Meeka jags big gold in the run up to a March mining launch

Meeka Metals has jagged more glittering drill results including 1m grading 154.5 grams per tonne (g/t) gold within a 6m section running 26.47g/t gold from an ongoing drilling program at its Murchison gold project in Western Australia. 

Management says the findings have reinforced the company’s confidence in its open pit production strategy, with mining slated to start in the March quarter and the first gold pour scheduled by late June or early July.

News of its continued stellar drilling results also pushed the company to match its all-time highest share price, at 9.2 cents per share in today’s trading.

Assays have now been reported from 42 of 145 holes in the open pit area of Meeka’s Turnberry prospect, within its Murchison gold project. The balance of the results is due by the end of the month. 

The latest results continued in the same spectacular fashion as those Meeka reported two weeks ago. The drill bit has pulled up some remarkable numbers, such as 4m grading 30.19g/t gold from 81m including a 2m slice at 58.03g/t gold, 9m running at 12.77g/t gold from 51m with a 1m section grading 43.60g/t gold and a 3m hit recording 21.53g/t gold within a 7m intersection of 12.59g/t gold from 107m.

Meeka said it also saw improved grade on the western side of its Turnberry South pit where previous drilling has been limited. 

One of these holes - outside and to the west of the proposed pit shell - intersected 10m at 2.58g/t gold, which the company says will now be followed up in the hopes of expanding the boundaries of the shallow oxide open pit.

Meeka’s flagship Murchison gold project hosts an indicated high-grade 1.2-million-ounce gold resource averaging 3g/t gold, which comprises the Turnberry north and south prospects and nearby St Anne’s area. 

The latest drilling campaign has centred on expanding the Turnberry and St Anne’s open pits and comes after a recent feasibility update grew the project’s mine life pre-tax free cashflow by 42 per cent to $1 billion.

The jump in value came from a lucky chance six months ago, when the company snapped up a 750 kilowatt ex-Outokumpu ball mill for the bargain price of $318,000. 

Meeka saved 75 per cent on the price of a new mill, happily ending up with a plant 30 per cent bigger than previously envisaged in its initial definitive feasibility study. The purchase prompted Meeka to revise its prefeasibility study, leading to a 40 per cent rise in its forecast 10-year production profile to 544,000 ounces of gold, peaking at 76,000 ounces in year five.

Meeka Metals managing director Tim Davidson said: “The consistent, high-grade results from this drilling highlight the strong production these pits will deliver in the coming months as we commence mining. Drilling will also remain ongoing through the March 2025 quarter, finalising the grade control program and recommencing the Turnberry underground growth drilling.” 

The company is gearing up for an exciting 2025 starting with mining operations set to kick off in March. Significant progress has already been made at the project, including the completion of a 20-kilometre haul road connecting the mining site to the processing plant. 

Its Andy Well mill, which sits in the northwest of the Murchison project area, is undergoing extensive upgrades and refurbishments and is on track to be operational by June. The mining fleet is also being mobilised and essential supporting infrastructure is taking shape.

Meeka seems to be sitting on a winner with its its flagship asset. With an already sizeable resource base, continued drilling at the Turnberry and St Anne’s open pits and depth extension drilling underground at Turnberry, Meeka seems to be holding the key to unlocking the full potential of the promising project. 

If more shallow, high-grade and cheap-to-mine ounces are discovered outside the existing pit designs it would likely encourage the company to expand the pit boundaries, leading to even greater cashflows.

With a booming gold price, currently at US$2645 (A$4243) per ounce, and the standalone gold mining operation now jumping its final hurdles before first pour in late June timing, it seems Meeka’s timing could hardly be better.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au