Meeka Metals Reports Significant High-Grade Gold Assays

Mereka Metal Limited delivered a modest sequential result but unable to meet expectations. The latest exploration success at Turnbeery highlights the company’s next growth opportunity by supporting underground resource expansion and improving future production potential

Meeka Metals Limited (ASX: MEK)

Meeka Metals Limited (ASX: MEK)announced on 22-July-2026 that they have completed diamond drilling ~200m below the Turnberry underground Ore Reserve intersected significant widths of high-grade gold. The company also reported chalcopyrite and pyrite associated with strong shearing indicate drilling has intersected the intermediate-level expression of an orogenic gold system with strong depth potential.

The drilling results show 52.3m @3.0g/t Au from 474.1m including 30.6m @3.4g/t Au and 10.5m @ 3.7g/t Au (26TBRD002). It means the company has discovered 52.3m width of gold zone with every 1 tonne of rock contains approximately 3g of gold. Other significant intercepts included 18.0m @3.0 g/t Au from 533m including 9m @5.1g/t Au and 13.8m @ 2.4g/t Au from 508m including 4m @ 5.8g/t Au.

Shearing intensity appears to increase toward the central zone, the encouraging geological continuity supports the potential for future resource upgrades through future drilling campaigns and could strengthen the long-term production profile, corresponding with increased grade and mineralization width of depth, highlighting the potential for significant extensions and growth to the current Turnberry Mineral Resource and increasing the mine’s life.

Quarterly activities report

MEK also declared their quarterly activities report as on 22-July-2026 with mining delivered 11,329oz Au in June 2026 quarter. Gold production reached 6,424oz (Mar-2026: 6,083oz) slightly higher than the previous quarter but below the expectation due to weak performance by the open pit mining contractor, resulting in delayed access to higher grade ore. This resulted an increased reliance on the lower grade surface stockpiles in processing plant despite maintaining stable processing throughput to 128kt and strong metallurgical recovery of 95%.

Operationally, the company made meaningful operational progress in which the higher-grade underground stope ore began entering the processing blend late in the quarter with underground ore making up a higher proportion of the blend going forward expected to account for approximately 40% of the processing blend in the Sep-26 quarter. Also, Meeka has also announced the conclusion of open pit mining in July 2026.

Financially, the company has produced 6,424oz and sold 6,248oz, generated mine operating cash flow of $6.4 m and an outflow of net mine cash outflow of $11.1m due to a significant growth capital investment of -$17.5m in new mines and expanded infrastructure projects, with cash decreased to $38m.

Outlook

Mereka Metals Limited despite delivering a modest sequential improvement in the June-26 quarter, was unable to meet expectations due to short-term operational constraints, primarily due to contractor week performance. The company is now transitioning towards higher-grade underground mining with the recent update of high-grade drilling results at Turnberry indicate strong resource expansion potential and an extended mine life, subject to further drilling and execution risk. Successful execution could improve production visibility and generate future cash flows.

(Source: Company Report)