Redstone Resources Sets Stage for Deep Copper Drilling at West Musgrave

Exploration Momentum Builds at West Musgrave

Redstone Resources Limited (ASX: RDS) has announced significant progress in advancing its West Musgrave Copper Project, located in Western Australia. The company is preparing for a critical exploration phase in the first quarter of 2025, centred on a deep drill hole beneath the Tollu Copper Deposit. This initiative is supported by a $220,000 Exploration Incentive Scheme (EIS) grant awarded by the Department of Mines, Industry Regulation and Safety (DEMIRS), underscoring government confidence in the project’s potential.

The planned drill hole, approximately 1,000 metres deep, aims to unlock further insights into the copper mineralisation system that has already demonstrated impressive grades and continuity. Redstone has completed heritage surveys and secured all necessary permits, positioning the company to commence drilling activities imminently.

Strong Historical Results Highlight Potential

Previous drilling at the Tollu deposit and its prospects, Chatsworth and Forio, has revealed high-grade copper mineralisation that remains open at depth. Notably, the Chatsworth Prospect returned an intersection of 11 metres at 1.2% copper from just 29 metres downhole, while historical deeper intersections include 3.4% copper over 10 metres and an exceptional 5.3% copper over 5 metres from 427 metres downhole.

At the Forio Prospect, the highest-grade intersection recorded was 1 metre at 18.5% copper from 18 metres downhole, within a broader 8-metre zone averaging 4.1% copper. The Forio mineralised zone extends over a 60-metre strike length and reaches the surface with thick lenses up to 34 metres at over 1% copper, indicating a robust and extensive copper system.

Strategic Location Near Major Deposits

The West Musgrave Project’s proximity to BHP’s world-class Nebo-Babel Ni-Cu-Co-PGE deposit, just 40 kilometres to the west, adds strategic significance. Nebo-Babel boasts an estimated resource of 390 million tonnes grading 0.33% copper and 0.30% nickel, highlighting the region’s rich mineral endowment. Redstone’s exploration results in 2023 further confirmed the presence of potential nickel-copper-cobalt-platinum group element (PGE) host rocks within its tenure, enhancing the project’s prospectivity beyond copper alone.

Corporate and Financial Position

Redstone’s financial footing has been strengthened by the receipt of a $542,000 Research and Development (R&D) tax incentive for FY23, which will contribute significantly to funding upcoming exploration activities. The company reported a cash balance of $541,000 at the end of December 2024, with ongoing expenditure focused on advancing its exploration programmes.

While no substantive on-ground exploration occurred during the quarter, the groundwork laid in securing permits and heritage clearances sets the stage for an active 2025. Redstone also continues to review historical data and geochemistry to refine its drilling targets and maximise the potential of the West Musgrave Project.

Broader Portfolio and Future Outlook

Beyond West Musgrave, Redstone holds interests in the James Bay Lithium Projects in Canada through a 50/50 joint venture with Galan Lithium Ltd, and the HanTails Gold Project near Kalgoorlie, Western Australia. While exploration activity was limited in these areas during the quarter, they represent additional avenues for growth and diversification.

Redstone’s upcoming drilling campaign at West Musgrave will be closely watched by investors and analysts, as it has the potential to significantly enhance the company’s resource base and underpin future development plans.