Entitlement Issue Withdrawal Raises Questions on Lord Resources’ Funding Path
Lord Resources has released final assay results from its Ilgarari drilling campaign, revealing significant copper mineralisation and validating geological models. The company has deferred its planned entitlement issue, opting to reassess funding needs after evaluating recent drilling and acquisition prospects.
- Final assays confirm multiple high-grade copper intercepts at Ilgarari
- Drilling validates geological model and lode geometry
- Entitlement issue to raise $1.6 million withdrawn pending further evaluation
- Next steps include data integration, structural reinterpretation, and Phase 2 exploration planning
- Exploration Incentive Scheme co-funded holes clarify magnetic anomaly source
Drilling Results Reinforce Copper Potential
Lord Resources Limited (ASX – LRD) has delivered a comprehensive update on its Ilgarari Copper Project in Western Australia, announcing the final assay results from its recent diamond drilling program. The assays reveal multiple significant copper intercepts, including standout intervals such as 2.3 meters at 1.17% copper and 1.3 meters at 1.29% copper in hole 25IRC005D, and 1.3 meters at 1.13% copper in hole 25IRC004D. These results align closely with historic drilling predictions, bolstering confidence in the geological model and the structural understanding of the mineralised lodes.
Notably, the drilling also tested a prominent magnetic anomaly through holes co-funded by the Western Australian Department of Mines, Petroleum and Exploration’s Exploration Incentive Scheme. The anomaly was identified as a magnetite-rich dolerite sill rather than copper mineralisation, refining the exploration focus and reducing technical risk.
Strategic Pause on Capital Raising
In a significant strategic move, Lord Resources has decided to withdraw its previously announced non-renounceable entitlement issue, which aimed to raise approximately $1.618 million at $0.037 per share. The company cited the need for a detailed evaluation of the recent drilling outcomes and proposed acquisitions before revisiting its capital requirements. This pause reflects a prudent approach to capital management amid evolving project insights and market conditions.
Looking Ahead – Data Integration and Exploration Planning
Lord Resources is now focused on integrating the new assay data into its geological database and undertaking detailed structural and geophysical reinterpretation to refine the model further. The company plans to deploy down-hole electromagnetic surveys to better delineate conductor geometries around high-grade zones. Phase 2 exploration will target depth and strike extensions of promising lodes, including the Tailings and Hidden Lodes, as well as along-conductor targets identified through the updated model.
The Ilgarari Copper Project, located about 110 kilometers south of Newman, sits within a geologically complex Mesoproterozoic basin known for copper mineralisation associated with fault and shear zones near dolerite contacts. Lord Resources holds an earn-in agreement for 80% of the sulphide rights below 120 meters depth, positioning the company well to advance this high-potential asset.
Balancing Optimism with Caution
While the drilling results are encouraging, some assay intervals had low sample recovery, which may bias grade estimates upward. Additionally, the true widths of mineralisation remain to be determined, as only downhole lengths have been reported. The deferral of the entitlement issue introduces short-term funding uncertainty, underscoring the importance of upcoming technical and financial assessments.
Bottom Line?
Lord Resources’ latest drilling success at Ilgarari sets the stage for refined exploration, but capital strategy remains under review.
Questions in the middle?
- How will the updated geological model influence the scale and timing of Phase 2 drilling?
- What are the implications of the entitlement issue deferral for Lord Resources’ near-term funding and operations?
- Could further acquisitions reshape Lord Resources’ portfolio and exploration priorities?
