New Murchison Gold (ASX: NMG) has reported its deepest high-grade gold intercept to date at the Crown Prince project, increasing its confidence in the project's underground mining potential.
The standout result from hole NGGRCDD1184 delivered 3.2m at 48.9 g/t Au from 330m downhole, which included an exceptional 0.35m at 345.5 g/t Au from 331.2m.
This intercept sits 190m vertically below the designed base of the main pit and is stated to be outside the current resource envelope.
It surpasses the previous best intersection from 2017, which was TGGRCDD110 at 8m at 22.3 g/t Au from 259.2m.
Additional deep reverse circulation (RC) drilling highlights include NRD008 with 13m at 13.3 g/t Au from 164m (including 2m at 72.0 g/t Au), NRD003 with 8m at 12.3 g/t Au from 216m (including 3m at 27.4 g/t Au), and NRD012 with 5m at 12.3 g/t Au from 198m (including 1m at 50.9 g/t Au).
Underground Potential Supports Future Mining
The mineralisation encountered is outside the existing resource, which strongly supports the potential for future underground mining operations at Crown Prince.
This provides increased confidence for the company's long-term plans.
NMG intends to re-enter and drill deeper at holes NGGRCDD1169 and NGGRCDD1181 to test a geological model interpreted as a mineralised shoot within the footwall of the main ore body.
Management has indicated that future underground mining plans are under active development and will be released as part of an upcoming ore reserves update.
Crown Prince East Expands Pit
In related exploration efforts, New Murchison Gold also delivered positive high-grade intercepts from predominantly RC drilling at Crown Prince East, a satellite pit within the Crown Prince Gold Operations.
The drilling successfully delineated additional mineralisation within the designed pit outline.
Key results include 18m at 10.3 g/t Au (including 6m at 29.3 g/t Au) and 12m at 10.3 g/t Au (including 1m at 42.2 g/t Au).
Significantly, Crown Prince East is already covered by the existing Crown Prince Mining Approval, with preparations for mining commencement underway.
This could add to the company's near-term production profile.
Lydia Prospect - Potential Production Addition
The Lydia prospect also continues to show promise, with recent high-grade drilling results expanding mineralisation along the Lydia shear.
Notable intercepts include 3m at 32.9 g/t Au from 46m (including 1m at 62.4 g/t Au), 9.10m at 10.3 g/t Au from 89m, and 8m at 9.1 g/t Au from 20m.
Lydia is strategically located approximately 800m west of the Crown Prince Gold Mine and sits on granted mining lease M51/889. Its proximity to existing infrastructure offers potential for accelerated near-term production.
NMG's next steps at Lydia involve updating mineralisation modelling into a JORC-compliant resource model, re-designing a conceptual pit outline, and conducting further infill and deeper drilling at Lydia South and Lydia East.
Production Ramp-Up Continues
New Murchison Gold also reported strong operational performance for the December 2025 quarter.
The Crown Prince project produced 22,766 ounces of gold from 184,746 dry tonnes at 4.0 g/t, achieving a recovery rate of 95.9%.
This gold ore was processed and sold to Westgold Resources' Bluebird mill, located just 36 km from Crown Prince.
The company maintained a healthy cash balance of $92 million at the end of the quarter, providing a solid financial foundation for ongoing operations and development.
Furthermore, the Stage 1 pit at Crown Prince is progressing within the Stage 2 boundary, indicating clear potential for expanded production as the mine matures.
The Bottom Line
New Murchison Gold's latest drilling results, particularly the deep high-grade intercept at Crown Prince, significantly enhance the outlook for underground mining potential.
Combined with positive exploration at nearby prospects and ongoing production ramp-up, these developments strengthen the company's growth narrative.
However, investors should remain mindful of resource-to-reserve conversion and operational execution risks.
