Locksley Advances Copper-Gold Footprint with Iron Duke Acquisition in NSW

Strategic Expansion Near Tottenham Project

Locksley Resources Limited (ASX:LKY) is moving to bolster its copper-gold portfolio with a binding option agreement to acquire 100% of the Iron Duke Project in New South Wales. The project sits just 15 km from Locksley’s Tottenham Project, positioning the company to leverage operational synergies and a unified exploration model across a district-scale opportunity in the prolific Cobar region. This proximity is expected to streamline targeting strategies and future development pathways.

The Iron Duke Project hosts an underexplored shear-hosted copper and gold system with mineralisation confirmed along a 550-metre strike length and open at depth. Historical drilling has revealed multiple high-grade intercepts, including a standout 13 metres at 1.56% copper and 4.48 g/t gold, underscoring the project's potential to expand Locksley’s resource base. The acquisition structure features a modest upfront option fee and milestone-based share consideration, which limits financial exposure while maintaining upside linked to resource growth.

Inferred Resource and Geological Setting

The project’s inferred Mineral Resource Estimate (MRE) totals approximately 1.3 million tonnes grading 1.0% copper and 0.6 g/t gold, reported in accordance with JORC Code standards and based on drilling by previous owners KBL Mining and Sky Metals. Mineralisation is interpreted as steeply dipping shear-hosted lodes within Girilambone Group sediments, extending from near surface to around 140 metres depth. The resource remains open along strike and at depth, with immediate drill-ready targets including the historically underexplored Christmas Gift, Monarch, Mount Pleasant, and Silver Lining prospects.

Sampling and assay data underpinning the MRE were collected through industry-standard reverse circulation and diamond drilling, with rigorous QAQC procedures applied. The resource is classified as Inferred, reflecting limited drill density and the absence of detailed mining or metallurgical assumptions. Notably, the estimate does not account for historical mining depletion, introducing some uncertainty around actual tonnage. Nonetheless, the resource provides a solid foundation for further exploration and potential resource expansion.

Transaction Terms and Next Steps

Locksley’s option agreement with Balmain Minerals Pty Ltd, a wholly owned subsidiary of Sky Metals Limited (ASX:SKY), involves a $100,000 option fee and a $500,000 initial consideration payable on exercise, which can be in cash and/or shares. A further $500,000 milestone payment is due upon delineation of a JORC-compliant mineral resource of at least 3 million tonnes at 1% copper equivalent or upon sale or transfer of the project. The option period spans nine months, during which Locksley commits to a minimum 2,000 metres of drilling to validate historical data and progress toward a JORC resource upgrade.

This acquisition complements Locksley’s primary focus on the Mojave Project in California, adding a strategic copper-gold asset that fits neatly into its broader critical minerals ambitions. The company plans to undertake a comprehensive technical review, execute the initial drilling program, and evaluate development pathways within a coordinated regional exploration strategy.

Securing the Iron Duke Project builds on Locksley’s recent momentum in copper-gold exploration, following its earlier option to acquire 100% of Iron Duke and aligns with its district-scale vision for the Cobar region. While the Mojave Project remains the flagship, Iron Duke offers immediate drill targets and the potential to expand the Tottenham Mineral Resources, enhancing the company’s exposure to high-grade copper-gold mineralisation in a well-established mining jurisdiction.

Exploration Potential Beyond the Resource

Beyond the defined resource, the Iron Duke shear zone remains largely underexplored, with multiple untested historical workings nearby that returned rock chip assays up to 26.1% copper and 0.41 g/t gold. These high-grade surface samples at the Christmas Gift and Monarch prospects hint at broader mineralised zones waiting to be delineated. The geological setting; greenschist facies, ductile deformed sediments with quartz-sulphide breccias; supports the potential for additional lodes beyond the currently modelled system.

Locksley’s planned drilling will test these targets, aiming to convert exploration upside into defined resources. The milestone-based acquisition structure preserves upside for shareholders while capping near-term capital outlay, a prudent approach in the current market environment. The company’s technical team, led by Competent Person Ian Stockton, has reviewed historical data and is confident in the project’s geological continuity and resource potential.

In parallel, Locksley continues to advance its Mojave Project in the United States, where it recently commenced maiden diamond drilling and produced high-purity antimony trioxide, reinforcing its critical minerals credentials maiden diamond drilling at Mojave. This dual focus on copper-gold and critical minerals positions Locksley uniquely across complementary commodities and jurisdictions.