Carbine Resources Reports $162k Exploration Spend and $1.036M Cash Reserves

Down South Project Prepares for First Drilling Campaign

Carbine Resources Limited (ASX:CRB) is set to initiate its maiden shallow auger drilling program at the Down South Silica Sand Project in Western Australia's South West region, targeting priority areas within exploration licence E70/5823. This milestone follows the receipt of heritage clearance and the securing of access agreements covering more than 20 properties, unlocking significant ground for exploration. The initial drilling campaign is scheduled for September or October 2026, contingent on suitable weather and ground conditions.

Muchea West Project Advances Regulatory and Planning Work

Meanwhile, at the Muchea West Silica Sand Project located about 40km north-northeast of Perth, Carbine continues to push forward with regulatory approvals, environmental studies, and project scoping. The project holds a substantial resource estimate of 110 million tonnes at 99.65% silica (SiO2), with an exploration target ranging from 762 to 938 million tonnes at grades between 99.6% and 99.8% SiO2. Following the grant of Mining Lease M70/1433 in May 2025, the company has engaged with key stakeholders including the Department of Defence and the Whadjuk Aboriginal Corporation to navigate land access and heritage arrangements.

Carbine has been advised that the proposed Defence lease boundaries in the Muchea West area are expected to exclude most of M70/1433, potentially easing future access for drilling and development activities. Planning for an auger drilling campaign in the southern portion of E70/4905 is underway but has been delayed to Q3 2026 due to pending heritage and flora surveys. The company also intends to drill within the mining lease area to test extensions of higher-grade silica sand and upgrade resource classifications.

Financial Position and Exploration Spending

Carbine reported exploration and evaluation expenditure of $162,000 for the quarter, primarily covering tenement fees, rates, rents, project evaluation, and field reconnaissance. Operating costs including staff and administration totalled $149,000, while the company generated $8,000 in interest income. Cash and cash equivalents stood at $1.036 million as of 30 June 2026, down from $1.339 million the previous quarter, reflecting ongoing exploration activities but no new capital raising during the period.

The company’s payments to related parties, amounting to $90,000, related to director fees, consulting, and company secretarial services. No tenement acquisitions or disposals occurred in the quarter, maintaining Carbine’s 100% ownership of all granted and pending licences in both project areas.

Strategic Outlook and Next Steps

With heritage clearances and land access now secured at Down South, Carbine is poised to deliver its first drilling results from this project in the coming months. At Muchea West, the interplay with Defence lease boundaries remains a watchpoint, although current indications suggest minimal impact on Carbine’s operations. The company’s methodical approach to environmental and regulatory compliance, combined with its focus on resource definition drilling, positions it to progressively de-risk and advance its silica sand assets.

Investors will be keen to monitor the commencement and outcomes of the upcoming auger drilling campaigns, which will provide critical data on resource extensions and quality. Given the company’s current cash runway of just over three quarters at existing expenditure levels, the timing and results of these exploration activities will be pivotal for shaping Carbine’s next phase of development and potential capital requirements.