Leeuwin Metals [ASX: LM1]
Metals & Mining
Maiden Gold Resource and Ongoing Drilling Strengthen LM1 Re-rating Potential
We are revising our target price for Leeuwin Metals (ASX: LM1) upwards to $0.52, implying a compelling 285% total upside from the current $0.14 share price and marking a 23% uplift from our Update Report from November 2025. The re-rating potential for LM1 is supported by the rapid delivery of a maiden 342,300 oz gold resource at Marda, providing a defined resource base with clear scope for expansion. Evanston remains the key near-term growth driver, with recent RC drilling confirming mineralisation beyond the current resource envelope and Downhole Electromagnetic (DHEM) targets supporting further down-dip potential. The recommencement of drilling in May 2026, targeting Marda Central, Golden Orb and high-grade historic workings, adds further upside outside the existing MRE. Combined with LM1’s broader 500 km²+ prospective tenure package, the Company offers investors both a tangible base-case resource valuation, making it one of the most undervalued gold explorers and developers on the ASX, and significant exploration-driven re-rating potential.
342koz Maiden Resource Anchors LM1 Growth Story
LM1’s maiden MRE establishes a strong foundation at Marda, with 10.2Mt at 1.05g/t Au for 342,300oz, reported above a 0.30g/t Au cut-off. The resource includes 73,800oz Indicated and 268,500oz Inferred, providing a defined base for future studies while leaving clear scope for conversion and growth through continued drilling. Evanston is the key contributor, hosting 135,800oz, including a higher-grade component of 96,400oz at 1.52g/t Au, while Marda Central and Golden Orb provide additional scale across the project. Delivered within nine months of acquisition and at less than A$10/oz discovery cost, the MRE represents an important de-risking milestone and a strong platform for future resource expansion.
Drilling to Recommence Across High-Grade Marda Targets
LM1 has continued to strengthen the Marda growth story through significant assay results from Evanston and Golden Orb, confirming that mineralisation remains open beyond the existing resource model. Recent drilling has returned shallow and high-grade intercepts, supporting the view that Marda remains materially underexplored. Importantly, drilling is planned to recommence in May 2026, targeting new downdip extensions across Golden Orb, Marda Central and old workings trends, while broader prospect reviews continue across LM1’s 500km²+ tenure package. This is significant from an investor perspective, as the Company is not solely reliant on expanding the existing 342koz resource base, but also retains genuine greenfield discovery potential across a large and prospective goldfields landholding.
Compelling Upside Underpinned by Maiden MRE and Significant Assays
We update our valuation for LM1 to $0.48 per share in the base case, representing ~255% upside and $0.56 per share in the bull case with ~315% upside, deriving a Price/NAV of 0.26x. With increasing M&A and consolidation activity across the broader WA gold sector, companies with defined resources, granted Mining Leases, and large prospective land packages are becoming increasingly attractive. This is particularly important given the current gold price environment, which is improving the economics of previously marginal or underdeveloped gold assets and increasing the appeal of near-infrastructure resources. Marda’s location in a historically productive district, together with its proximity to established processing infrastructure, provides potential development optionality that may not be fully reflected in a simple EV/resource valuation. Overall, the combination of a defined resource base, large under-explored landholding, and active drilling pipeline strengthens LM1’s re-rating potential.