Austral Resources Advances Snow Queen Discovery and Secures Full Anthill Production Control

Snow Queen Drilling Unveils Significant Copper-Gold Mineralisation

Austral Resources (ASX:AR1) has struck a compelling copper-gold discovery at its Snow Queen prospect within the Cameron River Project. Drillhole 26SQRC001 returned a striking 10 metres grading 7.52% copper, 9.28 grams per tonne silver, and 0.25 grams per tonne gold from just 35 metres downhole. This initial high-grade intercept has prompted an expanded follow-up drilling program, including targeting the adjacent Santa Maria Trend, signalling robust prospectivity in the region.

Rocklands Processing Plant Upgrade Gains Momentum

The company secured a brand-new, unused 4.75MW SAG mill for the Rocklands Processing Plant upgrade, with delivery slated for late July 2026. This acquisition underpins ongoing efforts to increase throughput and operational efficiency. Demolition of the legacy crushing circuit is underway, paving the way for a streamlined comminution process that replaces multiple crushing stages with a simplified SAG mill configuration. Meanwhile, a pre-feasibility study exploring a potential grid power connection continues, reflecting Austral’s push to modernise and reduce operational costs at Rocklands.

Anthill Project Agreement Termination Simplifies Operations

Post-quarter, Austral terminated the Anthill Project Agreement with Glencore and Secover, extinguishing prior obligations and granting the company full exposure to Anthill copper production. This move not only simplifies the operating model but also enhances operational flexibility and the opportunity to ramp up production at Mt Kelly. The transition to full ownership is expected to be reflected in restated quarterly metrics from September onwards, providing a clearer view of Austral’s operational performance free from joint venture constraints.

Operational Progress at Mt Kelly and Lady Annie

Mining activities advanced with haulage from the Anthill mine completed and a dual mining program underway at Lady Annie and Mt Clarke. Despite sulphuric acid supply constraints limiting heap leach production to 1,796 tonnes of copper cathode; below the quarterly target of 2,010 tonnes; processing operations maintained strong solvent extraction and electrowinning performance, delivering cathode purity of 99.99%. The Hydro-Jex remine project progressed with installation of injection bores, aiming to recover copper from lower heap leach sections that conventional methods may miss.

Exploration Identifies New Copper Oxide System Near Mt Kelly

Further afield, first-pass drilling at the Canyon Prospect, about 4km from the Mt Kelly processing facility, uncovered a previously unrecognised copper oxide system. Intercepts included 24 metres at 1.03% copper, highlighting additional upside within Austral’s extensive tenement package. Exploration drilling continued beyond the quarter with assay results and follow-up programs expected to sustain a steady flow of news in the coming months.

Financials Reflect Investment Phase Amid Production Growth

Austral generated approximately $31 million in copper cathode sales during the quarter, selling 1,800 tonnes at an average realised price around US$13,028 per tonne. However, increased mining costs linked to new projects resulted in a net operating cash outflow of $6.8 million. The company ended the quarter with a robust cash position of $71.66 million, bolstered by proceeds from the Lady Loretta acquisition and ongoing equity raises. This financial footing supports the company’s growth initiatives and the Rocklands restart scheduled for the second half of 2027.