Reshaping Victorian Gold Exploration

Aureka Limited (ASX: AKA), a revitalised gold exploration company, has undergone a substantial transformation following its recapitalisation and rebranding in late 2024. Formerly known as Navarre Minerals Limited, the company now focuses exclusively on advancing high-grade gold projects in Victoria’s prolific mining corridors. With a strengthened balance sheet featuring AU$4.9 million in cash reserves and no debt, Aureka is positioned to execute its 7,000-meter drilling program across its portfolio, which includes the flagship Stawell Corridor Irvine Prospect and the Tandarra Gold Project JV. Trading at an enterprise value per ounce (EV/Ounce) of AU$14.6—significantly below the peer median of AU$43.9—the company offers leveraged exposure to gold exploration success in a jurisdiction with established infrastructure and mining heritage.

Aureka’s rebirth stems from a comprehensive restructuring under a Deed of Company Arrangement (DOCA) in mid-2023, which eliminated AU$3.4 million in convertible debt and legacy liabilities. The company retained four Victorian gold projects acquired for AU$525,000—assets that had previously seen AU$32.7 million in exploration expenditures. Post-restructuring, Aureka consolidated its shares at a 500:1 ratio and raised AU$6 million through an oversubscribed placement, attracting cornerstone investor Dunkeld Pastoral Co (9.78% ownership). This financial overhaul reduced shares outstanding to 102.4 million and relisted the company on the ASX in November 2024 under its new identity, reflecting a strategic shift toward Victoria’s goldfields.

The portfolio centres on three key areas:

1. Stawell Corridor Irvine Prospect: Hosts a JORC-compliant resource of 304 koz gold at 2.43 g/t, complemented by an exploration target of 280–420 koz at 2–3 g/t.
2. Tandarra Gold Project JV: A 49%-owned joint venture with Catalyst Metals (ASX: CYL) targeting high-grade mineralisation, including intercepts of 12.9m @ 33.1 g/t Au.
3. St Arnaud and Jubilee Projects: Early-stage assets with historical mineralisation data awaiting systematic exploration.

Recapitalisation and Exploration Momentum

The company’s November 2024 recapitalisation marked a turning point. Share consolidation reduced outstanding shares from 1.5 billion to 3 million pre-raise, while the AU$6 million placement—oversubscribed with AU$9 million in bids—provided critical funding. Post-restructuring, Aureka resumed trading with AU$4.9 million in cash and a simplified capital structure, enabling aggressive exploration.

Drilling programs commenced in January 2025, focusing on:

• Irvine Project: A 2,000-meter diamond drilling campaign targeting down-plunge extensions of the Resolution Lode, where arsenopyrite mineralisation in silicified breccias hints at resource expansion potential.
• Tandarra JV: A six-hole, 1,000-meter follow-up program at the Lawry prospect, building on 2022 results of 12.9m @ 33.1 g/t Au, including a standout 0.5m interval grading 831 g/t Au.

Simultaneously, Nordic Geoscience is reprocessing historical geophysical data across the Stawell Corridor to identify new basalt dome targets—a geological feature correlated with gold mineralisation in the region.

Half-Year Performance

For the six months ending December 2024, Aureka reported a net loss of AU$2.05 million, driven by exploration expenses (AU$741k) and administrative costs (AU$686k). However, the balance sheet improved dramatically post-recapitalisation:

• Cash reserves: AU$4.9 million (up from AU$506k in June 2024).
• Shareholder equity: AU$4.98 million (reversing a AU$1.5 million deficit).
• Market capitalisation: AU$10.8 million as of March 2025.

With operating cash outflows of AU$1.7 million for the half-year, the company retains sufficient liquidity to fund near-term drilling. The current EV/Ounce metric of AU$14.6 compares favourably to peers, suggesting undervaluation relative to contained gold resources

Resources Expansion and Strategic Advantages

1. High-Grade Exploration Potential The Irvine Project’s Resolution Lode remains the primary focus. Historical drilling intercepted visible gold in multiple zones, including 4.1m @ 10.3 g/t Au. Current drilling aims to extend mineralisation beyond the existing resource, with success likely to enhance project economics given proximity to the operational Stawell Gold Mine. 2. Joint Venture Synergies The Tandarra JV leverages Catalyst Metals’ technical expertise, reducing Aureka’s capital burden while maintaining exposure to high-grade discoveries. The partnership has already delineated a 1.2km mineralised corridor at Lawry, with assays pending from the latest program. 3. Management Alignment Leadership holds skin in the game: Managing Director James Gurry acquired 1 million shares post-listing at AU$0.10, while new Non-Executive Chairman Graeme Hunt (ex-Lihir Gold) brings decades of operational experience. This alignment strengthens investor confidence in execution.

Aureka enters 2025 with renewed operational focus and a clean balance sheet. Near-term catalysts include assay results from Irvine and Tandarra (Q2 2025) and updated JORC resource estimates (H2 2025). The company’s lean structure—two full-time staff and AU$4.9 million in cash—provides flexibility to advance projects without excessive overhead.

Longer-term, Aureka’s strategic land acquisitions and partnerships position it to capitalise on Victoria’s resurgent gold sector. With exploration success, the current valuation gap relative to peers could narrow, offering upside for investors seeking exposure to high-grade discovery potential in a stable jurisdiction.

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