Exploration Discovery Series - Coffee with Samso: The Pegasus Gold Discovery — Unlocking a Million Ounces in a Brownfields Camp.

Coffee with Samso | Episode 212 | UWA Club, Crawley, Western Australia.

Guest: Darren Cooke – CEO, FireFly Metals Ltd (ASX: FFM)

Introduction

In this episode of Coffee with Samso, we continue our Exploration Discovery Series with one of the most fascinating stories to come out of Western Australia’s goldfields — the Pegasus gold discovery.

This story is special. Not because Pegasus was a greenfields success, but precisely because it wasn’t. It was hiding in plain sight — within the Swiss cheese of decades of drilling in the Kundana gold camp. In 2014, Pegasus was recognised as one of the most significant discoveries of the decade.

At the time of its unveiling, the project hosted a resource of 2.1 million tonnes at 11.4 g/t Au, containing approximately 763,000 ounces of gold. Northern Star Resources (ASX: NST) would later prove what Bill Beament said at the time — that this would be a million-ounce deposit just 350 metres from their Rubicon mine.

To unpack this milestone discovery, I spoke with Darren Cooke, CEO of FireFly Metals and the former geology and long-term planning manager for Barrick at Kundana during the Pegasus discovery years.

This conversation isn’t just a walk down memory lane. It’s a technical, strategic, and cultural deep dive into how great discoveries can be made in places everyone thinks they already know.

 

Chapters

00:00  Start

02:39  Introduction

04:03  Introduction to Darren Cooke.

04:54  The early days of the Discovery - Pre 2011

07:11  The Unlocking of the Historical Dataset - 2011 to 2012

08:32  The Duration of the Work to “work” the data.

9:45  What was the structural concept?

10:47  Was the narrow mineralisation of Kundana the key to thinking differently?

11:58  With hindsight, was Pegasus easy to define/discover?

12:38  The double plunging mineralisation is the thinking that helped other discoveries?

13:48  Well Drilled Does Not Mean Well Explored - Quality of Data

14:46  Time is required to understand historical data

15:42  Geological Models are only a good guide.

16:58  How much confidence did Management know about the Pegasus potential?

18:43  The Northern Star “Thinking”.

22:15  Was Anton Billis a good JV partner?

23:11  Was the purchase price of AUD $75M cheap?

24:25  Was there something that could have made Pegasus not a discussion?

25:52  Is there more discoveries left to discover from “Brownfield” projects?

27:10  Is there another Pegasus still out there like a Never Never?

28:16  A different view to a Brownfield project?

29:41  Brownfield projects should be more about a Brownfield new discovery not a reintroduction of the old concepts.

31:08  A Mineral System Is Always More Than One Success.

32:30  The FireFly Story. (Take out the bit I said about “Dont spoil the Story”

34:00  Is Northern Star the new generation of Western Mining in terms of quality work. 35:38  The skillset required in developing a Mining of Mineral Resources

36:59  The culture DNA of Northern Star.

37:45  Words of Wisdom to the new generation of geologists.

39:14  A Special DNA to Find the Solution.

40:29  Darren last Words

40:56  Conclusion

Setting the Scene – Kundana in the 2000s - The Pegasus Gold Discovery

The Kundana Province is no stranger to gold. By the early 2000s, it was already a 10Moz gold camp. The ground around Pegasus was peppered with drill holes — hundreds of them — yet the discovery remained elusive.

In 2005, Placer Dome drilled the first hole into what would later become Pegasus. But they walked away.

Fast-forward to 2011–2012, a new team at Barrick re-examined the data. What followed wasn’t a stroke of luck but a combination of fresh geological thinking, technical persistence, and the right mindset to challenge old assumptions.

“It wasn’t that Pegasus wasn’t drilled. It was that no one had looked at the data differently. We just saw what others missed.” – Darren Cooke

Unlocking the Historical Dataset (2011–2012)

When Darren stepped into the Barrick geology and planning role, the first thing the team did was dig through the database — not for something new, but for something overlooked.

• 100+ drill holes were already in the area.

• Most were shallow and targeted under a subvertical plunge model.

• Hits were dismissed because follow-up holes below were barren.

• No one questioned whether the plunge direction was wrong.

Darren’s team challenged the model. By recognising a double-plunging shoot orientation, they unlocked a structure that others had effectively drilled around.

“It was a classic case of model bias. Everyone was fitting data to the model rather than re-examining the model itself.”

The Turning Point – Geological Insight Meets Practical Pressure

Pegasus wasn’t just a technical story. It was also a story about operational necessity.

The Barrick Kundana team was running out of ore. The long-term planning and geology groups collaborated closely to rethink their targeting strategy. It was this internal pressure that drove them to rework the historical data.

The double plunge model that emerged:

• Explained the original hit and subsequent misses.

• Predicted mineralisation at depth offset from previous holes.

• Led to rapid resource definition once drilling resumed.

The result: a million-ounce gold system hiding between existing infrastructure and old drill collars.

“Well Drilled” Does Not Mean “Well Explored”

One of the most powerful takeaways from this conversation is the difference between density of drilling and quality of exploration.

“Well drilled doesn’t mean well explored. You can have a pin cushion of holes and still miss the prize.”

This statement resonates across WA discoveries:

• Hemi sat beside 1.4Moz of known gold.

• Never Never was hidden in existing data.

• Pegasus was 350m from Rubicon and hiding in plain sight.

Brownfields areas are full of opportunity, but only for those willing to break models and reframe the geological story.

From Discovery to Development – The Northern Star Effect

In 2014, Barrick sold the Kundana assets to Northern Star Resources for $75 million. Barrick described the assets as “high-cost, short-life.” Northern Star saw the opposite: long-life, company-making assets.

The cultural difference was stark:

• Within weeks, Northern Star doubled drill rigs at Pegasus.

• Approved an underground decline for drilling access.

• Backed the geological team to prove the model quickly.

“Every mine has its right size owner. For Barrick, Pegasus was peripheral. For Northern Star, it was core.”

The entrepreneurial mining mindset turned geological opportunity into economic reality.

Brownfields Discovery – A Playbook for the Future

The Pegasus story mirrors many of WA’s recent major discoveries. It shows:

• 🧭 Brownfields is fertile ground — geology doesn’t stop at mine fences.

• 🧠 Challenging geological dogma can change everything.

• 💰 The right owner and investment are crucial in turning potential into production.

• 🪨 Every mineral system is bigger than one orebody.

“Once you’ve found one part of the system, you know there’s more hanging around. Pegasus unlocked the belt. That thinking helped lead to Millennium and more.”

Lessons for a New Generation of Geologists

Darren’s advice to young geologists is simple:

• Don’t stay in the Perth office — get into the field.

• Don’t accept geological interpretations as fact — interrogate them.

• Talk to other geos — learn different ways of seeing things.

• Be persistent — chew harder when the work gets tough.

“Discoveries like Pegasus don’t come from staring at a computer. They come from challenging assumptions, collaborating across disciplines, and getting your boots dirty.”

Samso Concluding Comments

The Pegasus discovery is one of those stories that will be told for decades — not because it was lucky, but because it exemplifies what happens when good geology meets the right mindset.

It’s a reminder that a deposit missed is not a deposit lost, and that WA’s brownfields have plenty more to give to those willing to think differently.

Northern Star’s success with Pegasus was built on the back of a strong geological idea, supported by bold corporate action. This is the essence of Australian gold exploration history — and the kind of story Samso exists to document.

 

The Samso Way – Seek the Research

Here at Samso, we pride ourselves on delivering content for investors that is independent and informed by over three decades of experience in the industry. We are always asking the question that may sound simple and irrelevant, but these are typically the ones that make sense to you, the one seeking the knowledge.

Our mission is simple: cut through the noise and spotlight what matters—genuine stories, grounded insights, and real opportunity.

Our content is well-researched and is only created if the team sees merit in discussing the company or concept. Investors can explore our three core platforms:

• Coffee with Samso

• Samso News

• Samso Insights

There may be numerous paths to success in investing, but the common thread among successful individuals is that they remain committed to making informed decisions. Equip yourself with the right knowledge and tools, and you will be well on your way to achieving your financial goals.

Most importantly, investors need to be absolutely diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew. As they say, Rome wasn’t built in a day, and the Great Wall stood because it took centuries to complete.

The Samso Philosophy:

Stay curious. Stay sharp.

And remember—digging deeper always uncovers the real value.

In Life, there is no such thing as a Free Lunch.

Happy Investing, and the only four-letter word you need to know is DYOR.

To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018.