Hey Brother, without ringing the Big Man direct, this is as...

Hey Brother, without ringing the Big Man direct, this is as close as I could get to being inside the strategic thinking of the drill team, which I dare say is being guided by the consultancy of Brett Davis over the last two campaigns? Just my thoughts based on what I've read. Which when you plug the 01 Apr, 07 May & 30 May announcements into the machine along with the historical reports you mentioned you get this as a plausible reason why? Personally, I think they are onto something, but I admit to not being here anywhere near as long as the rest so I can't say beyond doubt if the reason holds water or not? But it does seem to be logical if of course it pays off? Guess we'll see?
There is a clear recommendation however to address SP concerns and so we might hope these are being made aware of to those who run the show. gltah H8tey

(OZM)’s recent exploration strategy at the Mulgabbie North Gold Project, particularly regarding the two air-core (AC) drilling programs announced on 7 May 2025 and 30 May 2025, followed the 1 April 2025 announcement, which highlighted a promising high-grade gold discovery at the Cross Fault. In addressing investor apathy and evaluating the strategic significance of OZM’s drilling plan since 1 April 2025, we will analyze the context, geological rationale, and potential market implications, drawing on the provided ASX announcements, historical drilling data (e.g., Western Reefs reports), and the broader geological setting of the Relief Shear corridor.

1. Summary of Drilling Activities Since 1 April 2025

1 April 2025 Announcement (Document 6A1258261)

• Program: 20 RC holes (1,714m) at the Cross Fault discovery, 1.3 km south of the 260,000-ounce Mulgabbie North resource (11.6 Mt at 0.70 g/t Au).
• Results: High-grade gold intercepts over a 400m strike length, including:
  • MNORC 221: 48m at 1.66 g/t Au from surface (EOH), including 9m at 5.79 g/t Au.
  • MNORC 220: 12m at 4.26 g/t Au from 18m, including 2m at 22.58 g/t Au.
  • MNORC 222: 17m at 1.65 g/t Au from 45m, within 39m at 1.09 g/t Au.
• Significance: Confirmed high-grade mineralization in fresh rock, with wide sulphide zones (pyrite, arsenopyrite) indicating potential for a significant gold system. Several holes ended in mineralization (e.g., MNORC 221 at 48m), suggesting depth potential.
• Next Steps: 7 additional RC holes (745m) completed (results pending), and diamond drilling planned to commence the following week to better understand structure and lithology.

7 May 2025 Announcement (Document 6A1263614)

• Program: 8 RC holes (883m) and 2 diamond holes (220m) at Cross Fault, plus 3 vertical RC holes for water supply.
• RC Results: Further validated the Cross Fault zone, with intercepts including:
  • MNORC 251: 10m at 1.80 g/t Au from 127m, 1m at 3.91 g/t Au to EOH within 35m at 0.79 g/t Au.
  • MNORC 253: 7m at 2.17 g/t Au from 79m.
  • MNORC 252: 4m at 2.15 g/t Au from 73m, 1m at 6.12 g/t Au from 76m.
• Diamond Drilling: Conducted to understand structure and lithology, but no specific assay results were reported.
• Golden Goose: RC hole MNORC 257 intersected 10m at 0.90 g/t Au from 22m, following up on earlier results (e.g., MNORC 107 from 2021: 4m at 1.48 g/t Au).
• Next Steps: Planned 2,500m AC drilling to the south to explore faulting and outcropping quartz-feldspar porphyry, alongside further RC infill and extensional drilling at Cross Fault and Golden Goose.
• Significance: Confirmed mineralization into fresh rock at depths up to 127m, with multiple holes ending in mineralization (e.g., MNORC 251). The AC program aimed to extend the strike length southward along the Relief Shear.

30 May 2025 Announcement (Document 6A1266679)

• Program: 2 diamond holes (220m, same as mentioned in 7 May) and 82 AC holes (2,290m) south of Cross Fault.
• Diamond Results:
  • MNODH 017: 25m at 1.24 g/t Au from 27m (including 1m at 5.63 g/t Au), 17m at 1.25 g/t Au from surface.
  • MNODH 018: 25m at 0.76 g/t Au from 47m (including 1m at 5.50 g/t Au).
  • Observed two styles of mineralization: sheeted vein arrays (MNODH 017) and breccia-style (MNODH 018), with visible gold in quartz veins.
• AC Results: Extended mineralization 600m south of Cross Fault, with shallow intercepts:
  • MNOAC 835: 4m at 1.03 g/t Au from 24m.
  • MNOAC 843: 4m at 0.57 g/t Au from surface.
  • MNOAC 799 and 815: 3m at 0.33 g/t Au and 0.23 g/t Au to EOH at 35m.
• Significance: Identified new RC targets near outcropping porphyry and confirmed fault offsets (30m displacement). Many AC holes ended in low-tenor gold, suggesting a depleted regolith profile with potential for higher grades at depth.
• Next Steps: High-priority RC and AC drilling to test newly defined targets along the Relief Shear.

2. Geological Context and Rationale for Drilling Strategy

Relief Shear Corridor Overview

• The Relief Shear is a major trans-lithospheric structure on the eastern margin of the Carosue Dam basin, hosting gold mineralization over an 8 km strike length within OZM’s tenure (ASX announcements, 7 May and 30 May 2025).
• Mineralization occurs at the lithological contact between mafic/ultramafic and intermediate/felsic volcaniclastic rocks, associated with north-south faults and northeast cross-faults (Western Reefs Report 39210, Page 11).
• The Cross Fault discovery (1.3 km south of the 260,000-ounce resource) is 2 km south of the main resource, within a 2.2 km mineralized zone along the Relief Shear (prior discussions and 2021 data).

Historical Drilling Context (Western Reefs Reports)

• Western Reefs Ltd (1987–1988): Drilled 150 RAB holes (3,708m) and 44 RC holes (2,328m) across P28/1356 and P28/1357, targeting the mafic-felsic contact (Report 39210, Page 17).
  • MG-10 (12600N, 10400E): 25m at 2.00 g/t Au from 25m to EOH at 50m (Report 019849, Page 13).
  • MP-14 (12600N, 10375E): 2m at 1.85 g/t Au from 42m, 2m at 2.25 g/t Au from 46m to EOH at 50m (Report 39210, Page 17).
  • Both holes ended in mineralization, suggesting depth potential, but were not followed up extensively.
• Other Companies:
  • Burdekin Resources (1998): 37 RAB holes (2,391m).
  • Gutnick Resources (1999–2000): 82 RAB holes (3,188m), 6 RC holes (1,978m).
  • These programs identified shallow mineralization but lacked systematic follow-up, likely due to market conditions or funding constraints at the time.

Rationale for Post-1 April Drilling

• 1 April RC Drilling:
  • Aimed to confirm and expand on prior AC results at Cross Fault, testing for high-grade mineralization in fresh rock. The results (e.g., 48m at 1.66 g/t Au) validated the discovery and highlighted its economic potential, justifying further exploration.
• 7 May RC and Diamond Drilling:
  • RC drilling extended known mineralization to 127m depth (e.g., MNORC 251), confirming continuity in fresh rock and identifying sulphide zones (pyrite, arsenopyrite) as indicators of a larger system.
  • Diamond drilling (220m) focused on structural and lithological understanding, critical for targeting future RC holes and interpreting fault controls.
  • The planned 2,500m AC program to the south aimed to explore the strike extension along the Relief Shear, targeting faulted zones and outcropping porphyry identified in mapping.
• 30 May Diamond and AC Drilling:
  • Diamond drilling confirmed dual mineralization styles (sheeted veins and breccia) and visible gold, enhancing the geological model and confidence in deeper potential.
  • AC drilling extended the mineralized strike by 600m south, identifying new RC targets near outcropping porphyry (e.g., MNOAC 843: 4m at 0.57 g/t Au from surface). Shallow AC depths (average 28m) and low-tenor gold at EOH suggest a depleted regolith profile, with potential for higher grades at depth (as seen in historical RC holes like MG-10 and MP-14).

Strategic Alignment with Relief Shear Potential

• OZM’s drilling aligns with the broader goal of delineating a larger resource along the 8 km Relief Shear corridor. The Cross Fault discovery, with high-grade intercepts over a 400m strike (now extended to 1,000m with AC results), indicates a significant mineralized system.
• Historical RAB drilling (e.g., Western Reefs) identified shallow mineralization but lacked depth testing. OZM’s AC programs aimed to systematically explore the strike length, identifying fault offsets (30m displacement) and new targets for deeper RC drilling.
• The focus on faulted zones and porphyry units (e.g., MNORC 215: 33m at 1.15 g/t Au) leverages structural controls known to host large gold deposits in the Eastern Goldfields (e.g., Carosue Dam, 2 km west).

3. Strategic Significance of the Drilling Plan

Why the AC Programs?

• Strike Extension: The AC programs (7 May and 30 May) extended the known mineralized strike from 400m to 1,000m south of Cross Fault, a critical step in defining the scale of the system along the Relief Shear.
• Target Generation: AC drilling identified new RC targets (e.g., near MNOAC 843), focusing on faulted zones and porphyry units where shallow cover limited penetration. This systematic approach ensures efficient use of RC drilling, which is more expensive but better suited for deeper, higher-grade testing.
• Geological Understanding: The AC data, combined with diamond drilling, refined the structural model (e.g., 30m fault offsets, dual mineralization styles). This is essential for targeting high-grade shoots, as seen at Carosue Dam, where north-south faults and sandstone-hosted mineralization are key.
• Comparison to Historical RAB: Historical RAB drilling (e.g., Western Reefs’ 150 holes) was shallow and lacked follow-up. OZM’s AC programs, while also shallow, are part of a systematic strategy to define strike extent before deeper drilling, avoiding the historical pitfall of uncoordinated exploration.

Market Reaction and Investor Frustration

• Investor frustration likely (read obviously!!) stems from the perceived lack of immediate high-grade results from the AC programs. AC drilling typically yields lower-grade, shallow intercepts (e.g., 4m at 1.03 g/t Au in MNOAC 835) due to regolith depletion, which may not excite the market compared to RC results like 48m at 1.66 g/t Au (1 April).
• The second AC program (30 May) may have been seen as doubling down on a strategy that didn’t initially boost share price momentum, especially after the high expectations set by the 1 April announcement.
• However, the AC programs are a strategic precursor to RC drilling, not an end goal. The market may have misinterpreted this (Fair Chance me old Son) as “drilling for the sake of drilling,” whereas OZM is methodically building a case for a larger resource.

Strategic Intent: Bigger Resource Target Along Relief Shear

• OZM’s strategy appears focused on unlocking a much larger resource along the 8 km Relief Shear corridor, rather than chasing short-term market gains with high-grade hits. (The question is why?)
• Evidence:
  • The Cross Fault discovery (400m strike, now 1,000m) is 1.3 km south of the 260,000-ounce resource, within a 2.2 km mineralized zone. This suggests potential for a continuous system linking Cross Fault to the main resource.
  • Historical RC holes (MG-10, MP-14) 125m and 525m north of Cross Fault ended in mineralization at 50m depth (e.g., MG-10: 25m at 2.00 g/t Au), indicating depth potential along strike.
  • The Relief Shear’s structural setting (north-south faults, northeast cross-faults) mirrors large gold deposits like Carosue Dam, supporting the hypothesis of a significant system.
• Resource Potential:
  • As calculated previously, a 525m strike length (Cross Fault to MP-14) at 100m depth, 20m width, 1.5 g/t Au, and 2.7 t/m³ density could yield ~210,000 ounces. Extending this to 2.2 km (Cross Fault to the main resource) could potentially add 800,000–1,000,000 ounces, significantly enhancing the project’s scale.
• Long-Term Reward: By systematically defining the strike extent and structural controls, OZM is positioning itself for a major resource upgrade, which could attract larger investors or a takeover bid from a producer like Northern Star (operator of Carosue Dam). (This may be why the program zigged two drill plans ago?)

4. Alternative Targets: Better Grade Potential for Market Reward?

Potential Alternative Targets

• Deeper Extensions of MG-10 and MP-14:
  • MG-10 (25m at 2.00 g/t Au to 50m) and MP-14 (2m at 2.25 g/t Au to 50m) ended in mineralization, with supergene enrichment at depth (e.g., Jack’s Show: 6.79 g/t over 7m at 9m depth, Report 019849, Page 11).
  • Deeper RC drilling (e.g., to 100–150m) could have yielded high-grade intercepts, potentially boosting market sentiment. For example, extending MG-10’s 25m at 2.00 g/t another 50m at similar grade could add ~25,000 ounces over a 50m strike length.
• Western Contact Zone:
  • Report 39210 (Page 11) recommended RAB drilling to test the western felsic-ultramafic contact, which is mineralized to the north. This area, potentially west of 10140E, could host high-grade shoots similar to Cross Fault.
  • Targeting this zone with RC drilling might have produced market-moving results, especially if high grades were intersected in fresh rock.
• Golden Goose:
  • MNORC 257 (7 May 2025) intersected 10m at 0.90 g/t Au, following up on 2021 results (MNORC 107: 4m at 1.48 g/t Au). However, deeper RC holes failed to intersect significant mineralization, suggesting limited potential.
  • Focusing more on Golden Goose might have been less rewarding given its lower grades and lack of depth continuity compared to Cross Fault.

Market Reward vs. Strategic Reward

• Drilling deeper at MG-10, MP-14, or the western contact could have produced high-grade results (e.g., >2 g/t Au over wide intervals), potentially driving a stronger share price response in the short term.
• However, these targets are smaller in scale (e.g., 125m–525m strike) compared to the 8 km Relief Shear corridor. High-grade hits might add 25,000–50,000 ounces locally but wouldn’t significantly alter the project’s overall resource profile.
• OZM’s AC programs, while less exciting for the market, are strategically aimed at defining a much larger system. A 1,000,000-ounce resource upgrade along the Relief Shear would be far more transformative for OZM’s valuation and attractiveness to majors than incremental high-grade hits.

5. Assessment: Strategic Drilling vs. Drilling and Hoping

• Not Drilling and Hoping:
  • OZM’s approach is systematic, not speculative. The AC programs were designed to extend the strike length, identify fault controls, and generate RC targets, leveraging geological mapping (e.g., outcropping porphyry, north-south faults).
  • Diamond drilling (220m) provided critical structural insights (e.g., sheeted veins, breccia-style mineralization), ensuring RC drilling is targeted effectively.
  • The strategy aligns with the Relief Shear’s potential as a large-scale system, supported by historical data (e.g., MG-10, MP-14) and regional analogs (Carosue Dam).
• Market Misalignment:
  • The market likely expected continued high-grade RC results after 1 April, not shallow AC intercepts with low-tenor gold. OZM’s communication may have lacked clarity on the long-term strategy, leading to investor disappointment.
  • A more balanced approach (e.g., concurrent RC drilling at MG-10 alongside AC programs) might have maintained momentum while advancing the larger goal.

6. Conclusion and Recommendations

• Strategic Significance:
  • OZM’s drilling since 1 April 2025 is strategically sound, aimed at delineating a potentially transformative resource along the 8 km Relief Shear corridor. The Cross Fault discovery (now 1,000m strike) and new RC targets position OZM to add significant ounces, potentially 800,000–1,000,000 ounces, linking Cross Fault to the main resource.
  • The AC programs, while disappointing for the market, were a necessary step to define strike extent and structural controls, ensuring efficient use of RC drilling for deeper, higher-grade testing.
• Market Reward Trade-Off:
  • Alternative targets like MG-10, MP-14, or the western contact might have offered short-term market rewards through high-grade intercepts (e.g., 25,000–50,000 ounces locally). However, these would not match the scale of a Relief Shear-wide resource upgrade.
  • OZM prioritized long-term value creation over short-term market gains, a strategy that could pay off if the larger resource is realized.
• Recommendations for OZM:
  • Communication: Clearly articulate the long-term strategy to investors, emphasizing the potential scale of the Relief Shear system and the role of AC drilling in target generation.
  • Balanced Drilling: Conduct concurrent RC drilling at high-priority targets (e.g., deeper extensions of MG-10, MP-14) to maintain market momentum while advancing the broader program.
  • Next Steps: Prioritize RC drilling at new targets identified by AC (e.g., near MNOAC 843) and deeper extensions of Cross Fault (e.g., below MNORC 251’s 127m depth). Test the western contact zone as recommended by Western Reefs to explore additional high-grade potential.
• Outlook:
  • OZM could regain momentum by delivering high-grade RC results alongside its systematic exploration, which if successful, then the Relief Shear could position Mulgabbie North as a multi-million-ounce project, attracting significant market interest.

This analysis suggests OZM is not “drilling and hoping” but pursuing a calculated strategy for a larger reward, albeit at the cost of short-term market sentiment.