Altoro Metals Accelerates Spanish Zinc Exploration with $5M Raise and Maiden Drilling

High-Grade Zinc Confirmed at Novales-Udías

Altoro Metals Limited (ASX:ARO) has laid a solid foundation for growth in Spain’s zinc sector by integrating a substantial historical exploration database at its flagship Novales-Udías Zinc Project. The company reviewed 109 drillholes totaling 6,720 metres alongside underground sampling, confirming the presence of exceptionally high-grade zinc mineralisation. Noteworthy intercepts include 0.85 metres at 23.47% zinc and channel samples reaching up to 2.85 metres at 33.5% zinc with significant lead content, reinforcing the project's brownfields potential.

These historical results, while not freshly assayed, provide critical geological vectors and underpin Altoro’s ongoing exploration targeting and resource growth strategies. The company is concurrently progressing technical studies and permitting to support a potential restart of the historic San José underground mine, a cornerstone asset within the Novales-Udías district.

Maiden Drilling Initiated at Guajaraz Project

Building on its momentum, Altoro has commenced its first-ever diamond drilling campaign at the 100%-owned Guajaraz Zn-Pb-Ag-Cu Project in the La Unión Mining District. The five-hole, 1,430-metre program aims to test extensions of historically mined polymetallic mineralisation beneath several old mine areas, employing modern geological interpretation and deep ground penetrating radar surveys to identify high-priority targets.

This drilling marks a significant step in evaluating Guajaraz’s potential to host substantial zinc and polymetallic resources, establishing a second active exploration front alongside Novales-Udías. The company’s site visit in June, involving senior management and regional government officials, underscores local support for advancing these projects.

Capital Raising and Corporate Rebrand Support Exploration Drive

Altoro successfully completed the first tranche of a $5 million placement during the quarter, raising approximately $690,000 before costs, with the second tranche finalised post-quarter end. This capital injection strengthens the company’s balance sheet, enabling accelerated exploration and development activities across its Spanish portfolio.

Reflecting its sharpened focus on zinc and polymetallic assets in Spain, the company rebranded from Variscan Mines Limited to Altoro Metals Limited, updating its ASX ticker to ARO. This rebrand aligns corporate identity with strategic ambitions as the company gears up for an active second half of 2026.

Operational and Financial Snapshot

During the quarter, Altoro spent $368,000 on exploration, primarily directed at underground drilling, geological modelling, and technical consulting at its Spanish projects. No mining development or production activities were reported. The company maintains a cautious yet confident stance, having secured funding to continue its exploration programs and meet business objectives.

Deferred share issuances linked to future JORC-compliant resource milestones remain outstanding, with potential issuance of nearly 60 million shares contingent on hitting defined zinc resource thresholds. This mechanism ties vendor remuneration to tangible exploration success, aligning interests with shareholders.