The latest assays from the Evanston and Gold Orb prospects at Leeuwin Metals’ (ASX: LM1) Marda Gold project have rolled in, reaffirming the strong growth potential of the 342.3koz resource that was previously mined by Ramelius Resources (ASX: RMS) to the tune of 143koz between 2019 and 2023 – and which LM1 is aiming to bring back into production. Shallow extensional assays were hit outside of the resource at Evanston, which could widen the prospective pit and be mined before reaching the higher-grade 96.4koz at 1.52g/t Au core, recording 3m at 4.19g/t Au from 12m including 1m at 8.91g/t Au from 13m, 19m at 1g/t Au from 20m including 3m at 2.31g/t Au from 77m, 5m at 1.8g/t Au from 38m and 1m at 1.7g/t Au from 57m. These follow on from recent intercepts where LM1 extended the down dip mineralisation with hits such as 14m at 1.72g/t Au from 98m including 3m at 4.75g/t Au from 98m, as well as 9m at 1.70g/t Au from 77m including 4m at 3.01g/t Au from 77m. The discovery of a new extension outside of the existing 25.7koz at 1.56g/t Au resource at Golden Orb provides a meaningful follow up target for LM1 to drill, with recent assays hitting 11m at 1.4g/t Au from 176m, including 4m at 3.35g/t Au from 178m – which grew wider with depth after being traced from two shallower assays that hit 9m at 1.05g/t Au from 89m including 1m at 4.11g/t from 96m, and 1m at 2.47g/t Au from 44m.
There are still 13 more drill holes with assays pending from Evanston, and drilling has already recommenced at Marda Central – which places LM1 in a great position to update the MRE in the second half of this year, at which point it will advance development workstreams. There is an opportunity for LM1 to develop sections of Marda that could generate significant cash flow, and the $38/oz EV/Resource that the company currently trades at doesn’t reflect this potential.
Marda Central is home to four historic open pits that were only mined to depths 50-80m, and drilling has demonstrated over 200m strike below the Python Pit – which holds a 41.3koz at 1.4g/t Au resource – that LM1 is now drilling. The end of the pit would convert into a shallow underground development, and LM1 has defined the tip of what is hopefully a much larger resource there with 10.6koz at 1.9g/t Au. Python was drilled extensively in 2025, with some of the standout assays including 16m at 2g/t Au from 134m and 8m at 3.04g/t Au from 215m, as well as 23m at 1.29g/t Au from 207m, including 10m at 2.3g/t Au from 207m, and 5m at 5g/t Au from 229m including 1m at 10g/t Au from 231m. These results established continuity of mineralisation below the pit across a 200m by 200m area, which is where LM1 has an excellent opportunity to add high-grade ounces.
LM1 Managing Director Christopher Piggott recently stepped up talks about the near-term development potential of Marda, especially with the near-surface, higher grade sections such as the 96.4koz at 1.52g/t core at Evanston. The maiden resource of 342.3koz at 1.05g/t Au was completed in 9 months at under $10/oz, which was an efficient undertaking greatly aided by the massive 350,000m drilling database LM1 inherited upon acquiring the project, which included 250km of RAB/AC, as well as 117km of RC and 5km of DD. The ongoing drilling that LM1 has been working through this year has strategically been split between both extensional and infill drilling, as the company moves towards its near-term goals of both a 500koz resource and a larger amount in the indicated category.
While there still needs to be a feasibility study, a toll treating arrangement or joint venture could result in attractive development economics, and given it is a recently mined project – there are numerous other small scale Australian developments that can be used as comparisons. $63 million market cap Auric Mining (ASX: AWJ) is a prime example through its Jeffreys Find operation, where the company brought in a partner who funded all development and operating costs of its 29,534oz satellite deposit in exchange for an even profit share split. AWJ ended up receiving $16.5 million in cash from this small West Australian mine after the operation produced around $112 million in revenue at an average selling price of around $3,792/oz – which would have been $192 million at the current gold price, equating to $71.5 million in total cash to AWJ – from under 30koz and a grade of 1.58g/t Au with recoveries of 92%.
This implies an average AISC of $2,645/oz, and is especially relevant when considering the ore was sent to region processing hubs in WA, some of which were over 200km away, further than RMS was hauling Marda ore previously. If LM1 could produce at a similar price, and with the current gold price of US$4,680 ($6,500) allowing for a $3,855/oz margin – there is $371 million of cashflow that could be produced just from Evanston’s high-grade core of 96.4koz at 1.52g/t Au – which still excludes the surrounding material and new ore to be added in the resource update. Even in a situation where costs may be significantly increased, there is plenty of room to move with gold at this level – and the market still isn’t attributing much value to LM1 bringing this asset into production, despite it being an active mine only 3 years ago. LM1 traded at as high as $33.5 million market cap just after it raised $5.8 million towards the end of October last year, reaching $0.31/share just before the placement and trading at $0.265 after. LM1 now trades at just $0.14 for an $18 million market cap and with $5 million in cash, equating to a $13 million enterprise value and implying just $38/oz on an EV/Resource basis. You can read our previous coverage on LM1 here.
The plan map below depicts the 1.6km trend at Evanston and some of the standout assays that LM1 incorporated in the MRE, as well as the recent hits that will be included into the resource update due in the second half of this year. A few more recent significant drill results from Evanston are 3m at 3.2g/t Au from 91m including 3m at 10.05g/t Au from 93m, 7m at 3.55g/t Au from 17m including 2m at 7.85g/t Au from 21m, and 11m at 3.12g/t Au from 85m including 6m at 4.88g/t Au from 85m:
Source: LM1
The plan map of Golden Orb below shows the previously mined pit and the 1.15km trend that LM1 is exploring, including the new mineralised area 400m away:
Source: LM1
A cross section of Python with its resource block model can be seen below, depicting the resource reported in the optimised pit that is based on a 0.3g/t Au cut-off grade, and the target area below that would be an underground development. LM1 included 10.6koz at 1.9g/t Au of underground ore in the resource by using a 1.5g/t cut-off grade, and this is the material it will be aiming to add to in the current drilling campaign:
Source: LM1
With the final Evanston assays due to come through shortly and the first Marda Central assays starting to roll in not long after – newsflow from LM1 should continue to be relatively consistent, and the company remains well funded to launch supplementary drilling campaigns to follow up on any potential high-priority discoveries.
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Disclaimer: This article is for informational and marketing purposes only, and does not constitute financial advice or a recommendation to invest. All opinions expressed are our own. We may receive fees or other forms of compensation in connection with the publication of this content, and may own shares in any of the mentioned companies. Please do your own research and seek professional advice before making any investment decisions.