Warrego East Copper-Gold Project, Northern Territory (NT) (MLS 80%)
The Warrego East project includes granted EL32725 at Warrego east and three EL applications, EL32397, EL32837 and EL32410, located in the Tennant Creek Mineral Field (TCMF) (Refer to Figure 1).
The TCMF has produced 25Mt @ 6.9g/t Au & 2.8% Cu historically, with past production coming from deposits discovered in areas with limited outcrop, except for the Warrego deposit which was discovered under shallow cover. Metals Australia’s tenements are located on Cu-Au trends in areas of shallow soil cover which have not been tested with modern exploration techniques.
Figure 1: Location of Tennant Creek Project tenements and major Cu-Au deposits and targets
The Warrego East tenement, EL32725, is located immediately east of the Warrego high-grade Cu-Au deposit, which produced 4.95 Mt @ 2.0% Cu, 8g/t Au. Warrego East sits within a major east-west trending fault corridor interpreted from detailed magnetics and the Company’s gravity survey imagery, that connects Warrego with the Gecko and Orlando copper-gold deposits.
The Warrego, Orlando and Gecko copper-gold deposits are associated with subdued magnetic anomalies (possibly reflecting secondary magnetite and non-magnetic haematite alteration) within the interpreted structural corridor which continues across EL32725 (see Figure 2 below). Re-processing of detailed magnetics imagery revealed a series of similar magnetic anomalies within the Company’s EL32725. The Company’s previously completed detailed gravity survey within EL32725 which highlighted several anomalies partially coincident with the magnetic anomaly targets (Figure 2). These magnetic and gravity anomalies represent targets for Tennant Creek-style, ironstone-hosted, Cu-Au deposits in areas of shallow soil cover which have not been previously tested.
The targets identified formed the basis of a Mine Management Plan (MMP) that was submitted to the Northern Territory Govt (NTG) during the year. The MMP set out the company’s plans for a phase 1 aircore drilling program across the key target zones to test the magnetic and gravity targets identified within the expected underlying Warramunga Formation. The MMP also sets out follow up RC and/or diamond drilling programs for a future phase of drilling if the air-core program generates significant targets.
Figure 2: Warrego East EL32725 Total Magnetic Intensity (TMI) with significant Cu-Au deposits and MLS targets
The MMP was approved late in 2024, following consultation and follow-up with the Northern Territory Government. In parallel the company advanced a land access agreement with the owners of the station that the tenement covers. Engagements with the landholders, including an in-person meeting at the station during the quarter, resulted in the owners and the company agreeing to terms for land access – with a land access agreement signed and reported prior to quarter end. The MMP authorisation and Land access agreement cleared the pathway for exploration activities to progress following the end of the wet season (typically impacting December to May each year).
The company also worked with local indigenous groups to progress land access agreements & granting of the three tenements under application. On-country meetings were held during November 2024 and the company understands that the three tenements under application are all able to be progressed to the next step in the process. The existing and application tenements form a significant land holding in the region – and the timing of planned work is aligned with growing interest in the regions prospectivity for copper and gold. Late in 2024, the company noted that an approximately $82 M AUD transaction had been completed by Pan African Resources PLC (AIM: PAF) for Tennant Creek Mining Group Pty Ltd (TCMG), whose tenements include the adjoining tenement to EL 32725 on which the Warrego mine was operated.
