Chart Analysis
LM1 Daily Timeframe Chart as of 19 May 2026
Leeuwin Metals (ASX: LM1) Commences 5,000m RC Drilling at 342,300oz Marda Gold Project — DHEM Anomalies and 11 Untested Structural Trends Targeted Outside the Resource Envelope
Four categories of drill target across a single 5,000-metre RC program: resource extensions to the existing 342,300 oz MRE, two newly identified DHEM conductors outside the resource envelope (Evanston ~150m × 130m, Golden Orb ~165m × 165m), eleven under-drilled north-south structural trends at Marda Central, and historical gold workings at Atkinson Find and Allens Find where prior rock chips returned up to 209 g/t Au. The program has commenced at the Marda Gold Project near Southern Cross in Western Australia, with first assays expected in the coming months. The stock moved +33.3% to $0.180 on 19 May 2026, closing near the $0.185 session high with only a 2.7% intraday pullback — the tightest close-to-high spread of any article in this series.
What's Being Drilled and Why It Matters
| Target Category | Details |
|---|---|
| Resource extensions | Testing extensions to 342,300 oz MRE along known structural corridors at Marda Central |
| DHEM anomalies | Evanston (~150m × 130m) and Golden Orb (~165m × 165m footwall) — conductive, sulphide-rich targets outside the MRE envelope, identified from surveys in recently drilled Leeuwin holes |
| Structural trends | 11 under-drilled NNW-striking quartz vein systems at Marda Central with high-grade rock chips but limited systematic drill testing |
| Historical workings | Atkinson Find (rock chips to 62.4 g/t Au) and Allens Find (to 18.55 g/t Au at a historic state battery site; peak across all workings: 209 g/t Au) |
The DHEM targets are the most significant exploration component. Downhole electromagnetic conductors indicate electrically conductive material that may include sulphide-hosted gold mineralisation — but conductors can also be caused by graphite, pyrrhotite, or conductive groundwater. Both anomalies sit outside the current resource envelope, meaning any drill success would be additive to the existing 342,300 oz.
The Existing Marda Resource — 342,300 oz, 78% Inferred
The maiden MRE (announced December 2025) totals 10.2Mt at 1.04 g/t Au for 342,300 oz: Indicated 2.1Mt at 1.1 g/t for 73,800 oz plus Inferred 8.1Mt at 1.03 g/t for 268,500 oz. Mineralisation is controlled by shear zones through competent chert and BIF within mafic/ultramafic stratigraphy, with gold associated with pyrite alteration. The Marda district has produced historically, including 143,000 oz at 1.9 g/t average by Ramelius Resources between 2019 and 2023 — Ramelius remains a major LM1 shareholder.
No scoping, pre-feasibility, or feasibility study has been completed. East Coast Research initiated coverage with a fair value of A$0.38 per share.
Risks & Considerations
This is a drill commencement announcement — no new assay results were disclosed. The +33.3% move is based entirely on program design and target descriptions, not confirmed exploration results. Rock chip grades of 209 g/t, 62.4 g/t, and 49.2 g/t Au are selective grab samples from surface outcrops and workings — they are point data and not representative of broader deposit characteristics. DHEM conductors require drill confirmation, as non-economic causes (graphite, pyrrhotite) cannot be ruled out until holes are completed and assayed.
The existing resource is 78% Inferred, with no economic study demonstrating viability. The Competent Person for the announcement (Christopher Piggott) is the Executive Chairman — while permitted under JORC, this represents a potential conflict of interest. Cash position was not disclosed, though the company states it is well funded for the current program.
Key Dates & Timeline
| Date | Event |
|---|---|
| December 2025 | Maiden MRE — 342,300 oz Au |
| 19 May 2026 | 5,000m RC drilling commenced; share price moved +33.3% |
| Coming months | First assay results expected |
Price Data
- Previous Close: $0.135
- Close Price (19 May 2026): $0.180
- Change (19 May 2026): +33.3%
- 52-Week Range: $0.083 – $0.310
Notable Price Levels
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$0.310 — 52-week high, set during the initial re-rating around the maiden MRE period (December 2025). The stock subsequently retraced approximately 56% to the $0.135 pre-announcement level. At ~72% above the current close, the stock has recovered roughly half of its peak-to-trough decline on a drill commencement announcement — an unusually strong market reaction for a program with no results yet.
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$0.180 — announcement-day close, within 2.7% of the $0.185 session high. This is the tightest close-to-high spread in this article series, indicating sustained buyer control with minimal selling pressure into the close. At this level, LM1's market capitalisation is approximately A$23 million against 342,300 resource ounces — implying roughly A$67 per resource ounce.
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$0.135 — undisturbed close and the base of the pre-announcement consolidation. The stock had been trading around $0.120–$0.145 for several weeks. A retracement here would fully unwind the drill commencement premium.
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$0.083 — 52-week low. A return here would reverse the entire post-MRE recovery and drill program narrative, pricing LM1 back to its most pessimistic valuation of the past 12 months.
Summary
Leeuwin Metals has commenced a 5,000-metre RC drilling program at the Marda Gold Project targeting four categories of opportunity: extensions to the 342,300 oz MRE, newly identified DHEM conductors at Evanston and Golden Orb (both outside the resource envelope), eleven under-drilled structural trends, and historical gold workings with rock chips to 209 g/t Au. The stock moved +33.3% to $0.180 on 19 May 2026, closing within 2.7% of the session high. No assay results were reported — the announcement relates to drill commencement only, with first assays expected in the coming months. The existing resource is 78% Inferred with no economic study completed. The DHEM targets represent the highest-impact component of the program — if drill-confirmed as gold-bearing, they would be additive to the current resource.
This article is for informational purposes only and does not constitute financial advice. Market Flow does not recommend buying or selling any securities. Past performance is not indicative of future results. Readers should conduct their own independent research and consult a licensed financial adviser before making any investment decisions. This content is published in accordance with ASX Market Rules and is not a financial product recommendation.
