Diamantina Acquisition Poses Exploration and Approval Challenges for SER
Strategic Energy Resources Ltd has acquired 100% ownership of the Diamantina Copper-Gold Project from Anglo American, unlocking a significant undercover extension of the Mt Isa Eastern Fold Belt with encouraging copper and gold mineralisation. The acquisition positions SER to explore a potentially large IOCG district with multiple untested targets.
- Acquisition of Diamantina Project from Anglo American
- High-grade copper-gold intercepts at Elizabeth Springs East Prospect
- Project covers undercover southern extension of Mt Isa Eastern Fold Belt
- Anglo American becomes SER shareholder via cash and share deal
- 2% net smelter royalty with repurchase options included
Strategic Acquisition in a Major Mineral Province
Strategic Energy Resources Ltd (SER) has announced the acquisition of the Diamantina Copper-Gold Project from Anglo American Exploration (Australia) Pty Ltd. Located 280 kilometres south of Cloncurry in western Queensland, the project covers a significant undercover extension of the prolific Mt Isa Eastern Fold Belt, a region renowned for its world-class copper and gold deposits.
This acquisition aligns with SER’s strategic focus on exploring undercover extensions of known mineralised terrains, aiming to uncover Australia’s next major copper-gold discovery. The deal includes two granted exploration licences and three adjoining licence applications, securing a substantial landholding in a largely unexplored frontier.
Encouraging Exploration Results at Elizabeth Springs
Exploration to date, primarily conducted by Anglo American, has revealed promising copper and gold mineralisation, particularly at the Elizabeth Springs East Prospect. Notably, drillhole DTD002 intersected 17.37 metres at 1.76% copper and 0.37 grams per tonne gold within a broader 161-metre zone averaging 0.4% copper and 0.11 grams per tonne gold, starting from 449 metres depth.
These results are significant given the limited drilling so far, and the prospect remains largely untested across a 4 by 2 kilometre magnetic and gravity anomaly. The presence of intense magnetite alteration and chalcopyrite veins suggests a robust iron-oxide copper-gold (IOCG) mineralising system, a style known for hosting large, economically viable deposits.
Strategic Partnership and Financial Terms
Under the acquisition agreement, SER will pay Anglo American a combination of cash and shares, with Anglo American becoming a shareholder in SER. The deal includes a 2% net smelter royalty on production from the acquired licences, with SER retaining the option to repurchase portions of this royalty for up to $30 million. Additionally, SER has committed to spending at least $1 million on exploration within the first two years, ensuring active development of the project.
Completion of the acquisition is subject to ministerial approval and the negotiation of land access agreements, which SER expects to finalise in the coming months. A drilling program is planned to commence in early 2026, marking the start of SER’s hands-on exploration campaign.
Unlocking a New Exploration Frontier
Dr David DeTata, SER’s Managing Director, highlighted the strategic importance of the acquisition, noting that the Mount Isa Inlier is one of the world’s most metallogenic regions. He emphasised that the undercover extensions to the north and south represent the next frontier for major mineral discoveries, with SER now controlling both ends through its Isa North, Canobie, and Diamantina projects.
The Diamantina Project’s geological setting beneath younger sedimentary cover presents both challenges and opportunities. The extensive geophysical datasets and initial drilling results provide a solid foundation for targeted exploration, with numerous untested geophysical anomalies offering multiple avenues for discovery.
As SER prepares to unlock the potential of this new frontier, the market will be watching closely for the results of upcoming exploration activities that could redefine copper-gold prospects in western Queensland.
Bottom Line?
With the Diamantina acquisition complete, SER is poised to advance exploration in a promising but underexplored copper-gold province, setting the stage for potential major discoveries.
Questions in the middle?
- How will SER prioritize exploration targets within the large untested geophysical anomalies?
- What impact will the 2% net smelter royalty and repurchase options have on project economics?
- How quickly can SER secure land access agreements and ministerial approvals to begin drilling?