CuFe Secures $5.4M, Boosts Tennant Creek Resource with Critical Minerals
CuFe Ltd has raised $5.4 million through a strategic placement and upgraded its Tennant Creek resource to include valuable critical minerals, setting the stage for a major drilling campaign.
- Raised $5.4 million via private placement plus $1.4 million from options and share sales
- Tennant Creek resource upgraded to 24.3Mt with copper, gold, silver, and bismuth content
- Environmental Mining Licence approved for 140 additional drill holes
- Archaeological surveys completed and Aboriginal authority certificates nearing finalisation
- Cash position strong at $6.5 million with exploration and development advancing
Capital Raising Strengthens Project Funding
CuFe Ltd (ASX, CUF) has successfully completed a strategic private placement raising $5.4 million, complemented by an additional $1.4 million from option exercises and the sale of European Lithium shares. This capital injection provides the company with a robust financial footing to advance its flagship Tennant Creek copper-gold project in the Northern Territory.
Resource Upgrade Highlights Critical Mineral Potential
The company announced a significant upgrade to its combined Tennant Creek resource, now totalling 24.3 million tonnes at 1.8% copper, 0.55 grams per tonne gold, 2.8 grams per tonne silver, and notably 0.08% bismuth. This inclusion of bismuth, a critical mineral with growing industrial demand, alongside silver, enhances the project's strategic value. The contained metals represent 439,000 tonnes of copper, 436,000 ounces of gold, 2.03 million ounces of silver, and 18,000 tonnes of bismuth on a 100% basis, with CuFe holding a 55% share.
Regulatory Approvals and Drilling Preparations
During the quarter, CuFe secured an Environmental Mining Licence (EML) approval for 140 drill holes, including infill, geotechnical, and metallurgical drilling at the Orlando and Gecko deposits. This approval adds to the previously sanctioned 90 holes, giving the company excellent flexibility as it prepares for a substantial drilling campaign. Archaeological surveys over the project areas have been completed, and the company is in the final stages of obtaining Aboriginal Areas Protection Authority certificates, essential for progressing field activities.
Strategic Partnerships and Project Synergies
CuFe continues to collaborate with its Tennant Creek Alliance partners, Emmerson Resources and Tennant Minerals, exploring options for a shared processing plant. The formation of Tennant Creek Copper Alliance Pty Ltd, with equal ownership among the partners, underscores a strategic approach to optimise project economics and operational efficiencies.
Broader Exploration and Financial Position
Beyond Tennant Creek, CuFe is advancing studies on iron ore extraction at the Yarram project and planning follow-up exploration in the Pilbara gold region. The company ended the quarter with a healthy cash balance of $6.5 million, having spent $155,000 on exploration and $219,000 on mining production-related activities. Movements in securities included the issue and exercise of options and performance rights, reflecting ongoing capital structure management.
Bottom Line?
With strong funding and regulatory approvals in hand, CuFe is poised for a pivotal drilling campaign that could redefine its Tennant Creek project’s potential.
Questions in the middle?
- How will the inclusion of bismuth impact the project's economic feasibility and market appeal?
- What are the timelines and expected outcomes for the upcoming drilling campaign?
- How will the shared processing plant arrangement with alliance partners influence project costs and production schedules?
