Horseshoe Metals has started Direct Shipping Ore operations at its Horseshoe Lights Copper-Gold Project, aiming for initial sales in October and December 2026 to fund further development.
- DSO operations commenced with stockpiling of 500 tonnes batches
- Senior Site Executive appointed and Mining Commencement Notice lodged
- Initial sales targeted for October and December 2026
- Strong copper prices above US$6.50/lb underpin sales strategy
- Revenue to support scoping study and exploration drilling
DSO Operations Kick Off at Horseshoe Lights
Horseshoe Metals Limited (ASX:HOR) has taken a significant step towards reviving its Horseshoe Lights Copper-Gold Project in Western Australia by commencing Direct Shipping Ore (DSO) operations. The company plans to progressively stockpile high-grade DSO material in 500 tonne batches, with the first two stockpiles scheduled for sale in October and December 2026 respectively. This low capex and opex approach marks a key milestone in unlocking value from the underdeveloped project.
Operational Readiness and Market Engagement
The appointment of a Senior Site Executive and the lodgement of the Mining Commencement Notice have paved the way for mobilising operations personnel to site in early September. Prior to this, handheld XRF grade control activities will consolidate high-grade stockpiles ready for sale. Multiple buyers have already been identified and engaged, with Horseshoe Metals managing the entire sales process from stockpiling through to delivery.
Favourable Market Conditions Support Sales
The timing of the DSO launch coincides with a copper price that has recently held above US$6.50 per pound, a threshold the company cites as the base for targeting sales. Precious metal credits, including gold and silver assays reported earlier, are expected to add materially to the value of the stockpiles. According to Steven Sickerdick, General Manager – Oxide Copper Operations, the strong demand and multiple interested offtake partners make it economically sensible for Horseshoe to control the initial DSO sales and generate near-term revenue.
Funding Development and Exploration
Revenue from these initial DSO sales is earmarked to fund a scoping study on the planned small and large scale oxide heap/vat leach and cementation operations. The company also plans to accelerate exploration drilling to define the extent of oxide and sulphide mineralisation at Horseshoe Lights and the Motters Zone. The project contains a current in situ resource of 128,600 tonnes of copper metal at 1.0% grade and 36,000 ounces of gold, with additional surface stockpiles and tailings offering further upside potential.
Project Background and Resource Base
Horseshoe Lights is the original copper-gold VMS discovery in the Bryah Basin, approximately 60 km west of Sandfire Resources' DeGrussa Copper Mine. Historic mining ceased over 30 years ago but left extensive remnant DSO stockpiles grading between 20-30% copper. The project also holds significant inferred and measured mineral resources, including flotation tailings and stockpiles with valuable precious metal credits. Alongside Horseshoe Lights, Horseshoe Metals manages other projects such as Kumarina and Glenloth, broadening its exploration footprint.
Bottom Line?
DSO sales at Horseshoe Lights offer a near-term revenue stream to underpin broader project development and exploration ambitions.
Questions in the middle?
- How will the initial DSO sales volumes and grades compare to expectations?
- What timelines and outcomes can be expected from the upcoming scoping study?
- To what extent will exploration drilling expand the oxide and sulphide resource base?