CuFe Boosts Gecko Resource Confidence with 66% Indicated Upgrade

Substantial Confidence Leap in Gecko Resource

CuFe Limited (ASX:CUF) has delivered a significant boost to its Tennant Creek Project by upgrading the confidence in its 55%-owned Gecko Copper-Gold Deposit. The latest Mineral Resource Estimate (MRE) update lifts the Indicated category from a mere 4% in August 2025 to a commanding 66% of the total resource, a seismic shift that unlocks new avenues for mine development and economic appraisal.

This leap is not due to fresh drilling but stems from integrating a newly developed geological model and uncovering additional historical QAQC data from archived records. These enhancements have transformed the resource classification landscape, converting a large swathe of previously Inferred tonnes into the more reliable Indicated category.

Resource Metrics and Economic Implications

The updated Gecko MRE now stands at 17.77 million tonnes grading 2.55% copper equivalent (CuEq), incorporating copper, gold, bismuth, silver, arsenic, cobalt, lead, sulphur, and zinc. The copper equivalent calculation assumes metal prices of US$9,250/t for copper and US$4,000/oz for gold, alongside recovery rates close to 80-94% for key metals.

Importantly, the combined Indicated portion of the Orlando and Gecko deposits has surged to 71%, a remarkable improvement from 16% just four months ago. This enhanced confidence is pivotal for CuFe’s upcoming Scoping Study, which aims to quantify the economic scale of the combined deposits. Executive Director Mark Hancock highlighted that prior economic evaluations were constrained by the low confidence in Gecko’s resource, which this update now alleviates.

Historical Data and Geological Modelling Drive Upgrade

The Gecko deposit, a structurally controlled iron oxide copper-gold system, has a mining history dating back to the 1970s, with underground operations ceasing in 1999. The upgrade leverages a geological model completed in April 2026 and a comprehensive QAQC review that incorporated previously unavailable data from the 1980s and 1990s. This included internal standards, laboratory blanks, and repeat analyses that collectively underpin the improved resource classification.

The QAQC data review confirmed acceptable analytical accuracy and precision, supporting the conversion of large resource blocks from Inferred to Indicated. The geological model clarified lithological and structural controls, enabling better grade continuity and estimation confidence. The MRE was prepared using robust geostatistical methods, including Ordinary Kriging, and validated through multiple checks.

Mining and Metallurgical Considerations

CuFe assumes underground open stoping as the mining method, supported by historical operations at much lower metal prices. Metallurgical testwork from 1992, reviewed recently, indicates copper recoveries of 94%, gold at 83.8%, and bismuth and silver at 80%, aligned with historical reconciliations. These parameters feed into the copper equivalent calculations and provide a realistic foundation for economic studies.

Only about 10% of the mineralised copper material lies within old underground workings, suggesting minimal sterilisation and a largely intact resource. The company plans further drilling in the September quarter to convert remaining Inferred resources, focusing on areas where QAQC data remains limited.

Tenure and Regulatory Notes

The Gecko deposit is situated within several mining and exploration leases approximately 25 km northwest of Tennant Creek in the Northern Territory. CuFe holds 55% ownership, with Gecko Mining Company owning the remainder. The tenure is in good standing, though royalty agreements with Evolution Mining, Franco Nevada, and anticipated Indigenous Land Use Agreements introduce some future cost considerations.

Environmental factors, including Acid Rock Drainage risks due to sulphur presence, have been acknowledged, with sulphur grades estimated to assist in environmental management planning.

Next Steps and Market Implications

CuFe’s resource upgrade at Gecko complements prior substantial improvements at the nearby Orlando deposit, where Indicated resources have been similarly bolstered. This positions the Tennant Creek Project as a more robust development prospect with increasing economic clarity. The upcoming Scoping Study will be a critical milestone, expected to demonstrate the combined project’s scale and value.

Further drilling planned for the September quarter aims to continue the conversion trend, potentially lifting Indicated resources even higher. Investors will be watching how these developments translate into project economics and eventual mine feasibility.