PolarX Limited has obtained a US$2 million unsecured loan from its largest shareholder Northern Star Resources to accelerate exploration at its Alaska Range Copper-Gold Project. The funding will support an extensive 2025 drilling and geophysics program targeting resource expansion at the Caribou Dome site.
- Northern Star Resources provides US$2M unsecured loan to PolarX
- Loan interest-free for first 3 months, then 7% per annum for 12-month term
- Funds allocated to 2025 Alaska Range exploration including geophysics and drilling
- Caribou Dome Project hosts 7.2Mt resource at 3.1% copper, open at depth
- 2024 scoping study values project at A$625M NPV with strong IRR
Northern Star Backs PolarX with Strategic Loan
PolarX Limited (ASX, PXX) has secured a US$2 million (approximately A$3.1 million) loan from its largest shareholder, Northern Star Resources (ASX, NST), to fund an accelerated exploration campaign at its Alaska Range Copper-Gold Project. The loan, which is unsecured and interest-free for the first three months before reverting to a 7% annual rate, provides PolarX with immediate capital to advance resource growth efforts at the Caribou Dome Copper Project.
Northern Star, holding a 16% stake in PolarX and owner of the nearby Pogo gold mine, is clearly signaling confidence in PolarX’s potential by facilitating this funding. The loan’s terms allow PolarX to mobilize exploration teams and equipment swiftly for the 2025 field season, underscoring the strategic partnership between the two companies.
2025 Exploration Program Set to Expand Resource Base
The upcoming exploration program is comprehensive, starting with an airborne geophysical survey employing magnetic and LIDAR data collection at a fine 50-metre line spacing. This will cover the Caribou Dome and Senator properties, complementing existing high-quality data from the adjacent Stellar project. Following the survey, drilling is scheduled to commence in early July and continue through September, alongside extensive geological mapping across the project area.
PolarX’s 2024 drilling results at Caribou Dome revealed high-grade copper mineralisation extending from surface to over 300 metres depth, with mineralisation remaining open at depth. The company’s use of detailed structural logging has identified promising down-dip offsets, suggesting further extensions of mineralisation beyond previously known zones. This bodes well for resource expansion as the 2025 program aims to build on these encouraging findings.
Caribou Dome, A Significant Copper-Gold Asset
Located approximately 250 kilometres northeast of Anchorage, Alaska, the Caribou Dome Project is a cornerstone of PolarX’s Alaska Range portfolio, which also includes the Zackly skarn deposit and the Stellar copper-gold project. The Caribou Dome resource, last updated in June 2023, stands at 7.2 million tonnes grading 3.1% copper and 6.5 grams per tonne silver, with mineralisation open at depth and along strike.
PolarX’s acquisition of an 81.94% interest in Caribou Dome, with potential to increase to 100%, reflects its commitment to advancing this asset. The project’s accessibility via the Denali Highway and existing underground workings further enhances its development prospects. With over 18 kilometres of prospective stratigraphy yet to be fully tested, the potential for discovering additional high-grade mineralisation remains substantial.
Strong Economic Outlook from 2024 Scoping Study
The broader Alaska Range Project, combining Caribou Dome, Senator, and Stellar, was the subject of a 2024 scoping study projecting a pre-tax net present value of A$625 million at a 7% discount rate and an internal rate of return of 73.9%. These robust economics were based on conservative commodity prices, underscoring the project's potential resilience and attractiveness to investors.
PolarX’s ability to secure funding from Northern Star to accelerate exploration is a critical step toward realising this value. The loan agreement’s flexible repayment terms and initial interest-free period provide PolarX with breathing room to focus on delivering exploration results that could materially enhance the project’s resource base and valuation.
Bottom Line?
PolarX’s secured funding and upcoming exploration season set the stage for a pivotal year in unlocking the Alaska Range Project’s full potential.
Questions in the middle?
- Will the 2025 drilling confirm extensions of high-grade copper mineralisation at depth?
- How will Northern Star’s involvement influence PolarX’s strategic direction and future funding?
- What impact will exploration results have on PolarX’s valuation and potential development timelines?