Austral Resources Confirms Large Copper Oxide System Near Mt Kelly

Extensive Copper Oxide System Uncovered at Canyon Prospect

Austral Resources Australia Ltd (ASX:AR1) has unveiled a significant copper oxide system at its Canyon Prospect, located less than four kilometres from the Mt Kelly heap leach and solvent extraction-electrowinning (SX-EW) facility. Maiden drilling results reveal copper oxide mineralisation extending over a 1.2-kilometre strike, with standout intercepts including 24 metres at 1.03% copper and 57 metres at 0.44% copper, both as oxide. The mineralisation remains open in multiple directions, signalling substantial exploration upside.

High-Grade Intercepts Beneath Concealing Cover

The drilling program, comprising shallow percussion holes, intercepted copper oxides predominantly malachite, with azurite and chrysocolla also present. The most impressive hole, MTKC0734, returned 24m at 1.03% copper from 74m depth, including 14m at 1.6% copper. Another hole, MTKC0708, intercepted a broad 57m interval at 0.44% copper from just 4m depth. Much of this mineralisation lies concealed beneath transported cover and silcrete, suggesting that previous surface exploration may have underestimated the system’s scale.

Strategic Advantage from Proximity to Mt Kelly Infrastructure

Austral’s Chairman, David Newling, emphasised the commercial significance of the discovery’s location. “Discoveries of this scale and proximity to existing infrastructure are uncommon,” he noted. The Canyon system’s closeness to Mt Kelly’s processing plant could allow the company to leverage existing heap leach and SX-EW facilities, potentially reducing capital expenditure and accelerating development timelines.

Newling highlighted that the ongoing drilling aims to delineate the system’s size and continuity, reinforcing Austral’s strategy to expand copper inventories around its established infrastructure.

Multiple Prospects Within the Canyon System

The Canyon Prospect comprises three main areas: South, Central, and North. Canyon South delivered the highest grades, with MTKC0734’s intercept situated 3.8km from Mt Kelly. Canyon Central hosts surface copper occurrences consistent with the stratigraphic horizon controlling mineralisation at nearby McLeod Hill, which holds a resource of 1.69 million tonnes at 0.6% copper. Drilling here confirmed oxide mineralisation continuity below surface, including 14m at 0.2% copper and a 4m interval at 0.69% copper.

Canyon North, located 2.8km from Mt Kelly, represents a compelling blind target beneath deeper cover, with first-pass drilling intercepting 29m at 0.36% copper, including 11m at 0.64% copper. Mineralisation remains open in all directions across these zones, offering clear targets for expansion.

Next Steps Focus on Defining Scale and Metallurgical Potential

Austral plans follow-up drilling to define the mineral system’s dimensions and identify higher-grade zones, alongside step-out drilling to test continuity between the Canyon sub-prospects. Metallurgical testwork will assess heap leach and SX-EW recovery characteristics, essential for evaluating the system’s feed potential for Mt Kelly operations.

Geological and structural studies will refine targeting and enhance understanding of controls on mineralisation. The company’s broader Mt Kelly district exploration portfolio, now reinforced by these results, positions Austral to extend mine life and grow its copper resource base.

Austral’s recent acquisition of the Rocklands facility, with dual processing capabilities for sulphides and oxides, complements this strategy by broadening processing options and exposure to gold.