Loyal Metals Strikes 132.5m Massive Sulphides at Highway Reward – What’s Next?

A Breakthrough After Two Decades

Loyal Metals Ltd (ASX, LLM) has reignited interest in the historically significant Highway Reward Copper-Gold Mine in Queensland by intersecting a substantial 132.5-meter interval of massive pyrite and copper sulphides in its first drill hole in over 20 years. This intercept, starting approximately 100 meters below surface and within 50 meters of the open pit wall, confirms the presence of a volcanogenic massive sulphide (VHMS) system with notable chalcopyrite, a key copper mineral.

The drilling campaign targets previously underexplored near-surface gold and unmined copper-gold zones along the eastern wall of the open pit, an area overlooked in earlier mining phases due to economic priorities and commodity prices at the time. The discovery of a new sphalerite (zinc) sulphide zone in the upper section of the hole adds a fresh dimension to the mineral potential of the site.

Geological Context and Historical Significance

The Highway Reward deposit lies within the Trooper Creek Formation, a complex volcanic and sedimentary sequence hosting multiple VHMS deposits. The massive sulphide pipes, including Highway and Reward, are characterized by steeply dipping pyrite-chalcopyrite mineralisation, with gold often concentrated asymmetrically above these copper-rich zones.

Historical exploration and mining activities, spanning from the 1950s through the 1990s, focused primarily on copper, leaving significant gold and base metal potential underexplored. Loyal Metals’ recent drilling validates the geological models developed from decades of data and reveals new mineralised zones, particularly zinc-lead-barite assemblages, which could broaden the project’s resource base.

Strategic Exploration and Technology Integration

With $5.8 million in funding, Loyal Metals is well-positioned to advance exploration at Highway Reward. The company is leveraging artificial intelligence tools, including VRIFY’s DORA platform and ChatGPT-powered systems, to enhance drill targeting, geological modelling, and stakeholder engagement. This technology-driven approach aims to accelerate resource definition and improve decision-making efficiency.

The second drill hole is currently underway, designed to intersect the massive sulphide zone from an opposing angle, approximately 25 meters from the eastern pit wall. This will help delineate the extent and continuity of the mineralisation, crucial for future resource estimation and development planning.

Looking Ahead, Exploration Upside and Challenges

Beyond the immediate drilling results, Loyal Metals plans to conduct comprehensive geophysical surveys, including induced polarization and gravity studies, to identify additional chargeability anomalies indicative of sulphide mineralisation along a 3-kilometer strike within its mining leases. Several advanced prospects such as Handcuff, Truncheon South, and Gateway await further evaluation.

While visual logging has confirmed extensive sulphide mineralisation, laboratory assays are pending and will be critical to quantify grades of copper, gold, zinc, and other elements. Additionally, regulatory and financial obligations related to tenement acquisition and environmental compliance remain important considerations as the project advances.