Eastern Metals Unveils High-Grade Gold-Copper Hits and New Targets at Cobar and Arunta

Strong Exploration Momentum at Cobar Project

Eastern Metals Limited (ASX:EMS) has delivered a robust December 2024 quarterly update, highlighting significant progress in its exploration activities across its flagship Cobar Project in New South Wales. The company’s recent drilling at the Browns Reef area, particularly at the Kelpie Hill prospect, has returned encouraging high-grade gold and base metal mineralisation. Notably, hole KHRC001 intersected 7 metres at 4.3 grams per tonne (g/t) gold, accompanied by silver and lead, underscoring the prospect’s potential to host economically viable mineralisation.

Additional drilling at Kelpie Hill and surrounding prospects such as Evergreen and Windmill Dam has extended known mineralised zones and revealed disseminated copper mineralisation, with Windmill Dam’s WDRCDD001 hole intersecting broad copper zones including 20 metres at 0.3% copper. These results suggest a proximal heat and mineralisation source, possibly an intrusive feeder, which could underpin further discoveries along the Browns Reef trend.

Geophysical Surveys Unlock New Targets at Arunta Project

In the Northern Territory, Eastern Metals’ Arunta Project continues to advance with the completion of a ground-based Induced Polarisation (IP) survey over the Home of Bullion deposit area. The survey delineated three new geophysical anomalies along strike from the existing 3.1 million tonne copper-equivalent resource, providing fresh drill targets for 2025. These anomalies, located both northwest and southeast of the known deposit, coincide with magnetic highs and chargeability anomalies, indicative of potential structurally controlled VMS-style mineralisation.

The survey’s high-resolution pole-dipole IP method proved effective in mapping the known mineralisation and identifying subtle anomalies that previous electromagnetic surveys missed, particularly at depth. The company is progressing drilling approvals to test these targets, which could materially enhance the project’s resource base.

Corporate Developments and Financial Position

Eastern Metals appointed Dr Jason Berton as Non-Executive Chairman during the quarter, following the retirement of Bob Duffin. Dr Berton brings extensive technical and corporate expertise, including a background in structural geology relevant to the company’s NSW projects and experience in resource sector investment and development.

Financially, the company ended the quarter with approximately A$0.2 million in cash and no debt. Exploration expenditure for the quarter was around A$698,000, reflecting active drilling and geophysical programs. However, with cash reserves at a modest level, Eastern Metals is actively engaging with potential investors to secure additional funding to sustain and expand its exploration activities.

Outlook and Strategic Implications

Eastern Metals’ December quarter results reinforce the company’s potential to unlock value through its Cobar and Arunta projects. The high-grade intercepts at Kelpie Hill and the identification of new geophysical targets at Home of Bullion position the company well for a step-change in exploration success. Nonetheless, the company’s ability to capitalize on these opportunities hinges on securing further capital to fund upcoming drilling campaigns and advance resource definition.

Investors and analysts will be watching closely for the company’s next steps in financing and the results of follow-up drilling, which could validate the promising geophysical anomalies and extend the known mineralisation footprints.