Waratah Minerals Reports Shallow, High-Grade Gold with Strong Continuity at Spur Zone, NSW

Overview of Waratah Minerals’ Spur Project and Operations

Waratah Minerals Limited manages the Spur Project across several exploration licences and mining leases in New South Wales, including EL5238, GL5828, ML960, ML1092, and GL3694. The company focuses on gold exploration and development in the region, with the Spur Gold Zone as a primary target for near-term exploration and resource growth. The latest update, released on 21 July 2026, details results from an 80,000-metre drilling program aimed at expanding knowledge of mineralisation patterns and resource potential.

The Spur Project includes multiple mineralised zones such as the main Spur Gold Zone, Spur East, and the Consols Gold Zone. Waratah’s strategic approach combines infill and extensional drilling across these zones to define mineral resources that support future development. By integrating definition drilling with step-out holes, the company is establishing both the scale and continuity of gold mineralisation, aiming to de-risk the shallow domain and lay the groundwork for economic evaluation.

Shallow Gold Mineralisation and Near-Surface Intersections at Spur Zone

The recent drilling results highlight the notably shallow gold mineralisation at Spur, with all significant intersections within 60 metres of surface and most between 60 and 100 metres depth. This shallow profile is commercially advantageous, as near-surface mineralisation typically lowers capital and operating costs in mining. For example, hole SPD067, drilled at the northern margin of the main Spur zone, yielded 18 metres at 1.12 grams per tonne gold from 61 metres depth, demonstrating consistent shallow high-grade mineralisation. The same hole also intersected deeper zones, including 3 metres at 9.81 grams per tonne from 142 metres, with an internal 1-metre interval grading 29.17 grams per tonne, indicating strong grade variability and multiple mineralised horizons.

Hole SPD078, a 125-metre step-out northwest of Spur, revealed a new shallow mineralised zone with 52 metres at 0.84 grams per tonne gold from 84 metres depth. Within this intercept, 41.6 metres averaged 1.03 grams per tonne, including higher-grade intervals such as 7 metres at 2.64 grams per tonne and individual 1-metre intercepts up to 13.48 grams per tonne. Similarly, SPD065 returned 8 metres at 1.28 grams per tonne from 251 metres, bringing mineralisation closer to surface in that area. While the company did not provide an overall average grade, individual hole results confirm consistent gold grades across multiple drill holes, supporting the assertion that near-surface mineralisation is repeatable and predictable throughout the zone.

Confirmed Continuity and Predictable Mineralisation Over 350 Metres Vertical Extent

A key highlight is the demonstrated vertical and lateral continuity of gold mineralisation within the Spur zone. Hole SPD067 notably links high-grade mineralisation along the Tywi fault zone over a 350-metre vertical distance, connecting results from SPD058 near the top through SPD016, SPD067, and down to SPD063 at depth. This continuous linkage across multiple holes confirms the mineralisation system is predictable and structurally controlled, reducing exploration risk. SPD067 intersected the main Spur zone at depth with 79 metres at 1.00 grams per tonne gold from 252 metres, including a high-grade 8-metre zone at 5.85 grams per tonne from 264 metres hosted in quartz-pyrite-chalcopyrite veins, and a second higher-grade zone from 294 metres associated with the Tywi fault zone featuring pyrite breccia infill and pyrite veinlets.

Lateral continuity is equally strong, with drilling confirming continuous high-grade shoots over 300 metres strike length. Hole SPD071 returned 38.3 metres at 1.09 grams per tonne gold from 59.4 metres, including 2 metres at 5.07 grams per tonne. It also intersected 84 metres at 0.69 grams per tonne from 150 metres, containing enriched intervals such as 11 metres at 2.15 grams per tonne, 6 metres at 3.06 grams per tonne, and 27 metres at 0.97 grams per tonne. SPD071 links the Spur and Spur East zones, demonstrating the mineralisation forms a coherent system rather than isolated pockets. This predictability is vital for resource estimation and mine planning, suggesting the system can be effectively modelled and exploited.

Expansion of Drilled Footprint to 550 Metres by 800 Metres

The drilling program has significantly expanded the known mineralisation extent within the Spur zone. The combined drilled footprint now measures 550 metres by 800 metres, a substantial increase from previous limits. This growth results from both infill drilling within known zones and extensional step-out holes pushing boundaries. Hole SPD078, a 125-metre step-out northwest of Spur, opened a new shallow mineralised zone previously untested. SPD072 extended Spur eastward by 60 metres, returning 69 metres at 0.47 grams per tonne gold from 230 metres, including higher-grade intervals of 32 metres at 0.86 grams per tonne and 25 metres at 1.01 grams per tonne.

Expansion suggests the mineralised envelope remains open for further strike and depth extensions. Hole SPD062, 35 metres behind SPD033, extended shallow mineralisation toward Spur East with 57 metres at 0.45 grams per tonne from 86 metres and 24 metres at 1.13 grams per tonne from 295 metres. These results indicate mineralisation persists over significant lateral distances and multiple depths, supporting management’s confidence in ongoing growth potential. Plans include accelerating step-out drilling eastwards toward the Essex Fault, potentially merging with the Consols Gold Zone, and westwards to extend shallow mineralisation northwest of Spur.

Infill and Definition Drilling Program Supports Resource Estimation

The 80,000-metre drilling program combines infill and extensional drilling to meet multiple goals. Infill drilling tightens spacing within known mineralised zones to support mineral resource estimation compliant with the JORC Code, while extensional drilling expands mineralisation boundaries and tests for new zones. All drill holes reported were either infill or extensional, with most delivering multiple high-grade zones as anticipated. This success indicates a solid geological understanding and effective targeting strategy.

Waratah plans to accelerate infill drilling to convert these results into a mineral resource estimate, requiring sufficient drill density to define measured, indicated, or inferred resource categories under JORC standards. Metallurgical work is also progressing to assess gold recovery, processing costs, and optimal mill feed characteristics for future development. This combined approach marks a logical progression from exploration to pre-development. Managing Director Peter Duerden noted that the thicknesses and positions of recent intersections materially enhance the project’s potential economics, reinforcing confidence in economically viable development scenarios.

Multiple High-Grade Zones and Consistent Near-Surface Intersections

The latest results reveal multiple high-grade zones within individual drill holes, illustrating a complex but predictable mineralisation system. Hole SPD067 featured four distinct mineralised intervals: 18 metres at 1.12 grams per tonne from 61 metres; 3 metres at 9.81 grams per tonne from 142 metres including 1 metre at 29.17 grams per tonne; 11 metres at 3.04 grams per tonne from 154 metres including 1 metre at 32.35 grams per tonne; and 79 metres at 1.00 grams per tonne from 252 metres including 8 metres at 5.85 grams per tonne and 13 metres at 1.29 grams per tonne. These multiple intersections indicate a layered mineralisation style influenced by structural or stratigraphic controls.

Hole SPD062 also returned multiple zones: 57 metres at 0.45 grams per tonne from 86 metres containing 18 metres at 1.00 grams per tonne and isolated high-grade intervals; a 1-metre intercept at 14.19 grams per tonne from 182 metres; and 24 metres at 1.13 grams per tonne from 295 metres with internal enrichment. The repeatability of this multi-zone pattern across holes suggests structural or stratigraphic control and predictability. Managing Director Duerden emphasized that multiple holes have yielded repeatable near-surface intersections demonstrating continuity and scale of high-grade shoots, underpinning confidence in resource modelling and formal estimation.

Geological and Structural Controls of Gold Mineralisation

The update provides insight into geological controls hosting gold at Spur. Shallow mineralisation occurs as blebby sulphide infill within andesite adjacent to monzodiorite dykes exhibiting weak potassic alteration. Deeper mineralisation along the Tywi fault zone is hosted as pyrite breccia infill and pyrite veinlets within quartz-pyrite-chalcopyrite veins. These observations indicate structural control, with the Tywi fault and related fractures acting as conduits for mineralising fluids. The association with monzodiorite dykes suggests an intrusive-related gold deposit style, where igneous activity and hydrothermal alteration drive ore formation.

Structural controls are further supported by spatial drilling relationships, with mineralisation extending over 350 metres vertically along the Tywi fault zone. Plans to accelerate step-out drilling toward the Essex Fault, where mineralisation may merge with the Consols Gold Zone, indicate multiple fault-controlled systems across the project. Understanding these controls is critical for targeting additional mineralisation and predicting high-grade shoot locations, reinforcing confidence in the system’s predictability and effective resource definition.

Accelerated Exploration and Development Plans

Waratah’s strategy prioritizes rapid conversion of exploration success into a defined mineral resource to support development options. Managing Director Duerden stated the company is "focused on converting this compelling exploration success into a high-value project outcome, delivering a shallow resource that can underpin attractive development options for shareholders." This reflects confidence in accelerating drilling and studies. Plans include step-out drilling east toward the Essex Fault and west to extend shallow mineralisation northwest of Spur, aiming to expand the resource base before formal estimation.

The focus on "grade, shallow depth and continuity" as reasons to expedite infill drilling and resource estimation suggests potential for an economically viable open-pit mining scenario. Shallow mineralisation reduces stripping ratios, improving project economics. Concurrent metallurgical work addresses gold recovery and processing considerations, reducing technical and economic risks ahead of development.

Market Impact and Investor Outlook

The Spur Gold Zone results mark significant progress toward defining a mineable gold resource in New South Wales. Consistent shallow, high-grade gold intersections with demonstrated continuity indicate successful advancement from exploration to development. Investors will likely monitor upcoming milestones, including mineral resource estimation timing, metallurgical test outcomes, and step-out drilling results aimed at resource expansion. While no timeline was disclosed for the resource estimate, the emphasis on acceleration suggests it may occur in the near to medium term.

The immediate share price reaction is unclear from available data. However, the announcement includes positive elements for investors: multiple drill holes meeting expectations, continuity over large distances, shallow mineralisation supporting economic development, and management’s confidence in the project. The combined approach of infill drilling, metallurgical work, and step-out drilling reflects a comprehensive strategy to de-risk the project. Investors should note that exploration risk remains until a formal mineral resource is defined and economic viability confirmed through detailed studies.