Diamond Drilling Confirms Mineralisation Style at Junction; $1.5M Raised for Growth

Exploration Update at Junction Copper-Silver Prospect

Stavely Minerals has reported mixed results from its recent diamond drilling campaign at the Junction Copper-Silver Prospect in western Victoria. While the drilling confirmed the presence of the same mineralisation style previously identified by aircore drilling, the diamond holes did not replicate the high-grade copper and silver assays that had initially excited the market. The company attributes this to suboptimal drill angles and collar locations, as the holes were drilled from roadside reserves and did not adequately test the steep south-southwest dip of the mineralisation.

Despite these challenges, the mineralisation remains open at depth, with evidence of copper-silver sulphides approximately 150 metres below the earlier aircore intercepts. Stavely is actively pursuing access to more suitable drilling sites to better target the mineralised zones in upcoming programs.

S41 Gold Prospect: A Large-Scale Target with Significant Potential

Preparations are underway for an Induced Polarisation (IP) geophysical survey at the S41 breccia-hosted gold target, also located within the Stavely Project. This target is interpreted as a substantial breccia pipe measuring roughly 2 kilometres by 750 metres, with encouraging gold grades from limited drilling to date. Notably, aircore drilling returned up to 4 metres at 2.21 g/t gold, including higher-grade intervals, while a single diamond hole intersected gold and silver mineralisation at depth.

The S41 prospect shares geological similarities with notable breccia-hosted gold deposits such as Mount Leyshon and Kidston in Queensland, though Stavely cautions that it is still early days and the gold distribution is expected to be patchy. The upcoming IP survey aims to delineate sulphide concentrations that may correlate with higher-grade gold zones, guiding future drill targeting.

Hawkstone Project: Emerging Nickel-Copper-Cobalt Anomalies

In Western Australia’s Kimberley region, Stavely’s Hawkstone Project continues to show promise with the identification of a priority Moving Loop Electromagnetic (MLEM) anomaly. Fieldwork including rock chip sampling and reverse circulation drilling has confirmed the presence of disseminated sulphides and elevated base metals consistent with magmatic nickel-copper-cobalt sulphide systems.

The company has secured up to $220,000 in co-funding from the WA Government’s Exploration Incentive Scheme to support an 800-metre deep diamond drill hole planned for 2025. This funding underscores the strategic importance of the Hawkstone project within Stavely’s portfolio and its potential to host significant magmatic sulphide mineralisation.

Corporate and Financial Position

Stavely Minerals closed the December 2024 quarter with $2.7 million in cash. The company successfully completed a $1.5 million placement in November 2024 at a 17.2% discount to the last traded share price, issuing placement options exercisable at $0.07. Proceeds are earmarked for advancing drilling at the Junction Prospect and general working capital.

Exploration expenditure for the quarter was $1.345 million, reflecting the company’s active field programs and preparatory work for upcoming surveys and drilling campaigns. With a market capitalisation around $12 million and a robust cash position, Stavely is well positioned to continue its exploration momentum.

Looking Ahead

The next quarter will be pivotal as Stavely initiates the IP survey at S41 and extends its MLEM survey at Hawkstone, alongside efforts to secure optimal drill sites at Junction. The company’s ability to translate its geological insights into high-grade mineral discoveries will be critical to unlocking value for shareholders.