Anax Metals is set to release an updated feasibility study for its Whim Creek project, reflecting soaring commodity prices and progressing funding talks to push the project into development.
- Updated Whim Creek DFS to reflect current costs and metal prices due February 2026
- Significant commodity price increases since 2023 DFS, notably silver up 400%
- Active pursuit of debt and equity funding with multiple indicative offers received
- Plans to optimise silver recovery and re-estimate reserves post-DFS update
- Expansion of strategic partnership with Gold Valley Pilbara and regional exploration
Context and Market Tailwinds
Anax Metals Limited has outlined a clear strategic roadmap for the first half of 2026 centred on advancing its Whim Creek copper and precious metals project in Western Australia's Pilbara region. The company is preparing to release an updated Definitive Feasibility Study (DFS) in February that will incorporate the latest capital and operating costs alongside significantly higher commodity prices, particularly for silver, copper, and gold.
Since the original DFS in April 2023, metal prices have surged dramatically; silver prices have increased by approximately 400%, copper by 40%, and gold by 270%. This price environment provides a robust backdrop for Anax to re-evaluate project economics and enhance the value proposition of Whim Creek.
Project Economics and Reserve Optimisation
The 2023 DFS demonstrated strong project fundamentals with a pre-tax net present value of $224 million and an internal rate of return of 54%, underpinned by relatively low capital expenditure and a payback period of just 21 months. The upcoming DFS update will reflect current market realities, expected to further improve these metrics given the commodity price uplift.
In addition to updating costs and prices, Anax plans to optimise the recovery of silver; a significant component of the resource with 7.12 million ounces in resources and 4.3 million ounces in reserves. While the initial DFS update will not revise reserves, a subsequent re-estimation is planned to capture the benefits of higher metal prices and updated processing strategies.
Funding and Strategic Partnerships
Securing project funding remains a top priority for Anax, with the company actively engaging with multiple parties for debt and equity financing. Several indicative offers have been received from traders and funds, signalling strong market interest. This financial backing is critical to reaching a final investment decision and moving Whim Creek into the development phase.
Strategically, Anax is expanding its partnership with Gold Valley Pilbara Pty Ltd, which recently invested in the company. Together, they aim to establish a mining centre with shared infrastructure in the Whim Creek and Balla Balla regions, leveraging synergies and economies of scale to enhance operational efficiency.
Exploration and Technology Initiatives
Beyond Whim Creek, Anax is pursuing resource growth at Salt Creek and Evelyn, with exploration targets and drilling programs planned for 2026. The company has also applied for new tenements covering over 200 square kilometres adjacent to its existing project area, signalling an aggressive regional growth strategy.
On the technology front, Anax is advancing its proprietary bioleaching and advanced ore sorting intellectual property, focusing on processing oxide and transitional ores from satellite deposits. This innovation could unlock additional value and extend the mine life through improved metal recoveries.
Additionally, the company is developing a business to monetise waste rock by producing road base and aggregates for local markets, aiming to generate near-term revenue from existing materials.
The Whim Creek Advantage
Whim Creek stands out as the only fully permitted mine and infrastructure site in the western Pilbara capable of producing copper, zinc, and lead concentrates, as well as copper cathode. Its strategic location between Karratha and Port Hedland on the Northwest Highway offers logistical benefits, while existing infrastructure supports a low capital intensity development.
The project features multiple high-grade polymetallic resources, low strip ratios in early years, and state-of-the-art processing facilities, including a heap leach circuit and bioleaching technology integration. These factors position Whim Creek for a multi-year mine life with organic growth and consolidation opportunities.
Bottom Line?
As Anax Metals prepares to release its updated DFS and finalise funding, the Whim Creek project is poised to transition from planning to production, with market conditions and strategic partnerships aligning in its favour.
Questions in the middle?
- Will the updated DFS confirm a significant increase in project reserves reflecting current metal prices?
- Which funding partners will Anax secure to underpin the final investment decision?
- How will the optimisation of silver recovery and bioleaching technology impact overall project economics?