing at the nearby Matilda CIL plant. The near-surface mineralization’s amenability to open-pit mining and open-ended resource at depth with higher-grade zones offers substantial upside for future expansion.
2026 Drilling Phase One at Abercromby Targets Resource Extensions
Seven diamond drill holes (26ABDD001 to 26ABDD007) were completed in the initial 2026 drilling phase at Abercromby, testing structural continuity below and south of the current resource over a 500-metre strike. Geological logging indicates intersection of the ore-hosting Capital Deposit structure. Geotechnical consultant MineGeoTech assessed the drill core prior to sampling to support feasibility study mine design requirements.
Samples have been submitted for assay, with results expected within one week of the quarterly report date. Drilling will resume in Q3 2026 with approximately 6,000 metres planned for resource development, step-out exploration, and additional geotechnical evaluation to refine underground mine design.
Bullabulling Reconnaissance Drilling Targets Extension of Bullabulling Shear Zone
At Bullabulling, WA Gold completed reconnaissance drilling comprising 46 aircore holes totaling 3,680 metres across eight traverses targeting the northern extension of the prolific Bullabulling Shear Zone. This shear zone hosts the adjacent Bullabulling Gold Mine operated by Minerals 260 (ASX:MI6), with over 4.5 million ounces of gold endowment. Results are expected in early August 2026.
A Sub-Audio Magnetic (SAM) survey is scheduled for Q3 2026 to refine structural targets and guide follow-up drilling. To conserve cash, WA Gold arranged for drilling contractor VM Drilling to accept company shares as partial payment, preserving liquidity while advancing exploration efforts.
Wiluna Greenstone Belt Location Offers Strategic and Operational Benefits
The Wiluna Greenstone Belt, with over 40 million ounces of documented gold production, ranks among Western Australia’s most prolific gold regions, second globally only to Kalgoorlie in historic output. This established mining district provides WA Gold with operational advantages, including proximity to processing facilities such as Wiluna and the Matilda CIL plant, reducing development risk and capital expenditure for Abercromby.
Abercromby’s geology is highly prospective, with historic drilling intersecting thick, high-grade gold zones. WA Gold holds 100% ownership of the project, securing full mineral rights without royalties or joint ventures, supporting a streamlined development pathway consistent with the Scoping Study’s positive outlook and the company’s 2027 Financial Investment Decision target.
A$3.2 Million Cash Position Supports Exploration and Development Through 2026
As of 30 June 2026, WA Gold reported a cash balance of A$3.2 million, sufficient to fund planned drilling programs, including the ~6,000 metres at Abercromby and the SAM survey at Bullabulling. This disciplined capital management enables simultaneous advancement of multiple exploration and development initiatives.
While current funds cover 2026 activities, further capital will likely be required to reach the 2027 Financial Investment Decision and subsequent mine development phases. WA Gold’s ability to attract consultants and contractors willing to accept equity demonstrates confidence in the project’s value and prospects for future financing avenues.
Metallurgical and Geotechnical Studies Propel Feasibility Advancement
WA Gold continues advancing critical technical workstreams for feasibility study completion. Metallurgical tests confirm gold recoveries of 93–95% via conventional carbon-in-leach processing, validating economic assumptions. Geotechnical assessments by MineGeoTech provide essential data for underground mine design within the Stage 1 Mine scenario, reducing engineering uncertainties.
Additional consultants in environmental and mining engineering disciplines support progression toward commercial production. The Memorandum of Understanding with Wiluna Mining to evaluate toll processing at the Matilda CIL plant further de-risks the project’s processing pathway. This comprehensive approach positions WA Gold to be shovel-ready by late 2027 or early 2028, aligned with the 2027 Financial Investment Decision timeline.
Open-Ended Resource at Abercromby Offers Upside Beyond Stage 1 Production
The Abercromby resource remains open at depth, with higher-grade zones identified within the 518,000-ounce Mineral Resource Estimate. Stage 1 Mine targets recovery of approximately 114,000 ounces—about 22% of the resource—indicating significant potential for future expansion pending successful resource conversion and extension.
The planned ~6,000 metres of Q3 2026 drilling aims to test resource extensions and upgrade inferred resources to indicated status, enhancing the project’s development potential. This systematic resource definition strategy supports de-risking and optimization of future mine plans.
2027 Financial Investment Decision to Drive Project Development Milestone
WA Gold targets a Financial Investment Decision (FID) for Abercromby in 2027, a pivotal milestone committing the company to mine development. FID will depend on completing a bankable feasibility study, securing processing and commercial agreements, obtaining regulatory approvals, and arranging project financing. The current cash position and strong Scoping Study economics provide a foundation for these steps.
Advancing multidisciplinary development studies through 2026 and 2027, supported by drilling and geotechnical data, will strengthen the feasibility case and reduce risks. Achieving the 2027 FID will mark WA Gold’s transition from exploration to a committed gold producer, unlocking new funding and strategic partnership opportunities.
