March Quarter Sees Cash Build and Exploration Success
New Murchison Gold Limited (ASX: NMG) has reported a strong operational and financial performance for the March 2026 quarter, driven by consistent production at the Crown Prince Gold Mine and successful exploration at the Garden Gully Gold Project in Perth, Australia.
During the quarter, the company sold 173,174 tonnes of ore at an average grade of 3.1g/t Au, producing 16,660 ounces of gold. This exceeded the tonnage limits under the Ore Purchase Agreement and capitalised on high gold prices, resulting in a substantial $63.6 million cash build for the quarter.
NMG concluded the period with $155.6 million in cash and no debt, providing financial flexibility for future growth initiatives. The company reported a 17 per cent long-term Ore Purchase Agreement margin and an attributable gold price of A$6,994/oz against an AISC of A$3,326/oz.
Crown Prince continues to deliver consistent production and margin performance. Following the late-2025 ramp-up, operations stabilised, and NMG leveraged strong gold prices and processing demand to optimise ore blending strategies.
Exploration Enhances Growth Potential
Exploration efforts focused on near-mine growth opportunities, particularly at Crown Prince East. Drilling revealed high-grade intercepts such as 18m at 10.3g/t Au, including 6m at 29.3g/t Au, and 12m at 10.3g/t Au, including 1m at 42.2g/t Au.
Drilling beneath the Crown Prince pit returned a notable intersection of 3.2m at 48.9g/t Au, including 0.35m at 345.5g/t Au, suggesting potential for underground development. Meanwhile, high-grade results from the Lydia Gold Prospect extended mineralisation along strike and depth.
NMG CEO, Alex Passmore, stated, "We are very pleased to report on our second full quarter of production and to demonstrate continued strong operational performance. Exploration is continuing to build a great foundation for NMG’s development pipeline throughout our highly prospective Murchison gold fields tenement package."
The company plans a resource and reserve update for the September 2026 quarter. it is advancing a capital-efficient growth strategy with a focus on near-mine development and potential underground expansion.
During the quarter, NMG also outperformed its base case mining schedule, delivering ore sales ahead of plan and strengthening its balance sheet. The company continues to transition successfully into a gold producer, generating significant cash flow and advancing a pipeline of near-mine growth opportunities.
At the Lydia Gold Prospect, further drilling is planned to explore mineralisation along strike and depth. This exploration is critical as it reinforces its potential as a future contributor to the production pipeline.
