en.Wedoany.com Reported - Australian gold exploration company Leeuwin Metals (ASX:LM1) recently updated progress on its Marda gold project in Western Australia. Since acquiring the project and announcing a new JORC resource of 342,000 ounces of gold (at an average grade of 1.05 g/t), the company's share price has risen to 19 Australian cents, approximately three times higher than at the completion of the acquisition.
Leeuwin Metals Executive Chairman Chris Piggott stated that since the company acquired the Marda project from Ramelius Resources (ASX:RMS) in late 2024 for A$500,000 (paid in shares), the geological potential of the region is gradually emerging. Located in the Southern Cross gold belt of Western Australia, the project has signed a Native Title agreement and obtained the Evanston mining lease, making it one of the most mature assets in the region. Since the transaction was completed, the gold price has risen from approximately US$2,600 per ounce to around US$4,000, providing a favorable market environment for project development.
Over the past year, the company completed approximately 25,000 meters of drilling, including 73,800 ounces of gold from 2.1 million tonnes at a grade of 1.1 g/t in highly confident indicated resources, while the Evanston resource area contains 135,800 ounces of gold from 4.3 million tonnes at a grade of 0.98 g/t. Drilling has mainly focused on the Evanston extension area, with a reinterpretation of historical drilling results. The company is currently updating the mineral resource estimate across the entire tenement area.
Mining activity in the region surrounding Leeuwin is heating up. Forrestania Resources (ASX:FRS) announced this week the acquisition of the Edna May plant for A$300 million (including A$210 million in cash). The plant has an annual processing capacity of 2.9 million tonnes and is expected to resume operations next year. Forrestania has become a shareholder of Leeuwin, holding a 7.03% stake. Additionally, Leeuwin has signed a Memorandum of Understanding with India-backed MEGA Resources to jointly advance the development pathway for the Marda project. MEGA Resources is a major player in the Southern Cross region, owning the Rama gold project and several profit-sharing mining joint ventures.
Piggott noted that the Southern Cross gold belt, as a hotspot in Western Australia's new gold rush, is attracting increasing industry consolidation. The region features Archean greenstone belts, a production history, and infrastructure, offering significant exploration potential. Leeuwin holds 500 square kilometers of tenements in the Marda project. In addition to the defined resource, the company has identified multiple early-stage exploration targets, including Golden Orb and Red Boomerang. At Golden Orb, intercepts include 11 meters at 1.4 g/t and 6 meters at 1.0 g/t, neither of which is included in the current resource. At Red Boomerang, the most recent drilling campaign intersected 24 meters at 1.79 g/t from surface, with other highlights including 12 meters at 4.33 g/t from 64 meters, and 66 meters at 1.12 g/t from 13 meters. Assay results from 55 drill holes are still pending.
Leeuwin Metals plans to collaborate with MEGA on mine permitting and design, aiming to bring the established resources into production. Drawing on successful models such as New Murchison Gold (ASX:NMG), the company plans to leverage the current strong gold price to generate non-dilutive cash flow for reinvestment into underground exploration. Piggott, who was involved in transforming the Bellevue Gold (ASX:BGL) discovery into a 3-million-ounce gold mine and the world-class Nova nickel-copper mine discovery, is optimistic about Leeuwin's prospects at Marda. In the coming months, the company will conduct resource updates, upgrades, and environmental surveys to prepare for production scenarios.
