ASX-listed Vault Minerals has approved an A$80-million expansion of its King of the Hills (KoTH) processing facility, positioning the Leonora operation in Australia for increased throughput and long-term growth. The expansion, announced as part of the company’s half-year financial results, underscores Vault’s strategy to optimise its portfolio and enhance production capacity.

The expansion will see the KoTH plant increase throughput capacity to six-million tonnes a year - a 20% uplift on the 2024 financial year's levels. The project includes the installation of a new crushing circuit, which will improve efficiency and reduce operating costs. The upgrade will also enhance the wet plant and classification circuit, facilitating potential throughput beyond seven-million tonnes a year.

Vault’s Leonora operations currently hold ore reserves of 2.24-million ounces and mineral resources of 6.02-million ounces. The company believes there is further upside potential through exploration and re-evaluation of satellite deposits, particularly given the prevailing gold price environment. The KoTH expansion forms part of a broader strategy to maximise the value of these assets and extend the mine’s operational life.

Beyond the initial Stage 1 upgrade, Vault is considering a Stage 2 expansion, which will increase throughput capacity to between seven- and eight-million tonnes a year. This will require an additional capital investment of A$65-million to A$80-million and include further upgrades such as a regrind ball mill, increased gravity circuit capacity, and expanded tailings discharge capabilities.

In parallel with the expansion, Vault has restarted in-mine exploration at both KoTH and Darlot, with drilling activity set to ramp up in the second half of the current financial year. This exploration push, combined with the plant expansion, could unlock further opportunities for regional growth and resource conversion.

Meanwhile, Vault reported strong financial performance for the half-year ended December 31, 2024. The company achieved group gold production of 195 417 oz and sales revenue of A$678.8-million, with a net profit after tax of A$119.3-million. Vault ended the period with a robust balance sheet, holding A$575.6-million in cash and bullion and no debt.

SUGAR ZONE RESTART
Vault is also progressing plans to restart operations at its Sugar Zone gold project in Canada, following an updated ore reserve and mineral resource estimate. The revised ore reserve stands at 1.9-million tonnes at 5.2 g/t for 325 000 oz, while the mineral resource has been updated to 4.8-million tonnes at 8.2 g/t for 1.28-million ounces.

The company is positioning Sugar Zone to benefit from strong gold prices, with its ore reserve modelled at a C$2 600/oz gold price, which is below the current spot price. The mine plan supports a 6.5-year life-of-mine, with yearly production expected to average about 50 000 oz at an all-in sustaining cost of C$2 000/oz.

Vault has committed to a low-capital-intensity restart, with an estimated C$18-million in restart capital, primarily for the construction of a new Southern tailings storage facility. The operation will rely on the existing processing plant, which has gold recoveries of 95%. Preproduction development is expected to take 9 to 12 months, with expenditure of C$55-million to establish multiple stoping fronts ahead of full-scale production.

Regulatory approvals are also progressing, with Vault receiving confirmation from the Ontario Ministry of Mines that First Nations consultations have been completed for key closure plan amendments. The company is advancing permitting applications for the new tailings facility, ensuring long-term operational continuity.