A$557,426 Cash, 1.305 Billion Shares and Deep Copper Results
Redstone Resources has expanded its exploration portfolio and reported deep copper intersections at West Musgrave, but its auditor has flagged material uncertainty over the company’s ability to continue without further funding. The ASX junior ended FY2026 with A$557,426 in cash against A$636,787 of annual Australian tenement commitments.
- 1.8m at 2.5% copper and 4m at 1.3% copper from deep TLD005 drilling
- A$587,894 FY2026 net loss and A$403,751 operating cash outflow
- 330km² Saturn Project granted in the West Musgrave region
- 75 million shares issued for new Western Australian projects
- Auditor highlights material uncertainty related to going concern
Deep copper results sharpen West Musgrave’s exploration case
Redstone Resources Limited (ASX:RDS) has spent the year building a larger exploration story around a difficult financial reality. Its deep TLD005 hole at the Tollu copper deposit delivered intersections of 1.8 metres at 2.5% copper from 912.4 metres downhole and 4 metres at 1.3% copper from 1,048 metres, including 1.6 metres at 2.7% copper. The company says the deepest zone sits more than 400 metres vertically below the previously deepest significant copper intersection at Tollu.
The result matters because TLD005 cut a gabbro-dominant mafic intrusion from 811 metres downhole to the end of the hole, while cobalt anomalies appeared through the deeper mafic rocks. Redstone interprets those features as potentially consistent with a magmatic sulphide source for the copper and cobalt, including a possible Voisey’s Bay-style copper-nickel-cobalt-platinum group element system. That remains an exploration model, not a resource or development outcome: the company says further drilling is needed to test whether the deep mineralisation connects with known Tollu zones.
Losses and cash pressure constrain the next drill campaign
The financial statements are less buoyant. Redstone reported a FY2026 loss after tax of A$587,894, wider than the A$543,366 loss recorded in FY2025, while operating cash outflows rose to A$403,751 from A$253,649. Cash fell to A$557,426 at 30 June 2026, despite A$695,000 of securities proceeds during the year and A$619,569 of net financing cash flow.
Dry Kirkness (Audit) Pty Ltd issued an unmodified audit opinion but drew attention to a material uncertainty related to going concern. The company had net current assets of A$147,986 and exploration commitments of A$636,787 for the following year. Directors said continued operations depend on future capital raisings, while director and related-party creditors totalling A$273,754 had agreed to defer repayment until sufficient funding is available. The report says Redstone plans to raise capital in the near future.
Saturn and new WA projects broaden the portfolio
Redstone also added a new 330km² exploration tenure in the West Musgrave region when the Saturn Project was granted in June. The project covers part of the Giles Intrusive Complex and includes the Halleys copper-nickel-cobalt-PGE prospect, where historical drilling returned broad, shallow mineralised intervals such as 58 metres at 0.35% copper, 0.08% nickel and 0.21 grams per tonne combined platinum, palladium and gold. Those historical results are open at depth, but the work remains limited and requires modern follow-up.
In Western Australia, Redstone acquired a suite of gold, lithium, copper and base-metals projects for 75 million shares issued at a deemed price of A$0.003 each, plus a 1.5% net smelter return royalty. The portfolio includes Mt Cauden, Twin Hills, Rudall East and Cockatoo Rocks. Mt Cauden and Twin Hills have been prioritised for initial exploration drilling, with the company saying it already has an approved program of work for Twin Hills.
Share count and funding needs remain central
The portfolio expansion came alongside a sizeable increase in the equity base. Shares on issue rose to 1.305 billion at year-end from 1.034 billion a year earlier, after a A$650,000 placement, a A$45,000 director placement and the 75 million shares issued for the acquired projects. Redstone also had 278.35 million unlisted options outstanding at 30 June, including 61.9 million options exercisable at A$0.007 and expiring in December 2026.
The company’s stated exploration pipeline is therefore substantial: a planned 2027 RC program across magnetic targets northeast of Tollu, follow-up work on the deep TLD005 mineralisation, access negotiations for Saturn and first-pass drilling at the new gold projects. The immediate test is whether Redstone can fund that pipeline without further expanding the share count, while also maintaining tenure across projects carrying A$1.47 million of total exploration commitments over the next five years.
Bottom Line?
The deep copper intersections give Redstone a credible exploration catalyst, but the next catalyst may be the capital raising needed to pursue it.
Questions in the middle?
- What size and structure will Redstone’s planned capital raising take?
- Can follow-up drilling demonstrate continuity between TLD005 and the established Tollu copper system?
- Will early drilling at Mt Cauden, Twin Hills and Saturn justify carrying such a broad exploration portfolio?
