Loyal Metals Confirms Large-Scale VHMS Copper-Gold System at Highway Reward with Strong Drill Results

Drill Results Confirm Large-Scale VHMS Mineralisation

Loyal Metals Ltd (ASX:LLM) has announced assay results from its third drillhole, 25HRDD003, at the Highway Reward Copper-Gold Project in Queensland. The drillhole intersected a broad mineralised zone of 179 metres at 1.47% copper equivalent (CuEq), including higher-grade intervals such as 19m at 2.15% CuEq and 8m at 5.97% CuEq. Positioned approximately 70 metres from the eastern wall of the historic Highway Reward open pit, these results extend and strengthen mineralisation previously identified in drillholes 25HRDD001 and 25HRDD002.

This broad and continuous mineralised zone supports the interpretation of a large volcanic-hosted massive sulphide (VHMS) system characterised by steeply oriented pyrite-chalcopyrite pipes within rhyolitic, dacitic, and volcaniclastic host rocks. The thickness, continuity, and relatively shallow depth of mineralisation contrast with the historical narrow-lens mining model previously pursued at Highway Reward.

Integration with Geophysical Data and Exploration Strategy

The drilling results align with Loyal Metals’ recently announced high-density gravity survey inversion, which imaged a vertically extensive copper-gold sulphide system extending well below historic mining depths. The company is also advancing interpretation of additional geophysical datasets, including 3D Induced Polarisation (IP) and Magnetotellurics (MT), alongside drone-based LiDAR and magnetics surveys. These integrated datasets aim to refine the geometry, depth extent, and connectivity of the mineralised system, informing prioritisation of high-confidence drill targets.

Managing Director Adam Ritchie commented that the results "further confirm that Highway Reward hosts a large, coherent Copper–Gold–Silver system with significant thickness and continuity," and that the continuity of grades combined with geophysical evidence "reinforces our view that Highway Reward represents a fundamentally different opportunity to that pursued historically, with significant untested potential both at depth and along strike." The company holds $5.6 million in funding to accelerate this integrated exploration approach.

Historical Context and Geological Setting

The Highway Reward deposit is part of the Trooper Creek Formation within the Seventy Mile Range Group, a region known for VHMS deposits. The system comprises two main discordant pyrite-chalcopyrite pipes; Highway and Reward; and an additional pipe called Conviction. Historical exploration and mining have focused on narrow lenses, but recent drilling and geophysical data suggest a more extensive bulk-tonnage system.

The deposit lies beneath weathered volcanic rocks and sediments, with mineralisation open at depth and along strike. The company’s drilling program is designed to test the vertical continuity and internal architecture of the mineralised system, with drillholes oriented to intersect the steeply dipping mineralised pipes as perpendicular as possible given surface constraints.

Next Steps and Outlook

Loyal Metals plans to finalise the integration of geophysical results with drilling data to refine its geological model and prioritise targets for the next phase of drilling. This will include step-out drilling along strike, deeper testing of feeder systems, and evaluation of additional high-priority targets identified through combined geological and geophysical interpretation.

The company is also reviewing metallurgical characteristics of the mineralisation, with historical data indicating recoveries consistent with the copper equivalent calculations used in reporting. Further metallurgical test work is planned to support resource evaluation.

These developments follow Loyal Metals’ recent acquisition and option agreements securing exploration rights over the Highway Reward and Big Magpie projects, positioning the company to systematically explore a large-scale VHMS copper-gold system with significant underexplored potential. The company’s approach integrates advanced technologies including AI-enhanced exploration workflows, as detailed in its previous updates.

For additional context on the project’s geophysical insights and exploration strategy, see the company’s earlier report on the high-density gravity survey revealing a vertically extensive VHMS system at Highway Reward Loyal Metals Unveils Vast Untapped Copper-Gold System at Highway Reward.