Native Mineral Resources (ASX: NMR) has achieved a significant milestone with its first gold production from the Blackjack Gold Project in Western Australia. The Company announced the successful inaugural gold pour on 27 November 2025, marking the transition from development to commercial production.
This achievement represents a turning point for the Perth-based explorer, which has been advancing the project through rapid development over recent months.
Blackjack Delivers Commercial Production
The first gold bar produced at Blackjack weighed approximately 145 ounces, with a preliminary estimated value of around AUD 470,000 based on current gold prices. This pour came from initial ore processed through the Company’s processing facility.
Key highlights from the announcement include:
- First gold production achieved ahead of schedule
- Processing plant performing to design specifications
- Mining operations progressing as planned
- Additional gold pours expected in coming weeks
BJM019 & BJM020 – 325.8oz gold doré smelt at Blackjack
The Company’s Managing Director expressed satisfaction with the operational progress, noting the team’s commitment to achieving this milestone within the projected timeframe.
Project Background and Development Timeline
The Blackjack Gold Project is located approximately 50 kilometres north of Coolgardie in Western Australia’s goldfields region. The project sits within the broader Kookynie mining district, an area with extensive historical gold production.
Native Mineral Resources acquired the project in 2023 and moved swiftly through feasibility studies and development planning. Mining activities commenced in mid-2025, with ore stockpiling beginning in August.
The development timeline demonstrates efficient project execution:
- April 2025: Final approvals secured
- June 2025: Mining operations commence
- September 2025: Processing facility commissioned
- November 2025: First gold production achieved
Aerial view of Blackjack Operation
Processing Operations and Production Outlook
The processing plant at Blackjack utilises conventional crushing, grinding, and gravity concentration followed by carbon-in-leach technology. Initial processing rates are tracking toward nameplate capacity of approximately 400,000 tonnes per annum.
Gold recoveries from early processing batches have ranged between 88% and 92%, aligning with metallurgical test work conducted during feasibility studies. The Company expects recoveries to stabilise as operations optimise.
Production guidance for the first full year of operations targets between 15,000 and 18,000 ounces of gold, though this may be revised as operational data accumulates.
Financial Position and Funding
Native Mineral Resources funded the Blackjack development through a combination of equity raises and debt facilities. The Company reported cash reserves of approximately AUD 8 million as of September 2025, supplemented by a AUD 15 million debt facility with a regional financier.
Revenue from gold sales will provide cashflow to support ongoing operations and exploration activities across NMR’s broader project portfolio. The current gold price environment, with prices exceeding AUD 3,800 per ounce in late November 2025, provides favourable economics for the operation.
All-in sustaining costs are projected at approximately AUD 1,650 to AUD 1,850 per ounce during the first year, positioning Blackjack as a profitable operation at current gold prices.
Exploration Potential and Resource Growth
Beyond the initial mining areas, Native Mineral Resources has identified multiple exploration targets within the Blackjack project tenements. Recent drilling programs have returned encouraging results from several prospects adjacent to current mining operations.
The Company plans to conduct systematic exploration across these targets while mining progresses, potentially extending the project’s mine life beyond the initial estimates of four to five years.
Regional consolidation opportunities also exist, with several smaller historical gold workings located within economic trucking distance of the Blackjack processing facility.
Market Response and Share Performance
NMR shares responded positively to the gold production announcement, with trading volumes increasing significantly on the day of the release. As of 27 November 2025, the stock was trading at approximately AUD 0.070 per share.
The Company’s market capitalisation stands at around AUD 70.23 million, with approximately 300 million shares on issue. This valuation suggests the market may be pricing in successful ramp-up to full production rates.
Industry Context: Gold Sector Momentum
The achievement comes during a period of sustained strength in gold markets, driven by geopolitical uncertainties, inflation concerns, and central bank buying. Australian gold producers have benefited from both rising international gold prices and a relatively weaker Australian dollar.
Western Australia remains the nation’s premier gold-producing region, accounting for approximately 70% of Australia’s total gold output. The state’s established infrastructure, skilled workforce, and supportive regulatory environment continue to attract mining investment.
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What’s Next for Native Mineral Resources
Native Mineral Resources now faces the critical challenge of ramping up to consistent production rates while managing costs and maintaining safety standards. The coming months will be crucial in demonstrating operational capability.
Management has indicated that regular production updates will be provided as the operation matures. Investors will be watching closely for evidence of steady gold production volumes and confirmation of cost guidance.
The Company also plans to advance exploration at its other project interests in Western Australia, potentially identifying additional development opportunities to follow Blackjack.
With commercial gold production now underway, Native Mineral Resources joins the ranks of Australian gold producers. The success of the Blackjack operation in achieving nameplate production rates will determine whether NMR can establish itself as a consistent performer in the sector.
