Forrestania Resources (ASX: FRS) has reported a substantial resource upgrade at its British Hill project, located in the gold-rich region of Western Australia. The company confirmed a 175,000-ounce increase in the gold resource, driven largely by a deep drill intercept of 29 metres at 3.91 grams per tonne (g/t) gold. This intercept lies beneath the current resource envelope, suggesting the potential for further expansion at depth.
The drilling program targeted the southern extension of the known mineralised zone, and the results indicate continuity of high-grade mineralisation beyond the previously modelled limits. The company said the new data will be incorporated into an updated mineral resource estimate expected later this year.
Forrestania Resources is a junior explorer focused on gold and base metals in Western Australia. The British Hill project sits within the prolific Forrestania greenstone belt, which hosts several historic and operating gold mines. The company has been systematically drilling the project over the past 12 months to test both near-surface and deeper targets.
The upgrade comes at a time of elevated gold prices, which have buoyed investor sentiment towards gold miners and explorers. Gold has traded above US$2,000 per ounce for much of 2026, providing a favourable backdrop for resource development projects.
While the 175,000-ounce addition is a meaningful increase for a junior explorer, the company has not yet disclosed the total resource base or the project's economic viability. Further metallurgical testing and scoping studies will be required to determine whether British Hill can be developed into a producing mine.
Market analysts have noted that the intercept grade of 3.91 g/t is above the average grade for many open-pit gold operations in the region, which typically range from 1.5 to 2.5 g/t. However, the depth of the intercept (reported as 'deep' but not precisely located) may add to mining costs if underground extraction is required. Forrestania has not yet indicated whether the mineralisation is amenable to open-pit or underground mining.
The company's next steps will include further drilling to test the lateral and depth extensions of the mineralised system, as well as geotechnical and environmental studies to support any future mining proposal. The project's proximity to existing infrastructure, including sealed roads, power, and water, is considered a positive factor.