Resources at the renamed Montague gold project have jumped from 449,000oz to 526,000oz grading 1.6 grams per tonne, with 142,000oz at 2.1gpt in the indicated category.

 

Julias, which is 75% owned by Gateway and 25% by Red 5, hosts an estimated 77,000oz at 1.3gpt, with two thirds in the shallow oxide zone.

 

The resource is based on a 0.6gpt cut-off.

 

Recent aircore drilling suggests Julias may extend over 700m, toward its emerging Flametree supergene gold target.

 

RC drilling is planned to bring the extensions into the resource.

 

Managing director Mark Cossom said Gateway could claim a A$9/oz discovery cost.

 

He explained the project's rebranding was to better reflect the importance of the Montague Granodiorite as the major geological feature controlling the mineralisation, and to differentiate it from the historical Gidgee gold mine that operated in the 1980s and 1990s, and is now owned by its Murchison neighbour Horizon Gold.

 

Cossom said assays from an additional 14,000m of RC drilling at Montague-Boulder, Evermore, and Achilles are pending, and should help add ounces.

 

A 16,000m regional aircore drilling will begin next month.

 

The Kerry Harmanis-backed company started the current quarter with A$3.7 million cash, and investments worth $1.6 million.

 

The Western Australian explorer completed a 10:1 share consolidation in August, and was last traded at 8c, valuing it at $18 million.