Tennant Minerals has raised $2.8 million to accelerate drilling and development at its high-grade Bluebird discovery in the Tennant Creek region, aiming to more than double the mineralised footprint and advance processing studies.
- Capital raise targets Bluebird exploration and development
- Exceptional drill results underpin expansion plans
- Potential to double Bluebird mineralised footprint
- Funds support metallurgical work and processing plant study
- Placement includes new shares and options issuance
Capital Raise Fuels Ambitious Bluebird Expansion
Tennant Minerals Limited (ASX:TMS) has successfully raised $2.8 million in a placement aimed at fast-tracking exploration and development at its 100%-owned Barkly Project in the Northern Territory’s Tennant Creek region. This injection will fund drilling to extend the high-grade Bluebird gold-copper-bismuth-silver zone, which has recently yielded spectacular results including 18 metres grading 10.1g/t gold equivalent from 178 metres, featuring a standout 4.55-metre intercept at 34.5g/t AuEq.
The new drilling targets shallow plunging extensions west and below the current open-pit Mineral Resource, where gravity modelling signals the mineralised corridor could more than double the existing Bluebird footprint. Tennant has also lodged a co-funding application with the Northern Territory government to support this promising target zone, underscoring the potential scale of the discovery.
Drilling Results Highlight High-Grade Potential
The recent diamond drillhole BBDD0050 delivered grades of up to 42.6g/t gold, 12.2% bismuth, and 9.6% copper within a robust mineralised intersection. These results build on earlier high-grade hits such as 24 metres at 11.8g/t gold and 0.66% copper, including 5.7 metres at 49.3g/t gold. The mineralisation is closely associated with ironstone and the Bluebird Fault structure, which gravity and magnetic inversion modelling have successfully mapped to guide further exploration.
These findings reinforce the view that Bluebird’s high-grade copper-gold-bismuth-silver mineralisation remains open at depth and along strike, with the potential to define multiple deposits along the 2.5-kilometre Bluebird-Perseverance corridor. The company plans to commence drilling within weeks as weather conditions improve, aiming to unlock this extensive mineralised system.
Strategic Processing Alliance Advances
Beyond exploration, Tennant is advancing metallurgical test-work to enhance recovery of gold and bismuth, critical for refining processing strategies. This work supports ongoing pre-feasibility studies for a shared processing plant through the Tennant Creek Copper Alliance, a collaboration with CuFe Ltd (ASX:CUF) and Emmerson Resources (ASX:ERM). The Alliance recently secured combined government grants to fund feasibility studies for a multi-user facility designed to lower costs and environmental impacts.
Success here could enable Tennant to convert a substantial portion of the Bluebird open-pit Mineral Resource into Ore Reserves, providing early feedstock for the processing plant and progressing mining studies and environmental baseline work. The company’s approach reflects a strategic push to integrate exploration success with downstream development opportunities.
Share Placement and Capital Structure
The $2.8 million placement was led by GBA Capital and involves issuing over 430 million new shares at $0.0065 each, split into two tranches. Tranche 1 shares will be issued immediately under existing placement capacity, while Tranche 2 awaits shareholder approval at an Extraordinary General Meeting. Alongside shares, Tennant will issue options exercisable at $0.013 with a 2030 expiry, including broker options as part of the arrangement.
This capital raise follows recent positive drilling updates and resource announcements, including the maiden Bluebird Mineral Resource Estimate released in October 2025, which reported 1.58 million tonnes at 3.00% copper equivalent. The fresh funding bolsters Tennant’s capacity to pursue both immediate drilling targets and broader regional exploration across the Barkly and Babbler tenements.
Investors should note the typical uncertainties inherent in exploration and development, including the pending shareholder vote on part of the placement and the outcome of the co-funding grant application. Metal price fluctuations and project execution risks remain factors to watch as Tennant advances its strategy.
With drilling set to ramp up shortly and metallurgical programs progressing, the company is poised to clarify the scale and economic potential of Bluebird’s extensions, potentially reshaping the outlook for this Northern Territory copper-gold-bismuth-silver project.
The placement builds on momentum from the company's exceptional gold-bismuth-copper grades and follows a recent maiden Bluebird Mineral Resource announcement, positioning Tennant to capitalise on a richly endowed mineral system.
Bottom Line?
Tennant’s capital raise positions it to unlock significant extensions at Bluebird, but upcoming shareholder approvals and drilling results will be critical to validate the project’s scale and economics.
Questions in the middle?
- Will the Northern Territory co-funding grant be secured to support the planned drilling program?
- How will metallurgical test-work outcomes influence the design and economics of the proposed processing plant?
- Can Tennant convert the expanded Bluebird resource into Ore Reserves to underpin mining and development?