Update on Pereira Velho & Appointment of QP

Ajax plans a US$1.5M drilling campaign at Pereira Velho, targeting 500,000 ounces of gold.

What the company is saying

Ajax Resources PLC has appointed Rodrigo Mello, a Brazilian geologist with over 40 years of experience, as Qualified Person for its Pereira Velho Gold Oxide Project in Brazil. The company frames this as a step to validate historical data and advance toward a maiden Mineral Resource Estimate under the JORC Code. Ajax highlights a fully funded US$1.5 million budget for a 3,000-metre diamond drilling program set for November 2026, building on US$5 million already spent on 6,363 metres of previous drilling. The company emphasizes its medium-term goal of defining approximately 500,000 ounces of gold and notes that only 20% of the project area has been explored. Regulatory progress is presented as constructive, with permit requests submitted and feedback received from both the state environmental authority and National Mining Agency. The tone is optimistic, focusing on growth potential and technical advancement, while acknowledging that current resource numbers are historical and not JORC-compliant.

What the data suggests

The disclosed figures show Ajax has spent approximately US$5 million on prior exploration, including 6,363 metres of diamond drilling, and is now committing a further US$1.5 million for a new 3,000-metre program. The only quantified resource to date is a historical in-house estimate of 110,000 ounces of gold, not compliant with JORC standards. The company aims to define 500,000 ounces, but this remains an aspirational target with no supporting drill results or JORC-compliant estimate yet. Only 20% of the project area has been tested, leaving significant uncertainty about the scale and quality of mineralisation. Regulatory processes are underway but not yet complete, with drilling contingent on permit approvals. The technical narrative is credible in terms of process and budget, but the gap between current evidence and the stated medium-term objective is wide. No production, revenue, or economic assessment figures are disclosed.

Analysis

The announcement is generally positive in tone, highlighting the appointment of a highly experienced Qualified Person and the imminent start of a fully funded, US$1.5 million drilling programme. The narrative is supported by specific technical and budgetary disclosures, including prior exploration spend and drilling completed. However, the majority of the value-driving claims—such as the delivery of a maiden JORC-compliant Mineral Resource Estimate and the medium-term objective of defining 500,000 ounces—are forward-looking and have not yet been realised. The only realised resource figure (110,000 ounces) is historical and not JORC-compliant. The capital outlay is significant relative to the company's current stage, and the benefits (resource growth, potential future development) are contingent on successful exploration and regulatory approvals, with no immediate earnings or production impact. The language around 'significant resource growth' and 'scope for further growth' inflates expectations relative to the current evidence base, which is limited to historical drilling and a non-JORC resource estimate.

Risk flags

• ●Regulatory approval risk is material, as drilling cannot commence until permits from the Institute of Environment of the State of Alagoas and the National Mining Agency are secured. Any delays or adverse findings could push back the exploration timeline and increase holding costs.
• ●Resource definition risk is high because the current 110,000-ounce estimate is historical and not JORC-compliant. The target of 500,000 ounces is unproven, and there is no guarantee that drilling will deliver the desired scale or grade.
• ●Exploration coverage risk exists since only 20% of the project area has been explored. The remaining 80% could yield additional resources or could disappoint, making the upside potential highly speculative at this stage.
• ●Capital allocation risk is present, as US$1.5 million is being committed to a single drilling phase without assurance of success. If results are inconclusive, further funding may be required before any resource can be defined.

Bottom line

Ajax Resources is moving forward with a US$1.5 million, 3,000-metre drilling program at Pereira Velho, aiming to deliver a maiden JORC-compliant resource and ultimately define 500,000 ounces of gold. The appointment of an experienced Qualified Person and the fully funded budget lend credibility to the technical plan, but the only resource figure disclosed is a non-JORC 110,000 ounces, and the stated target remains unproven. Regulatory approvals are still pending, and only a fifth of the project area has been tested, so both upside and downside remain significant. Investors should treat the medium-term resource objective as speculative until new drilling results and a compliant resource estimate are delivered. The next critical milestone will be the actual start of drilling and any subsequent disclosure of assay results or resource estimates.

Announcement summary

(LSE:AJAX) Ajax Resources PLC has appointed RBM Consultoria Mineral, represented by Mr Rodrigo Mello, FAusIMM, as Qualified Person for its Pereira Velho Gold Oxide Project in Alagoas, Brazil. Mr Mello is a Brazilian geologist with over 40 years' experience in mineral exploration, mineral resource evaluation, and project development, and has previously prepared an NI 43-101 Technical Report for the project. He will lead the validation of the historical exploration database, refinement of the geological model, and technical work required to support a Mineral Resource Estimate in accordance with the JORC Code (2012 Edition). Ajax has submitted environmental and permit requests to the Institute of Environment of the State of Alagoas on 2 September 2026 and has met with both the Institute and the National Mining Agency regarding regulatory approvals and review of the Final Exploration Report for a priority tenement. The company has received constructive feedback from both authorities and understands that the relevant reviews are progressing. Subject to receipt of the required approvals, Ajax expects to commence an approximately 3,000 metre diamond drilling programme during November 2026. The exploration and resource-definition programme is fully funded with an estimated budget of approximately US$1.5 million. This programme builds upon approximately US$5 million in prior exploration, including 6,363 metres of diamond drilling across 47 holes. The principal objective is to deliver a maiden Mineral Resource Estimate in accordance with the JORC Code (2012 Edition) and to further delineate and expand the known gold mineralisation. Historic exploration has identified widespread, near-surface oxidised gold mineralisation hosted within fractured quartzite and gneiss units with relatively modest clay content. An in-house mineral resource estimate of approximately 110,000 ounces of gold, classified as Measured, Indicated and Inferred, was previously prepared and filed with the Brazilian National Mining Agency, but is historical in nature and not reported in accordance with the JORC Code. Exploration completed to date has covered only approximately 20% of the project area, leaving scope for significant resource growth and the testing of multiple untested targets. The company's medium-term objective is to define approximately 500,000 ounces of gold at Pereira Velho.

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