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    MMS Drill-for-Equity at Leonora South: funding and cost insights for mine teams

    March 12, 2026|

    Reviewed by Joe Ashwell

    MMS Drill-for-Equity at Leonora South: funding and cost insights for mine teams

    First reported on International Mining – News

    30 Second Briefing

    Mineral Mining Services has mobilised its specialised reverse circulation drill fleet and crews to start a new RC drilling programme at the Leonora South gold project near Kookynie, Western Australia. The campaign follows a formalised “Drill-for-Equity” agreement with GoldArc Resources, under which MMS will receive part of its compensation in GoldArc equity rather than cash. The structure reduces upfront drilling costs for GoldArc while locking MMS into project upside, a model that could influence funding strategies for early-stage gold exploration in the Leonora–Kookynie belt.

    Technical Brief

    • Drill-for-equity models can unlock early-stage work where traditional cash-funded RC programmes are delayed.

    Our Take

    Mineral Mining Services’ recent mining services win at Ora Banda Mining’s Davyhurst gold project in Western Australia suggests the contractor is building a concentrated footprint in the WA Goldfields, which can reduce mobilisation costs for work at Leonora South and nearby Kookynie projects.

    In our database of gold stories, Western Australia features heavily in project and contract awards, signalling that juniors like GoldArc Resources can often leverage alternative financing structures such as drill-for-equity to advance exploration without competing head‑on for scarce cash funding.

    For a contractor such as MMS, combining traditional service contracts (as at Davyhurst) with equity-linked drilling at Leonora South diversifies revenue and gives upside exposure to gold, a pattern that can make service providers more aligned with junior explorers’ success in the region.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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