Resources Quarterly Wrap: Five explorers chasing the next big find

• Kaoko has confirmed a copper-silver discovery in Namibia, while market peer Sultan has applied for a new exploration licence in the country
• SNX is undertaking 25,000m of drilling in Saudi Arabia for copper and gold after it won a competitive bidding process
• Artemis is preparing to test concealed copper-gold targets in WA, and QXR is advancing a Tanzanian uranium exploration target

Special Report:The search for the world’s next major mineral deposits is intensifying as expectations of growing demand for copper and other strategically important commodities put a new emphasis on exploration.

Finding those deposits is becoming increasingly important as the mining industry faces the challenge of meeting demand from electrification, expanding energy infrastructure and the technologies powering modern economies.

Copper is particularly important to that outlook as global annual demand is forecast to increase by roughly 7Mt by 2040, driven by electrical needs and emerging technologies.

Concerns for new supply coming online are also spurred by an expected shortfall of up to 25% of projected primary supply requirements by 2035.

Uranium is another commodity facing calls for new supply as countries – such as China, India, Russia, Egypt, Turkey, the UK, South Korea, and more – expand nuclear power generation to meet energy hunger pangs, while trying to keep emissions down.

Global reactor uranium requirements could rise from approximately 68,920t in 2025 to more than 150,000t by 2040 under the World Nuclear Association’s Reference Scenario.

Closing the chapter on the quarter ending in September, Stockhead takes a look at five ASX-listed companies chasing the next big find to meet demands for copper and uranium.

Kaoko Metals (ASX:KAO)

The September quarter marked a transition for this company from early-stage geological targeting to active diamond drilling across multiple prospects within the Kaoko Copper Belt, showing an encouraging early start to exploration at its Chalkos copper-silver project in Namibia.

Kaoko commenced drilling at the Otniel prospect in August, with the first holes intersecting broad zones of visible copper mineralisation.

The official assays did not disappoint, as one hole in particular returned 31m at 1.43% copper and 17.8g/t silver from 55m, including 13.1m at 2.30% copper and 29.6g/t silver. A second hole returned 48m at 1.02% copper and 12.9g/t silver from 46m, including 7.15m at 2.76% copper and 34.6g/t silver.

These results have reinforced Kaoko’s exploration ambitions, as the company expanded its original maiden drilling program to at least 15,000m. A second diamond rig was mobilised to the Donkey Hill prospect in September, enabling simultaneous drilling at Otniel and Donkey Hill.

Surface exploration at Donkey Hill East also identified copper mineralisation extending more than 700m beyond the previously mapped trend, expanding the broader surface mineralised footprint to approximately 1.5km.

Selective rock-chip samples returned exceptionally high copper grades, although further drilling will be required to determine the extent and continuity of mineralisation beneath the surface.

The explorer has begun tendering for a third diamond rig to accelerate exploration at Donkey Hill East, and is preparing for an expanded geophysical program.

Sierra Nevada Gold (ASX:SNX)

SNX added Saudi Arabia to its portfolio after succeeding in a highly-competitive bidding process to acquire the As Safra copper-gold project.

The past quarter saw SNX start a 25,000m Phase 2 drilling campaign at As Safra, following previous drilling which confirmed copper mineralisation over more than 800m of strike at the Central Copper Zone.

Significant intersections from Phase 1 drilling included 16m at 1.49% copper from 160m and 9m at 1.83% copper from 99m. Drilling also identified a separate copper system at As Safra Southeast, alongside gold-dominant mineralisation and a polymetallic breccia system containing gold, silver, copper, zinc and lead.

The expanded Phase 2 program will determine whether known mineralisation can support a maiden resource and whether the broader system could contain additional discoveries.

Of the new campaign, roughly 8000m will focus on defining the Central Copper Zone, while another 7000m will test extensions to known mineralisation along strike and at depth. The remaining 10,000m is allocated to new discoveries, targeting previously undrilled magnetic, gravity and induced polarisation anomalies.

Drilling will continue through to March next year, while first assays are expected this month. The campaign is also supported by a recent $12.3 million placement, with a further $550,000 director and management tranche initially subject to shareholder approval.

Artemis Resources (ASX:ARV)

Artemis Resources is preparing to drill large, concealed geophysical targets in an underexplored geological province east of Kalgoorlie at its Madura copper-gold project.

The company controls more than 2100km2 across more than 100km of strike along the western margin of the Madura Province, targeting intrusion-related copper-gold systems with geological characteristics potentially consistent with iron oxide copper-gold deposits.

The immediate focus is Cassowary, a large interpreted magnetic intrusion with a diameter exceeding 4km, located near the Madura Crustal Boundary. Artemis believes the combination of magnetic anomalies, structural disruption and geological modelling warrants a deep drilling campaign to investigate the underlying basement rocks and determine whether they contain significant copper-gold mineralisation.

An initial diamond hole of approximately 800m is planned to test the interpreted intrusion and associated prospective geological features. The broader initial program comprises three deep diamond holes totalling approximately 2250m, with two planned at Cassowary and another at the nearby Sharon Dam prospect.

Located approximately 50km south of Cassowary, Sharon Dam is centred on a substantial coincident magnetic and gravity anomaly and is subject to an earn-in agreement with Red Metal. The target is interpreted to lie beneath less than 250m of sedimentary cover.

Following quarter-end, the company reported that its exploration camp was being established, and a diamond drill rig had mobilised to Madura.

Artemis also secured up to $220,000 in additional co-funding under the Western Australian Government’s Exploration Incentive Scheme, and approximately $5 million from the second tranche of an $8 million placement.

QX Resources (ASX:QXR)

QX Resources is advancing preparations for its first modern drilling campaign at the Madaba uranium project in Tanzania after reporting a conceptual Exploration Target of 20–30Mt grading 400–500ppm eU₃O₈ during the past quarter.

Company management is looking to prove there’s plenty of upside at Madaba, given the exploration target is based on historical data and independent geological modelling.

Historical exploration has nevertheless provided evidence of uranium mineralisation across Madaba, including near-surface intersections such as 15m at 612ppm U3O8, incorporating 3m at 2465ppm, and 16m at 337ppm U3O8, including 4m at 1082ppm.

QX has used the historical information, together with independent geological modelling, to identify nine priority drill targets. The proposed exploration campaign is intended to verify those historical results, establish greater confidence in the continuity of mineralisation and generate the data needed to assess a maiden JORC resource.

In the meantime, the explorer has focused on progressing regulatory requirements, such as an Environmental Impact Assessment.

Sultan Resources (ASX:SLZ)

Sultan Resources booked itself an overseas trip after it applied for an exploration licence over the Kaalkop copper-gold project in Namibia earlier this year.

The move positions the company to investigate potential mineralisation within Namibia’s Central Damara Orogen, an established gold province attracting exploration interest for copper and other metals.

The region hosts many established gold discoveries, including WIA Gold’s Kokoseb project which hosts a 3.78Moz gold resource.

Sultan has so far applied for 171.2km2 of ground at Kaalkop. Historical exploration has identified copper-lead-zinc mineralisation associated with carbonate rocks, providing evidence for further investigation. The company also raised $1.31 million in that period to support exploration at Kaalkop.

At Stockhead we tell it like it is. While Artemis Resources, Kaoko Metals, QX Resources, Sierra Nevada Gold and Sultan Resources are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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