Tolu Minerals reports record drilling in June quarter update

Tolu Minerals delivered record drilling results, a robust cash position, and remains on track to restart gold production in early 2027.

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The Tolu Minerals Ltd (ASX: TOK) share price is in focus today following its June 2026 quarterly update, highlighted by a strong A$50 million cash position and record drilling at Tolukuma Gold Mine leading to two new high-grade gold discoveries.

A mining executive from Red Dirt Metals chats on her mobile phone looking pleased with a mining site and mining truck in the background

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What did Tolu Minerals report?

  • Cash balance at 30 June 2026: A$50.0 million
  • Exploration and evaluation expenditure during the quarter: A$9.7 million
  • June quarter delivered 68 holes for 11,686 metres drilled (143 holes for 22,975 metres year to date)
  • Two new high-grade gold discoveries announced: Fundoot Splay and Gulbadi Splay zones
  • Updated Mineral Resource Estimate on track for release in late August 2026
  • First gold production at Tolukuma targeted for Q1 2027

What else do investors need to know?

Tolu has made strong operational progress, achieving the most intensive drilling campaign in the company's history and confirming the potential of previously under-explored areas at Tolukuma. The company's revised geological model now recognises 44 mineralised veins and splays across an 8-kilometre system, with only about 1.2 kilometres mined to date.

On 6 July 2026, Tolu reported a fatal incident involving an employee at EL2531. The company has expressed its condolences and is supporting the affected family, reinforcing its ongoing commitment to safety as its top priority.

What did Tolu Minerals management say?

Managing Director and CEO Dr Chris Muller said:

The June quarter marked a step-change for Tolu. The most intensive drilling program in Tolukuma's history is consistently proving our revised geological model, two new high-grade structures have been discovered within the immediate mine environment, and the updated Mineral Resource Estimate in late August will give shareholders a far more robust understanding of the scale and potential of Tolukuma as we advance confidently toward first production by Q1 2027.

What's next for Tolu Minerals?

Looking ahead, Tolu is focused on delivering the updated Mineral Resource Estimate in late August. This will underpin the revised mine plan and projected mine growth into several key zones at Tolukuma. Underground development has recommenced on the 1560 Level and the company remains confident of achieving its first gold pour by early 2027, with plant refurbishment and infrastructure upgrades ongoing.

Exploration continues, with further assay results pending and the near-mine drilling campaign set to reach over 75,000 metres. Investors can expect robust news flow as the company advances toward production.

Tolu Minerals share price snapshot

Over the past 12 months, Tolu Minerals shares have risen 34%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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