Ann: NAE New Gold System Emerging at Wagyu Pilbara WA, page-27

Did some probability analysis using the Grok3 AI, feeding in the most recent NAE announcements and asking it the probs of a major discovery.

Wagyu Gold Project – Assessing the Probability of a Major Discovery

Recent developments at New Age Exploration Limited’s (NAE) Wagyu Gold Project in Western Australia’s Pilbara region, as announced on 26 May 2025, have sparked interest in its potential. Based on the available drilling data and geological context, we estimate a 60-70% probability of a major gold discovery exceeding 1 million ounces. This assessment balances promising early indicators with the uncertainties typical of exploration projects. Below, we outline the key positive and negative factors justifying this probability.

Positive Factors Supporting the Probability

• Encouraging Drilling Results: The maiden Reverse Circulation (RC) drilling program delivered notable high-grade intercepts, such as 8m @ 5.0g/t Au (including 1m @ 28.6g/t Au) and 4m @ 2.5g/t Au from 76m. These results, alongside broader zones like 27m @ 0.4g/t Au, indicate a significant mineralized system. The 1km mineralized envelope identified across Target 1 and Target 10 suggests a laterally extensive supergene gold system with potential for further growth.
• Geological Similarities to Hemi: Located just 6km from Northern Star Resources’ 11.2Moz Hemi Gold Deposit, Wagyu shares critical geological traits, including intrusive rocks, quartz veining, and alteration (sericite, epidote, pyrite). The use of arsenic as a pathfinder element, mirroring successful strategies at Hemi, strengthens confidence in the project’s prospectivity.
• Expansion Potential: Mineralization remains open along strike and at depth, with drilling to date averaging only ~90m. This leaves substantial untested ground, particularly in deeper primary zones where higher-grade structures could enhance the deposit’s scale.

Negative Factors and Risks

• Pre-Resource Uncertainty: As an early-stage project, Wagyu lacks a formal resource estimate. While initial results are promising, the deposit’s continuity, grade consistency, and economic feasibility remain unproven. Additional drilling is essential to confirm its potential size and viability.
• Exploration Risks: The gold exploration sector is inherently uncertain. Many projects with strong early data fail to develop into economically viable deposits due to issues like inconsistent mineralization or limited scale. Wagyu, despite its positives, is not immune to these challenges.
• Mixed Market Sentiment: The market’s response to the latest announcement has been uneven, with some investors selling off shares. This could reflect unmet expectations, doubts about near-term upside, or broader concerns about the project’s timeline and risks.
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Conclusion

The Wagyu Gold Project presents a compelling case for a major discovery exceeding 1 million ounces, with a 60-70% probability driven by robust drilling results, a favorable geological setting, and significant expansion potential. However, its early-stage status and the uncertainties of exploration introduce meaningful risks that temper optimism. Further drilling and technical studies will be pivotal in validating the deposit’s scale and economic potential. For now, Wagyu offers a balanced risk-reward profile that warrants close attention as exploration progresses.

By the way, I did a similar analysis last week and with the information released today, the discovery odds have gone up 10%.

PS DYOR. Do with this information what you will. I take no responsibility or liability for any trading decisions based on this information.