How Strategic Energy’s Fortescue JV and Government Grant Could Unlock Copper-Gold Riches
Strategic Energy Resources has progressed key copper-gold projects in Queensland, securing government funding and advancing surveys with Fortescue, while divesting a non-core asset to sharpen its focus.
- Fortescue-funded gravity survey underway at Canobie with MT survey and drilling planned
- Isa North project awarded $275k government grant for upcoming copper-gold drilling
- South Cobar asset sold for $400k cash plus future production payments
- Acquisition of advanced Diamantina project completed after extensive due diligence
- Board change with Non-Executive Director resignation and steady cash position at $675k
Canobie Project, Fortescue Partnership Drives Exploration
Strategic Energy Resources (ASX, SER) continues to make strides at its flagship Canobie Copper-Gold Project in northwest Queensland through its joint venture with Fortescue Ltd. The quarter saw the commencement of a detailed gravity survey over newly granted tenements, funded by Fortescue, aiming to refine the geological model and identify high-priority drill targets. Approximately 1,600 gravity measurements are being collected to enhance data resolution, with results expected next quarter.
Following the gravity survey, a Magnetotelluric (MT) survey is scheduled to begin in early August after some logistical delays. This geophysical technique will probe electrical properties deep underground, potentially revealing mineralisation zones beyond 500 meters depth. Together, these surveys set the stage for drilling later this year, underscoring the JV’s commitment to unlocking the region’s IOCG (Iron Oxide Copper Gold) potential.
Isa North, Government Grant Fuels Drilling Ambitions
At the Isa North Copper-Gold Project, wholly owned by SER, the company secured a $275,000 grant from the Queensland Government’s Collaborative Exploration Initiative. This funding supports drilling at the Nardoo Prospect, targeting compelling copper-gold anomalies identified by advanced geophysical analysis and machine learning models. Preparations are well advanced with land access and heritage surveys completed, positioning SER to commence drilling in the next quarter.
The Nardoo Prospect lies along the northern extension of the mineral-rich Mt Gordon – Gunpowder Fault Zone, a corridor known for hosting significant deposits. Multiple high-priority targets have been identified, and while the exact number of drill holes will depend on rig availability and timing with Canobie activities, the company aims to leverage this government support to accelerate exploration and contribute to ongoing mineral systems research.
South Cobar Divestment and Corporate Updates
Strategic Energy has divested its South Cobar Polymetallic Project in New South Wales to Australian Gold & Copper for $400,000 in cash plus a capped production payment, allowing SER to focus resources on its core Queensland projects. The sale agreement includes an upfront payment already received and further cash expected upon completion next quarter.
On the corporate front, the company completed the acquisition of the advanced Diamantina Copper-Gold Project from Anglo American after thorough due diligence. This asset brings a wealth of geological data and drilling history, with on-ground activities planned for 2026. Additionally, Non-Executive Director Tony Gu resigned during the quarter, with Chairman Stuart Rechner acknowledging his valuable contributions.
Financial Position and Outlook
Strategic Energy reported exploration expenditure of $221,000 and corporate costs of $93,000 for the quarter, ending with a cash balance of $675,000. The company’s financial discipline, combined with external funding and asset sales, provides a runway to advance its exploration programs. The upcoming results from Canobie’s gravity and MT surveys, alongside drilling at Isa North, will be critical catalysts in the near term.
Bottom Line?
With key surveys underway and drilling imminent, Strategic Energy is poised for a pivotal phase in its copper-gold exploration journey.
Questions in the middle?
- What will the gravity and MT survey results reveal about Canobie’s IOCG potential?
- How many targets will SER prioritize for drilling at Isa North given funding and rig availability?
- What strategic plans will follow the Diamantina Project’s on-ground activities starting in 2026?