Lithium Energy Launches Drilling at Sandy Creek After High-Grade Rock Chips
Lithium Energy Limited is set to begin a 2,700-metre drilling campaign at its Sandy Creek Gold-Copper Prospect following rock chip samples revealing significant copper, gold, and silver grades. This marks a key step in exploring the Capricorn Gold-Copper Belt Project near the historic Mt Morgan mine.
- Commencement of 9-hole RC drilling program at Sandy Creek Prospect
- Rock chip samples show up to 37.1% copper, 2.18 g/t gold, and 21.9 g/t silver
- Drilling aims to test interpreted hydrothermal mineralisation at depth
- Capricorn Project surrounds historic Mt Morgan gold-copper mine area
- Lithium Energy holds 51% interest with option to acquire remaining 49% by 2027
Exploration Momentum Builds at Sandy Creek
Lithium Energy Limited (ASX – LEL) has announced the imminent start of a reverse circulation (RC) drilling program at its Sandy Creek Gold-Copper Prospect, part of the Capricorn Gold-Copper Belt Project in central Queensland. The program will consist of nine holes totalling approximately 2,700 metres, designed to test promising targets identified through recent surface sampling and geological observations.
The decision to drill follows highly encouraging rock chip sampling results collected during a reconnaissance program in late 2025. Among the standout assays was a sample grading an extraordinary 37.1% copper, alongside 2.18 grams per tonne (g/t) gold and 21.9 g/t silver. Other samples also returned significant copper and silver values, reinforcing the potential for a substantial hydrothermal mineralisation system beneath the surface.
Strategic Location in a Historic Mining District
The Capricorn Project surrounds the historic Mt Morgan gold mine, which operated for nearly a century and produced millions of ounces of gold and significant copper and silver. Although the Mt Morgan mine itself is excluded from Lithium Energy’s tenements, the company is targeting similar styles of mineralisation along strike within the project area.
With over 30 kilometres of strike length of the Devonian Mt Morgan Intrusive Complex and associated volcanic belts, the region is known for hosting large-scale gold, copper, molybdenum, and zinc deposits. Lithium Energy is leveraging modern geophysical techniques and advanced 3D data analytics to refine exploration targets across this underexplored district.
Joint Venture and Project Ownership
Lithium Energy currently holds a 51% interest in the Capricorn Project tenements, with the right to acquire the remaining 49% by April 2027 under asset sale agreements with vendors including GBM Resources Limited (ASX – GBZ). The agreements also include royalty arrangements that will apply once full ownership is consolidated.
The company has secured necessary native title agreements with the Gaangalu Nation People and the Darumbal People, ensuring responsible access and exploration activities on the ground.
Looking Ahead – Drilling and Beyond
The upcoming drilling campaign is a critical first-pass test of the interpreted hydrothermal system suggested by surface sampling and geological mapping. Each hole is planned to reach around 300 metres depth, aiming to delineate the extent and continuity of copper-gold mineralisation at depth.
Results from this drilling will be pivotal in determining the prospect’s potential to evolve into a significant resource. Success here could unlock further exploration and development opportunities within the Capricorn Project, potentially replicating the historic Mt Morgan mine’s legacy.
Bottom Line?
As Lithium Energy drills deeper into Sandy Creek, investors will watch closely for signs of a new copper-gold discovery in a proven Queensland mining belt.
Questions in the middle?
- Will the drilling confirm continuity and economic grades of copper-gold mineralisation at depth?
- How will the royalty obligations impact the project's long-term economics if a resource is defined?
- What further exploration targets within the Capricorn Project will Lithium Energy prioritise following Sandy Creek results?
