Gateway Mining [ASX: GML]

Metals & Mining

Well-Funded Gold Explorer in a Tier-1 Belt - Poised for Major Growth and Discovery

We re-initiate our coverage on Gateway Mining (ASX: GML) with a target price of $0.157, implying a compelling 63.3% total upside from the current share price of $0.096 and a 138.8% uplift from our last report in June 2024. GML rapidly transformed its exploration profile following the acquisition of the Yandal Gold Project from Strickland Metals (ASX: STK), consolidating a commanding position within the highly endowed Yandal Greenstone Belt of Western Australia. The acquisition delivers GML control over one of the region’s most prospective landholdings, strategically situated near several multi-million-ounce operations, complemented by additional assets such as the Glenburgh South and Barrelmaker (Montague) projects. The expanded portfolio provides exposure to both gold and base metal systems across emerging mineral provinces. With its strengthened asset base, proven geological setting, and proximity to established infrastructure, GML is now well positioned to deliver sustained exploration success, resource growth, and long-term shareholder value.

Two Key Deposits Driving Scale and Exploration Leverage

The Yandal Gold Project hosts a JORC 2012-compliant MRE of 8.17 Mt @ 1.52 g/t Au for 400,400 ounces, encompassing two key mineralised centres, the Horse Well Gold Camp (HWGC) and Dusk ’til Dawn. The HWGC area, represents the project’s core resource hub with 4.68 Mt @ 1.94 g/t Au for 291,500 oz, characterised by multiple shear-hosted lodes and open mineralisation along strike and at depth. In contrast, Dusk ’til Dawn contributes 3.50 Mt @ 1.00 g/t Au for 108,900 oz, forming an emerging intrusion-related gold system defined by broad, near-surface mineralisation and strong structural continuity, together highlighting Yandal’s strong foundation for sustained resource growth and long-term development potential.

Three Major Shear Corridors Discovered – Expanding Yandal’s Growth Pipeline

Recent exploration has identified three major new shear zones, Mustang, Nabberu Splay, and Great Western, significantly expanding Yandal’s untested strike potential across more than 90 km of prospective structures. Supported by a robust cash position of $12.1 million in addition to a successful capital raise of $22.5 million, GML is well funded to accelerate drilling, advance discovery programs, and unlock the next phase of growth across its consolidated Yandal portfolio.

Valuation Range of A$0.131 – A$0.182 Per Share

We value GML at A$0.131 per share in a base-case scenario and A$0.182 per share in a bull-case scenario using an EV/resource based multiple valuation. This valuation is further supported by a robust macroeconomic backdrop for gold, with record-high prices above USD$4,000/oz driven by sustained central bank buying, declining real yields, and heightened geopolitical uncertainty. The combination of structural demand strength and limited new supply continues to be favourable, positioning GML to benefit.

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