Meeka Metals

ASX:MEK

Projects

Murchison Gold
Project

Western Australia

The Murchison Gold Project (MEK 100%) covers the northern extent of the highly prospective Mount Magnet and Youanmi Shear Zones in the prolific Murchison Gold Fields of Western Australia.

The project is located adjacent to several multi-million ounce gold mines and hosts a large high-grade 1.2Moz @ 3g/t Au Mineral Resource on granted Mining Leases. The Murchison Gold Project Definitive Feasibility Study released in December 2024 focusses on restarting the fully permitted Andy Well mill. The Study outlines a 10-year production plan up to 76koz pa (averaging 65koz pa for first 7 years), undiscounted pre-tax free cash flow of $1B, NPV8% of $616M and IRR of 180%. Site activity is ramping up with open pit mining commencing in the March 2025 quarter and process plant commissioning in the June 2025 quarter. First gold is targeted for mid-2025.

The Company’s recent drilling programs have targeted extensions to the Turnberry and St Anne’s deposits, also within the Fairway shear zone and 3.5km along strike to the south of Turnberry.

Turnberry

Turnberry hosts broad zones of shallow, high-grade gold. The Mineral Resource averages ~1,600 ounces per vertical metre from surface to a depth of 200m where the density of drilling reduces. The deposit has a strike length of 1.7km and remains open at depth. Significant drilling results include:

  • 41m @ 4.8g/t Au from 148m (TBRC062)
  • 23m @ 7.1g/t Au from 69m (TBRC208)
  • 9m @ 10.4g/t Au from 162m (TBRC070)
  • 18m @ 4.7g/t Au from 192m (TBRC092)
  • 18m @ 3.4g/t Au from 154m (TBRC221)
  • 37m @ 2.8g/t Au from 209m (TBRC316)
  • 16m @ 6.7g/t Au from 20m (21TBRC014)
  • 32m @ 3.1g/t Au from 32m (22TBAC011)

A ~6,400m infill and extensional drill program completed in the December 2023 quarter delivered strong results. Broad zones of oxide gold were intersected, including:

  • 19m @ 8.75g/t Au from 48m including 10m @ 14.18g/t Au (23TBAC026)
  • 18m @ 2.21g/t Au from 60m including 4m @ 6.80g/t Au (23TBRC001)
  • 35m @ 1.49g/t Au from 30m including 9m @ 3.34g/t Au (23TBAC019)
  • 12m @ 2.42g/t Au from 76m including 1m @ 18.25g/t Au (23TBAC039)
  • 12m @ 2.19g/t Au from 57m including 3m @ 7.12g/t Au (23TBAC044)
  • 7m @ 4.46g/t Au from 67m including 1m @ 26.3g/t Au (23TBAC045)
  • 9m @ 2.37g/t Au from 47m including 3m @ 4.62g/t Au (23TBAC046)

St Anne’s

Drilling supporting the Mineral Resource for St Anne’s includes:

  • 32m @ 16.07g/t Au from 48m including 16m @ 28.59g/t Au (22SAAC058)
  • 20m @ 20.74g/t Au from 48m including 16m @ 24.86g/t Au (22SAAC061)
  • 24m @ 4.73g/t Au from 52m including 8m @ 11.78g/t Au (22SAAC100)
  • 36m @ 3.61g/t Au from 44m including 8m @ 11.07g/t Au (22SAAC083)
  • 32m @ 2.20g/t Au from 48m including 20m @ 3.31g/t Au (22SAAC009)
  • 32m @ 2.03g/t Au from 44m including 16m @ 3.59g/t Au (22SAAC018)
  • 28m @ 1.47g/t Au from 28m including 8m @ 3.46g/t Au (22SAAC005)
  • 24m @ 4.81g/t Au from 68m including 4m @ 20.30g/t Au (21SARC002)
  • 36m @ 1.02g/t Au from 24m including 8m @ 2.35g/t Au (21SARC004)

Mining Studies

The Murchison Gold Feasibility Study was released in July 2023, outlining a straightforward development strategy that delivers meaningful production and financial outcomes for the Company over an initial 9.3 year production plan.

Key Feasibility Study outcomes include (all in Australian dollars):

  • Average annual gold production of 80,000oz over the first eight years, with peak production of 103,000oz in year six
  • Recovered gold production of 663,000oz over 9.3 years (8 years mining, 1.3 years stockpile processing)
  • Initial Probable Ore Reserve of 4.1Mt @ 3.1g/t gold for 410,000oz
  • 92% of production in the first three years is from Measured and Indicated Mineral Resources
  • Undiscounted free cash flow (after capital and pre-tax): $363M ($2,750/oz) and $521M ($3,000/oz)
  • Net Present Value (NPV5%) pre-tax: $249M ($2,750/oz) and $371M ($3,000/oz)
  • Internal Rate of Return (IRR) pre-tax: 40% ($2,750/oz) and 56% ($3,000/oz)
  • Payback following process plant commissioning: 22 months ($2,750/oz) and 16 months ($3,000/oz)
  • All-in Sustaining Cost (AISC): $1,684/oz

Forward Strategy

The Company’s strategy in relation to the Murchison Gold Project is to commence open pit mining and successfully commission the processing plant. The Company is on track for first gold production in mid-2025.

Mineral Resource growth continues to focus on near mine targets identified through geophysics and in drilling areas that have not received sufficient follow-up. Key target areas include shallow, high-grade gold mineralisation at the 40,000 ounce St Anne’s deposit, extensions to the 690,000 ounce Turnberry deposit and a number of compelling targets within the 7km long Fairway shear zone.