Funding Pressures Mount as Coppermoly Eyes Critical Minerals with Mixed Exploration Results
Coppermoly Limited reported ongoing exploration activities in Queensland's Mt Isa region with mixed drilling results, while securing a strategic acquisition in Western Australia targeting critical minerals. The company faces a cash outflow of $701,000 but plans further geophysical surveys to refine drilling targets.
- RC drilling at Fox Tail intersected minor copper sulphides with no significant mineralisation
- Multiple geophysical targets identified for follow-up IP and ground magnetic surveys
- Malakoff tenement to be surrendered after unpromising drilling results
- Binding agreement signed to acquire Wyemandoo Project in WA, prospective for critical minerals
- Cash outflow of $701,000 reported with cash reserves sufficient for approximately 1.2 quarters
Exploration Progress at Mt Isa
Coppermoly Limited (ASX – COY) has provided its September 2025 quarterly update, highlighting exploration activities across several tenements in the Mt Isa region of Northwest Queensland. The company focused efforts on EPM 27835 (Fox Tail) and EPM 27836, conducting geological evaluations, ground magnetics, induced polarisation (IP) surveys, soil geochemical sampling, and reverse circulation (RC) drilling.
Drilling at Fox Tail comprised three RC holes totaling 843 metres, targeting geophysical anomalies identified in prior surveys. While all targeted structures were intersected, only minor copper sulphides were observed, and no significant mineralisation was reported. Assay results for 119 samples are pending, which will be critical to assessing the project's potential.
Target Generation and Future Surveys
Despite the modest drilling outcomes, Coppermoly has identified several promising geophysical targets across its tenements. Six key targets have been earmarked for detailed IP sounding and ground magnetic surveys, including Target One; an elongate electromagnetic anomaly interpreted as intrusive-related copper basement sulphide mineralisation potentially below 200 metres depth.
Other targets, such as William West and William East anomalies near the Soxby Granite, are considered prospective for Ernest Henry-style copper-gold mineralisation. The company plans to complete these surveys promptly to generate refined drilling targets, maintaining momentum in its exploration program.
Tenement Rationalisation and Strategic Acquisition
Coppermoly has decided to surrender the Malakoff tenement (EPM 28853) following drilling results that indicated only rootless magnetite and pyrrhotite with trace chalcopyrite, suggesting the anomalies are sourced from unaltered volcanics and lack economic potential.
On the corporate front, the company entered a binding agreement to acquire 100% of the Wyemandoo Project in Western Australia from Aldoro Resources Limited. This project is notable for its critical minerals potential, including rubidium, lithium, and tungsten; elements vital for advanced electronics and clean energy technologies. The acquisition, subject to customary conditions, represents a strategic diversification beyond Coppermoly’s Queensland copper-gold focus.
Financial Position and Outlook
Financially, Coppermoly reported a net cash outflow of approximately $701,000 for the quarter, combining operating and investing activities, primarily reflecting exploration expenditures. Cash reserves stood at $858,000 at quarter-end, providing an estimated funding runway of just over one quarter. The company acknowledges the need to manage cash prudently and is actively engaging with financiers to secure additional funding to support ongoing and future exploration.
Payments to related parties amounted to around $407,000, including director fees and exploration services provided by Echo Vista Exploration Pty Ltd under arm’s length terms.
Overall, Coppermoly’s September quarter reflects a disciplined exploration approach with a focus on refining targets through geophysical surveys, while strategically expanding its portfolio into critical minerals. The coming months will be pivotal as assay results and further survey data emerge, shaping the next phase of drilling and development.
Bottom Line?
Coppermoly’s next moves hinge on assay results and survey outcomes, with funding and acquisition progress critical to sustaining its exploration momentum.
Questions in the middle?
- Will the pending assay results from Fox Tail drilling reveal economically viable copper mineralisation?
- How will Coppermoly finance its exploration program beyond the current cash runway of just over one quarter?
- What impact will the Wyemandoo Project acquisition have on the company’s strategic direction and valuation?
