Not sure brother, but the statement saying we are going for the Dr seems to indicate they haven't quite got a handle on the structure just yet?
"The results of this diamond drilling will inform OZM’s future RC drilling at Cross Fault. OZM considers that this information can be applied along the entire Relief Shear. OZM is still working on the geological interpretation of this area and will continue to seek opinions from structural geology consultant, Dr Brett Davis".
The statement from OzAurum Resources Limited’s (ASX:OZM) May 30, 2025, ASX announcement regarding the diamond drilling results at the New Cross Fault within the Mulgabbie North Gold Project offers insight into the company’s strategic approach to exploration and resource development.
Specifically, the statement indicates that the results from the two diamond drill holes (MNODH 017 and MNODH 018, totaling 220m) will guide future reverse circulation (RC) drilling at the New Cross Fault, with broader implications for the entire Relief Shear, an 8 km mineralized corridor within OZM’s tenure. Additionally, OZM’s ongoing geological interpretation, supported by structural geology consultant Dr. Brett Davis, underscores a methodical and expertise-driven approach to unlocking the project’s potential. Below, I’ll analyze this statement in the context of prior discussions, the updated drilling results (including MNORC 222’s 39m @ 1.09 g/t Au with 17m @ 1.65 g/t)
The positives to draw from this are not the SP obviously but that OZM considers the information drawn from the campaign can be applied to the whole length of the relief sheer structure which is a key finding & that they will utilize the services of the good Dr to direct future targets. See below for the implication as to what that implies. h8tey
They also twinned MNORC222 instead of 221 for some reason?
Step 1: Interpretation of the Statement
The statement can be broken down into three key components, each with implications for OZM’s exploration strategy and the project’s upside potential:
“The results of this diamond drilling will inform OZM’s future RC drilling at Cross Fault”:
Meaning: The diamond drilling (MNODH 017: 17m @ 1.25 g/t Au including 2m @ 6.28 g/t from surface, 25m @ 1.24 g/t including 1m @ 5.63 g/t and 1m @ 5.83 g/t from 27m; MNODH 018: 25m @ 0.76 g/t including 1m @ 5.50 g/t and 1m @ 3.48 g/t) provides detailed geological data (e.g., sheeted vein arrays, breccia-style mineralization, fault associations) that will guide the placement and targeting of future RC drilling at the New Cross Fault. Diamond drilling, with its high-quality core samples, offers insights into structural controls, mineralization styles, and grade distribution that are critical for optimizing RC programs, which are more cost-effective for delineating resources.
Implication: This suggests a systematic approach to resource expansion. The high-grade zones (e.g., 2m @ 6.28 g/t, 1m @ 5–6 g/t) and dual mineralization styles (sheeted veins in MNODH 017, breccia in MNODH 018) indicate that future RC drilling can target similar high-grade structures, potentially increasing the New Cross Fault’s resource base (currently part of the broader Mulgabbie North MRE of ~460,800 oz base case). The 1,000m strike length (400m + 600m extension from AC drilling) and new RC targets (e.g., near MNOAC 843) provide immediate opportunities for growth.
“OZM considers that this information can be applied along the entire Relief Shear”:
Meaning: The Relief Shear, an 8 km mineralized corridor hosting the New Cross Fault (2 km south of the 260,000 oz MRE) and other prospects like Golden Goose, is viewed as a cohesive geological system. OZM believes the structural and mineralization insights from the New Cross Fault (e.g., north-south faults, sandstone-hosted quartz veining, pyrite-associated gold) can be applied across the Relief Shear to identify and prioritize new drilling targets.
Implication: This statement significantly enhances the district-scale potential discussed previously, akin to Northern Star’s Carosue Dam Operations (~3.2 Moz across multiple deposits 1–2 km apart). The Relief Shear’s 8 km extent, combined with the sandstone’s brittle nature and fault-controlled gold (e.g., north-south faults, 315°-striking quartz veins), suggests the potential for multiple deposits, each potentially 300,000–500,000 oz, totaling 1–2 Moz long-term. This aligns with CEO Andrew Pumphrey’s vision of replicating Northern Star’s multi-deposit model, as noted in the April 2, 2025, video interview.
“OZM is still working on the geological interpretation of this area and will continue to seek opinions from structural geology consultant, Dr. Brett Davis”:
Meaning: The geological complexity of the New Cross Fault (e.g., multiple fault orientations, 30m stratigraphic offsets, dual mineralization styles) requires ongoing interpretation to refine the exploration model. Dr. Brett Davis, a structural geology expert, is assisting OZM in understanding fault systems and their control on gold mineralization, ensuring a data-driven approach to target generation.
Implication: Engaging a specialist like Dr. Davis indicates OZM’s commitment to maximizing the project’s potential through rigorous science. Structural controls are critical in orogenic gold systems like Mulgabbie North, as faults (e.g., north-south feeder zones) channel gold fluids into receptive hosts like sandstone. This expertise could lead to the discovery of new high-grade zones along the Relief Shear, de-risking exploration and increasing the likelihood of success in future drilling.
Step 2: Implications in Context of Prior Discussions
This statement aligns with and expands on our prior discussions about the New Cross Fault’s district-scale potential, the significance of pyrite content at MNORC 215, high-grade gold, and the sandstone host:
District-Scale Potential Akin to Northern Star:
Prior Discussion: The New Cross Fault’s 1,000m strike, north-south fault, and sandstone host, with geological parallels to Carosue Dam (2 km away), suggest the potential for multiple deposits totaling 1–2 Moz along the Relief Shear.
Statement Impact: The application of New Cross Fault insights across the 8 km Relief Shear directly supports this thesis. The identification of north-south faults, quartz veining, and fault-associated gold (e.g., 1m @ 5–6 g/t in MNODH 017 and 018) provides a blueprint for targeting similar structures elsewhere on the shear. Fieldwork planned along the Relief Shear and Golden Goose prospect to locate additional north-south faults further enhances the likelihood of new discoveries, mirroring Carosue Dam’s multi-deposit architecture.
Implication: The statement increases confidence in a 1–2 Moz long-term resource, potentially comprising 2–3 deposits, each 300,000–500,000 oz, significantly boosting OZM’s value.
Pyrite Content, High-Grade Gold, and Sandstone Host:
Prior Discussion: MNORC 215’s unprecedented pyrite (“jet black” over 50m) and high-grade precedents (e.g., 9m @ 5.79 g/t, 2m @ 22.58 g/t) in a sandstone host indicated a robust system. MNODH 017’s visible gold with oxidized pyrite and MNODH 018’s breccia zones near MNORC 215 confirmed this potential, with MNORC 222’s 39m @ 1.09 g/t (including 17m @ 1.65 g/t) adding near-surface continuity.
Statement Impact: The diamond drilling’s role in informing RC programs suggests OZM will target similar pyrite-rich, high-grade zones along the Relief Shear, leveraging the sandstone’s extent. The structural insights (e.g., fault offsets, quartz vein orientations) will help pinpoint feeder zones, increasing the probability of high-grade intercepts (e.g., 3–6 g/t, up to 10–20 g/t in bonanza shoots).
Implication: The statement reinforces the geological model, with future RC drilling likely to add significant ounces, particularly in near-surface oxide zones (e.g., MNODH 017, MNORC 222) ideal for heap leach processing.
Exploration Strategy and Expertise:
Prior Discussion: OZM’s systematic approach (e.g., diamond drilling to guide RC) and Pumphrey’s excitement about the New Cross Fault’s potential were noted as positives, though retail volatility (beta 1.60) and delayed assays posed risks.
Statement Impact: The involvement of Dr. Brett Davis and the focus on applying New Cross Fault insights across the Relief Shear demonstrate a strategic, expertise-driven exploration program. This reduces geological risk and increases the likelihood of delineating a multi-deposit system.
Implication: The methodical approach, supported by structural expertise, enhances investor confidence in OZM’s ability to grow the resource, potentially attracting institutional interest and reducing retail-driven volatility over time.
