Kaoko expands Chalkos drilling after strong Otniel copper-silver assays

Otniel assays drive a fivefold drilling expansion

Kaoko Metals Limited (ASX:KAO) has turned an initial 2,000 to 3,000-metre drilling campaign at its Chalkos Copper-Silver Project in Namibia into a program of at least 15,000 metres, after its first two Otniel holes returned broad shallow mineralisation. The results reported in the September quarter included 31.0 metres at 1.43% copper and 17.8 grams per tonne silver from 55.0 metres in DDOT001, and 48.0 metres at 1.02% copper and 12.9 grams per tonne silver from 46.0 metres in DDOT002.

“Drill Hole Location Plan – Otniel prospect area.”

“Long section with drill holes DDOT001 & DDOT002 including down-hole copper mineralisation1 and schematic geology (looking southwest).”

Caption and image © Kaoko Metals Limited. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 29 Oct 2026.

The higher-grade portions were notable within those wider intervals. DDOT001 included 13.1 metres at 2.30% copper and 29.6g/t silver, while DDOT002 included 7.15 metres at 2.76% copper and 34.6g/t silver. The company says the results confirmed the broad association between copper and silver at Otniel, although the geometry, continuity, true widths and economic significance of the mineralisation still need to be established through further drilling and interpretation. The filing also notes that the first Otniel assay results were released after quarter-end.

Two rigs target Otniel and Donkey Hill

Six holes had been completed at Otniel by the report date, with a seventh underway. At Donkey Hill, two holes were complete and a third was in progress. Assays from the completed holes at both prospects were expected in four to six weeks, creating the next near-term test of whether the early Otniel results can be repeated and whether Donkey Hill hosts comparable subsurface mineralisation.

“Optimine diamond rig drilling DDOT007”

“Donkey Hill area with – surface rock-chip samples copper mineralisation showing total 1,500m mapped mineralised footprint. Also included is location of DDDH001 & DDDH002.”

Caption and image © Kaoko Metals Limited. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 29 Oct 2026.

Kaoko mobilised a second diamond rig to Donkey Hill during September, allowing simultaneous drilling across the two priority prospects. Surface work at Donkey Hill East had also extended mapped copper mineralisation more than 700 metres beyond the previously defined trend, with individual rock-chip samples reporting more than 50% copper. The 15,000m Chalkos drilling expansion now covers the broader Otniel and Donkey Hill targets, while a third rig is being tendered for Donkey Hill East, subject to successful tendering and mobilisation.

$20 million raise funds the acceleration

The exploration push is backed by a $20 million institutional-led placement at $2.20 a share. Kaoko issued 9,090,910 shares on 15 September, taking shares on issue to 69,705,910, with the proceeds earmarked for drilling, regional exploration across the roughly 400-square-kilometre Chalkos licence area, Karibib exploration and working capital. The September institutional placement was completed alongside the company’s existing funds.

Cash and cash equivalents stood at $22.0 million at 30 September, while quarterly exploration and evaluation expenditure was approximately $1.3 million. The Appendix 5B reported net cash used in operating activities of $457,000 and net cash used in investing activities of $1.424 million for the quarter. On the company’s stated calculation, that cash balance represented an estimated 12.5 quarters of funding at the quarter’s relevant outgoings, although an accelerated drilling program could change the spending rate.

Geophysics and Karibib widen the exploration pipeline

“Kaoko Metals Project Locations”

Kaoko plans to add drone magnetic and induced polarisation surveys at Chalkos from November. The magnetic work is intended to refine the project’s structural and lithological framework, while IP surveys are being used to identify possible sulphide-bearing zones along strike and at depth. The company explicitly cautions that IP anomalies are not necessarily economic copper mineralisation; their value will depend on how they align with mapping, geochemistry and drilling.

At the separate Karibib Copper-Gold-Tungsten Project, surface sampling returned results of up to 4.9% copper, 0.85g/t gold and 0.68% tungsten trioxide across several prospects. A project-scale soil and calcrete geochemical program is underway, with results expected in November, while geophysics is planned before any expanded drilling. Chalkos’ two licences remain subject to renewal applications, and no mining production or development activity was reported during the quarter.