Horseshoe Metals Sets 3.6Mt Copper Target at Motters Zone Amid DSO Startup Plans

Significant Copper Target at Motters Zone

Horseshoe Metals Limited (ASX:HOR) has released a new copper Exploration Target for the Motters Zone within its Horseshoe Lights Copper-Gold Project, estimating between 2.6 and 3.6 million tonnes grading 1.0% to 1.5% copper. This target extends to a depth of 600 metres and includes oxide, transitional, and sulphide mineralisation in a steeply west-dipping and south-plunging zone with about 300 metres of surface strike. The company emphasises the continuity and predictability of the Motters mineralisation, aiming to expand its existing Mineral Resource Estimate through upcoming drilling campaigns.

The target is based on extensive historical drilling: over 252 reverse circulation holes and 5 diamond drill holes, with more than 10,000 assay results incorporated into 3D geological modelling and wireframing. Motters Zone remains open down plunge and along strike to the south, suggesting further potential beyond the current target boundaries. The geometry of Motters is distinct from the Main Zone, possibly reflecting remobilised or structurally controlled copper mineralisation.

Phase 2 Drilling and Development Plans

Horseshoe plans a Phase 2 drilling program focusing on the oxide zone near surface, infill drilling at the North dump and Southern Stockpile, and extensions of the Main and Motters Zones both down plunge and along strike. These efforts are designed to validate the Exploration Target and provide data necessary for a future Mineral Resource Estimate update. The company also intends to update its Pit Optimisation and Scoping Study and conduct further geochemical sampling and historic data reviews to refine its mineralisation model.

The company’s strategy includes commencing Direct Shipping Ore (DSO) operations following the recent mining approval from the Department of Mines, Petroleum and Exploration. Horseshoe highlights the strong copper price environment, currently above US$6.00 per pound, as a key enabler for early cash flow generation from high-grade copper stockpiles. The addition of gold and silver credits, with assays showing up to 2.56 g/t gold and 107.3 g/t silver in DSO samples, further enhances the revenue potential from these stockpiles. This precious metals upside was confirmed following requests from potential offtake partners, reflecting growing commercial interest.

Offtake and Funding Discussions Progress

During the quarter, Horseshoe engaged with several well-known domestic and international commodity traders, including three new parties since January 2026, for offtake of DSO and potential future concentrates. The company is considering non-dilutive staged offtake funding to support redevelopment capital requirements. This approach aligns with Horseshoe’s disciplined start-up plan, balancing early cash flow generation with longer-term project development.

Complementing the copper-focused activities, Horseshoe has a commercial agreement with Melody Gold Pty Ltd to process gold surface materials at Horseshoe Lights. Melody intends to treat up to 500,000 tonnes per annum using gravity recovery to produce a gold-copper-silver concentrate, adding another revenue stream from the historic open pit area.

Other Projects and Financial Position

No active field work was reported at the Kumarina Copper Project in Western Australia or the Glenloth Gold Project in South Australia during the quarter. Kumarina holds a Mineral Resource Estimate of 835,000 tonnes at 1.3% copper, while Glenloth remains at exploration stage.

Financially, Horseshoe reported a modest net cash outflow of A$25,000 for the quarter, with cash reserves down to A$3,000 at quarter-end. However, the company has access to a $4 million secured convertible loan facility with $1.58 million drawn and $2.45 million unused, providing a comfortable runway with an estimated 98 quarters of funding available based on current expenditure. Payments to related parties were deferred during the quarter.

The company’s recent assay results and DSO approval build on prior drilling success and resource growth efforts, including the earlier release of the copper Exploration Target in February 2026 and the confirmation of robust copper mineralisation at Motters in preceding quarters. These developments underscore Horseshoe’s advancing position in the Western Australian copper-gold sector and its readiness to capitalise on favourable market conditions through near-term production and longer-term resource expansion.

Horseshoe’s approach to unlocking value from its stockpiles and mineral resources is reflected in its active engagement with commodity traders and strategic partners, balancing exploration progress with commercialisation steps.