Kanowna Project Drilling Advances with Diamond Rig Contracted

Diamond Rig Secured for Critical Deep Hole at Kanowna

Cosmo Metals Ltd (ASX:CMO) has secured a diamond drill rig to push forward the second phase of its drilling campaign at the Kanowna Gold Project (KGP), located just 13km north of Kalgoorlie. This phase centres on a 400m deep diamond hole at the Laguna Verde prospect, a key target co-funded by the Western Australian Government’s Exploration Incentive Scheme (EIS). The drilling aims to test for orogenic sediment-hosted gold mineralisation near the interpreted extension of the Fitzroy Fault, a major structural feature linked to the nearby Kanowna Belle gold mine operated by Northern Star Resources (ASX:NST).

The diamond rig mobilisation is expected within weeks, marking a critical step beyond the initial reverse circulation (RC) drilling phase that targeted Invincible-style gold mineralisation along the Kanowna Shear Zone. This shear zone bisects the Panglo Basin sediments and is associated with widespread pathfinder element anomalism and supergene gold, making it a fertile ground for high-grade discoveries. The program also contemplates completing diamond tails on recent RC holes that encountered encouraging structural and geochemical signatures.

Strategic Focus on High-Grade Gold Analogues

The Laguna Verde hole is designed to probe a structural setting analogous to the Kanowna Belle deposit, leveraging the government’s EIS co-funding to enhance drill depth and precision. Previous shallow drilling at Laguna Verde returned notable gold intercepts, such as 3m at 5.1g/t Au and 24m at 0.23g/t Au, highlighting the prospect’s potential. Elsewhere on the project, prospects like Don Alvaro and Adder remain open at depth, with historical results including 18m at 5.3g/t Au and 32m at 0.44g/t Au, respectively.

These targets are prospective for deposits similar to the Invincible Gold deposit near St Ives, which was a significant discovery by Gold Fields in 2012 with a resource exceeding 1.3 million ounces at 4.5g/t Au. The Invincible discovery underscores the potential for high-grade, structurally controlled gold deposits within this geological setting. Cosmo’s Managing Director Ian Prentice highlighted the value of securing a local Kalgoorlie-based diamond drilling contractor to execute this phase, signalling confidence in the project’s upside and operational readiness.

Innovative Drill-for-Equity Arrangement to Preserve Capital

In a move to safeguard cash reserves amid an active exploration schedule, Cosmo has agreed with Terra Drilling, a respected Kalgoorlie-Boulder contractor, to settle up to $40,000 of the diamond drilling invoice in Cosmo shares. This drill-for-equity arrangement allows Cosmo to conserve cash while maintaining momentum on its drilling program, reflecting a pragmatic approach to funding exploration in a capital-intensive environment.

This development follows the company’s recent commencement of RC drilling at Kanowna, which targeted structural and sediment-hosted gold along the Kanowna Shear Zone, including the Adder and Don Alvaro prospects, supported by the WA Government’s co-funding scheme. The phased drilling approach and government partnership underscore Cosmo’s strategic positioning to unlock value in a prolific gold district adjacent to one of Australia’s largest gold mines high-impact drilling at Kanowna.

Meanwhile, Cosmo’s broader exploration activities include advancing gold-antimony and copper projects in New South Wales, funded partly by a recent $1.55 million entitlement offer. This capital injection underpins ongoing drilling and geochemical programs across its portfolio, balancing regional diversification with focused efforts at Kanowna entitlement offer to fund drilling.