$3M Exploration Budget Approved for Canobie Drilling in FY25-26
Fortescue has approved a $3 million exploration budget for Strategic Energy Resources’ Canobie Project, setting the stage for a significant diamond drilling campaign targeting copper-gold mineralisation in northwest Queensland.
- Fortescue commits $3M for FY25-26 exploration at Canobie
- Diamond drilling program planned to exceed 2,500 meters
- Recent gravity survey completed; magnetotelluric survey underway
- Fortescue can earn up to 80% interest by funding $8M over six years
- Native Title clearance and earthworks preparations imminent
Fortescue’s Confidence in Canobie
Strategic Energy Resources Limited (SER) has secured a major boost for its Canobie Project in northwest Queensland, with Fortescue Ltd approving a $3 million exploration budget for the 2025-26 financial year. This funding underpins a diamond drilling program designed to test multiple high-priority geophysical targets, signaling Fortescue’s strong belief in the project’s potential to host significant copper-gold mineralisation.
The Canobie Project sits west of the Gidyea Suture Zone, a major crustal fault system known for hosting prolific copper-gold deposits such as the Ernest Henry mine. Fortescue’s commitment to invest heavily in exploration reflects the strategic importance of this region and the prospectivity of the Canobie tenements.
Exploration Strategy and Surveys
The approved $3 million budget includes a diamond drill program exceeding 2,500 meters planned for this year, with additional drilling anticipated in early 2026. These drilling efforts aim to test three priority targets identified through recent geophysical work. Earlier surveys included a detailed ground gravity survey completed last month, which is currently being modelled to refine subsurface understanding.
Complementing this, a magnetotelluric (MT) survey has just commenced, employing electrical resistivity imaging to depths beyond 500 meters. The MT data will provide critical insights into the earth’s conductivity structure, helping to pinpoint mineralised zones and improve drill targeting accuracy.
Joint Venture Dynamics and Next Steps
The Canobie Project is being explored under a Farm-in and Joint Venture Agreement between SER and Fortescue’s subsidiary FMG Resources Pty Ltd. Fortescue has the right to earn up to an 80% interest by funding $8 million in exploration over six years, with staged expenditure milestones. SER remains the operator during the initial stage, overseeing exploration activities and managing the project on the ground.
Preparations are now underway for Native Title clearance surveys and earthworks, essential steps to enable the upcoming drill program. These activities are expected to proceed smoothly, allowing drilling to commence within the current field season.
Outlook and Market Implications
Dr David DeTata, Managing Director of SER, highlighted Fortescue’s budget approval as a clear endorsement of Canobie’s prospectivity. The forthcoming drilling results will be closely watched by investors and analysts, as they could materially influence the valuation and development trajectory of the project. Success here would add a valuable copper-gold asset to Fortescue’s portfolio and reinforce SER’s position as a specialist explorer in Queensland’s under-cover mineral belts.
Bottom Line?
As drilling gears up, Canobie’s next phase could redefine copper exploration prospects in Queensland.
Questions in the middle?
- What specific geological features define the three priority drill targets?
- How might the upcoming magnetotelluric survey data alter current exploration models?
- What timeline is expected for initial drilling results and their market impact?
