The Develop Global Ltd (ASX: DVP) share price is pushing higher on Thursday after the company announced exceptional drilling results at its Woodlawn copper-zinc mine, supporting its strategy to extend the mine life by 50% to 15 years.
Recent assay results revealed multiple high-grade polymetallic intersections, including up to 15.7% CuEq, and numerous newly identified target zones.
Image source: Getty Images
What did Develop Global report?
- Drilling results from Project DM15 showed intersections up to 12.2m at 15.7% copper equivalent (CuEq) from the J Lens.
- Extensions to known mineralisation across several lenses, with standout assays like 14.8m at 8.4% CuEq and 10.6m at 3.3% CuEq (including 4.7m at 6% CuEq) in the N Lens.
- Discovery of gold- and silver-rich mineralised zones, with highlights of 19.7m at 2.6g/t gold and 196g/t silver (10.7% CuEq).
- Updated geological modelling identified several untested high-priority targets, including repeats of historically mined lenses.
- An additional underground drilling rig mobilised to expedite resource expansion under Project DM15.
- First exploration drilling campaign completed at the nearby Currawang Prospect, with assays pending.
What else do investors need to know?
Drilling remains underway at Woodlawn as Develop Global aims to underpin growth in both Resource and Reserve through further high-grade discoveries. The recent intersections not only extend existing mineralisation zones but also suggest the system is larger than previously defined.
The N Lens, which is set to be a key mining area over the next half-year, is showing continuity and high grades, supporting near-term production plans. Meanwhile, the maiden Currawang drilling adds new regional upside, with assay results due soon.
What did Develop Global management say?
Develop Managing Director Bill Beament said:
These exceptional results reveal additional high-grade mineralisation within the existing Resource and also extend the known mineralisation outside the Resource. The extensions to the N lens are particularly outstanding and look like the beginning of a significant extension to the known mineralisation.
The results pave the way for further growth in the Resource and Reserve, which will in turn underpin another update in the mine plan as we push towards Project DM15's ultimate goal of a 15-year mine life at Woodlawn. The results also provide more evidence that Woodlawn is a much bigger system than previously thought, opening the door to growth in mine life and production rates.
What's next for Develop Global?
Investors can expect ongoing exploration activity, with two underground drill rigs operating and several high-priority targets set for follow-up work. An updated resource estimate and mine plan update are on the cards as further results come through from Woodlawn and the nearby Currawang Prospect.
The company is focused on expanding both the scale and value of the Woodlawn project, underpinned by strong drilling results and a flexible development approach designed to maximise returns and extend the operation's life.
Develop Global share price snapshot
The Develop Global share price has smashed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of over 40%.
