Minerals 260 Limited (ASX:MI6) has released a positive pre-feasibility study for its 100% owned Bullabulling project in Western Australia. The study outlines a large-scale, open-pit gold operation targeting annual production of 150,000 ounces starting in late 2028. Financial modelling points to a post-FID net present value of A$2.3 billion, with a 43% internal rate of return and an estimated two-year payback period. The company expects all-in sustaining costs to average A$2,520 per ounce over a 19-year mine life.

The project’s maiden ore reserve stands at 2.5 million ounces, comprising 90 million tonnes at 0.86 grams per tonne of gold. Concurrently, the company updated its total mineral resource estimate to 6.2 million ounces, up from the 4.5 million ounces reported in December 2025. This growth reflects the ongoing expansion of the project’s geological base, which remains a key pillar for the developer.

"Fifteen months after acquiring the Bullabulling Gold Project, we are presenting outcomes of our PFS and a Maiden Ore Reserve. We always believed Bullabulling could become a significant gold operation, and today's outcomes confirm the potential for this high-margin, large-scale, long-life Project." — Luke McFadyen, Managing Director

Minerals 260 acquired this asset in April 2026, a move intended to accelerate its transition toward becoming a mid-tier gold producer. The current development strategy employs a staged approach to processing infrastructure, beginning with a 5 million tonne per annum plant. The design allows for potential future expansion to 7.5 million tonnes, providing operational flexibility as the company matures its production profile.

Early construction activities, including village and water infrastructure works, are already underway. The company is funding this pre-FID phase through existing cash reserves, allocating A$180 million to support site preparation, long-lead item procurement, and detailed engineering design. With the PFS complete, the team has shifted focus toward the definitive feasibility study, which commenced in May 2026. The board intends to review the final study in the first quarter of 2027 before making a formal final investment decision regarding the full-scale construction of the mine.

Read the full announcement: Bullabulling PFS Confirms High-Margin, Large-Scale Gold Mine