Mount Hope Mining Launches Maiden Drill Program in Cobar Basin

Exploration Ambitions in a Premier Mining District

Mount Hope Mining (ASX, MHM) is embarking on its maiden drill program in the southern Cobar Basin, New South Wales, a region renowned for its rich gold and base metal deposits. The company’s initial focus is the Mt Solitary prospect, where an exploration target of 1.3 to 1.8 million tonnes grading between 1 and 1.35 grams per tonne gold has been identified. This translates to an estimated 42,500 to 81,400 ounces of gold, a promising figure for a first-pass resource.

The 1,500-metre reverse circulation (RC) drilling campaign is scheduled to commence in mid-August 2025, marking a significant milestone for MHM as it seeks to convert exploration potential into a JORC-compliant resource. The Mt Solitary shear zone, which the company highlights as analogous to the prolific Peak-Perseverance shear, offers a compelling geological setting with similar geochemical signatures and proximity to major subsurface intrusions that could have supplied hydrothermal fluids.

Multiple Targets and Regional Consolidation

Beyond Mt Solitary, MHM is advancing several other advanced-stage prospects, including Black Hill, Mt Hope East, and Blue Heeler. Each target is supported by geophysical and geochemical anomalies, with planned drill programs ranging from 800 to 1,200 metres. Black Hill, for example, lies just 1.7 kilometres south of the historic Mt Hope Copper Mine and is set for a 1,200-metre RC drill program.

Strategically, MHM is expanding its footprint in the region, recently doubling its landholding to approximately 417 square kilometres. The company controls significant strike length along key regional faults such as the Scotts Craig and Sugar Loaf Faults, which are known to host mineralisation. This consolidation effort is complemented by active pursuit of farm-in and joint venture opportunities, positioning MHM to leverage partnerships for accelerated exploration and development.

Infrastructure and Development Strategy

The southern Cobar Basin benefits from a well-established mining infrastructure, including seven mills within 200 kilometres of the Mt Solitary project, many with excess capacity for tolling. This proximity offers MHM a pathway to rapid development and early cash flow generation, particularly given Mt Solitary’s outcropping gold system atop an 80-metre hill, which reduces the strip ratio and associated mining costs.

Additionally, the project’s location near sealed roads and the town of Mt Hope provides access to power, water, accommodation, and skilled labour, factors that collectively enhance the feasibility of near-term development. MHM’s strategy includes progressing resource definition drilling, metallurgical test work, and expanding exploration footprints to underpin a robust development pipeline.

Context Within Regional Market Activity

The announcement arrives amid heightened corporate activity in the Cobar Basin, with recent transactions including Harmony Gold’s acquisition of MAC Copper for approximately A$1.7 billion and significant equity raises by peers such as Manuka Resources and Polymetals. This dynamic environment underscores the basin’s attractiveness and the potential value uplift for explorers like MHM as they advance their projects.

While the maiden drill program represents a crucial step forward, the company cautions that forward-looking statements are subject to exploration risks and uncertainties. No definitive resource or reserve has yet been declared, and the success of drilling and subsequent development will depend on forthcoming results.