Australian Gold and Copper (ASX:AGC) Extends High-Grade Zone: Buy Now or Wait for March Drilling?

Australian Gold and Copper Extends Achilles High-Grade Zone Ahead of New Drilling

Australian Gold and Copper (ASX: AGC) continues to build momentum at its Achilles discovery in New South Wales, with five new diamond holes reported yesterday delivering exceptional silver and gold grades that were not included in the company’s maiden resource estimate. Trading at A$0.23 with a market cap of around A$60 million, the stock has nearly doubled from its mid-2025 lows as investors recognise the emerging scale of this polymetallic system.

The latest results include 33 metres at 264g/t silver equivalent and a high-grade hit of 3 metres at 1,123 g/t silver equivalent (within a broader 33 m at 264 g/t AgEq). These grades sit well above the resource average of 116g/t, suggesting the northern zone could meaningfully upgrade the overall deposit quality. Managing Director Glen Diemar noted the deposit “remains open at depth,” which is exactly what investors want to hear from an explorer still defining boundaries.

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Achilles Resource Shows Clear Growth Potential

The December 2025 maiden resource outlined 38.5 million ounces of silver equivalent across 10.3 million tonnes. What makes this estimate compelling is the quality breakdown: 58% sits in the higher-confidence Indicated category at 141 g/t, while the inferred portion grades 93 g/t. Furthermore, approximately 75% of the total resource (28.7 Moz) is classified as open-pit constrained, a critical factor for investors as it suggests lower potential development costs and simpler extraction compared to deep underground-only mines. This split suggests the geological model is robust, with plenty of room to convert more ounces as drilling continues.

Perhaps the most impressive number for value-focused investors is the discovery cost. The company found these 38.5 million ounces for less than A$0.14 per ounce, achieved through disciplined drilling since the first intercept in April 2024. This efficiency matters because it shows management can grow resources without burning through excessive cash.

Belt-Scale Strategy Opens Second Resource Opportunity

AGC is not a one-project story. The completion of the Browns Reef acquisition in November 2025 doubled the company’s landholding to 2,600 square kilometres, making AGC the dominant explorer across the South Cobar Basin. This belt-scale position provides multiple shots on goal beyond just Achilles.

A 10,000-metre resource definition program is slated to begin in late Q1 2026, targeting both an upgrade at Achilles and a maiden resource at Browns Reef-Evergreen. This second deposit could become a meaningful value driver if early drilling confirms similar mineralisation styles. For investors, having two resource opportunities within the same company reduces single-project risk while amplifying exploration upside.

The Investor’s Takeaway for Australian Gold and Copper

For investors comfortable with exploration risk, Australian Gold and Copper offers an interesting proposition at current levels. A 38.5 million ounce resource inside a A$60 million market cap implies the market is pricing in significant uncertainty around development timing and future funding. That discount could narrow quickly if upcoming drilling delivers as management expects.

The bull case is straightforward: proven resource growth potential, grades improving with depth, efficient capital deployment, and a clear target to more than double the resource by year-end. Strong precious metal prices provide a helpful tailwind.

However, risks remain. Australian Gold and Copper is a pre-revenue explorer with no near-term production pathway. Future drilling will likely require additional funding, and commodity prices can shift sentiment quickly.

At current levels, Australian Gold and Copper appear reasonably valued for an explorer with defined ounces and visible catalysts ahead. The March 2026 drilling program will be the next major test. For investors seeking small-cap precious metals exposure with genuine discovery potential, this is a name worth watching.