Accelerate Resources (ASX: AX8) expands target pipeline at Balagundi

Accelerate Resources Chief Executive Officer Luke Meter spoke with MarketOpen to further discuss the Phase 2 aircore drilling results at the Balagundi Gold Project, located approximately 15km east of Kalgoorlie in Western Australia. The program identified a second new mineralised gold trend at the Spencers Prospect, where drilling defined a coherent north south striking structure over approximately 300m of interpreted strike.

The structure remains open down dip and along strike, with results returned from recently acquired, 100% owned tenure. The Phase 2 program also tested extensions to the Paris Gift Delta corridor and additional prospect areas including Spencers and Catrock, with a total of 59 aircore holes completed for 3,614m.

The discussion focused on how the Spencers discovery influences target prioritisation, exploration sequencing and capital allocation, as well as the next phase of work across Spencers, Delta, Paris Gift and Catrock.

The Spencers discovery marks a second mineralised trend. How does this change target prioritisation and capital allocation across Balagundi?

The Spencers discovery changes how we sequence work across Balagundi by introducing a third defined mineralised trend that has returned coherent and shallow gold intersections. This allows us to move beyond a single target focus and allocate capital toward multiple structures that have demonstrated mineralisation through drilling.

At Spencers, we have defined a north south striking structure over approximately 300m that remains open along strike and down dip, which provides a clear and immediate focus for follow up drilling. As a result, we are advancing Spencers as a priority target, with permitting underway for reverse circulation drilling to test continuity and potential higher grade shoots within the broader mineralised envelope.

At the same time, we continue to progress the Delta Trend and broader Paris Gift corridor, alongside additional work at Catrock and Fluffy. This keeps capital directed toward targets where drilling has already returned mineralisation or anomalism.

A 300m structure remains open along strike and at depth. What does this confirm, and what key uncertainties remain?

The definition of a mineralised structure over approximately 300m that remains open along strike and down dip confirms that Spencers is more than a single isolated intercept. The shallow, broad intersections provide an initial framework for a coherent north south striking mineralised trend, which is important because it gives us a defined target to follow up rather than a scattered anomaly.

At this stage, the key uncertainty is how the mineralisation continues beyond the current aircore drilling, both along strike and down dip. We also need to test whether higher grade shoots are present within the broader mineralised envelope.

That is why reverse circulation drilling is the next logical step. It is designed to test the structure in the areas where the aircore drilling has already provided a clear target, and to give us a better basis for determining how the Spencers system develops from here.

The strongest results came from newly acquired tenure. How does this validate your ground consolidation strategy?

The strongest results from the Phase 2 program being returned from newly acquired tenure directly support the rationale behind our ground consolidation strategy. At Spencers, the discovery sits within mining tenement M25/92, which Accelerate owns 100%, and the drilling has already defined a coherent zone of shallow gold mineralisation with approximately 300m of interpreted strike.

For us, the commercial relevance is that the expanded project footprint has delivered a new priority target within a short period of exploration. It shows that the consolidation strategy has given us exposure to areas where modern drilling can still identify new mineralised trends.

It also supports a more systematic approach to Balagundi. Rather than relying on one historic area or one trend, we can test multiple structural positions across the broader project. The Spencers result gives us a stronger basis to keep allocating exploration capital to targets generated within the consolidated land position.

With RC drilling planned at Spencers and follow up across Delta, Paris Gift and Catrock, what outcomes are required to justify further investment?

The next phase of work is focused on improving confidence in the mineralised trends already identified across Balagundi, with Spencers as the immediate priority. At Spencers, the planned reverse circulation program is designed to test the mineralised structure down dip and along strike, and to assess the potential for higher grade shoots within the broader mineralised envelope.

Across the Delta Trend and the Paris Gift corridor, the objective is to continue reviewing and testing areas where previous drilling or anomalous results have already provided a basis for follow up. At Catrock, further infill drilling is planned to define potential reverse circulation drill targets.

The outcomes we need are clear. We want to confirm whether mineralisation continues beyond the current aircore footprint, whether higher grade zones can be identified, and whether additional targets can be advanced to the next stage of drilling. That evidence will guide further investment across the project.

Testing the next phase at Balagundi

With Spencers now established as a priority follow up target, Accelerate Resources next phase is centred on testing whether the shallow mineralisation defined by aircore drilling can be extended and better understood through reverse circulation drilling. The company is also progressing planning and permitting for drilling at the Delta Trend, while the Paris Gift corridor, Catrock and pending Fluffy assays provide additional workstreams across the broader project. The near-term strategy is disciplined and sequential. Each program is designed to sharpen target definition, test continuity and determine where further exploration capital should be allocated across Balagundi.