The Beacon Minerals Ltd (ASX: BCN) share price is in focus after the company announced a massive 325% lift in ore reserves at its Lady Ida Project's Iguana Deposit, alongside an estimated pre-tax free cash flow of A$841 million.
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What did Beacon Minerals report?
- Ore Reserve Estimate: 11.0 million tonnes at 1.20 g/t gold for 430,200 ounces (1% Proved, 99% Probable), up 325%.
- Pre-tax free cash flow: Estimated at A$841 million (undiscounted) at A$5,500/oz gold over nine years.
- Average all-in sustaining cost (AISC): A$3,283 per ounce across the project's nine-year life.
- Mineral Resource Estimate: 11.5 million tonnes at 1.4 g/t gold for 533,000 ounces, up 266% in measured and indicated resource ounces.
- Ore Reserve to Mineral Resource conversion ratio: 81%.
- Establishment capital: A$2.5 million, including camp and haul roads.
What else do investors need to know?
The significant ore reserve and mineral resource increases were driven by a +75,000 metre drill campaign completed in May 2026. The Iguana deposit ore will be hauled 43 kilometres to Beacon's Jaurdi process plant, where a conventional CIP circuit will be used. The operation is now modelled to support nine years of mining, with marginal impact from different gold prices, thanks to robust cost controls and improved orebody definition.
The Jaurdi Mill upgrade is scheduled for completion in November, aimed at supporting sustained throughput from the more extensive Iguana ore body. Beacon notes all key mining approvals are in place, and the mineralisation remains open at depth for future exploration.
What did Beacon Minerals management say?
Graham McGarry, Executive Chairman and Managing Director said:
The significant increase in ore reserves following our +75,000 metre drill campaign which concluded in May 2026 has enhanced the value of the Iguana deposit for the benefit of our shareholders. The Jaurdi Mill upgrade scheduled to be completed in November will complement our successful ore reserve drill campaign.
What's next for Beacon Minerals?
Beacon will focus on bringing the expanded Iguana deposit into full production, leveraging the upcoming Jaurdi Mill upgrade. The company plans to continue exploration at depth and along strike to further grow resources. Operational guidance remains unchanged, and all approvals and infrastructure are in place to deliver on the updated mining schedule.
With gold recovery and processing proven through earlier operations and test work, Beacon Minerals is aiming for steady and predictable output. The conversion of further mineral resources to reserves remains a priority, with scope for continued exploration success at Lady Ida.
Beacon Minerals share price snapshot
Over the past 12 months, Beacon Minerals shares have risen 73%, outperforming the All Ordinaries Index (ASX: XAO) by a wide margin.
