Redstone Resources reports promising copper and cobalt assay results from deep drilling at its West Musgrave project, supported by multiple government grants and a recent $650,000 capital raise to advance exploration.
- 10m continuous copper mineralisation intersected at Chatsworth Prospect
- Presence of cobalt suggests potential for larger Ni-Cu-Co deposit
- Multiple WA Government Exploration Incentive Scheme grants awarded
- $650,000 private placement completed to fund ongoing drilling
- No exploration activity at James Bay Lithium JV or HanTails Gold Project this quarter
Exploration Breakthrough at West Musgrave
Redstone Resources Limited (ASX – RDS) has delivered encouraging initial assay results from its deep diamond drill hole TLD005 at the 100% owned West Musgrave Copper Project in Western Australia. The drill hole intersected 10 metres of continuous copper mineralisation within the Chatsworth Prospect, part of the Tollu Copper deposit, with grades reaching up to 2.37% copper over 4 metres. Notably, the intersection also contained 1.2 metres of cobalt mineralisation at 0.12%, hinting at the possibility of a larger nickel-copper-cobalt system beneath.
The presence of cobalt is particularly significant as it may indicate a Voisey’s Bay-style or Nebo-Babel-style deposit, both renowned for their rich nickel-copper-cobalt mineralisation. The Nebo-Babel deposit, owned by BHP and located just 60 kilometres west of Tollu, boasts world-class resources, underscoring the prospectivity of Redstone’s tenure.
Strategic Funding and Cost Efficiency
Redstone has effectively leveraged government support to reduce exploration costs. The company secured multiple grants from the Western Australian Government’s Exploration Incentive Scheme (EIS), including up to $220,000 for the TLD005 drilling, $180,000 for upcoming reverse circulation drilling targeting magnetic anomalies, and another $220,000 for a planned deep diamond hole. These grants are instrumental in advancing Redstone’s drilling programs while managing capital expenditure.
Complementing these grants, Redstone completed a $650,000 private placement in early October, issuing over 185 million shares to sophisticated investors. This capital injection is earmarked to fund ongoing exploration activities at West Musgrave, ensuring the company maintains momentum in unlocking the project’s potential.
Broader Portfolio and Operational Outlook
While the West Musgrave project remains the focal point, Redstone’s other assets saw limited activity this quarter. No exploration was conducted at the James Bay Lithium joint venture in Québec, Canada, or at the HanTails Gold Project near Kalgoorlie, Western Australia. The company continues to hold an 80% interest in HanTails and a 50/50 JV with Galan Lithium for the James Bay projects, positioning it well across base metals and lithium sectors.
Financially, Redstone reported a cash balance of $260,000 at quarter-end, with exploration expenditure primarily related to the TLD005 drilling program. The company anticipates sufficient funding for at least the next two quarters, supported by government rebates and grants, alongside prudent cost management.
Looking Ahead
Pending assay results for an additional 183 samples from TLD005 are expected soon and will be critical in refining the understanding of the mineralisation’s extent and quality. Follow-up drilling programs are planned to test high-priority targets identified through geophysical surveys, with the potential to delineate a significant copper-nickel-cobalt system at depth.
Redstone’s strategic combination of promising drill results, government co-funding, and fresh capital positions it well to advance its exploration ambitions in a highly prospective region. The coming months will be pivotal in confirming the scale and economic viability of the mineralisation discovered.
Bottom Line?
Redstone’s latest drilling success and funding support set the stage for a potentially transformative discovery at West Musgrave.
Questions in the middle?
- What will the pending assays from the remaining 183 samples reveal about the deposit’s scale?
- How will Redstone prioritise targets for follow-up drilling given the multiple high-quality prospects?
- What are the implications of the cobalt presence for potential downstream processing and market value?