Cash Tight, Risks Loom as Trek Metals Advances Major Gold and Copper Targets

Exploration Momentum at Christmas Creek

Trek Metals Limited has reported a busy and promising September quarter, marked by the completion of an expanded Phase 2 drilling program at its Christmas Creek Gold Project in Western Australia's Kimberley region. The program, comprising over 10,000 metres drilled across 75 holes, targeted multiple large-scale gold and copper-gold mineralisation styles, including orogenic gold at the Martin, Zahn, and Turner prospects, and intrusion-related copper-gold at Coogan, Brockhurst, and Jobs.

Initial assay results from the Martin Prospect have been encouraging, extending zones of high-grade gold mineralisation first identified in 2024. Notably, diamond drilling revealed visible gold in multiple intervals, a significant visual confirmation that bolsters the prospect's potential to host coarse, high-grade gold deposits. These visible gold occurrences were found more than 500 metres from previous discoveries, suggesting a substantial mineralised system. Assay results from the diamond core are expected in November, which will provide critical data to refine exploration targeting.

Expanding Targets and Geological Insights

At the Zahn Prospect, the largest and most intense gold-in-soil anomaly within the project, step-out drilling returned significant gold intercepts that support the interpretation of a mineralised folded dolerite contact adjacent to a major fault. This contact remains largely untested over a multi-kilometre scale, presenting a compelling exploration opportunity.

The Coogan-Brockhurst-Jobs area has been reinterpreted as a single, large-scale intrusion-related copper-gold system extending over 10 kilometres. Recent drilling and geophysical surveys are being analysed to better understand this system, with alternative exploration methods under consideration due to complex surface geology and ineffective surface geochemical responses.

Setbacks and Strategic Focus

While the Turner Prospect initially showed promise with the discovery of a nugget field, recent drilling failed to intersect significant gold mineralisation, leading to a downgrade of this target. This highlights the inherent risks in greenfields exploration but also underscores the importance of rigorous testing and data integration.

Corporate developments include progress towards divesting the Hendeka-South Woodie Woodie Manganese Project. Trek Metals has entered a share exchange agreement with US-based Advanced Energy Fuels, Inc., which is pursuing a listing on the TSX Venture Exchange. This transaction is expected to facilitate the acquisition of the manganese project by AEFI, with Trek’s CEO Derek Marshall slated to join the acquiring company’s board as a non-executive director.

Financial Position and Outlook

At quarter-end, Trek Metals held $2.05 million in cash, reflecting significant expenditure on exploration activities, including drilling, geophysical surveys, and staff costs. The company acknowledges that this cash position supports less than one quarter of current expenditure levels, but anticipates a reduced spending profile in upcoming quarters. Management remains confident in its ability to fund ongoing operations and exploration programs.

Looking ahead, Trek plans detailed geochemical and structural analyses of the recent drilling results, integration of geological and geophysical data, and refinement of exploration targets. The company also intends to investigate new geophysical techniques and alternative sampling methods to overcome challenges posed by surface geology, particularly at the Coogan-Brockhurst-Jobs system.