CuFe Ltd Unveils 400% Resource Surge at Gecko Deposit, Tennant Creek

A Major Leap in Resource Scale

CuFe Ltd (ASX – CUF) has delivered a significant boost to its Tennant Creek Project with a 400% increase in the Gecko copper-gold mineral resource. The updated JORC 2012 Mineral Resource Estimate (MRE) now stands at 18.4 million tonnes grading 2.01% copper and 0.25 grams per tonne gold, using a 1.0% copper equivalent cutoff. This leap reflects a comprehensive reinterpretation of the full historical drill hole database, incorporating additional mineralized domains and valuable byproduct metals such as bismuth and silver.

Unlocking Hidden Value Through Historical Data

The resource upgrade was enabled by MEC’s technical consultancy, which undertook a global review of nearly 5,000 drill holes spanning over 50 years of exploration and mining activity. This contrasts with the previous 2022 estimate that relied on a more limited dataset. By integrating data from multiple mineralized domains, including those partially mined or previously excluded, CuFe has substantially expanded the known extent of the Gecko Trend.

Importantly, the new resource model accounts for historical underground workings, refining the estimate of remaining ore and enhancing confidence in the deposit’s scale. The inclusion of gold, bismuth, and silver in the copper equivalent calculation opens avenues for additional revenue streams, potentially improving project economics.

Tennant Creek Project’s Growing Significance

When combined with the Orlando Deposit, the total Tennant Creek resource increases to 24.3 million tonnes at 1.80% copper and 0.56 grams per tonne gold. This positions CuFe’s assets as significant deposits within the Northern Territory’s prolific mineral field. The expanded resource base supports a range of development options, including underground mining scenarios recently explored in the Orlando Scoping Study.

CuFe’s Executive Director, Mark Hancock, highlighted the value of maximising historical data, noting the resource growth from 7 million tonnes at acquisition to over 24 million tonnes today, achieved cost-effectively. He emphasized that this scale underpins confidence in advancing the project towards development.

Technical and Operational Considerations

The updated MRE reflects predominantly inferred resources, a classification driven by data quality and gaps in historical quality assurance and quality control (QA/QC) records. CuFe plans targeted drilling to twin historical holes and improve assay repeatability, aiming to convert significant portions of the resource to the indicated category, which carries higher confidence.

Metallurgical testwork from the 1990s, reviewed recently, supports the recoveries assumed for copper (94%), gold (83.8%), bismuth (80%), and silver (80%), aligning with historical production data. The deposit’s mineralization style; iron oxide copper-gold (IOCG) hosted in structurally controlled lenses; favors underground open stoping mining methods, consistent with past operations.

Environmental and Regulatory Context

CuFe acknowledges the need for environmental permitting under Northern Territory regulations to expand mining activities. Sulfur content in the deposit necessitates careful management of acid rock drainage risks. Discussions with the Central Land Council are ongoing to update Indigenous Land Use Agreements, which may include royalty arrangements with Traditional Owners.

Looking Ahead

The resource upgrade sets the stage for further infill and step-out drilling to delineate extensions and improve resource classification. CuFe’s strategic focus will be on advancing feasibility studies that incorporate the expanded resource and byproduct credits, while navigating regulatory and land tenure processes. Investors and analysts will be watching closely as the company moves towards unlocking the full value of the Tennant Creek Project.