Union Star Metals defines new concealed gold target at Cobb Creek

New Gold Target Emerges at Cobb Creek

Union Star Metals (ASX:USM) has unveiled a compelling concealed gold target at its flagship Cobb Creek Project in Nevada, marking a pivotal step in its US-focused exploration strategy. Dubbed the Central Concealed Target, this prospect lies beneath shallow volcanic cover and is supported by converging geological, geophysical, and geochemical evidence, including a substantial gravity low, a broad thallium geochemical anomaly, favourable structural corridors, and historical gold occurrences.

This integrated interpretation significantly enhances technical confidence and sets a clear priority for upcoming drilling campaigns. Importantly, historical drilling at Cobb Creek was shallow and did not adequately test beneath the volcanic cover, underscoring the potential for a larger mineralised system waiting to be uncovered.

Technical Work and Survey Plans

In line with its disciplined approach to exploration, Union Star Metals is preparing for a Deep Dipole Induced Polarisation (DDIP) geophysical survey designed to refine drill targets before committing to capital-intensive drilling. This survey aims to reduce exploration risk by improving the understanding of subsurface mineralisation controls, a strategy consistent with the company's focus on directing expenditure where it can generate meaningful discoveries.

The company continues to integrate geological, geophysical, and geochemical datasets to refine its exploration model, ensuring each phase of work incrementally improves the probability of success. This methodical process is evident in the evolving geological interpretation that links the McCall deposit with the broader structural framework of Cobb Creek, suggesting the historical resource may be just one expression of a larger system.

Portfolio Rationalisation and Financial Discipline

Union Star Metals is actively streamlining its portfolio to sharpen its strategic focus on US precious metals projects. The company has progressed the divestment of non-core Australian and Brazilian assets, including a binding agreement to sell the Scanty Rare Earth Project in Brazil to Harvest Minerals Limited. This transaction includes upfront cash, equity in Harvest Minerals, and potential milestone payments, while transferring ongoing funding obligations to the buyer, thereby materially reducing Union Star's future cash commitments.

Similarly, the Kalgoorlie Gold Project in Australia remains on track for divestment under an existing option agreement, aligning with the company’s strategy to concentrate capital and management attention on its US assets.

Financially, Union Star Metals held $601,000 in cash at the end of June 2026, with exploration expenditure of $225,000 primarily directed towards advancing the US portfolio. Corporate overheads have been reduced through portfolio rationalisation, resulting in a leaner cost structure that prioritises exploration funding.

Looking Ahead to September Quarter

Looking forward, the company plans to complete and interpret the DDIP survey at Cobb Creek, advance permitting for its maiden drilling program, and continue refining its geological model through integrated data analysis. Drill planning and target prioritisation will be key activities as Union Star prepares to test the Central Concealed Target and other high-priority prospects.

Additionally, ongoing reviews of the Colorado Gulch and Silver Star Projects in Idaho will support future exploration planning, maintaining a pipeline of opportunities within the US precious metals portfolio.

Union Star Metals is also pursuing funding initiatives including strategic partnerships and project-level financing to support its exploration ambitions, while maintaining disciplined capital allocation to maximise shareholder value.