29Metals has delivered strong final drill results from its 2025 program at Golden Grove, revealing high-grade copper and zinc intercepts that promise to boost mineral resources and mine flexibility. The company plans a significant exploration budget increase for 2026 to capitalize on this momentum.
- High-grade copper and zinc intercepts at Tryall, Hougoumont, Europa, and Cervantes
- 2025 drilling contributed to 10% ore reserve and 17% mineral resource growth
- $11 million spent on 2025 drilling, ramping to $15-$20 million in 2026
- Focus on near-mine extensions and resource conversion at Golden Grove and Capricorn Copper
- Next Mineral Resources update expected in March 2027
High-Grade Intercepts Highlight Growth Potential
29Metals Limited (ASX:29M) has capped off its 2025 drilling campaign at the Golden Grove mine with a series of impressive high-grade resource extension intercepts, underscoring the asset’s potential to extend mine life and enhance operational flexibility. The final drill holes at key deposits; Tryall, Hougoumont, Europa, and Cervantes; delivered copper grades up to 10.1% and zinc grades as high as 24.7%, alongside gold and silver credits.
At Tryall, resource extension drilling intercepted 17 metres at 2.0% copper including a standout 7 metres grading 3.7% copper. Hougoumont yielded 11.1 metres at 2.1% copper, with a high-grade zinc-rich zone hitting 24.7% zinc over 4 metres. Europa’s deep drilling revealed 13.9 metres at 7.4% copper, including a 9.2-metre section at 10.1% copper, positioning it as a promising longer-term high-grade source. Cervantes also showed potential with 18.8 metres at 1.6% copper and a higher-grade zone of 2.4 metres at 3.8% copper.
Drilling Program Delivers Resource Growth and Mine Plan Flexibility
The 2025 program, which saw expenditures nearly triple to $11 million from the previous year, was aimed squarely at growing existing Mineral Resource estimates and increasing mine plan flexibility, particularly around the Gossan Hill deposits. Incorporation of drilling results into the December 2025 Mineral Resources and Ore Reserves update; published in February 2026; contributed to a 10% increase in ore reserve tonnes and a 17% uplift in mineral resources at Golden Grove.
However, the latest drill results announced today were received too late for inclusion in that update and will be considered in the next scheduled revision due in the March quarter of 2027. Notably, extensions at Tryall have already been factored into the current mine plan, providing shallow orebody options that could ease operational pressures during 2026.
Chief Executive Officer James Palmer highlighted the company’s confidence in Golden Grove’s exploration upside, stating the 2025 results reaffirm the mine’s track record of discovery and life extension. Palmer noted that deposits like Tryall, Ozion, and Hougoumont Extended are converging into a large mineralised system at depth, which could unlock future mining cost efficiencies through shared infrastructure. This view aligns with the company’s strategy to invest heavily in exploration, with a planned $15-$20 million budget for 2026 focused on near-mine growth and resource conversion drilling at both Golden Grove and Capricorn Copper.
Strategic Focus on Near-Mine Targets and Capricorn Copper Restart
The 2026 exploration campaign will build on the momentum generated in 2025, targeting extensions at Gossan Hill and resource conversion across Gossan Valley and Scuddles deposits. Drilling is set to recommence at Capricorn Copper with surface and underground programs aimed at testing priority targets like Esperanza South and Mammoth, signalling the company’s commitment to advancing its broader portfolio.
This aggressive exploration posture follows 29Metals’ recent financial turnaround, where the company posted a $24 million profit in 2025, supported by steady copper production and progress on growth projects including Gossan Valley and Capricorn Copper restart initiatives. The exploration investment also dovetails with the company’s $150 million capital raise completed earlier this year, which was earmarked for growth projects and operational recovery.
Geological Context and Drill Methodology Support Confidence
The drilling results adhere to the Australasian JORC Code (2012 Edition) standards, with diamond drilling conducted from both surface and underground platforms. The mineralisation style at Golden Grove is volcanogenic hosted massive sulphide (VHMS), characterised by sub-vertical lenses within layered volcanics and sediments. The company’s detailed geological modelling and robust QAQC protocols underpin confidence in the assay data and resource interpretations.
Notably, the drilling spacing varies according to target maturity, with resource conversion holes typically spaced at 40m by 40m, while exploration holes are more widely spaced pending further infill. The reported intercepts are downhole lengths, with true widths estimated between 35% and 60%, which will be refined in future resource updates.
The integration of these drilling results into the mine plan and resource models is a critical step in maintaining Golden Grove’s operational longevity and cost competitiveness, especially as 29Metals navigates the complexities of mining in a mature district with evolving geological understanding.
Bottom Line?
29Metals’ substantial exploration spend and high-grade intercepts at Golden Grove set the stage for potentially meaningful resource growth and mine life extension, but investors will want to watch the March 2027 resource update for confirmation of these gains.
Questions in the middle?
- How will the convergence of Ozion and Hougoumont Extended mineralisation impact future mining efficiencies?
- What are the key risks that could delay incorporation of recent drill results into Mineral Resource estimates?
- How will 29Metals balance exploration expenditure with operational cash flow amid evolving market conditions?