2,204m Drilled at Horseshoe Lights Confirms Broad Copper Zones

Drilling Success at Motters Zone

Horseshoe Metals Limited (ASX – HOR) has made notable progress in its December 2025 quarter, delivering encouraging results from its reverse circulation (RC) drilling program at the Horseshoe Lights Copper-Gold Project in Western Australia. The company completed a total of 2,204 metres of drilling, with 1,824 metres focused on the Motters Zone and an additional 380 metres on western gold target fences. These efforts have confirmed the presence of robust copper oxide mineralisation extending up to 50 metres wide from surface, with significant intercepts including 33 metres at 1.18% copper and 27 metres at 1.58% copper.

The Phase 1 drilling was designed to infill and upgrade the confidence level of the oxide resources from inferred to indicated, enabling their inclusion in an upcoming scoping study. The mineralisation extends from surface down to between 40 and 60 metres, highlighting the potential for resource scale and grade upgrades. Phase 2 drilling is scheduled to commence in the first quarter of 2026, targeting the southern extension of the Motters Zone beyond a fault offset, where similar grades and widths are expected.

Advancing Development and Early Cash Flow Plans

Alongside exploration, Horseshoe Metals is advancing its development strategy for the Horseshoe Lights project. The company has received mining approval to commence Direct Shipping Ore (DSO) operations, which are expected to generate early cash flow by exploiting existing high-grade copper stockpiles. This move is timely given the strengthening copper price environment, and the company is preparing for a start-up that will leverage coarse material easily recoverable with standard equipment.

In parallel, Horseshoe is progressing discussions with multiple well-known domestic and international commodity traders regarding potential offtake agreements and non-dilutive staged funding arrangements. These talks aim to secure capital to support the redevelopment of the project, with finalisation anticipated in the coming quarter.

Gold Surface Processing Agreement

In a complementary development, Melody Gold Pty Ltd has exercised its option to process gold surface materials at Horseshoe Lights, planning to treat up to 500,000 tonnes per annum. This agreement allows Melody to produce a gold-copper-silver concentrate using gravity recovery methods, while Horseshoe Metals retains full rights to copper and mixed copper-gold surface materials, as well as all subsurface mineral rights.

Broader Project Portfolio and Financial Position

Beyond Horseshoe Lights, the company holds interests in the Kumarina Copper Project in Western Australia and the Glenloth Gold Project in South Australia, though no active fieldwork was conducted on these during the quarter. Financially, Horseshoe Metals reported net cash outflows from operating and investing activities but maintains available funding through a $4 million secured convertible loan facility with Obsidian Metals Group. The company ended the quarter with $28,000 in cash and $2.42 million in unused financing facilities, positioning it to continue exploration and development activities.

Overall, the December quarter marks a period of tangible advancement for Horseshoe Metals, with drilling results underpinning resource growth potential, strategic partnerships progressing, and operational approvals in place to unlock early revenue streams.