Anax advances Whim Creek as Mons Cupri resource expands

Mons Cupri resource expands ahead of reserve update

Anax Metals Limited (ASX:ANX) is approaching a consequential decision point at Whim Creek with a bigger mineral inventory, active engineering work and financing discussions underway. The company’s August update lifted the Mons Cupri Mineral Resource by 24% to 6.32 million tonnes at 1.38% copper equivalent, containing 87,200 tonnes of copper equivalent metal.

More than 78% of the Mons Cupri resource is classified as Measured and Indicated. The increase followed revised mineralised domains, updated geological interpretation, additional drilling information and a changed reporting cut-off. It does not, however, automatically enlarge the mine plan: Anax says the resource has not yet been incorporated into the Ore Reserve, production target or forecast financial information. An updated Mons Cupri Ore Reserve is targeted for the December quarter. The resource expansion builds on the Mons Cupri resource update, which was previously reported as a 24% increase in tonnes.

Drilling adds high-grade evidence while assays remain outstanding

Phase 1 diamond drilling at Mons Cupri reached 11 holes and 3,158 metres by the end of September, against a planned 18-hole, approximately 5,000-metre programme. The first four holes produced broad intersections including 85.90 metres at 2.89% CuEq and 62.54 metres at 2.95% CuEq, with narrower internal zones above 8% CuEq.

Those results support the thickness and grade of the updated resource, according to Anax, and are being used for metallurgical work, pit design refinement and project financing due diligence. Results from holes 26ANXDD005A to 26ANXDD011 were still pending at the reporting date, while drilling and modern down-hole electromagnetic surveying were scheduled to continue. The reported widths are downhole, and true widths have not been determined. The programme follows the earlier high-grade Mons Cupri drilling, which included the 85.90-metre intersection.

FEED and financing set the terms for a Q4 decision

At Whim Creek, front-end engineering design has progressed through geotechnical investigations at the proposed plant site, engagement with equipment manufacturers and contractors, and coordinated mine and process design. The work covers a proposed 400,000-tonne-per-year concentrator, ore sorting, preconcentration, mining fleet and supporting infrastructure, with the aim of refining costs, scheduling and the execution plan for a Final Investment Decision.

Anax continues to target an FID in the fourth quarter of 2026 and says first production is indicatively expected about 18 months after FID, subject to completed FEED, funding and board approval. Selected debt and offtake parties have provided several non-binding indicative term sheets, including offers of up to A$57 million for Anax’s 80% interest. Those proposals remain subject to due diligence, definitive agreements and approvals. The February DFS Update’s headline economics, including a pre-tax NPV of A$501 million and a 98% IRR, are stated on a 100% project basis and do not include the August Mons Cupri resource update.

Heap leach study adds a second processing pathway

Anax is also examining whether Whim Creek’s existing permitted heap leach infrastructure can operate alongside the proposed sulphide concentrator. The feasibility study, due in the first quarter of 2027, will assess copper cathode and zinc sulphate production from lower-grade and transitional material, as well as revised recoveries, leach kinetics, capital costs and operating costs.

Large-scale column testwork reported copper extraction of 77% to 80% and zinc extraction above 90% from lower-grade ores. These are testwork results rather than a new production forecast. The study will also consider marketing and offtake options for the proposed products, extending the processing strategy described in the Whim Creek heap leach study.

Cash position leaves little room for delay

Anax ended September with approximately A$7.46 million in cash after spending A$2.74 million on exploration and evaluation and recording net operating cash outflows of A$837,000. Based on reported relevant outgoings of A$3.58 million for the quarter, the Appendix 5B indicates about 2.08 quarters of funding available. The company also has a A$3.1 million secured Jetosea loan due to mature on 31 December 2026.

That liquidity position makes the path from non-binding funding indications to committed finance particularly important. The next hard evidence will come from the Mons Cupri reserve conversion, the remaining drilling assays, FEED’s revised capital estimate and any definitive debt or offtake agreements. Until those pieces arrive, Whim Creek has an increasingly substantial technical case, but not yet a fully funded development decision.