How Loyal Metals Is Unlocking High-Grade Copper-Gold Riches at Highway Reward

Highway Reward Acquisition and Exploration Breakthroughs

Loyal Metals Ltd (ASX – LLM) has made significant strides in its strategic growth with the acquisition of the Highway Reward Copper-Gold Mine in Queensland, Australia. This asset, known for its exceptionally high-grade copper and gold mineralisation, has seen no exploration since mining ceased in 2005 despite a dramatic rise in metal prices. Loyal Metals secured a binding option in July 2025 and, following shareholder approval, executed definitive sale and purchase agreements, positioning the company to capitalise on this world-class deposit.

During the December quarter, Loyal Metals verified the integrity of approximately 122,000 metres of historic drilling data, confirming the deposit’s scale and grade, 3.65 million tonnes at 5.7% copper and 260,000 ounces at 4.5 grams per tonne gold. This validation underpins the confidence to recommence drilling after two decades, targeting substantial unmined mineralisation adjacent to previous workings.

Encouraging Drill Results and Advanced Modelling

New drilling assays released shortly after the quarter’s end have confirmed two thick, high-grade copper-gold-silver zones beneath the southeast wall of the open pit. Notably, drillhole 25HRDD001 intersected 145 metres at 1.50% copper equivalent, while 25HRDD002 returned 86 metres at 2.34% copper equivalent, including internal lenses grading as high as 8.69%. These results highlight exceptional continuity and reinforce the large-scale resource potential of the mine.

Loyal Metals is leveraging advanced technology partnerships, including with VRIFY, to integrate historic and new data into AI-powered 3D geological models. This approach enhances target generation and exploration efficiency, supported by comprehensive geophysical surveys such as 3D induced polarisation and magnetotellurics. The company’s interactive VRIFY 3D model offers investors a detailed view of the mine’s geology and exploration potential.

North American Lithium Projects Progress

Beyond Australia, Loyal Metals continues to advance its lithium portfolio in North America. The Trieste Lithium Project in Quebec has completed over 2,700 metres of diamond drilling, confirming world-class lithium grades across multiple spodumene-bearing pegmatite dykes. Similarly, the Hidden Lake Lithium Project in the Northwest Territories has demonstrated promising spodumene mineralisation, with recent pilot plant testwork producing high-grade lithium concentrate.

In Nevada, the company completed the partial demerger and sale of a 51% interest in the Scotty Lithium Project to Desert Minerals Limited, aligning with Desert Minerals’ ASX listing. This transaction allows Loyal Metals to retain a significant stake while enabling focused development of this strategically located lithium asset near Tesla’s Gigafactory.

Financial Position and Outlook

Loyal Metals closed the quarter with $6.11 million in available funding, bolstered by an oversubscribed $3.5 million placement at $0.34 per share. Exploration and evaluation expenditure for the quarter was $1.28 million, primarily directed at the Trieste and Hidden Lake projects. The company’s disciplined capital management and strong shareholder support provide a solid foundation for ongoing exploration and resource definition activities.

As Loyal Metals advances drilling programs and integrates cutting-edge data analytics, the company is well-positioned to unlock further value from both its copper-gold and lithium assets. The coming quarters will be critical for assay results, resource updates, and potential development pathways.