Red Metal lands two Qld government drilling grants for its copper-gold targets

• Red Metals inks drilling grants from Queensland government
• The grants will be used to carry out exploration at Gulf and Three Ways
• Heritage surveys are planned for June ahead of drilling in August

Special Report: The Queensland government has awarded Red Metals two collaborative drilling grants totalling $400,000 to undertake proof-of-concept drill tests on standout geophysical targets within the separate Gulf and Three Ways projects.

The two assets are situated within the poorly exposed northern extensions of the proven Mt Isa terrain, covering targets prospective for giant copper mineral systems.

Red Metal (ASX:RDM) plans to use part of the funds to carry out drilling at Gulf, focusing on the GT9 target – a large, gravity feature comparable in size and amplitude to BHP’s giant Oak Dam copper-gold discovery in South Australia

Historic drilling elsewhere on the project has identified favourable hematite breccias adding further support to this previously untested exploration concept.

Plans to test a 1.7km magnetic target

Meanwhile at Three Ways, RDM is looking to test a 1.7km long magnetic target coincident with a strong conductance anomaly for Mt Isa style sedimentary hosted copper mineralisation.

This discrete structure-controlled anomaly, within a previously unrecognised basin containing favourable sulphidic host rocks, is adjacent to a large basin margin fault zone and stands out as a priority drill target.

Heritage surveys will kick off in June with drilling to begin in August.

RDM to benefit from Maronan resource upgrade

With a 44% ownership in Maronan Metals (ASX:MMA), RDM is leveraged to the recently upgraded resource at the Maronan silver-lead and copper-gold deposit, 65km south of Cloncurry, Queensland.

The total inferred plus indicated silver-lead resource estimate within the Starter Zone now sits at 12.2Mt at 5% lead and 112g/t silver.

Initial drilling, which focused on the shallow Starer Zone, more than doubled the tonnage of the indicated silver-lead resource and outlined a near surfaced indicated resource of copper-gold mineralisation, both of which offer early development potential.

MMA managing director Richard Carlton said declaring 2.5 times boost to the size of the resource in the Starter Zone was a “very significant” milestone in its quest to turn the Maronan discovery into a mine.

“We have extensively built on the historic geological data set inherited at IPO, adding more than 27,000 metres of drilling across three years,” he said.

“Our team continues to cost-effectively move the Maronan deposit closer towards development and has established an excellent platform for updating mining studies and associated project economics.”

Common User Facility a boost for resources sector

Meanwhile, construction is now underway on Queensland’s inaugural Resources Common User Facility in Townsville, designed to support the commercialisation of mineral processing by enabling pilot-scale production of mineral samples.

Once operational in 2026, mining companies will be able to test their critical mineral processing techniques at the facility and progress samples to market.

The project was left in limbo under the state’s Labor government, which oversaw more than a year in delays and massive budget blowouts.

But it could now be a boon for Queensland-based critical minerals developments, though Red Metal has its own cause for excitement with a low-cost rare earth processing outlook.

This article was developed in collaboration with Red Metal, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.