Redstone Resources has secured $650,000 through a strongly supported placement to fund further exploration at its West Musgrave Copper Project, following encouraging copper and cobalt assay results from recent deep drilling.
- Private placement raised $650,000, exceeding $500,000 target
- Funds allocated to drilling and evaluation at West Musgrave Copper Project
- Recent deep diamond drilling intersected 10m of copper mineralisation including cobalt
- Exploration targets potential Voisey’s Bay style Ni-Cu-Co deposit
- Further assay results pending; shareholder approval needed for placement options
Strong Capital Raise Fuels Exploration Ambitions
Redstone Resources Limited has successfully completed a private placement raising $650,000, surpassing its minimum target of $500,000. The capital injection comes at a pivotal time as the company intensifies exploration efforts at its 100% owned West Musgrave Copper Project in Western Australia. The funds will primarily support a reverse circulation drilling program targeting magnetic anomalies northeast of the Tollu copper deposit, alongside potential co-funded deep diamond drilling.
Encouraging Early Drill Results Signal Potential
Recent drilling at the Chatsworth Prospect, part of the West Musgrave Project, has yielded promising results. A deep diamond drillhole (TLD005) intersected 10 metres of continuous copper mineralisation starting at 193 metres downhole, including a high-grade 4-metre section grading 2.37% copper. Notably, the intersection also contained 1.2 metres of cobalt mineralisation at 0.12%, hinting at a more complex nickel-copper-cobalt system beneath the surface.
Exploring a Voisey’s Bay Style Deposit
The presence of cobalt alongside copper supports Redstone’s conceptual model that the high-grade Tollu copper veins may represent remobilised copper sourced from a deeper magmatic massive sulphide system, akin to the world-renowned Voisey’s Bay deposit. This theory gains weight given the proximity; just 60 kilometres west; of BHP’s Nebo-Babel deposit, a world-class nickel-copper-cobalt resource with similar geological characteristics.
Next Steps and Market Implications
With 183 additional samples from the TLD005 drillhole still pending assay results, the full extent of mineralisation remains to be confirmed. Redstone plans to continue drilling along a 7.5-kilometre corridor of magnetic targets and may pursue another co-funded deep diamond drillhole. The company also awaits shareholder approval to issue free attaching options to placement participants, a move that could further incentivise investor participation.
Chairman Richard Homsany expressed optimism about the project’s potential and the strong investor support, underscoring the strategic importance of the West Musgrave Copper Project within Redstone’s portfolio. As exploration advances, the market will be watching closely for further assay results and developments that could reshape the company’s valuation and growth trajectory.
Bottom Line?
Redstone’s latest capital raise and drilling results set the stage for a potentially transformative exploration phase at West Musgrave.
Questions in the middle?
- Will the pending assays confirm a significant nickel-copper-cobalt system beneath Tollu?
- How will shareholder approval of placement options influence investor confidence?
- What are the timelines and expected outcomes for the planned follow-up drilling campaigns?