Critical Resources Ltd (ASX:CRR) has started its inaugural reverse circulation (RC) drilling program at the Cap Burn Gold Project in Otago on New Zealand’s South Island, marking the launch of a broader, multi-stage gold exploration push in the country.
The initial scout program will comprise up to 10 RC holes for about 1,100 metres across a 1km strike length along the Cap Burn fault structure. Drilling is targeting the down-plunge potential beneath a large, well-defined arsenic-in-soil anomaly and is designed to be rapid and low-impact while testing the company’s geological model.
Drilling is expected to take two to three weeks, with samples to be sent to a New Zealand laboratory and assay results anticipated in mid-February 2026.
Managing director Tim Wither said the program has been designed for speed and efficiency with minimal disturbance and is guided by an updated geological model that incorporates learnings from the Rise and Shine discovery. He noted that significant parts of the Otago Schist Belt remain underexplored despite its production history, reinforcing the region’s potential for new discoveries.
"We are excited to commence drilling at Cap Burn, marking the start of a multi-stage exploration program in New Zealand. Cap Burn stands out as a geologically robust project in a region renowned for gold potential. Despite this rich gold production legacy, significant portions of the Otago Schist Belt remain underexplored. The recent discovery of Santana Minerals’ Rise and Shine deposit has had a substantial impact on the geological understanding of the Otago region, reaffirming it as one of the most prospective yet overlooked gold provinces in the Southern Hemisphere.
"The inaugural drill program has been designed for speed and efficiency, with minimal impact. The wide-spaced scout drilling will test the down-plunge potential beneath a well-defined arsenic-in-soil anomaly, guided by a renewed geological model leveraging the Rise and Shine discovery. We greatly appreciate the support of our landowners and all stakeholders and look forward to keeping everyone updated as the program advances."
Project location and regional analogues
Cap Burn sits on the northern edge of the underexplored Otago Schist Belt, within the same structural corridor and about 11 kilometres from OceanaGold’s Macraes operation, which hosts more than 10 million ounces of gold.
Cap Burn Project location ~11 km from OceanaGold’s Macraes Gold Operations with major and minor interpreted structures.
The project also shares geological similarities with Santana Minerals’ Rise and Shine deposit, where high-grade mineralisation was discovered beneath surface arsenic anomalies and near schist textural boundaries. Critical Resources views Cap Burn as a low-cost entry into a multi-million-ounce gold-producing region that is seeing renewed exploration interest.
Drill targets and geophysical/geochemical support
The current RC program will test beneath the Cap Burn fault, interpreted as the boundary between Textural Zone 3 and Textural Zone 4 schists.
Earlier work defined a more than 1 square kilometre arsenic-in-soil anomaly coincident with an electromagnetic boundary interpreted as the trace of the fault.
Legacy drilling in 2020 intersected broad zones of low-grade mineralisation, including 9.0 metres at 0.24 g/t gold from 54.0 metres, 1.8 metres at 0.76 g/t from 14.2 metres and 6.0 metres at 0.45 g/t from 173.0 metres, supporting the current down-plunge targeting strategy.
Broader New Zealand portfolio and next steps
Beyond Cap Burn, Critical Resources is progressing permit transfers for the Tokomairiro, Lammerlaw, Croesus, Silver Peaks and Rock & Pillar areas.
Once completed, the company plans field mapping and geochemical programs across the broader New Zealand portfolio to generate additional drill targets.
A staged work plan through to mid-2026 outlines follow-up drilling at Cap Burn, subject to results, alongside systematic early-stage exploration on the new permits.
Proposed work program for New Zealand exploration/prospecting permits. The above timeframes are indicative and subject to change without notice.