Cosmo Metals is gearing up for a significant drilling campaign at its Kanowna Gold Project near Kalgoorlie, while systematic exploration at its NSW projects has revealed two high-priority copper-gold VMS targets. The company also bolstered its balance sheet with a $1.55 million entitlement offer to fund ongoing work.
- Imminent drilling at Kanowna includes up to 6 RC holes and a 400m diamond hole co-funded by WA Government
- Systematic geochemical sampling at Bingara identifies two new high-priority VMS copper-gold targets
- Extensive mapping and sampling underway across multiple gold and antimony trends in NSW
- Fully underwritten entitlement offer raises approximately $1.55 million before costs
- Exploration expenditure of $675,000 with $1.5 million cash at quarter end
Kanowna Gold Project Drilling Set to Unlock New Depths
Cosmo Metals (ASX:CMO) is preparing to drill up to six reverse circulation (RC) holes along the Kanowna Shear corridor, complemented by a 400-metre deep diamond hole at the Laguna Verde prospect. The latter is co-funded by the Western Australian Government’s Exploration Incentive Scheme, underscoring the strategic importance of this target adjacent to Northern Star’s +7 million ounce Kanowna Belle gold mine.
Previous shallow drilling at Kanowna has revealed promising intercepts, including 18 metres at 5.3 grams per tonne gold from 24 metres and 10 metres at 4.7 grams per tonne from 32 metres, but most holes have not penetrated beyond 100 metres vertical depth. The upcoming drilling aims to test deeper structural and stratigraphic targets that could host high-grade deposits analogous to Invincible and Kanowna Belle.
Managing Director Ian Prentice emphasised the potential impact of the Laguna Verde diamond hole, which targets a structural setting near the Fitzroy Fault, a key control on mineralisation at Kanowna Belle. This deep hole could deliver a step change in geological understanding of the area and unlock new discovery opportunities.
Bingara Project Surfaces Two Untested High-Priority VMS Targets
In New South Wales, Cosmo’s systematic geochemical sampling program at the Mt Everest – Mona trend has delineated two compelling volcanic massive sulphide (VMS) copper-gold targets: the ~500-metre long Victory Lode anomaly and the Mt Everest East feeder/stockwork zone. Both targets exhibit strong copper and pathfinder element anomalism, with soil copper values peaking at 1,104 ppm and 1,990 ppm respectively.
The Victory Lode target coincides with a zinc-arsenic soil anomaly and a pathfinder index composite, suggesting a robust hydrothermal system. Meanwhile, Mt Everest East’s elevated copper and zinc in rock chips and soils points to a potential feeder zone, supported by magnetic survey data that correlate with known mineralisation styles.
These targets have yet to see any drilling, and Cosmo is advancing ground truthing and geological mapping to refine drill locations. The company is moving towards regulatory approvals to commence drill testing within this historically underexplored corridor.
Expanding Gold and Antimony Footprint at Bingara
Cosmo has also completed systematic geological mapping and rock chip sampling across the extensive 12-kilometre Star of Bingara to Lone Hand gold trend, confirming numerous previously unmapped historical workings. Rock chip assays are pending, but the work has enhanced understanding of structural controls and mineralisation potential along this sparsely tested corridor.
Meanwhile, reconnaissance mapping of the +8-kilometre Antimony Gully trend has identified high-grade antimony mineralisation with assays up to 5.75% Sb and associated gold. This trend lies within the newly legislated Critical Minerals Strategic Reserve, highlighting its strategic value. Cosmo is planning systematic soil sampling to delineate drill targets in this emerging antimony-gold system.
Capital Raise Strengthens Funding Position
Supporting these exploration advances, Cosmo completed a fully underwritten entitlement offer that raised approximately $1.55 million before costs. This capital injection follows the earlier announcement of the entitlement offer in February and the subsequent allocation of shortfall shares, boosting the company’s cash position to $1.5 million at quarter end.
The funds are earmarked for ongoing drilling and exploration across the Kanowna, Bingara, Nundle, and Yamarna projects. Exploration expenditure for the quarter was $675,000, covering assays, geological consulting, field staff, and tenement costs. No mining production or development activities occurred during the period.
These developments build on Cosmo’s recent fully underwritten entitlement offer that set the stage for the current exploration push, reflecting a clear strategy to advance multiple high-conviction targets towards drill testing and resource definition.
Bottom Line?
Cosmo Metals is positioning itself for a pivotal drilling phase that could redefine its Kanowna and Bingara projects, but assay results and drill outcomes will be critical to validate these high-impact targets.
Questions in the middle?
- Will the upcoming Kanowna drilling confirm deeper high-grade gold mineralisation beyond previous shallow intercepts?
- How will assay results from the extensive rock chip sampling at Bingara influence the prioritisation of drill targets?
- Can Cosmo sustain its exploration momentum and funding beyond the current entitlement offer to fully test its NSW and WA projects?