6km Copper Corridor Granted to Austral Resources Adjacent to Mt Kelly SX-EW Plant

• Canyon EPM 28881 granted adjacent to Mt Kelly and McLeod Hill mining leases
• 6km copper anomalous corridor with visible undrilled copper oxide mineralisation
• Historical drilling limited and ineffective, new geological models guide exploration
• 2026 drilling program planned to test priority oxide targets and resource extensions
• Potential integration into Austral’s existing SX-EW processing facility

Strategic Landholding Adjacent to Existing Operations

Austral Resources Australia Ltd (ASX, AR1) has secured a significant new exploration asset with the granting of the Canyon EPM 28881. This tenement lies immediately adjacent to the company’s Mt Kelly and McLeod Hill mining leases in Queensland’s Mount Isa region, placing it within short haulage distance of Austral’s solvent extraction-electrowinning (SX-EW) copper processing facility. The acquisition consolidates Austral’s control over a 6-kilometre copper oxide corridor, physically linking known mineralisation with operational infrastructure.

Compelling Copper Oxide Mineralisation and Exploration Upside

The Canyon EPM covers an underexplored but geologically attractive area exhibiting strong surface copper anomalism, with soil samples showing copper concentrations up to 1.65%. Visible copper oxide minerals such as malachite and chrysocolla outcrop along canyon walls, indicating a mineralised system of meaningful scale. Historical drilling in the area was sparse and largely ineffective, often collared too close to fault zones and missing the key stratigraphic horizons hosting copper mineralisation.

Geological Model and Exploration Challenges

Austral’s geological model suggests copper is sourced from mafic volcanic units at depth and mobilised along major faults, precipitating within carbonaceous shales of the upper Gunpowder Creek Formation. A silcretised Mesozoic cover sequence presents a challenge by concealing mineralisation from conventional surface sampling, but also offers a preservation mechanism for ‘blind’ copper oxide deposits. Austral plans to address these challenges by targeting mineralisation higher in canyon walls and beneath the cover in its upcoming drilling program.

Extending the McLeod Hill Resource and New Targets

Recent drilling at McLeod Hill has confirmed the deposit remains open to the north, with encouraging copper grades intersected beneath the silcrete cover. The granting of Canyon EPM also enables exploration of the Pandemonium Prospect to the south, where high-tenor copper anomalies and surface mineralisation remain untested by drilling. Austral’s 2026 staged drilling campaign will focus on these priority targets to define extensions to the McLeod Hill resource and assess their potential integration into future mine planning.

Positioning for Growth in a World-Class Copper Province

With a JORC-compliant mineral resource base of over 64 million tonnes at 0.73% copper and dual processing facilities, Austral Resources is aggressively expanding its footprint in the Mount Isa district, one of Australia’s premier copper provinces. The Canyon EPM grant aligns with the company’s strategy to extend mine life and increase resource inventory through near-facility exploration. Success here could enhance feedstock for the Mt Kelly SX-EW plant and support Austral’s broader growth ambitions.

Bottom Line?

Austral’s Canyon EPM grant sets the stage for a pivotal 2026 drilling campaign that could reshape its copper oxide resource profile and operational outlook.

Questions in the middle?

• Will the 2026 drilling confirm significant extensions to the McLeod Hill copper oxide resource?
• How effectively can Austral integrate new oxide mineralisation from Canyon EPM into existing processing infrastructure?
• What impact will successful exploration at Canyon have on Austral’s production timeline and valuation?