en.Wedoany.com Reported - Gold exploration in Western Australia's Pilbara region is attracting increasing attention. Since De Grey Mining discovered the 11.2-million-ounce Hemi deposit in late 2019, the area has been regarded as one of Australia's most significant modern gold discoveries. Northern Star Resources (ASX:NST) acquired De Grey last year for A$5 billion, prompting more ASX-listed gold exploration companies to enter the region.
Since the 1960s, the Pilbara has been the world's premier iron ore producing region, long dominated by BHP (ASX:BHP) and Rio Tinto (ASX:RIO). In recent years, thanks to efforts from producers like PLS Group (ASX:PLS), the Pilbara has also become a globally significant source of lithium.
The discovery of Hemi changed the stereotype of the Pilbara in gold exploration. Previously, the region's remote location, complex geology, and sporadic mineralization made identifying large-scale gold deposits difficult. Dr. Matthew Greentree, Managing Director of Artemis Resources (ASX:ARV), stated that the Hemi discovery validated that the Pilbara could host a Tier 1 gold deposit, focusing explorers across the entire region on the area. The Hemi project is expected to become the next major development asset following the completion of the mill expansion at Northern Star's Super Pit in Kalgoorlie.
The Pilbara already has a precedent for large-scale gold production. Capricorn Metals' (ASX:CMM) Karlawinda mine has produced over 450,000 ounces of gold since commissioning in 2021. The company plans to increase annual production to 150,000 ounces, a target supported by total gold reserves of 1.3 million ounces. Black Cat Syndicate (ASX:BC8) has restarted mining operations at the Paulsens mine, targeting production of 50,000 ounces of gold this year. The mine has historically produced over 1 million ounces of gold and still hosts a gold resource of 506,000 ounces at a grade of 5.1 g/t.
A cohort of ASX-listed explorers are expanding their resource bases. Pilbara Gold (ASX:PGL) has defined total gold resources of 2.1 million ounces at its Mt York project south of Port Hedland, with mineral resource tonnage increasing by 43% in an April report. China's Zhaojin Mining recently increased its stake in Pilbara Gold to 8.2%, and the company is undertaking a 50,000-meter drilling program to add resources. Artemis Resources aims to increase the resource at its Carlow deposit from 374,000 ounces of gold and 64,000 tonnes of copper to over 1 million ounces of gold. Recent drilling at the Titan prospect (approximately 1.5 km from Carlow) intersected multiple zones of gold mineralization, including 5 meters at 13.1 g/t and 19 meters at 1.6 g/t.
Dr. Greentree noted that exploration in the Pilbara requires a tailored approach rather than applying established models from the Yilgarn Craton. The company views the Regal Shear Zone within the Karratha project as a regional-scale opportunity, having defined a series of targets along over 20 kilometers of mineralized strike. He stated that the Pilbara offers significant infrastructure advantages in the Karratha area, including good roads, power, and port access, facilitating smooth gold exploration and production.
Moho Resources (ASX:MOH) has commenced a 5,000-meter drilling program at the Bush Chook project. Drilling will initially target the Rocky Ridge prospect, where previous trench sampling returned an 8-meter interval grading 28.5 g/t gold, including a high-grade interval of 0.4 meters at 101 g/t. Rocky Ridge is an early 20th-century historical mine that produced 341 tonnes of ore from four separate gold veins at an average grade of 85 g/t gold. The project is located within the Mosquito Creek Basin, which hosts known gold resources of approximately 2.5 million ounces.
Prominent resource investor Mark Creasy is also focusing on the region's gold potential. His company, AIM Mining, holds three projects in the Pilbara: Warrawoona with a 1.5-million-ounce gold resource; Nullagine, which produced over 670,000 ounces of gold between 2012 and 2022 and includes significant infrastructure; and Blue Spec, adjacent to Nullagine, which historically produced over 60,000 ounces of gold at an average grade exceeding 25 g/t. Creasy also holds approximately a 17% stake in Peregrine Gold (ASX:PGD) through his private investment vehicle, Yandal Investments. Peregrine controls several gold prospects including Newman, Mallina, and Rocklea. The company recently expanded the footprint of the Rocklea project to approximately 1,250 square kilometers through five new exploration license applications.
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