GoldArc Resources [ASX: GA8]
Metals & Mining
Near-Term Leonora Ounces, Belt-Scale Exploration Upside
We initiate coverage on GoldArc Resources (ASX: GA8) with a target price of A$0.168, implying 143.9% upside. GA8 is a Western Australian gold explorer with a district-scale footprint in the Tier-1 Leonora–Kookynie belt, surrounded by major mines and mills. It already hosts ~200 koz at 1.8 g/t across two hubs, Leonora North (152 koz) and Leonora South (48 koz), with shallow, high-grade hits pointing to near-term resource growth. Crucially, GA8 has a partner-funded, capex-light development in place: a BML Ventures profit-share at Mt Stirling and an MMS Letter of Intent at Orion–Sapphire. With 936 km² of ground and processing options nearby, these partnerships create a clear, near-term path to cash flow with minimal dilution, amplifying upside from ongoing drilling.
Leonora North & South - Shallow, Near-Mill Ounces Driving Rapid Growth
GoldArc is set to turn drill hits into ounces and ounces into cash in a district with nearby tier-one neighbours, Genesis Minerals (GMD), Vault Minerals (VAU), and Northern Star Resources (NST), validating the geology and processing optionality. At Leonora South, RC drilling is already delivering good shallow, high-grade results at Eclipse–Challenge (14 m at 7.49 g/t from 12 m), with Gladstone extending at depth and Orion–Sapphire confirming continuity; these are all on eight granted mining leases within haulage distance of nearby mills such as Vault Minerals’ 7.5 Mtpa King of the Hills. At Leonora North, a 152 koz at 1.7 g/t base at Mt Stirling/Stirling Well sits on 12 km of the Ursus Fault, with ~9 km still untested, and Hydra and Tyrannus as near-mine growth corridors. With mills on the doorstep and partner-funded pathways in place, GoldArc can define ounces quickly and convert them to cash with low cost and minimal dilution.
A new partnership-based strategy: focused on resource growth and lowcost, efficient near-term cash flow generation
GoldArc plans to turn a district-scale Leonora footprint, 936 km² across >75 km of strike, into more ounces and earlier cash flow. The portfolio anchors 200 koz at 1.8 g/t JORC with an exploration goal to add ~500 koz via systematic RC and diamond drilling across two hubs. This follows a rebrand, a 10‑for‑1 consolidation, new capital, and a partner‑funded development pathway. The plan is to grow JORC ounces through systematic drilling and use partner-operated mining as a low-cost, efficient way to convert ounces to cash, while also freeing up resources to focus on high-priority exploration and new discovery potential. In terms of partnerships, at Mt Stirling (Leonora North), BML Ventures (BMLV), an experienced mining contractor, will be the Mine Operator and manage all mining activities and approvals, including funding all capital and operating costs required to advance the Mt Stirling Project. BMLV targets first production in ~18 months, providing GA8 with a low cash-outflow path. Additionally, at Orion–Sapphire (Leonora South), GA8 has signed a Letter of Intent (LOI) with Mineral Mining Services (MMS) to accelerate the pathway to production.
Valuation Driven by Project Scale, Gold Price & Exploration Potential
We value GA8 at A$0.143/share base (+107.4% upside) and A$0.193/share bull (+180.4%). Using the midpoint A$0.168/share, the implied upside from A$0.069 is 143.9%. The re-rating case is tangible. Resource growth at Mt Stirling, plus a largely untested Hydra corridor, sets a clear expansion path. Partner-funded routes, BML Ventures’ profit-share at Mt Stirling and the MMS contractor-funded LOI create low-cost avenues to near-term cash flow. On the discovery side, shallow, high-grade discoveries at Eclipse, depth extensions at Gladstone, and structural continuity at Orion–Sapphire provide multiple near-dated catalysts. With a defined pathway from drill hit to cash generation, we see a clear pathway to first cash flow, with significant scope for further valuation uplift as each milestone is met and execution risk continues to fall.