Ausmon Resources is shifting from broad aircore drilling to targeted grid drilling for rare earth elements in South Australia while pruning low-potential Broken Hill tenements and planning to resume base metals drilling subject to financing.
- Transition to grid drilling in South Australia REE projects
- Relinquishment of two low-prospectivity Broken Hill licences
- Encouraging base metals geochemistry at Enmore prospect
- Exploration expenditure of $30,000 in June quarter
- Strong funding position with $1.14 million available
Focused Rare Earths Drilling to Intensify in Limestone Coast
Ausmon Resources Limited (ASX:AOA) is preparing to escalate its rare earth elements (REEs) exploration in South Australia’s Limestone Coast by moving from widely spaced aircore drilling along road verges to more detailed grid drilling on private farmland. This shift targets three key prospects, Beelitz, Geranium, and Jabuk, covering 122 km2 within its four tenements totaling 2,529 km2.
The previous broad-spaced drilling programs conducted over 2024 and 2025 yielded encouraging elevated total rare earth oxide (TREO) readings, prompting the company to seek land access agreements with local farmers to conduct closer spaced drilling at 200 to 400 metres intervals. Ausmon is mindful of minimising disruption to farmland, scheduling drilling activities post-harvest.
These developments align with growing global interest in REEs, critical for semiconductor and military applications, and supported by Western governments aiming to reduce reliance on China’s dominant supply. Nearby Australian Rare Earths’ pre-feasibility study on its Koppamurra project underscores the region’s potential.
Broken Hill Base Metals Strategy Refined with Licence Relinquishments
In New South Wales, Ausmon holds five licences near Broken Hill covering 685 km2 for cobalt, silver, zinc, and lead exploration. However, the company has decided not to renew the Eureka and Mt Darling licences following disappointing exploration results, allowing it to concentrate resources on more promising prospects.
At the Enmore licence, Ausmon plans to resume drilling at the East Borehole prospect, where initial reverse circulation drilling in 2024 encountered complex geology but returned encouraging base metals geochemistry, including zinc assays exceeding 1,000 ppm and significant manganese and lead intervals. The company intends to complete the planned drilling with RC pre-collars and diamond tails, pending financing.
Gold and Rare Earths Exploration Continues in NSW and Queensland
Gold exploration near Tumut in New South Wales is focused on the McAlpine tenement after relinquishing the adjacent Brungle Creek licence earlier in 2026. A geochemical survey is planned to assess gold potential in the area.
In Queensland, Ausmon’s Turkey Hill tenement in the Drummond Basin targets REEs associated with weathered clays and iron-manganese pisolites overlying tin and tungsten-enriched granites. Future work includes surface sampling and shallow aircore traverses to define prospective zones.
Financial Position and Upcoming Work
The company reported $30,000 in exploration expenditure for the June quarter, with no mining production activities. Ausmon ended the period with $105,000 in cash and access to $1.035 million in unused loan facilities, providing an estimated 12 quarters of funding at current expenditure levels.
Future programs will focus on securing land access agreements, community engagement for drilling support, delineating drill collars within target areas, and conducting further geochemical surveys. The company’s ability to advance drilling at Enmore depends on securing additional financing.
Bottom Line?
Ausmon’s transition to grid drilling in South Australia and portfolio rationalisation near Broken Hill mark a strategic sharpening of its exploration focus, but progress hinges on land access and funding.
Questions in the middle?
- Will Ausmon secure timely land access agreements to commence grid drilling in SA?
- Can financing be arranged to resume and complete drilling at the Enmore base metals prospect?
- How will assay results from upcoming drilling influence Ausmon’s resource potential and market positioning?