Horseshoe Lights Project Grows by 57 km² with High-Grade Copper and Gold Targets
Horseshoe Metals has broadened its Horseshoe Lights project area and entered a strategic agreement with Melody Gold to process gold surface materials, advancing its copper-gold development plans in Western Australia.
- Project area expanded by 57 km² with new copper and gold targets
- Strategic option agreement signed with Melody Gold for gold surface material processing
- Historic exploration data reveals high-grade copper and gold anomalies
- Ongoing discussions with potential copper concentrate offtake partners
- Plans underway for further drilling and geochemical sampling to refine targets
Project Expansion and Exploration Highlights
Horseshoe Metals Limited (ASX: HOR) has made significant strides in advancing its flagship Horseshoe Lights Copper-Gold Project in Western Australia. During the December 2024 quarter, the company successfully expanded its project footprint by securing the grant of exploration licence E52/4372, adding 57 square kilometres to the existing 283 km² tenure. This expansion brings new prospects into focus, including copper targets at Fiddlers and gold prospects at Fiddlers East and Fiddlers South, enriching the exploration pipeline.
Complementing this, Horseshoe Metals completed an initial review of historic regional data, uncovering compelling geochemical anomalies. Rock chip samples have returned copper values as high as 1,480 ppm and gold assays up to 7.10 g/t, while historic drilling intercepted gold grades exceeding 20 g/t over narrow intervals. These findings underscore the project's potential for both copper and gold mineralisation and justify the planned follow-up exploration activities.
Strategic Agreement with Melody Gold
Post-quarter, Horseshoe Metals announced a strategic option agreement with Melody Gold Pty Ltd, granting Melody the right to process designated gold surface materials at Horseshoe Lights. This agreement covers several subgrade stockpiles and tailings adjacent to the historic open pit, which contain significant quantities of gold-bearing material. Melody Gold intends to retreat up to 500,000 tonnes per annum using gravity recovery methods to produce a gold-copper-silver concentrate, potentially unlocking near-term cash flow for Horseshoe Metals.
Importantly, Horseshoe retains full rights to copper and mixed copper-gold surface materials, as well as all subsurface mineralisation, preserving upside potential. This partnership signals Horseshoe’s commitment to accelerating commercial development while leveraging third-party expertise to optimise resource recovery.
Copper Offtake and Funding Discussions
Alongside exploration progress, Horseshoe Metals is actively engaging with several well-known groups interested in offtake agreements for direct shipping ore (DSO) and future copper concentrates from Horseshoe Lights. The company is preparing a data room to facilitate detailed assessments following confidentiality agreements, indicating serious commercial interest.
Funding strategies under consideration include non-dilutive staged offtake financing to support a phased development approach. This includes scavenging remnant coarse DSO materials, processing fine DSO stockpiles, and heap/vat leaching of surface oxide materials. Such a strategy aims to generate early cash flow while advancing towards larger-scale operations.
Upcoming Exploration and Development Plans
Looking ahead, Horseshoe Metals plans to intensify its exploration efforts with additional reverse circulation and auger drilling targeting stockpiles and oxide/sulphide zones. Rock chip sampling and soil geochemical surveys will extend into previously untested areas, supported by acquisition of magnetic data to refine structural interpretations. A detailed review of historic drill data will further inform the evolving mineralisation model.
These activities are designed to delineate high-priority targets for subsequent drilling campaigns, underpinning the company’s strategy to unlock value from both copper and gold resources at Horseshoe Lights.
Broader Portfolio and Corporate Update
Beyond Horseshoe Lights, Horseshoe Metals maintains interests in the Kumarina Copper Project in Western Australia and the Glenloth Gold Project in South Australia. While no fieldwork was conducted at Kumarina during the quarter, the company secured a Native Title Mining Agreement for Glenloth, facilitating expanded exploration access.
Financially, Horseshoe Metals reported modest operating cash outflows and maintains access to unsecured loan facilities totaling over A$3 million, providing a runway for ongoing activities. Payments to directors and related parties have been deferred, reflecting prudent cash management.
Director Kate Stoney emphasised the company’s focus on leveraging its significant copper and gold inventory and advancing commercialisation plans, highlighting the Melody Gold agreement as a key milestone in accelerating development.
Bottom Line?
Horseshoe Metals is positioning itself for a pivotal phase of exploration and commercialisation, with upcoming drilling and offtake deals set to define its near-term trajectory.
Questions in the middle?
- What are the timelines and terms for the copper offtake agreements currently under negotiation?
- How will the partnership with Melody Gold impact Horseshoe Metals’ cash flow and project development schedule?
- What are the expected outcomes and potential resource upgrades from the planned drilling and geochemical programs?