Locksley Secures Option for High-Grade Iron Duke Copper-Gold Project

Strategic Expansion in Cobar District

Locksley Resources (ASX:LKY) has taken a significant step to broaden its copper and gold footprint by securing an option to acquire 100% of the Iron Duke Copper & Gold Project in New South Wales. Situated just 15 kilometres from its Tottenham Project, this acquisition aligns with Locksley’s ambition to execute a district-scale exploration strategy in the prolific Cobar region. The proximity offers potential operational synergies and geological continuity, which could streamline future development pathways.

The Iron Duke Project is notable for its high-grade copper and gold quartz-sulphide system, with historical drilling confirming mineralisation continuity over approximately 550 metres of strike and extending from near surface to depths of around 150 metres. This complements Locksley’s existing portfolio, which currently focuses on the Mojave Project in California, but now gains a robust foothold in a globally recognised copper-gold province.

Historic Resource and High-Grade Drilling Highlights

The project carries a historic inferred resource estimate from 2012 by KBL Mining of 1.3 million tonnes grading 1.0% copper and 0.6 grams per tonne gold, based on reverse circulation drilling. Noteworthy intercepts include 31 metres at 1.13% copper and 0.96 g/t gold, and 13 metres at 1.56% copper and 4.48 g/t gold, underscoring the high-grade nature of the mineralisation. Further rock chip and mine dump sampling by Sky Metals has returned grades as high as 26.1% copper, with over half of the samples exceeding 1% copper, indicating potential for additional near-surface mineralisation.

Ian Stockton, Locksley’s Technical Director, emphasised the geological continuity and structural controls at Iron Duke, highlighting the potential to materially expand the mineral inventory at Tottenham and unlock exploration upside along the under-explored Iron Duke shear zone. The untested Christmas Gift workings, located 2.5 km south of the main zone, represent immediate drill-ready targets that could extend the mineralised footprint significantly.

Acquisition Terms and Exploration Commitments

Locksley’s option agreement with Balmain Minerals, a Sky Metals subsidiary, is structured to limit upfront financial exposure while preserving upside. The company will pay a modest $100,000 option fee and, upon exercising the option, an initial $500,000 in cash and/or shares. A further $500,000 milestone payment is contingent on delineating a JORC-compliant mineral resource of at least 3 million tonnes at a minimum 1% copper equivalent grade or upon project sale or transfer.

During the nine-month option period, Locksley commits to a minimum 2,000 metres of drilling to validate historical data and progress towards a JORC resource. This measured approach balances risk with the opportunity to rapidly advance the project’s exploration status.

Complementing Critical Minerals Focus in the US

While Iron Duke strengthens Locksley’s Australian copper-gold portfolio, the company continues to advance its flagship Mojave Project in California, targeting rare earth elements and antimony essential for US critical mineral supply chains. Recent progress includes maiden diamond drilling and production of 99.5% pure antimony trioxide, reinforcing its strategic mine-to-market ambitions. The Iron Duke acquisition adds geographical and commodity diversification, potentially broadening Locksley’s growth avenues across continents and mineral types.

This dual focus is reflected in the company’s recent activities, with drilling underway at the El Campo Rare Earth Element Prospect and Desert Antimony Mine, where assay results and metallurgical advances have been promising. Such diversification may position Locksley to leverage both copper-gold and critical mineral markets simultaneously, although the two projects operate in distinct regulatory and market environments.

Validation and Reporting Challenges Ahead

Investors should note that the Iron Duke resource estimate and exploration results are historic, reported under JORC 2004 standards and have not been independently validated or upgraded to the current JORC 2012 code. This introduces uncertainty around the confidence level of the resource and will require Locksley’s upcoming drilling and data validation to confirm and potentially upgrade the resource classification.

The company has disclosed this limitation transparently, with plans to complete due diligence and initiate drilling programs aimed at confirming the mineralisation and advancing a compliant resource estimate. The milestone payment structure reflects this uncertainty, linking further financial commitment to demonstrable resource growth.

With multiple untested prospects and a significant exploration corridor, the Iron Duke acquisition could be a pivotal addition to Locksley’s portfolio if upcoming drilling confirms the historic data’s promise. However, the path to a JORC 2012-compliant resource and eventual development remains contingent on exploration success and market conditions.