Forgent plc (AIM: FORG) has announced its first gold discovery from drilling at the Cathedral prospect within its Peak Hill Project in Western Australia, reporting grades of up to 2.14 grams per tonne after completing just 25 exploration holes, while confirming it will not exercise its Mount Sholl acquisition option at this stage.
The Australian-focused critical and precious metals explorer said the initial Cathedral programme comprised 25 holes totalling 1,346 metres, representing approximately 22% of the originally planned 112-hole campaign.
Drillhole PKAC119 delivered the strongest results, including three separate one-metre intersections of 2.14g/t gold from 55 metres, 1.48g/t from 47 metres and 0.94g/t from 23 metres downhole.
An additional one-metre interval in the same hole returned 0.23g/t gold from 41 metres.
The gold intersections occur at different depths and do not represent one continuous mineralised interval. Their true widths have also not been established.
Neighbouring drillholes provided further evidence of gold mineralisation, with PKAC118 returning 1 metre at 0.20g/t gold from 46 metres, while PKAC120 intersected 1 metre at 0.41g/t from 29 metres.
Although these grades are more modest, their proximity to PKAC119 provides additional geological information for assessing the potential extent of mineralisation around the discovery.
Assay results have now been received for all 25 holes, with samples analysed by Jinning Pty Ltd in Perth.
Results outside the immediate PKAC119 area were generally low grade or below detection limits, meaning the company’s attention is now focused on understanding the geological controls around the strongest intersections.
Forgent has also identified historical drilling records relating to Cathedral, which will be reviewed alongside the company’s recent results to help refine future exploration targets.
The company clarified that its announcement of a first gold discovery refers specifically to Forgent’s own drilling programme, rather than suggesting the prospect had never previously been explored.
The Cathedral results follow recent encouraging discoveries at the nearby Curley’s prospect, where shallow drilling returned multi-metre gold intersections.
At central Curley’s, Forgent previously reported 7 metres averaging 2.32g/t gold from 26 metres in CAC010, including 1 metre at 4.32g/t, alongside 7 metres at 1.05g/t from 49 metres in CAC011.
The combination of results from Curley’s and Cathedral has strengthened management’s interest in the wider Peak Hill exploration opportunity.
Chief Executive James Parsons described the Cathedral discovery as a significant exploration milestone, highlighting the identification of encouraging gold grades after only a relatively small proportion of the original drilling programme had been completed.
He said the company would prioritise completion of its current Curley’s programme before reviewing the combined geological information and determining the next phase of exploration at Cathedral.
Targeted follow-up drilling at Cathedral is anticipated after the ongoing Curley’s campaign, although the scope and timing have not yet been confirmed.
Further work will be required to establish whether the individual gold intersections form part of a continuous mineralised system capable of supporting more substantial exploration.
Importantly, the current Cathedral results do not establish a Mineral Resource or demonstrate the presence of an economically viable gold deposit.
Alongside the exploration update, Forgent confirmed it has elected not to exercise its revised option to acquire an interest in the Mount Sholl project.
The decision follows the company’s recent exploration progress at Curley’s and Cathedral, together with prevailing market conditions.
Management intends to prioritise near-term exploration expenditure at Peak Hill and Green Rock, rather than committing capital to the Mount Sholl acquisition at this stage.
However, Forgent emphasised that it remains interested in Mount Sholl and intends to continue discussions with the vendor about a possible future transaction.
The decision means the previously proposed Mount Sholl acquisition will not proceed under the current option arrangements, although a subsequent agreement remains possible if commercially acceptable terms can be reached.
For investors, the announcement highlights a shift towards concentrating capital on Forgent’s existing exploration portfolio following encouraging early gold results.
The discovery at Cathedral provides a new target within Peak Hill, while the decision to defer Mount Sholl preserves resources for ongoing drilling and geological evaluation.
The immediate priorities will be completing the Curley’s drilling programme, reviewing the newly identified historical Cathedral information and establishing whether further drilling can demonstrate greater continuity around the PKAC119 intersections.
Forgent’s next exploration results will be important in determining whether the early gold discoveries at Curley’s and Cathedral can develop into more substantial mineralised targets across the Peak Hill Project.
