South Harz Files for 6,300ha Permits Covering High-Grade Copper Targets

Strategic Expansion in Scandinavia

South Harz Potash Limited (ASX, SHP) has taken a significant step forward in its Scandinavian critical minerals strategy by submitting three exploration permit applications for the Torsby West Project in Sweden. Situated roughly 40 kilometres north of their existing Glava project, these permits cover a substantial 6,300 hectares along a 25-kilometre corridor known for structurally controlled copper-gold-cobalt mineralisation.

This expansion not only broadens South Harz’s footprint in a highly prospective Iron Oxide Copper Gold (IOCG) terrane but also leverages historic exploration data that points to multiple high-grade copper occurrences. The corridor includes historic mines such as Storgruvan and Ahlbergsgruvan, which reportedly yielded copper grades of 7% and 5% respectively, underscoring the district-scale potential of the area.

Historic Data and Exploration Potential

The Torsby West Project benefits from a wealth of legacy data, including 19 diamond drill holes completed by Boliden AB in the early 1970s and rock chip sampling campaigns by Archelon Mineral AB and Newera Resources Limited in the 2000s. These data sets reveal disseminated copper mineralisation associated with iron-rich alteration and silicification along major structural trends, hallmark features of IOCG deposits.

South Harz plans to capitalize on this by re-logging and potentially re-sampling the historic drill core stored at the Geological Survey of Sweden’s facility, enabling a cost-effective and rapid validation of high-priority targets. The company’s planned early-stage exploration program for 2026 includes high-resolution ground magnetic surveys, systematic surface sampling, and targeted drilling, all contingent on timely permit approvals expected in the first quarter of 2026.

Favourable Jurisdiction and Market Context

Sweden’s reputation as a Tier-1 mining jurisdiction is a key advantage for South Harz. Ranked sixth globally in the 2024 Fraser Institute Annual Survey of Mining Companies, Sweden offers a stable regulatory environment, excellent infrastructure, and strong government support for critical minerals development. This aligns well with South Harz’s strategic focus on critical minerals essential for the European energy transition.

Moreover, the copper price has more than doubled over the past decade since the last systematic exploration at Torsby West, enhancing the economic attractiveness of the project. The Torsby West permits, together with South Harz’s existing Glava portfolio and recent licence applications, position the company as a notable player in the emerging European copper-gold district.

Outlook and Next Steps

While the historic exploration results are promising, they are not yet compliant with the JORC Code 2012 standards, and South Harz acknowledges the need for further validation through modern exploration techniques. The company’s option agreement with McKnight Resources AB secures exclusive rights to acquire the permits, subject to due diligence and regulatory approvals.

As South Harz advances its exploration agenda in 2026, investors will be watching closely for assay results from re-logged drill core and new drilling campaigns that could confirm the scale and grade of mineralisation. The company’s ability to integrate these new assets with its existing Scandinavian portfolio could unlock significant value in a critical minerals market that is gaining momentum globally.