Austral Resources Australia Confirms Blind Copper Oxide System Near Mt Kelly

Austral Resources Australia (ASX: AR1) has confirmed a significant blind copper oxide system at the Canyon prospect, less than four kilometres from its Mt Kelly heap leach and solvent extraction electrowinning (SX-EW) facility in Queensland.

Maiden drilling has intersected copper oxide mineralisation across more than 1.2km of strike, with the system remaining open in multiple directions.

The strongest result returned 24 metres at 1.03% copper from 74m, including 14m at 1.60% Cu from 83m.

Austral is targeting inventory growth around existing infrastructure as it looks to build future feed options for its Mt Kelly processing operation.

Large System Emerging

Austral commenced first-pass shallow percussion drilling at Canyon after the recent grant of exploration permit EPM 28881.

The program tested widespread copper anomalism across the project area and confirmed mineralisation close to the Mt Kelly heap leach and SX-EW plant.

The same hole in which the standout intercept occurred also returned a deeper zone of 42m at 0.21% Cu from 105m, while a second hole intersected broad shallow oxide mineralisation, returning 57m at 0.44% Cu from 4m and 47m at 0.19% Cu from 67m.

Initial drilling at Canyon Central has confirmed oxide copper mineralisation below surface, including 14m at 0.20% Cu from 3m and 26m at 0.25% Cu from 48m and 6m at 0.48% Cu from 87m in transitional mineralisation.

Additionally, Canyon North returned 29m at 0.36% Cu from 48m, including 11m at 0.64% Cu from 63m, with mineralisation remaining open beneath cover.

Local Infrastructure Advantage

Chair David Newling said the early results highlighted the quality of opportunities around Mt Kelly.

“While the grades and widths are encouraging, what makes Canyon particularly compelling is its location,” he said.

“We've identified a large copper oxide system less than four kilometres from our Mt Kelly processing facility, with mineralisation already defined over more than 1.2km and remaining open in multiple directions.”

“Discoveries of this scale and proximity to existing infrastructure are uncommon—rather than requiring significant investment in new processing facilities or long haulage distances, Canyon has the potential to leverage infrastructure already in place at Mt Kelly.”

“As we continue to define the size and continuity of the system, this creates a potential pathway to future feed for the operation and reinforces our strategy of growing copper inventories around our existing infrastructure,” he added.

Further Work Planned

Austral will undertake follow-up drilling aimed at defining the dimensions of the Canyon system and delineating higher-grade zones.

Step-out drilling will test continuity and potential connections between Canyon North, Canyon Central, and Canyon South.

The next phase will also include metallurgical test work to assess heap leach and SX-EW recovery characteristics.

Geological and structural studies will refine targeting and improve understanding of the controls on mineralisation as Austral assesses Canyon’s potential to contribute future feed to Mt Kelly.