Bubalus finds a new copper-gold platform near Mt Lyell

Skyline acquisition puts Tasmania at the centre of Bubalus strategy

Bubalus Resources Limited (ASX:BUS) is betting its next phase will be drilled in western Tasmania, agreeing to acquire 100% of the Skyline Copper-Gold Project from CopperCorp Resources. The five exploration licences cover about 494 square kilometres and roughly 80 kilometres of prospective strike along the eastern margin of the Mount Read Volcanics, around 10 kilometres from the Mt Lyell copper-gold mine.

The timing gives the transaction an obvious regional reference point. Sibanye-Stillwater approved the restart of Mt Lyell on 2 September 2026, with first production targeted for 2029. That does not establish an economic connection between Skyline and the mine, but it places Bubalus’ exploration push in a district with existing mining infrastructure, road access and hydro-electric power nearby.

Jukes offers broad mineralisation with higher-grade internal zones

Jukes is the immediate exploration drawcard. Bubalus says all 13 listed holes, plus one wedge, intersected copper mineralisation, with results spanning from near surface to about 430 metres of vertical depth and approximately 350 metres of drilled strike.

Selected results include 132 metres at 0.35% copper and 0.19 grams per tonne gold from 72 metres, and 50 metres at 0.66% copper and 0.27 grams per tonne gold from 498 metres. Higher-grade intervals include 13 metres at 1.18% copper and 1.14 grams per tonne gold, including one metre at 6.28% copper and 12.2 grams per tonne gold. Bubalus’ stated task is to establish whether these higher-grade zones have continuity and scale. The intersections are downhole lengths, however, and true widths have not been established.

Hydes drilling will test an unproven geophysical target

“Hydes Cross Section illustrating Channel Sample, HDD001 drilling, and upcoming planned and permitted holes.”

Hydes presents a different proposition: stronger surface evidence but less effective drilling. Continuous channel sampling returned 24 metres at 0.74% copper and 0.36 grams per tonne gold, including 14 metres at 0.97% copper and 0.56 grams per tonne gold, above coincident gravity and magnetic anomalies.

A single previous diamond hole did not reach the intended target horizon beneath the sampled mineralisation, according to Bubalus. The company plans further gravity work, induced polarisation and, where practicable, downhole electromagnetic surveying before drilling approximately three to four holes. No Mineral Resource or economic study has been completed at Skyline.

Funding and transaction structure leave shareholders with several hurdles

The proposed consideration comprises A$1.0 million in cash, at least A$2.0 million in Bubalus shares and a potential A$1.5 million performance payment if a qualifying Measured and/or Indicated Mineral Resource is reported within five years. CopperCorp would also hold a 19.95% shareholding after completion, subject to the final capital structure, alongside a net smelter return royalty that would generally bring the aggregate royalty across the licences to 2%.

Completion is conditional on an approximately A$2.835 million capital raising, shareholder and regulatory approvals, an acceptable independent tenure report and other conditions. Bubalus has requested a trading halt while the raising is arranged. The company says it expects to have at least approximately A$4.5 million in cash immediately after completion, with an intended A$2.5 million first-year Skyline program, including about 4,000 metres of diamond drilling.

Licence renewals and governance changes add execution risk

“Skyline Project Geology and Key Prospects”

Two of the five licences have near-term expiry dates: EL16/2018 expires on 16 December 2026 and EL24/2020 on 16 January 2027. Bubalus expects to lodge extension applications, but the filing notes that outstanding work program and expenditure commitments may affect whether extensions are recommended. The Jukes and Hydes prospects sit on EL8/2023, which remains in force until August 2028.

The transaction would also bring a board refresh. Geologist Nick Jolly will be proposed as a non-executive director, while Alec Pismiris is expected to retire at the transaction-related general meeting and Brendan Borg will move from managing director to executive chair. The proposed acquisition is scheduled for completion in December 2026, with Jukes drilling targeted to begin in January 2027. The immediate test is less geological than financial: whether Bubalus can fund the deal and preserve enough momentum to turn promising intervals into a coherent exploration case.