The Malmsbury Project is located in the same region as the large, high grade Fosterville Gold Mine. The Malmsbury Project has a known gold resource containing 104,000 ounces of gold at an average grade of 4 g/t Au. The project has high order exploration targets with previous mining to shallow depths that remain to be tested with modern exploration.

During the year the Leven Star resource was reviewed and upgraded to comply with requirements of the 2012 version of the JORC Code and current ASX guidance (refer ASX announcement 4 July 2019). The inferred resource remains unchanged at 820,000 tonnes at an average grade of 4.0 g/t Au containing 104,000 ounces of gold at a cutoff grade of 2.5 g/t Au.

This area hosts an inferred resource estimated to contain 104,000 ounces of gold and historical production from the area totalled 91,000 ounces. Drilling by GBM has demonstrated that the characteristics of an IRGS persist to at least 1km depth in the project area. Reviews of structural and mineralogical characteristics of the mineralisation have confirmed a number of key similarities with the large, high grade Fosterville Gold Mine which has produced over 2.0 million ounces of gold and has current published reserves and resources containing 4.8Mozs as is one of the largest known gold systems in Eastern Australia. In addition, recently discovered mineralisation is among the highest grade resources in the world today. The current resource at Malmsbury is hosted within a 450m section of a single structure within the Drummond Goldfield which has an identified strike length in excess of 4 kilometres. The resource remains open at depth and along strike.

Figure: Resources and past production of the Malmsbury Gold Project, Surface Plan (top) and Long Projection (bottom).