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Murray Ward
Aureka has wasted no time putting its stamp on its newly acquired Victorian gold mine, with the company kicking off diamond drilling this week at the high-grade Fiddlers Creek operation in the stateโs revered Avoca goldfield.
The move marks the first surface drilling at the project since May 2025. It follows Aurekaโs recent strategic acquisition of High Grade Holdings, which controlled the operating underground mine and the nearby Wedderburn processing facility.
In a tantalising preview of what the drill bit might unearth, the company has also, for the first time, reported a string of high-grade legacy assay results from Fiddlers Creek. The historical hits include a spectacular 1.19-metre intersection grading 40.48 grams per tonne (g/t) gold from just 19m, featuring an even richer 0.06-metre core showing a bonanza grade of 786.1g/t gold.
Other impressive legacy results include 1.57m at 31.09g/t gold from 135.14m, housing a richer 0.26-metre section grading 134g/t and 1.87m at 21.21g/t from 97.23m, featuring 0.19m at a hefty 156g/t gold. The project has also coughed up high-grade silver, with one historical hole returning 0.35m at a stunning 1600g/t silver from 23.35m.
โWe look forward to seeing what value can be added to the producing Fiddlers Creek high-grade gold and silver mine.โ
Aureka Limited managing director James Gurry
The new drilling program is designed to infill and elevate known zones of mineralisation and test key areas for potential underground infrastructure development. The campaign forms part of an acquisition commitment to drill at least 1800 metres on the new tenements over the next three years, with phase one set to deliver at least 400m.
The Fiddlers Creek mine lies within the Percydale goldfield, which has historically produced more than 700,000 ounces of gold. The 39 square kilometres of Aurekaโs surrounding tenure contains six kilometres of mineralised structure and more than 600 historical workings, with multiple parallel quartz-reef zones that have never seen a drill bit.
Aureka Limited managing director James Gurry said: โNear mine exploration drilling was one of the key opportunities identified in due diligence. Our ability to promptly address this value-add potential while production continues apace speaks to the complementary nature of the transaction.โ
While the drilling and legacy numbers are impressive, the strategic thinking behind the acquisition paints the bigger picture. In one fell swoop, the savvy deal has transformed the company from a pure-play explorer into an integrated gold company, delivering a producing mine and a plant that is already spitting out positive monthly free cash flow.
The Wedderburn processing facility is a fully licensed mill and one of only six gold mills in Victoria licensed for external tolling. Notably, Aureka says the current throughput from Fiddlers Creek uses only a fraction of the millโs 42,000-tonne-per-annum nameplate capacity, leaving significant spare capacity for the company to process ore from its other projects.
In another clever move, the company secured the brains to run the operation, with 30-year veteran metallurgist Marcus Binks nominated to the board. Binks, who has held senior roles at the giant Fosterville and Young-Davidson gold mines, knows the Wedderburn mill intimately, having helped establish and run the facility.
The acquisition of the mill connects the dots on Aurekaโs broader strategy, creating a central processing hub for its growing Victorian portfolio. The companyโs flagship 398,000-ounce Irvine project sits just 135km from the mill, while its 56,500-ounce Comstock project is less than 50km away.
With rods now turning at Fiddlers Creek, Aureka is not just drilling for gold; itโs drilling to prove a strategy. The company has moved swiftly to acquire a cash-flowing mine, a strategic mill and the expert to make it all sing. And if those spectacular legacy grades are a sign of what is still hiding around Fiddlers Creek, Aureka could be well placed to turn its geological potential into plenty more yellow metal.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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