Apr 02 2025 10 mins
Gold has touched an unprecedented AU$5,000 per ounce, and Adelong Gold Limited (ASX:ADG) is strategically positioned to capitalize on this remarkable market. Managing Director Ian Holland joins us to reveal the company's ambitious dual-strategy approach that sets it apart in Australia's competitive mining landscape.
At the core of Adelong's near-term value proposition is a clever joint venture with Great Divide Mining for the Adelong Gold Project in New South Wales. This partnership aims to fast-track production without diluting shareholders, targeting first gold within just 12 months. The economics are compelling – 15,000-20,000 ounces annually at costs below AU$2,000 per ounce, potentially generating hundreds of millions in free cash flow at current gold prices. Shareholders maintain 49% project interest while enjoying significant downside protection.
Meanwhile, the company's recently acquired Apollo Gold Project in Victoria has delivered exceptional exploration results. Multiple drill intercepts exceeding 100 gram-metres indicate substantial economic potential, but the real surprise came from Hayfield Reef, where high-grade antimony-gold mineralization (exceeding 3% antimony) was discovered. This epizonal deposit shares characteristics with economically significant regional projects like Fosterville and Sunday Creek. With China dominating the antimony supply chain and the mineral's critical status in Western economies, this discovery adds strategic value beyond gold alone.
Despite these compelling assets and near-term production potential, Adelong trades at a modest $7-8 million market capitalization. For investors seeking exposure to gold's strength while gaining leverage to critical minerals, Adelong offers a unique opportunity that warrants close attention as both projects advance toward their respective milestones. Follow their progress as they work to create substantial shareholder value through the coming year.