Austin Metals Limited has agreed to sell its Broken Hill assets, focusing on its Western Australian gold projects, while reporting encouraging drilling results at Mt Sandy and Ashburton.
- Sale of Broken Hill tenements to Kingfisher Mining for $400,000 cash and shares
- Significant shallow gold intercepts at Mt Sandy extending mineralisation to ~1km
- Maiden drilling at Ashburton reveals extensive copper-gold system
- Quarterly exploration spend of $454,000 with no production activities
- Strong cash position of $549,000 with expected proceeds from Broken Hill sale
Strategic Divestment of Broken Hill Assets
Austin Metals Limited (ASX, AYT) has taken a decisive step to sharpen its focus on Western Australian gold exploration by entering a binding agreement to sell its Broken Hill tenement package in New South Wales to Kingfisher Mining Ltd (ASX, KFM). The deal, valued at $400,000, comprises an equal split between cash and fully paid ordinary shares in Kingfisher, providing Austin with immediate liquidity and ongoing exposure to the Broken Hill project’s future potential through equity participation.
This divestment aligns with Austin’s strategy to streamline its portfolio and concentrate resources on advancing its core assets in Western Australia, a region renowned for its prolific gold endowment. The transaction is anticipated to settle in the December 2025 quarter, subject to customary closing conditions.
Encouraging Gold Discoveries at Mt Sandy
During the quarter, Austin Metals released assay results from July drilling at its Mt Sandy prospect within the Austin Project. The results revealed multiple significant shallow gold intercepts, including standout hits such as 5.0 meters at 4.4 grams per tonne gold and 4.0 meters at 4.4 grams per tonne gold, with high-grade intervals up to 10.7 grams per tonne.
These findings extend the strike length of drill-defined mineralisation to approximately 1 kilometer, with the system remaining open in all directions. Importantly, soil geochemistry surveys indicate a much larger anomaly, around 5 kilometers in strike and up to 2 kilometers wide, yet to be fully tested by drilling, suggesting substantial upside potential.
Looking ahead, Austin plans further reverse circulation drilling to expand high-grade zones and explore new mineralisation trends, complemented by systematic geophysical and geochemical surveys to generate additional targets. The proximity to notable projects such as Musgrave Minerals’ Cue Gold Project and Caprice Resources’ Island Gold Project underscores the strategic value of Austin’s landholding.
Maiden Drilling at Ashburton Uncovers Copper-Gold System
Austin’s maiden reverse circulation drilling program at the Ashburton Project in April 2025 has defined a laterally extensive copper-gold system extending over 900 meters and open in all directions. Assay highlights include 10 meters at 0.6 grams per tonne gold with 0.3% copper, and narrower intervals with higher copper and gold grades, pointing to a potentially significant magmatic-hydrothermal mineralising system.
The mineralised zones exhibit intense alteration patterns typical of such systems, with geological features suggesting a robust fluid source. Austin intends to continue target generation work and assess the epithermal potential of hydrothermal breccias mapped on the tenements.
Financial Position and Corporate Overview
Exploration and evaluation expenditure for the quarter totaled $454,000, reflecting Austin’s active field programs and technical consulting. The company reported no mining development or production activities during the period. Cash and cash equivalents stood at $549,000 at quarter-end, down from $1.06 million, primarily due to exploration outlays.
Importantly, Austin expects to receive $200,000 in cash and 4 million Kingfisher shares upon completion of the Broken Hill divestment, which will bolster its financial position. The company continues to monitor funding requirements closely and maintains flexibility to manage discretionary spending as needed.
With a robust portfolio focused on Western Australia’s prolific gold belts and promising early-stage copper-gold discoveries, Austin Metals is positioning itself for growth amid a competitive exploration landscape.
Bottom Line?
Austin Metals’ strategic pivot to Western Australia and promising drilling results set the stage for a pivotal exploration phase in 2026.
Questions in the middle?
- How will the completion timing of the Broken Hill sale impact Austin’s near-term funding and exploration plans?
- What are the next steps and timelines for drilling the large untested anomaly northeast of Mt Sandy?
- Could the Ashburton copper-gold system evolve into a significant resource with further drilling?