Copper Search Limited reports promising copper mineralisation at its Douglas Creek IOCG Prospect and outlines plans to expand its project portfolio in 2025 while maintaining a solid cash position.
- Douglas Creek drilling confirms extensive copper mineralisation up to 0.2% Cu
- Company to retain Douglas Creek target and seek partners or alternative funding
- Ongoing assessment of over 20 new copper, gold, and uranium opportunities
- Cash position of $1.85 million supports continued exploration and project rationalisation
- Peake Project tenements rationalised to reduce costs while retaining key prospects
Exploration Progress at Douglas Creek
During the December 2024 quarter, Copper Search Limited (ASX: CUS) focused its exploration efforts on the Douglas Creek IOCG Prospect within the Peake Project, located in South Australia's Gawler Craton. The company’s drilling program delivered encouraging results, confirming the presence of a large-scale, copper-mineralised IOCG-style system. Two drill holes, including a vertical and a directional hole, intersected brecciated and altered mafic and metasedimentary rocks with continuous copper mineralisation over hundreds of metres, reaching grades up to 0.2% copper.
This mineralisation, observed as native copper, chalcopyrite, and bornite, aligns well with the coincident magnetic and gravity anomalies that define the prospect’s footprint of approximately 1,400 by 800 metres. The results reinforce Douglas Creek as a priority target, with the company noting that only about one-third of the target volume has been tested to date.
Strategic Review and Project Rationalisation
While drilling has not yet intersected a major copper deposit, Copper Search is undertaking a detailed near-miss analysis of its Peake Project drilling results. This review has prompted a temporary pause on further exploration at Peake, accompanied by a rationalisation of less prospective tenements to reduce annual costs by approximately $100,000. The company retains all the most promising prospects within its 5,035 square kilometre tenure, balancing cost management with future growth potential.
Expanding Horizons and New Opportunities
Beyond Peake, Copper Search is actively assessing over 20 new opportunities across copper, gold, and uranium projects in Australia and North America. The company aims to onboard at least one new high-quality project in early 2025, leveraging its experienced board and technical review committee. This team includes industry veterans with proven discovery success, providing the company with a robust framework for evaluating and prioritising exploration targets using rigorous geoscientific methods and machine learning.
Financial Position and Outlook
As of 31 December 2024, Copper Search held a cash balance of $1.85 million, ensuring sufficient financial flexibility to pursue ongoing and new exploration initiatives. The company’s expenditure during the quarter was focused on assay processing and drill site rehabilitation, with a total operating cash outflow of $531,000. Management remains confident in the company’s ability to fund its operations through careful capital management and potential partnerships.
Managing Director Duncan Chessell highlighted the company’s commitment to discovering the next large-scale copper deposit in the Gawler Craton and expressed optimism about the pipeline of new opportunities. He emphasised the strength of Copper Search’s technical team and advisory panel as key assets in navigating the complex exploration landscape.
Bottom Line?
Copper Search’s disciplined approach and promising Douglas Creek results position it well for strategic growth, but the path to a major discovery remains a careful balance of risk and opportunity.
Questions in the middle?
- What are the timelines and criteria for securing partners or alternative funding for Douglas Creek?
- Which new projects under assessment show the most promise for near-term advancement?
- How will the near-miss analysis influence future exploration strategies at Peake and beyond?